Root Beer Market to be Worth $1.09 Billion by 2030 at CAGR of 4.6%: Grand View Research, Inc.
SAN FRANCISCO, March 21, 2022 /PRNewswire/ -- The global root beer market size is anticipated to reach USD 1.09 billion by 2030, registering a CAGR of 4.6% over the forecast period, according to a new report by Grand View Research, Inc. Root beer is a North American drink that's been traditionally made using the root bark of the sassafras tree. Sassafras was banned by the Food and Drug Administration (FDA) in 1960 owing to the presence of safrole, a carcinogenic component. Thus, most commercial root beers available in the market contain the artificial flavoring of sassafras. However, some companies, such as Hansen Beverage, use safrole-free sassafras extract to retain the authenticity of root beer.
Key Insights & Findings from the report:
- The conventional product type segment accounted for the maximum revenue share of the global market in 2021.
- The alcoholic product segment is expected to witness the fastest CAGR over the forecast period on account of the increasing consumer inclination towards low-alcoholic drinks.
- The off-trade distribution channel segment is projected to register the fastest CAGR over the forecast period.
- Supermarkets & hypermarkets, in particular, dominated the off-trade segment in 2021. The COVID-19 pandemic increased the off-trade sales of the product.
- Europe is the second-largest regional market in the world. Countries, such as Germany, Italy, and France, are the major contributors to the regional market growth.
Read full market research report with TOC, "Root Beer Market Size, Share & Trends Analysis Report By Product (Alcoholic, Non-alcoholic), By Type (Conventional, Diet), By Distribution Channel (On-trade, Off-trade), By Region, And Segment Forecasts, 2022 - 2030", published by Grand View Research.
Root Beer Market Growth & Trends
The global market is predominantly driven by the increasing demand for low-alcoholic beverages, the growing number of hotels, restaurants, & bars, and the increasing interest of millennials in exotic and new flavored drinks globally. With the changing lifestyle of consumers across the globe and increasing disposable income levels, the demand for services like restaurants, hotels, clubs, and bars is rising. This, in turn, is expected to favor the growth of the global market over the years to come. The outbreak of Coronavirus disrupted the distribution channel and supply chain of the global market owing to the closure and restrictions on bars, restaurants, and hotels. The overall market observed a slight dip in growth in 2020.
However, the sales from off-trade channels, such as supermarkets and e-commerce, were observed high during the lockdown period. The COVID-19 pandemic shifted consumer preference for root beer over other liquors as it contains no or small amount of alcohol, which makes it a healthier option over other drinks. New product launches, mergers & acquisitions, and geographical expansion are some of the key strategies adopted by market players to strengthen their industry position. For instance, in 2018, JAB Holding Co. entered into a strategic agreement to merge with Dr. Pepper Snapple Group through its Keurig Green Mountain business unit. The merger of both the companies formed "Keurig Dr. Pepper". The combined companies offer various products under brands, such as A&W Root Beer, 7UP, Dr. Pepper, and more.
Root Beer Market Segmentation
Grand View Research has segmented the global root beer market on the basis of product, type, distribution channel, and region:
Root Beer Product Outlook (Revenue, USD Million, 2017 - 2030)
- Alcoholic
- Non-alcoholic
Root Beer Type Outlook (Revenue, USD Million, 2017 - 2030)
- Conventional
- Diet
Root Beer Distribution Channel Outlook (Revenue, USD Million, 2017 - 2030)
- On-trade
- Off-trade
Root Beer Regional Outlook (Revenue, USD Million, 2017 - 2030)
- North America
- U.S.
- Europe
- U.K.
- Germany
- Asia Pacific
- China
- Japan
- Australia
- Central & South America
- Brazil
- Middle East & Africa
- South Africa
List of Key Players of Root Beer Market
- Keurig Dr. Pepper
- Anheuser-Busch Companies, LLC
- Blitz-Weinhard Brewing Co.
- Dad's Root Beer
- Sprecher Brewing Co. Inc.
- The Berghoff
- Bundaberg Brewed Drinks
- Whole Foods Market IP, L.P.
Check out more related studies published by Grand View Research:
- Craft Beer Market - The global craft beer market size is expected to reach USD 502.9 billion by 2025, expanding at a CAGR of 19.9%, according to a new report by Grand View Research, Inc. The market is expected to witness substantial growth over the forecast period on account of the rising demand for low alcohol by volume (ABV) and flavored beer.
- Fruit Beer Market - The global fruit beer market size is expected to reach USD 379.5 million by 2027, exhibiting a CAGR of 4.5% over the forecast period, according to a new report by Grand View Research, Inc. Growing popularity of alcohol free beer among millennials as an occasional drink during after-office hours and weekends is expected to remain a favorable factor for the industry growth over the next few years.
- Black Beer Market - The global black beer market size is expected to reach USD 51.20 billion by 2028, according to a new report by Grand View Research, Inc. It is expected to expand at a CAGR of 8.9% from 2021 to 2028. Rising consumption of alcoholic beverages across the globe is anticipated to drive the black beer industry. The growing demand for darker and spicier beers such as dark ale, brown porter, and dark ale is likely to fuel the overall demand.
Browse through Grand View Research's Alcohol & Tobacco Industry Research Reports.
About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.
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