growing global beer market is driving the Root Beer Market
Technavio analyzes that the Root Beer Market is expected to grow at a CAGR of 4.28% during 2023 and 2028. During this period, the market is also expected to show a growth of USD 143.6 million.There are various factors that contribute to the growth of the market. The global beer market is experiencing significant growth, with root beer holding a distinctive niche within this sector. Root beer, a unique and flavorful non-alcoholic beverage, appeals to consumers seeking alternatives to traditional alcoholic beverages. Its classic taste, reminiscent of vanilla and various herbs, caters to a diverse demographic. The market's expansion is driven by increasing consumer preferences for healthier options, innovative product development, and growing demand from emerging economies. Root beer's versatility, as a beverage for all ages and occasions, further bolsters its market potential.
The Root Beer market is witnessing a significant shift towards decaffeinated and alcohol-free variations due to growing health consciousness among consumers. Players in this industry are responding to this trend by introducing decaffeinated root beer products to cater to the demand. The majority of contemporary root beer recipes no longer include caffeine, which historically came from kola nuts. Instead, modern root beer is made with filtered water, sugar, and sassafras extract. Additionally, the increasing popularity of supermarkets and industrial distributors as sales channels is driving growth in the market. Furthermore, the foodservice market, including bars, is another key growth area, particularly among millennials who prefer low-alcoholic beverages. The use of artificial sweeteners in root beer is also on the rise to cater to the increasing demand for sugar-free options. Overall, the Root Beer market is expected to experience steady growth during the forecast period, driven by these trends and consumer preferences.
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Root Beer Market Segmentation
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Root beer, a unique beverage with a rich history, is derived from the roots, herbs, berries, and barks of various plants. Traditional root beer uses sassafras tree root bark and wintergreen leaf, while modern versions may include honey or synthetic sassafras tastes. Root beer is a low-alcoholic beverage, popular in the foodservice market, including bars, restaurants, and hotels. It is available in both carbonated and non-carbonated forms. Purchase root beer at supermarkets, hypermarkets, specialty stores, liquor shops, online sales, and departmental stores. Millennials have revived the interest in non-alcoholic root beer, making it a trendy beverage choice. Alcoholic root beer also exists for those seeking a stronger flavor.
The global brewers market encompasses entities engaged in the production of beer, craft beer, and malt liquors. This sector excludes equipment such as commercial beer dispensers and commercial beer kegerators. The market's expansion is primarily driven by the surge in craft beer production, particularly in developed markets. In the US, for instance, the number of craft brewers has experienced substantial growth since 2021. Microbreweries account for approximately 80% of the total craft beer production. This trend is attributed to the rising popularity of authentic, small-batch beverages, with natural ingredients such as roots, herbs, berries, and barks, including root beer, being used. Modern root beers often incorporate synthetic sassafras tastes, while carbonated soft drinks continue to leverage volatile oils and artificial flavors to mimic the natural tastes. The use of these natural ingredients adds to the overall appeal of craft beers and contributes to the market's growth.. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.
Technavio Research
Jesse Maida
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