The Root Beer Market was valued at USD 813.1 million in 2021 and is projected to reach USD 997.1 million by 2025. The market is expected to exhibit a CAGR of 5.4% from 2025 to 2035, reaching USD 1,697.2 million by 2035.
Root beer is a common carbonated soft drink that is distinct in flavor, with an American history. Growing consumer interest in heritage and specialty beverages and increasing consumer interests for natural and lower-sugar food products is driving the industry. The rise in craft drinking, as well as more wider reach distribution channels, is also boosting root beer market growth.
| Metric | Value |
|---|---|
| Market Size in 2025 | USD 997.1 million |
| Projected Market Size in 2035 | USD 1,697.2 million |
| CAGR (2025 to 2035) | 5.4% |
The root beer market has mostly been driven by this growing trend of craft drinks, where the greater number of consumers appearing to be in quest of unique and craft flavors. That made way for a trend of craft root beers - specialty root beers containing higher quality or unique ingredients and recipes. As a result, this has created the space for smaller brands producing for more local and regional customers leaving root beer, segment of the market in itself.
As more and more consumers are looking for a health benefit, the low-sugar, natural ingredient drink market has grown. The root beer makers are hopping on a trend of introducing products sweetened with natural substances such as stevia or cane sugar to capture the palates of health-conscious consumers.
Another important factor driving the market's growth is the trend towards clean-label ingredients and open sourcing.The hip, non-alcohol version of root beer is gaining traction because consumers increasingly want non-alcoholic versions of traditional sodas and alcoholic drinks. Sales of cool, family-style beverages are driving demand for root beer, especially where traditional sodas are being replaced by health foods.
This change in distribution channels allows consumers to more conveniently shop root beer products via internet shopping and store shelf space, making it easier to sell products that may not have been previously available or convenient.
The growing distribution of root beer in retail, convenience, and e-commerce stores is driving the growth of market penetration. In recent years, brands have sought out international markets, and they’ve distributed root beer to markets where there has never been significant demand.
Tables below present data for comparative analysis of shift in CAGR (Change in compound annual growth rate) of global Root Beer Sector over period of six months (2024 & 2025). This comparison is to highlight the significant performance changes and also shows trends that will help in revenue realization which helps the stakeholders to build a perspective on growth direction throughout the financial year. Specifically, H1 refers to the January to June months. H2 from July to December.
| Period | CAGR |
|---|---|
| H1(2024 to 2034) | 5.2% |
| H2(2024 to 2034) | 5.3% |
| H1(2025 to 2035) | 5.4% |
| H2(2025 to 2035) | 5.5% |
The Root Beer Market is projected to grow at a CAGR of 5.4% during the first half (H1) period 2025 to 2035 and by an audacious fractional percentage to 5.5% during the last half (H2) years of the same time frame. For H1, the market will see 20 BPS growth, and for H2, it would be like additional 10 BPS growth in the market.
The Global Behemoths, This segment is led by major, multinational beverage corporations with established brands, significant production capacity, and extensive distribution networks. These are companies that target mainstream consumers and have broad representation in world markets.
Major brands include The Coca-Cola Company (Barq’s Root Beer), PepsiCo (A&W Root Beer), Keurig Dr Pepper (Mug Root Beer) and Henry Weinhard’s. They enjoy the advantages of an established brand name, the scale of production, the distribution to supermarkets and convenience stores, online and foodservice. This company's root beer products come in multiple varieties (regular, diet, and sugar-free) and are proving popular with consumers seeking traditional American soft drinks.
Regional Players, regional soft drink manufacturers and independent beverage companies that specialize in producing gourmet, craft, or local root beer brands. While those companies may not have the global scale of Tier 1 players, they can service regional tastes and focus on small batch production or proprietary recipe development.
Examples include Virgil’s Root Beer, Sprecher Brewing Co. and Boylan Bottling Co. Because while Premium Craft Beverage brands are, in fact, often reliably artisanal, so many evoke natural ingredients and premium flavor profiles. Further to attracting consumers focused on craft goods, Tier 2 players focus on the shift for more organic, handmade and non-GMO products from consumers seeking top quality products that adhere to sustainability.
Local and Small-Scale Producers, while the number of Tier 3 players is small, they produce niche artisanal root beer products on a local basis. They are often artisanal or traditional-style root beer recipes with regional ingredients, and often come with the promise of organic certification. These producers usually cater to local or regional consumers, often through farmer’s markets, specialty food stores and local bars.
And that’s only even remotely possible with some rarefied flavor or minute scale production and a strong sense of whoever-the-brand-is represented, and a strong local-to-them loyalty. Their presence may be modest, but these companies cater to consumers who are growing more interested in real, different and artisanal beverage options that set themselves apart from commodified goods.
Revival of Classic Soda Fountain Culture
Shift: The renewed interest in vintage dining experiences and classic Americana has re-energized soda fountain culture, which served root beer fresh on tap. Millennials and Gen Z consumers, in particular, have a strong predilection to nostalgic drinks that offer a retro drinking experience, thus driving the demand for draft-style root beer at restaurants, diners and specialty stores. At the same time, the rise of the so-called “experience-driven” dining has given new life to classic eateries serving up freshly poured root beer.
Strategic Response: Recognizing this trend, A&W extended its on-tap root beer lineup at some diners and quick-service restaurants, resulting in a 12% increase in customers through the door. Growth-focused boutique root-beers such as Hank’s and Fitz’s, began offering refillable growlers of freshly brewed batches of root beer, increasing consumer interaction and helping to drive a 18% increase in repeat purchases.
At the same time, nostalgia-driven marketing campaigns, like Stewart’s Root Beer bringing back traditional soda fountains in select USA locations, have reinvigorated interest in the classic root beer-going experience.
Crossover with Coffee and Cold Brew Beverages
Shift: In the current beverage landscape, where sweet, carbonated drinks are falling out of favor with some consumers, root beer is now sometimes combined with coffee and cold brew. The trend is especially popular among young professionals and java lovers, who crave bold drinks and caffeinated sodas. And the popularity of energy-boosting alternatives to traditional sodas has led to the emergence of root beer-flavored cold brew and nitro-infused versions.
Strategic Response: In response to this demand, Stubborn Soda introduced a nitro-infused root beer, replicating the creamy mouthfeel of a traditional root beer float (while also appealing to coffeehouse drinkers). This innovation resulted in a 14% sales boost for café chains.
The beverage was part of a line of new drinks at the time, including a root beer cold brew latte from Barq’s, aimed at targeting consumers searching for a caffeine fix, that moved the needle on trial purchase lift in select test markets by 10%. Boutique brands like Pilot Coffee Roasters also started to release root beer espresso sodas that marry two favorite beverage categories, potentially broadening their reach among craft coffee lovers.
Integration into Cocktail and Mixology Culture
Shift: The growing mixology culture and at-home bartending has made root beer an increasingly popular cocktail and mocktail mixer. As drinkers search for high-end, nostalgic tastes to spice up alcoholic options, root beer is increasingly used as a base for whiskey and bourbon cocktails. This trend resonates tremendously with millennials and Gen Z seeking insightful alcoholic experiences beyond traditional beers and seltzers.
Strategic Response: Recognizing this change in taste, Not Your Father’s Root Beer began partnering with craft distilleries to create whiskey-root beer pairings, which helped them see a 20% increase in sales of premium bottles.
Moreover, Fever-Tree released a premium spiced root beer mixer, it caught on in upscale bars and contributed to a 13% bump in sales. At the same time, Anheuser-Busch added to its lineup of Spiked Seltzer a hard seltzer flavored like root beer as it focused on the growing ready-to-drink (RTD) segment of alcoholic beverages, producing a 12% jump in sales.
Expansion of Root Beer-Infused Desserts and Edibles
Shift: The rise of at-the-table desserts and first class indulgences has also led to an interest in root beer flavored desserts, with a particular focus on ice creams, candies, baked items, and even protein bars. Black sesame, buckwheat, tangy yogurt and other flavors are high on consumers’ wish lists, especially in North America and Europe, which is why dessert innovations that include these tastes in new ways hold such a strong appeal. The growth of small-scale confectionery brands is bringing root beer into a wider array of sweet products, as well.
Strategic Response: Then, to capitalize on the trend, its Ben & Jerry’s brand launched a limited-edition root beer float ice cream, which helped drive seasonal sales up 11%. In the meantime, gourmet candy makers like Hammond’s rolled out root beer barrel-infused chocolates, fueling a 9% boost in specialty store sales. Krispy Kreme also recently teamed up with a major root beer brand to launch a root beer-glazed doughnut that led to high levels of consumer engagement and a 7% increase in store visits.
Surge in DIY Home Brewing and Soda-Making Kits
Shift: As the home-brew culture spreads beyond beer and coffee, consumers are increasingly interested in making their own sodas, including root beer. Home soda-making kits are spreading in popularity among DIY devotees, especially in the USA and Canada, who want to play with flavors, control ingredients and tweak sweetness levels. The growth of e-commerce and direct-to-consumer (DTC) sales of beverages only further inspired the desire to have DIY root beer kits available.
Strategic Response: In response to this new demand Brooklyn Soda Works launched a premium homemade root beer brewing kit that has driven 15% YOY growth in direct-to-consumer sales. And Williams Sonoma partnered with high-end soda brands to create curated root beer syrup concentrates, which aimed at home mixologists and helped boost its gourmet retail sales by 12% in 2020. They were also introduced root beer carbonation kits, including Redditor the DIY Soda Club, to enable consumers to make carbonated sodas at home, which helped increase sales of hobbyist beverages by 9%.
Increasing Use in BBQ and Culinary Applications
Shift: Root beer is the hot new ingredient to use in BBQ sauces, marinades, and long-simmering dishes. Its nuanced flavor profile, which carries notes of vanilla, spice and molasses, makes it a desirable ingredient for savory notes. Consumer enthusiasm for root beer-based sauces is increasing due to the popularity of gourmet home cooking and region-specific BBQ styles in the USA.
Strategic Response: To tap into this demand, Jack Daniel’s BBQ collaborated with a prominent root beer producer to create a branded root beer barbecue sauce, resulting in condiment sales rising by 17%. Meanwhile, high-end restaurants have started adding root beer reductions to fancy fare, and brands such as Virgil’s have produced concentrated root beer glaze for home cooks, pushing a 10 percent increase in specialty food sales. Moreover, craft brewers have begun to use root beer as a flavor base for smoky BBQ-style beer pairings, luring in new consumers to the category.
Estimated Growth Rates of Top Regions for Root Beer Market 2025 to 2035
| Country | CAGR, 2025 to 2035 |
|---|---|
| USA | 5.2% |
| Canada | 5.3% |
| Germany | 4.9% |
| India | 6.2% |
| China | 5.8% |
| Australia | 5.1% |
The American root beer market remains integral, sustained by a special blend of nostalgic worth, changing consumer preferences, and a renaissance in craft drinks innovation. Root beer has long been a part of American tradition, where it is often connected with heritage brands and regional specialties.
Now the drink is experiencing a revival as consumers clamor for natural, artisanal and small-batch versions. Lite roots beer is but one of the fresh types of non-alcoholic craft brews as obsession with creating unique, sugar-free, organic and herbal craft beverages have hit the "casual drinking" market. Meanwhile, boozy root beers made with spices and brewed in small batches attract a younger adult audience seeking flavorful alternatives to regular beers and ciders.
The root beer market in India is in its infancy but growing at an unprecedented rate as a unique beverage segment with a natural, herbal, and wellness focus. Specifically, Indian consumers urban dwellers, in particular are becoming increasingly interested in alternative beverages that provide digestive health benefits, herbal functionality, and/or Ayurvedic components.
Local producers and nutraceutical brands are launching Ayurvedic root beer formulations, merging traditional botanicals like ashwagandha, ginger and tulsi with Western-style root beer flavor profiles. The use of natural sweeteners and healing roots is in step with country’s fast growing functional food and beverage segment. Seeing the emergence of root beer in cosmetics, dietary supplements, and herbal lozenges, immunity drinks, and Ayurvedic tonics.
With the growing awareness among consumers, both for indigenous wellness and for health trends in meditation around the world, it is foreseen that India will be a new sustainable growth market for root beer, for both beverage and non-beverage applications.
A growing preference among German consumers for such products as botanical beverages, herbal infusions and clean-label soft drinks makes it a strong market for premium and health-oriented root beer products. Although pulled more recently in North America, interest in root beer has swelled in Europe, dovetailing with the craft soda zeitgeist and a growing interest in traditional wellness ingredients.
Non-alcoholic and alcoholic forms of the drinks are being marketed to specialty stores and organic supermarkets. Health-conscious consumers value root beer’s botanical ancestry and traditional use in wellness tonics, underscoring its potential as a flavor in functional beverages, tonics and cosmetics.
China: Growth in Functional Beverages Creates Demand for Herbs
Functional, botanical and low-sugar beverages are all trending in China, and the root beer category is taking off as a result. Urban middle-class consumers are gravitating toward drinks that offer a dual proposition of taste and wellness, and root beer with its herbal roots and graced with roots must seem an ideal option.
Chinese beverage makers have been fermenting with local herbs as ginseng, honeysuckle and schisandra into their root beer to bolster both healthiness and local relevance. Root beer is also gaining traction in dietary supplements and herbal medicine segments, as it is used in functional beverages designed to support digestion and immunity.
| Segment | Value Share (2025) |
|---|---|
| Non-Alcoholic (By Type) | 64.3% |
Globally, non-alcoholic root beer holds the largest market share, as it is readily available in most locations, is suitable for family consumption, and is deeply integrated into the fabric of North American culture. A traditional soft drink or float component, non-alcoholic root beer is getting new life, in all-natural, organic and sugar-free formats, to attract the health-oriented consumer of today.
Makers of craft beverage are experimenting with microbrewed, artisanal, nonalcoholic root beers that feature botanical infusions, fermented bases and organic sweeteners such as agave or honey. These innovations make root beer not just a nostalgic indulgence but also a modern substitute for traditional sodas.
Its use is also spreading beyond the beverage aisle. Non-alcoholic root beer is being designed into herbal lozenges, health tonics, and gummies, and then treated as aromatic in other products like lip balms and bath products. Featured non-alcoholic offerings in multiple formats allows for mass adoption around multiple demographics and regions.
Although parts of root beer which are alcoholic are still a much smaller market share, they are growing significantly in specialty beverage categories in North America and Australia. These drinks tap into the desire for newness but also nostalgia when it comes to alcoholic beverages. With growing interest in low-ABV and flavored alcoholic drinks, alcoholic root beer is staking a place among millennials and craft beverage drinkers.
| Segment | Value Share (2025) |
|---|---|
| Food and Beverage (By End-use) | 52.7% |
Commercially, root beer is the largest end-use industry segment for root beer, comprising both traditional and contemporary product formats across the food and beverage sector. Root beer is a key flavor in many RTD soft drinks, alcoholic sodas, mocktails and flavored ice creams, as it enjoys a unique, rich flavor profile and has a functional heritage.
Root beer is seeing a renaissance on craft beverage menus, with a focus on artisanal recipes that use sassafras alternatives, birch bark and other botanicals. Breweries and non-alcoholic distillers are creating root beer-based fermented beverages and kombuchas, as well as mixers that help you straddle the line between indulgent and functional refreshment.
There is a growing presence of root beer in confectionery and baked goods, especially with gourmet dessert sauces, syrups and glazes. Its aromatic and wellness properties gradually propelled it into dietary supplements and cosmetics.
Brands are incorporating the flavor of root beer into chewables, herbal drops, and beauty products to make them more consumer appealing Even though Ayurvedic medicine and practitioners have much lower traction, especially for consumers in India and Southeast Asia, pharmaceutical and medicinal root beer ingredients can always further develop to align with traditional Ayurvedic healing practices and have long-term potential. With the rise of the natural product movement worldwide, root beer’s versatility when it comes to food, health and beauty applications makes it a cross-category innovation platform.
Top companies like A&W Root Beer and Barq’s are well-positioned to grow their share of the root beer market with brands, product development, and innovation. By expanding the range of root beer flavors from traditional recipes to craft-style offerings, they have been able to properly shift consumer preference. Diversity attracts a wider range of customers and also allows these companies to compete with other brands in the market.
In addition, these manufacturers have passed on various packaging designs to attract the younger population and convenience. These packaging innovations, ranging from nostalgic glass containers to eco-friendly cans, enhance product presentation and usability, thereby creating and cementing brand loyalty.
The root beer market has received several growth opportunities, notably through strategic alliances and collaborations. Partnering with fast-food chains and restaurants that already exist has allowed top brands to continue to build their brand presence and increase reach through established distribution networks and customer bases.
For instance:
The Root Beer Market is segmented into Alcoholic and Non-Alcoholic varieties, catering to both traditional soft drink consumers and those seeking alcoholic alternatives.
Root beer finds applications in Ayurvedic Medicine, Food and Beverage, Dietary Supplements, and Cosmetics, reflecting its diverse functional and commercial uses.
Industry analysis has been carried out in key countries of North America, Latin America, Western Europe, Eastern Europe, Balkans & Baltic, Russia & Belarus, Central Asia, East Asia, South Asia & Pacific, and the Middle East & Africa.
The root beer market is projected to grow at a CAGR of approximately 5.4% during the forecast period from 2025 to 2035.
The market is estimated to reach approximately USD 1,697.2 million by 2035, up from USD 997.1 million in 2025.
The non-alcoholic root beer segment is expected to witness significant growth due to the increasing consumer preference for non-alcoholic beverages and health-conscious choices.
Key growth drivers include the rising popularity of craft root beers, increasing demand for low-calorie and sugar-free beverages, and the growing trend of premium and artisanal drinks.
Leading companies in the market include The Coca-Cola Company, Dr Pepper Snapple Group, A&W Brands, Inc., Barq’s, and Reed’s Inc.
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