USD 728.1 million
Report ID:
SQMIG30E2032 |
Region:
Global |
Published Date: February, 2024
Pages:
260
|Tables:
84
|Figures:
76
Global Root Beer Market size was valued at USD 728.1 million in 2021 and is poised to grow from USD 761.59 million in 2022 to USD 1091.38 million by 2030, growing at a CAGR of 4.6% in the forecast period (2023-2030).
Root beer is growing increasingly well between millennials, and the global foodservice market is growing, which are all major drivers of market growth. Due to the closures and restrictions placed on bars, restaurants, and hotels around the globe to the Coronavirus outbreak, the supply chain and distribution of root beer were disrupted. According to the 2020 ProWein Business Report, the COVID-19 affected about 77% of hotels, causing a 60% decline in sector wide turnover while driving a 91% decline in restaurant sales by year 2020.
The lockdown and travel restrictions, however, have benefited the market in some countries. Sassafras tree root bark has traditionally been used to start making root beer, a popular drink in North America. Because of its distinct flavor and low alcohol content, the beverage is becoming more and more popular on a global scale. A number of businesses, including Dad's Root Beer, Anheuser-Busch Companies, LLC, and Keurig Dr. Pepper, are exporting their root beer. Sassafras root bark, wintergreen leaves, honey, sugar, molasses, vanilla extract, and water are the typical ingredients of non-alcoholic root beer. Black cherry bark, sassafras, vanilla, wintergreen, sweet birch, cinnamon, acacia, anise, nutmeg, licorice root, and caramel are a few of the root beer's well-known flavors. It also has a number of health benefits.
Moreover, an increase in R&D activities and a growth in modernization of recently introduced products will create new opportunities for the root beer market during the projected period. The company's rising cost of R&D activities, however, is the main restraint and it will create new challenges for the root beer market during the forecast period.
Global Market Size
USD 728.1 million
Largest Segment
Alcoholic
Fastest Growth
Alcoholic
Growth Rate
4.6% CAGR
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Global Root Beer Market is segmented based on Product, Type, Distribution Channel and region. Based on Product the market is segmented into Alcoholic and Non-alcoholic. Based on Type the market is segmented into Conventional and Diet. Based on Distribution Channel the market is segmented into On-trade and Off-trade. Based on region the Market is segmented into North America, Europe, Asia-Pacific, South America, and MEA.
Analysis by Type
In 2021, the conventional segment accounted for the biggest portion of global revenue—more than 82.5%. Traditional root beer often has an ABV of less than 2% or is non-alcoholic. The North American continent is where it is largely consumed. Sassafras root bark was used to make traditional root beers (a North American species of tree). Traditional root beers' major flavoring and ingredient is sassafras. The Food and Drug Administration outlawed sassafras in 1960 because it contained safrole, a substance known to cause cancer. Sassafras flavoring is an artificial ingredient found in the majority of commercial root beers now on the market.
To maintain the genuine flavor of root beer, certain businesses, like Hansen Beverage, employ sassafras extract free of safrole. Over the forecast period, it is anticipated that the diet type sector will expand at a constant Rate. Due to the expanding health and wellness trends, customers are becoming more and more interested in diet root beers, including those that are sugar-free, low-sugar, caffeine-free, gluten-free, and others. The segment growth is also anticipated to be accelerated by the increasing westernization of Asia Pacific and other regions. Diet root beers, such as those with no sugar and no calories, are offered by businesses such as Keurig Dr. Pepper Inc., The Coca-Cola Corporation, Dad's Old Fashioned Root Beer, and Boylan Bottling.
Analysis by Distribution Channel
In terms of revenue, the off-trade distribution channel segment dominated with a market share of 70.9% in 2021. Root beer carts, supermarkets, hypermarkets, retail stores, caterers, beer/specialty stores, and e-commerce sites are all parts of the off-trade distribution route. The segment is anticipated to develop as a result of customer demand for e-commerce. Compared to the on-trade channel, this sales channel has grown more lately. Through off-trade channels, product sales increased as a result of the pandemic-induced lockdown. The International Wine and Spirit Record (IWSR) reported in its 2020 Drink Analysis report that the off-trade channel accounts for almost 80% of all alcohol sales in the United States.
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North America dominated the market in 2021, accounting for 41.3% of global revenue. In North America, Americans consume the most root beer. In the nation, customers like soft root beer. Nonetheless, rising consumer preference for low-alcohol drinks with distinctive flavors is fueling the region's demand for hard root beer. ABVs of 5 to 6% are normal for hard root beers. The world's biggest consumer of root beer is the United States. Because it was traditionally made from the root bark of the sassafras tree, which is primarily grown in the U.S., this beverage is American in origin.
Asia-Pacific is one of the regions with the highest potential for growth in the root beer market due to changing consumer lifestyles and the influence of western culture in this region.
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Drivers
Growing Popularity of Craft Root Beer to Bolster Market Growth
Restraints
High Health Risks to Hinder Market Growth
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These key players compete on various factors such as taste, price, distribution, packaging, and marketing. Some companies focus on producing high-quality, artisanal root beer, while others target mass-market consumers with more affordable and accessible options. The companies also differ in terms of their distribution channels, with some selling primarily through supermarkets and convenience stores, while others sell through their own retail outlets or online marketplaces. The competitive landscape of the root beer market is expected to continue to evolve as companies adapt to changing consumer preferences and market conditions.
Top Player’s Company Profiles
Anheuser-Busch InBev SA/NV
Keurig Dr Pepper Inc.
The Coca-Cola Company
Caruso's Legacy (Boylan Bottling Co.)
The Dad's Root Beer Company LLC
Thomas Kemper Soda Co.
The Pop Shoppe
Sprecher Brewing Company Inc.
IBC Root Beer
Jones Soda Co.
Sioux City Bottling Company
Dog n Suds LLC
Frostie Root Beer
Double Cola Company
Jackson Hole Soda Company
Gale's Root Beer
Tower Root Beer
Recent Developments
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates and Analyses the Data collected by means of Primary Exploratory Research backed by the robust Secondary Desk research.
According to our analysis, we found that the Root Beer market is growing increasingly well between millennials, and the global foodservice market is growing, which are all major drivers of market growth. Moreover, an increase in R&D activities and a growth in modernization of recently introduced products will create new opportunities for the root beer market during the projected period. The company's rising cost of R&D activities, however, is the main restraint and it will create new challenges for the root beer market during the forecast period.
Report Metric | Details |
---|---|
Market size value in 2023 | USD 728.1 million |
Market size value in 2031 | USD 1091.38 million |
Growth Rate | 4.6% |
Forecast period | 2024-2031 |
Forecast Unit (Value) | USD Million |
Segments covered |
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Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
Companies covered |
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Customization scope | Free report customization with purchase. Customization includes:-
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Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
For the Root Beer Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Root Beer Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Root Beer Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Root Beer Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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Report ID: SQMIG30E2032