Root Beer Market

Market Overview:

The global root beer market size reached US$ 881.2 Million in 2023. Looking forward, IMARC Group expects the market to reach US$ 1,299.4 Million by 2032, exhibiting a growth rate (CAGR) of 4.4% during 2024-2032. The increasing preference for non-alcoholic, carbonated beverages among health-conscious consumers, introduction of new flavors and variations of root beer to meet the evolving tastes of consumers, and rise in popularity of craft beverages represent some of the factors that are driving the market.

Root beer is a sweet, carbonated beverage originally made using the root of the sassafras tree or the bark of a sassafras tree as the primary flavor. While some artisanal varieties still use actual sassafras, many commercial varieties today use artificial sassafras flavoring due to health concerns with the naturally occurring safrole found in sassafras roots and bark. This beer is known for its distinct flavor, which is typically described as creamy, spicy, and sweet, with a complex flavor profile that can include notes of vanilla, cherry, wintergreen, licorice, and molasses. It has a thick, foamy head when poured, similar to beer.

The global market is primarily driven by the increasing preference for non-alcoholic, carbonated beverages among health-conscious consumers. In line with this, manufacturers are continuously innovating with new flavors and variations of this beer to meet the evolving tastes of consumers, which is fueling the market. Moreover, the rise in popularity of craft beverages, especially among millennial and Gen Z consumers, is leading to an increased demand. In addition to this, the inflating disposable income of the consumers, particularly in developing countries resulting in a higher expenditure on luxury and niche beverages is also stimulating the growth of the market. Furthermore, the easy product availability across offline and online organized retail platforms is also creating lucrative opportunities in the market. Some of the other factors contributing to the market include increased marketing efforts and promotional activities, rising popularity of western lifestyle and dietary habits, and extensive research and development (R&D) activities by key players.

Root Beer Market Trends/Drivers:

Rise in the health and wellness trend

The global health and wellness trend is increasingly shaping consumer behavior across various sectors, including the beverage industry. Consumers are more informed and conscious about the ingredients in their food and beverages than ever before, which is a major driver for the global market. Unlike many other carbonated beverages, this beer often contains natural ingredients and is usually caffeine-free, making it a preferred choice for health-conscious consumers. Some brands are even innovating to produce versions with reduced sugar content or using natural sweeteners to cater to the demand from those looking to limit their sugar intake. Additionally, it offers a unique taste experience without the alcohol content, making it an attractive option for those pursuing healthier lifestyles. Companies that emphasize these healthier aspects of the beer products in their marketing strategies are likely to experience enhanced growth.

The advent of gourmet and artisanal products

Another significant driver for the global market is the rising consumer interest in gourmet and artisanal food and beverage products. Root beer, with its complex flavor profile and traditional brewing methods, is seen as a craft beverage that caters to this trend. The demand for unique, high-quality products is encouraging manufacturers to produce artisanal beers that can command premium prices. Root beer, with its complex and multifaceted flavor profile, is regarded as a craft beverage that caters to this trend perfectly. The desire for unique, high-quality products that offer a distinct and rich taste experience is encouraging manufacturers to innovate and produce artisanal beers that can command premium prices. Companies are producing small-batch of beers by using organic and local ingredients and employing traditional brewing techniques to offer high-end products, thereby driving growth in the market.

Rapid urbanization resulting in lifestyle changes

Root beer, traditionally a quintessential western beverage, is gaining popularity in various parts of the world due to this global urbanization. This trend is driven not just by increased exposure to different cuisines and cultures, but also by the desire to experience new and unique flavors. With its rich history and distinctive taste, the product caters perfectly to this desire for new culinary experiences. Furthermore, this beer is also seen as a trendy, modern beverage. This perception, coupled with the increase in western-style fast-food outlets worldwide, can significantly drive its popularity among consumers wanting to try new products. Moreover, the fast-paced urban lifestyle supports the growth of the food and beverage industry, including convenient and ready-to-drink products. The influence of urbanization on lifestyle changes and consumption patterns is therefore playing a key role in expanding the reach of this beer across the globe.

Root Beer Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global root beer market report, along with forecasts at the global, regional, and country levels from 2024-2032. Our report has categorized the market based on type, form and distribution channel.

Breakup by Type:

• Alcoholic
• Non-alcoholic
   

Non-alcoholic represents the largest market segment

The report has provided a detailed breakup and analysis of the market based on the type. This includes alcoholic and non-alcoholic. According to the report, non-alcoholic represented the largest segment.

Non-alcoholic beer variants offer a flavorful alternative that allows consumers to enjoy a familiar beverage without the alcohol. This option is especially attractive to those who enjoy the taste of beer but want to maintain a healthier lifestyle. Non-alcoholic beverage variants are considered a family-friendly beverage type that can be enjoyed by individuals of all ages. Additionally, parents appreciate it as a non-caffeinated alternative to other soft drinks, further driving the demand in this segment.

On the other hand, craft and artisanal beverages are perceived as high-quality, premium products that offer a unique taste and experience. The rise of microbreweries and local brewing businesses has made access to craft alcoholic root beer easier, further fueling the growth of the alcoholic segment.

Breakup by Form:

• Carbonated
• Non-carbonated
   

The report has provided a detailed breakup and analysis of the market based on the form. This includes carbonated and non-carbonated. 

Root beer has traditionally been a carbonated beverage and is often associated with its fizzy texture. Consumers often prefer this beer for its carbonation, associating it with refreshment and satisfaction. This established preference supports the continual demand for carbonated beer variants. In addition to this, the sensation of carbonation can have a palate-cleansing effect and provides a distinctive mouthfeel. This association between carbonation and refreshment is propelling the segment growth.

On the other hand, a section of consumers seeks diversity in their beverage choices, preferring still or non-carbonated options. Non-carbonated variant of this beer provides this variety, offering a different taste experience and texture that can be appealing to these individuals. Brands that offer non-carbonated beverage variants are able to cater to this diverse consumer preference, which can set them apart in a crowded marketplace.

Breakup by Distribution Channel:

• Supermarkets and Hypermarkets
• Specialty Stores
• Online Stores
• Departmental Stores
• Others
   

Supermarkets and hypermarkets accounts for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the distribution channel. This includes supermarkets and hypermarkets, specialty stores, online stores, departmental stores, and others. According to the report, supermarkets and hypermarkets represented the largest segment.

Supermarkets and hypermarkets offer consumers the convenience of finding all their groceries, including beverages, under one roof. This reduces the time and effort required for shopping, which is an important factor for today's busy consumers. As these retailers often carry multiple beverage brands and varieties, they cater to a broad range of consumer preferences.

On the other hand, specialty stores, such as craft beer shops, often employ knowledgeable staff who can offer expert advice and recommendations. This personalized customer service, coupled with a curated selection of products, enhances the shopping experience and can influence purchase decisions, driving sales of specialty root beers. Additionally, these stores often host tasting events or promotions that further increase the appeal of their product offerings.

Moreover, the convenience of online shopping, including the ability to shop anytime and anywhere, compare prices, read reviews, and have products delivered directly to their homes, has led to a significant rise in online retail. This extends to the beverage industry, where consumers can find a wide selection of beer brands, including those not available in their local stores. Moreover, subscription services or recurring delivery options further simplify the shopping process.

Furthermore, department stores generally have a diverse range of products available, including beverages. Consumers who visit these stores for other purchases can conveniently pick up root beer during their shopping trip. This easy access, combined with the wide variety that department stores often offer, contributes to the segment's growth. Also, department stores frequently run promotional campaigns, offer seasonal discounts, or have loyalty programs that incentivize consumers to make purchases. Additionally, these promotions often create a sense of urgency, encouraging immediate purchase and driving sales volume.

Breakup by Region:

• North America
  • United States
  • Canada
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Others
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

North America exhibits a clear dominance, accounting for the largest root beer market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. 

The culture of craft and artisan beverages in North America is a significant driver for the root beer market, as consumers are increasingly seeking out unique, premium-quality beverages that offer a distinct taste experience. Additionally, the strong presence of key market players in the region, who have a long-established tradition of root beer production, also plays a major role, as this ensures consistent availability and a variety of choices for consumers. Besides this, the growing influence of digital marketing and e-commerce, allowing easy access to a variety of root beer brands and facilitating direct-to-consumer sales, is another factor driving the market growth in the region. Furthermore, the rising trend of health consciousness in North America encourages the demand for root beer, which is often perceived as a healthier alternative to conventional sodas due to its natural ingredients and lower sugar content.

Competitive Landscape:

Top players in the root beer market are focusing on innovation and diversification of product lines to cater to a broad range of customer preferences, from traditional flavors to exotic, experimental ones. They are also enhancing their manufacturing and distribution channels to increase production efficiency and reach a wider consumer base, with some businesses expanding their operations internationally. Additionally, major companies are utilizing data analytics and market research to understand changing consumer trends and preferences to tailor their marketing strategies. Besides this, they are focusing on partnerships, mergers, and acquisitions to gain access to new technologies and expand their customer base. Furthermore, the key players are incorporating eco-friendly practices in their production process and packaging due to the increasing consumer demand for environmentally conscious brands.

The report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• A&W Restaurants Inc.
• Bundaberg Brewed Drinks Pty Ltd
• Crazy Uncle Cocktails
• Keurig Dr Pepper Inc.
• Sprecher Brewing Co.

Root Beer Market Report Scope:

Key Questions Answered in This Report:

• How has the global root beer market performed so far, and how will it perform in the coming years?
• What are the drivers, restraints, and opportunities in the global root beer market?
• What is the impact of each driver, restraint, and opportunity on the global root beer market?
• What are the key regional markets?
• Which countries represent the most attractive root beer market?
• What is the breakup of the market based on the type?
• Which is the most attractive type in the root beer market?
• What is the breakup of the market based on the form?
• Which is the most attractive form in the root beer market?
• What is the breakup of the market based on the distribution channel?
• Which is the most attractive distribution channel in the root beer market?
• What is the competitive structure of the global root beer market?
• Who are the key players/companies in the global root beer market?

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the root beer market from 2018-2032.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global root beer market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the root beer industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.