Enjoy complimentary customisation on priority with our Enterprise License!
The root beer market is estimated to increase by USD 139.76 million between 2022 and 2027. The size of the market is forecast to grow at a CAGR of 4.32%. The growth of the market depends on several factors, including the growing global beer market, the growing demand from millennials, and the emergence of low-ABV cocktails.
To learn more about this report, Download Report Sample
The emergence of low-ABV cocktails is notably driving the market growth, although factors such as low awareness and lack of standardized definition of quality may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Market Driver
The emergence of low-ABV cocktails is notably driving market growth. Low-alcohol beverages are driving the global alcohol drink market as consumers have become more health-conscious. Many consumers are substituting hard drinks with light drinks. In addition, they also read the nutritional labels on products and demand those that contain lower alcohol content. Root beer, an excellent carrier of flavor, is often used by bartenders and home drinkers to bring out the flavor and depth of a drink without using high-ABV spirits or mixing them with fruit juices. Thus, the emergence of cocktails is helping the global market grow at a fast pace.
Furthermore, root beer is usually used in classic cocktails. Millennials are gradually rediscovering these cocktails with the comeback of Italian cocktails like the Negroni and the Americano. Currently, it is also increasingly used in modern craft cocktails. Bartenders in pubs and bars across several countries are introducing new cocktail recipes based on this beer. Thus, factors like these are expected to drive the growth of the global market during the forecast period.
Significant Trend
The increasing prominence of root beer floats is an emerging trend in the market. The increasing prominence of floats among consumers will have a positive impact on the growth of the market during the forecast period. This trend has become popular among consumers. Some of the popular floats include Bailey float, Barbarian, Black and Brown, Dirk Diggler, and others.
Furthermore, the practice of using the drink with ice creams to make floats is also growing. Non-alcoholic root beer is one of the popular drinks among children in the US. These floats are prepared by mixing vanilla, chocolate, or other flavors of ice creams with the drink. Moreover, alcoholic floats are becoming popular among adults, which will also have a positive impact on the growth of the market during the forecast period.
Major Challenge
The low awareness and the lack of a standardized definition of quality are major challenges impeding the market growth. Root beer is still relatively unknown to the masses. Building brand loyalty and adopting new brands takes almost 2-3 years. If new and smaller manufacturers want this to change, they need to invest on a large scale. Currently, many new players are introducing marketing initiatives to highlight their offerings. However, it will still take some time to become popular among the masses.
Additionally, one of the major challenges for the regulators of this market is the lack of a standardized definition of quality for the drink. With the increasing popularity, regulatory bodies are expected to come up with a standardized definition during the forecast period. Therefore, the low awareness and the lack of a standardized definition of quality are expected to hamper the growth of the global market during the forecast period.
Key Market Customer Landscape
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
AleSmith Brewing Co. - The company focuses on handcrafted ales prepared in a variety of styles. The key offerings of the company include root beer such as San Diego State Ale.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market share growth by the decaffeinated segment will be significant during the forecast period. With the increasing awareness of the harmful effects of consuming caffeine, the demand for and sales of decaffeinated products will remain high during the forecast period.
Get a glance at the market contribution of various segments Request a PDF Sample
The decaffeinated segment was valued at USD 438.63 million in 2017 and continued to grow until 2021. Players operating in this space are coming up with decaffeinated products to cater to the demand of consumers. Most of the new products launched in recent times are decaffeinated. The majority of contemporary variations are caffeine-free. Other types of soda caffeine come from kola nuts, a nut that is frequently utilized in carbonated beverages. The caffeine stimulation comes from the kola nut. However, filtered water, sugar, and sassafras extract are now used in current recipes. These are merely a few basic elements, although they may differ based on the particular brand. Thus, with the increasing demand for decaffeinated products is expected to drive the growth of the segment in the global market during the forecast period.
For more insights on the market share of various regions Request PDF Sample now!
North America is estimated to contribute 40% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The US and Canada are the leading countries in the market in North America. The growing number of breweries in the country is driving the growth of the market in the US. For instance, the number of craft breweries that serve the drink in the US increased from 6,661 in 2017 to 8,275 in 2019. Thus, the presence of key companies and the rising number of breweries in the region will drive the growth of the market in the region during the forecast period.
Moreover, companies are strengthening their market presence by launching new products and opening new breweries in the region. The launch of new flavors of the drink in the region will also increase consumption which will propel the growth of the market in the region during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
The Market is influenced by diverse factors, from traditional recipes to modern health trends. Despite challenges like turnover and sales declines due to lockdowns and travel restrictions, North American drinks with ingredients like sassafras, honey, and vanilla extract remain popular. Root beer, originating from the Prohibition period, appeals to a wide audience, including teenagers and health-conscious consumers, with low-alcohol and non-alcoholic segments catering to varied preferences. Brands like Not Your Father’s Root Beer and Abita Bayou Bootlegger lead the alcoholic product segment, while Warped Wing Soda Co. offers gluten-free options, tapping into the diet type segment. Distribution channels, including supermarkets and e-commerce platforms, ensure accessibility, contributing to market resilience amidst the pandemic. With increasing health and wellness awareness, the market continues to evolve, embracing vegan and sugar-free alternatives.
The market has witnessed a resurgence in recent years, attracting teenagers and millennials alike. Root beer, once associated with the prohibition period, now offers a diverse range of alcoholic and non-alcoholic products to cater to various consumer segments. Innovative offerings like "Not Your Father's Root Beer" and "Abita Bayou Bootlegger" have revitalized the market, enticing consumers with unique flavors like sassafras. Additionally, the diet type segment has seen growth with sugar-free, caffeine-free, and gluten-free options becoming increasingly popular. Root beer products are widely available in supermarkets and e-commerce platforms, making them easily accessible to consumers seeking nostalgic flavors or new experiences. As consumer preferences continue to evolve, the market remains dynamic and adaptable to changing tastes and trends.
Root Beer Market Scope |
|
Report Coverage |
Details |
Page number |
155 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.32% |
Market growth 2023-2027 |
USD 139.76 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
3.76 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 40% |
Key countries |
US, Canada, France, Germany, and UK |
Competitive landscape |
Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AleSmith Brewing Co, Anheuser Busch InBev SA NV, Beerwulf BV, BrewDog Plc, Cloudwater Brew Co, Diageo Plc, East 9th Brewing Co., Forbidden Root Restaurant & Brewery, Iconic Brewing Co., Keurig Dr Pepper Inc., Kirin Holdings Co. Ltd., Mikkeller APS, Mission Brewery, Molson Coors Beverage Co., Saranac Brewery, Sprecher, Stone Brewing Co. LLC, Swinkels Family Brewers, Wild Beer Co, and The Boston Beer Co. Inc. |
Market dynamics |
Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our market research report report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Distribution Channel
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Get lifetime access to our
Technavio Insights
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.