USD 728.1 million
Global Root Beer Market Size, Share, Growth Analysis, By Product(Alcoholic and Non-alcoholic), By Type(Conventional and Diet), By Distribution Channel(On-trade and Off-trade) - Industry Forecast 2024-2031
Report ID:
SQMIG30E2032 |
Region:
Global |
Published Date: February, 2024
Pages:
260
|
Tables:
84 |
Figures:
76
Global Root Beer Market Insights
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.
Market snapshot - 2024-2031
Global Market Size
Largest Segment
Alcoholic
Fastest Growth
Alcoholic
Growth Rate
4.6% CAGR
Global Root Beer Market 2022-2030 ($ Bn)
Country Share for North America Region- 2022 (%)
Global Root Beer Market By Product 2022-2030 ($ Bn)
Global Root Beer Market By Product 2022-2030 (%)
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Global Root Beer Market Segmental Analysis
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.
Global Root Beer Market By Product 2022 (%), 2023 (%)
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Global Root Beer Market Regional Insights
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.
Global Root Beer Market By Geography, 2022-2030, 2024-2031
- Largest
- Fastest
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Global Root Beer Market Dynamics
Drivers
Growing Popularity of Craft Root Beer to Bolster Market Growth
- The craft root beer market has gained popularity in recent years due to the growing trend of artisanal and handcrafted products. Consumers are willing to pay a premium price for unique and high-quality root beer products, leading to the growth of the craft root beer market.
Restraints
High Health Risks to Hinder Market Growth
- Although root beer is perceived as a healthier alternative to other carbonated soft drinks, it still contains high amounts of sugar, which can lead to health problems such as obesity, diabetes, and tooth decay. This has led to growing health concerns among consumers, which can impact the growth of the root beer market.
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Global Root Beer Market Competitive Landscape
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
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Anheuser-Busch InBev SA/NV
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Keurig Dr Pepper Inc.
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The Coca-Cola Company
-
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Caruso's Legacy (Boylan Bottling Co.)
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The Dad's Root Beer Company LLC
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Thomas Kemper Soda Co.
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The Pop Shoppe
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Sprecher Brewing Company Inc.
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IBC Root Beer
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Jones Soda Co.
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Sioux City Bottling Company
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Dog n Suds LLC
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Frostie Root Beer
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Double Cola Company
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Jackson Hole Soda Company
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Gale's Root Beer
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Tower Root Beer
Recent Developments
- In 2021, Barq's Floatz, a root beer soda with a vanilla ice cream flavor, is a new product line from the Coca-Cola Corporation.
- In 2020, Real cane sugar and natural flavors will be used in the production of a new line of canned root beer by A&W Food Services of Canada Inc.
Global Root Beer Key Market Trends
- Growing demand for craft root beer: Consumers are increasingly seeking unique and high-quality products, leading to the growth of the craft root beer market. Craft root beers are typically made with natural ingredients, and many are brewed in small batches, giving them a distinctive taste and character.
- Increasing popularity of low-sugar and sugar-free root beer: With growing concerns about the health impacts of sugar, many consumers are seeking out low-sugar or sugar-free root beer options. Some companies are responding to this trend by introducing new products that use natural sweeteners such as stevia or monk fruit.
- Emergence of new flavors: While traditional root beer flavor remains popular, some companies are introducing new flavors to cater to changing tastes. For example, some companies are producing root beer with added flavors such as vanilla, cherry, or caramel.
Global Root Beer Market SkyQuest Analysis
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 |
|
| 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 |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Global Root Beer Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Global Root Beer Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Global 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 Global 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.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Global Root Beer Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Global 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.
Global Root Beer Market Report Snapshots
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