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Root Beer Market

Market Insights on Root Beer covering sales outlook, demand forecast & up-to-date key trends

Root Beer Market by Type, End User Application, Distribution Channel & Region - Forecast 2022 - 2032

Root Beer Market Overview 2022 - 2032

According to Future Market Insights research, during the projected period, the Root Beer market is expected to grow at a CAGR of 5.4%. The market value is projected to increase from US$ 861.1 Mn in 2022 to US$ 1,457.0 Mn by 2032. The Root Beer market was valued at US$ 813.1 Mn at the end of 2021 and is anticipated to exhibit CAGR growth of 5.9% in 2016-2021.

Market Size Value in 2022

US$ 861.1 Mn

Market Forecast Value in 2032

US$ 1,457.0 Mn

Global Growth Rate (2022 to 2032)

5.4%CAGR

Forecast Period

2022-2032

Market Share of UK in Europe

4.7%

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Introduction

A variety of roots, herbs, berries, and barks are used to make root beer, which is a beverage. It is typically prepared at home as a health beverage. The main components of root beers are sugar and synthetic sassafras tastes. Modern root beers are typically sugary and frothy carbonated soft drinks. Root beers can either be carbonated or not.

The Sassafras tree was initially the major component used to manufacture root beer. Volatile oils are found in sassafras trees. The US Food and Drug Administration restricted the use of sassafras in food and drinks due to the health risks linked with sassafras, so today's root beers are typically produced using artificial flavours and sweeteners instead of Sassafras.

The most popular components used to create various root beer flavours include anise, which gives root beer a licorice flavour, sarsaparilla, which gives root beer a bitter flavour, vanilla, which gives root beer a creamy flavour, and wintergreen, which gives root beer a minty flavour.

Comparing historical outlook and projections for the world's Plant Sterol Supplements

The root beer business has expanded rapidly in recent years. Craft root beer's popularity and the rise in demand for non-alcoholic beverages are both contributing factors in this. However, there are difficulties associated with this growth. Root beer in particular is up against some tough competition from other carbonated soft drinks and specialty drinks.

Despite these difficulties, root beer has a promising future. Craft root beer craze shows no signs of abating, and non-alcoholic beverage consumption is anticipated to rise even more. As a result, it is anticipated that the root beer market would expand quickly during the next few year.

Nandini Roy Choudhury
Nandini Roy Choudhury
Principal Consultant
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Country-wise Insights

What is the outlook of North America in the market of Root Beer in the world?

Alcoholic root beer have been gaining popularity in the major markets such as North America. n North America, U.S. is the leading consumer of Root beers. The ability to pair well with a scoop of vanilla ice cream and distinctive flavoring, soft root beers remains a popular choice among consumers.

Alcohol root beers are becoming more popular due to its less alcohol percentage and sweet taste and the brew tastes nearly identical to a non-alcoholic root beer.

What is the outlook of Europe in the market of Root Beer in the world?

Europe is another major market for root beers after North America.

What is the outlook of Asia Pacific in the market of Root Beer in the world?

Root beers are gaining popularity in Asia Pacific and Middle East, due to changing consumer life style and influences of western culture. This factors are expected to drive root beer market growth in developing regions. There is no doubt that the Asia Pacific region is a key player in the root beer market. With countries like China and Japan holding a large share of the market, the future looks bright for this sweet beverage. However, there are some challenges that the industry faces. First, the cost of production is high due to the need for sugar and other ingredients. Second, competition from other beverages is intense. Third, health-conscious consumers are increasingly choosing healthier options over sugary drinks. Despite these challenges, the outlook for Asia Pacific in the root beer market remains positive. Companies are innovating with new flavors and packaging to appeal to consumers, and rising incomes in countries like China will continue to drive demand for this delicious drink.

Category-wise Insights

What are the major drivers for Root Beer in Market?

The main engine of the global root beer industry is customer demand for novel and intriguingly flavoured artisan beers. Root beers have a perfect harmony of rich, creamy flavour and potent root spice. Different kinds of root beer are available, unlike regular beers. Additionally, root beers are one of the most consumed beverages due to their distinctive flavour character.

The demand for sweeter-tasting beers among consumers is also boosting the worldwide root beer industry. Wintergreen, which has a distinctively distinct scent and a fresh flavour, is the major component used to manufacture root beers. Wintergreen is added to the soda along with the other components, which creates a pleasant counterbalance to the sweetness.

Since there are so many different root beer recipes and flavour combinations, there is room in the market for a wide range of beer flavours. Root beer is frequently made with anise, liquorice root, sarsaparilla, and sassafras.

What is the different source for the extraction of Root Beer?

For the extraction of root beer, there are two different sources. The sassafras tree's bark is the initial source. The roots of the Smilax medica plant are the second source. For generations, root beer has been made from the sassafras tree's bark. In order to extract the taste of the bark, this process entails boiling it in water. Root beer's distinctive flavour is derived from safrole, which is present in large quantities in sassafras bark. Safrole, however, is also a carcinogen, hence this approach is no longer applied in industry.

Another source of safrole is the plant Smilax medical’s roots. In order to extract the taste from the roots, this procedure calls for soaking them in water for several weeks.

What is the major restraint for Root Beer in Market?

Popular drinks include root beer, especially in the US. There are several disadvantages, too, which make it a less than perfect option for some people. Root beer's high sugar content is one of the main commercial barriers. Up to 36 grammes of sugar are contained in a 12-ounce can of root beer, which is more than twice the amount that people should consume daily. Root beer is not a smart choice for those who are attempting to cut back on their sugar intake or lose weight. Another restriction is the use of artificial sweeteners, which might be unhealthy, in the production of root beer. Last but not least, root beer often contains caffeine, which some individuals may find causes jitters and anxiety.

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Supermarket and Industrial Distributors Are Propelling the Growth Root Beer in Market

The Root Beer in market is expected to grow at a CAGR of 5.4% during the forecast period of 2022-2032. Supermarket and industrial distributors are propelling the growth of root beer in the market. They are providing the beverage to a larger audience and helping to increase its popularity. Root beer is a refreshing, flavorful drink that is perfect for any occasion. It is also affordable and easy to find. Thanks to supermarket and industrial distributors, more people are able to enjoy root beer. Supermarket and industrial distributors are propelling the growth of root beer in the market. In recent years, root beer has become a popular drink among adults and children alike. The sweet and carbonated beverage is typically made with sassafras extract, molasses, and vanilla. However, there are many different types of root beer available on the market today, including sugar-free and alcohol-free varieties.

The popularity of root beer has led to increased demand from supermarket and industrial distributors. In turn, this has resulted in more root beer being produced by manufacturers. This increased production has helped to drive down the price of root beer, making it more affordable for consumers.

The growth of root beer in the market is good news for manufacturers and distributors. However, it is important to ensure that quality is maintained in order to keep consumers happy.

Competitive Landscape

The numerous brands of root beer are in intense competition with one another. This is due to the fact that there is a lot of money to be made in the fast expanding root beer sector. A&W, Barq's, and IBC are the top three brands of root beer. Nearly 80% of root beer sales in the US are made up of these three brands.

Root Beer Market Report Scope

Attribute

Details

Forecast Period

2022-2032

Historical Data Available for

2017-2022

Market Analysis

US$ Mn for Value and Units for Volume

Key Regions Covered

  • North America
  • Latin America
  • Europe
  • Asia Pacific
  • Oceania
  • MEA

Key Countries Covered

  • US
  • Canada
  • Mexico
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Brazil
  • Argentina
  • South Africa
  • UAE

Key Segments Covered

  • By Type
  • By Source
  • By End -user
  • By Region
  • By Distribution Channel

Key Companies Profiled

  • Craft
  • A&W Restaurants
  • Sage Mixology company
  • Dr Pepper Snapple Group
  • Crazy Uncle
  • Mill Street Brew Hall
  • Seagram
  • Rhineland Brewing Co
  • Best Damn Brewing Co

Report Coverage

Market Forecast, Company Share Analysis, Competitive Landscape, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives

Customization & Pricing

Available upon Request

Root Beer Market segmentation

By Type, the Root Beer Market is segmented as:

  • Alcoholic
  • Non-alcoholic

By End-use, the Root Beer Market is segmented as:

  • Ayurvedic medicine
  • Food And Beverage
  • Dietary Supplements
  • Cosmetics

By Region, the Root Beer Market is segmented as:

  • North America
  • Latin America
  • Europe
  • Asia Pacific
  • Oceania
  • MEA

By Distribution channel, the Root Beer Market is segmented as:

  • Bars And Nightclubs
  • Alcohol/Liquor Stores
  • Hypermarket/Supermarket
  • Direct Selling
  • Online

Frequently Asked Questions

The global Root Beer market will reach a valuation of US$ 861.1 Mn by the end of 2022.

The global Root Beer market is forecasted to surpass US$ 1,457.0 Mn by the end of 2032.

USA, Germany, Japan, China, India, Australia, UK are the major countries driving demand for Root Beer Market.

The US Root Beer Market is contributing 31.0% of total value share in global market.

The Germany Root Beer Market is contributing 22.9% of total value share in global market.

In Japan Root Beer Market is contributing 8.6 % of total market share which values in year 2022.

In India Root Beer Market is contributing 4.8% of CAGR for latest period.

In China Root Beer Market is contributing 6.2% of CAGR for latest period.

In Australia Root Beer Market is contributing 2.8% of total value share in global market.

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Nandini Roy Choudhury
Principal Consultant
LinkedIn
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