Root Beer Market size is set to grow by USD 143.6 million from 2024-2028, Growing global beer market boost the market, Technavio

NEW YORK, June 21, 2024 /PRNewswire/ -- The global root beer market size is estimated to grow by USD 143.6 million from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of 4.28% during the forecast period. Growing global beer market is driving market growth, with a trend towards increasing prominence of root beer floats. However, low awareness of root beer and lack of standardized definition of quality poses a challenge. Key market players include AleSmith Brewing Co., Anheuser Busch InBev SA NV, Beerwulf BV, BrewDog Plc, Cloudwater Brew Co., Diageo Plc, East 9th Brewing Co., Forbidden Root Restaurant and 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, The Boston Beer Co. Inc., and Wild Beer Co..

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Market Driver

The popularity of root beer floats among consumers, particularly in the US and the UK, is driving market growth. This trend involves combining root beer with ice creams, resulting in popular variations like Bailey float and Barbarian. Both non-alcoholic and alcoholic root beer floats are gaining traction, catering to diverse demographics. Root beer's use in cocktails and its popularity among children further boosts market expansion. 

The Root Beer market is experiencing significant growth, driven by consumer preferences for traditional beverages. Beverage companies are focusing on improving the taste and quality of their Root Beer offerings to cater to this demand. Carbonated and non-alcoholic, Root Beer is a popular choice for consumers of all ages. The market is also witnessing innovation with new flavors and variations being introduced. The market is expected to continue growing due to its affordability and wide appeal. The market is competitive with major players offering a range of products. The market is also seeing an increase in demand from international markets. The market is expected to remain strong due to its unique taste and nostalgic appeal. The market is expected to see continued growth in the coming years. 

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Market Challenges

• The root beer market faces challenges in gaining widespread recognition and establishing a standardized definition of quality. New manufacturers aiming to make an impact must invest significantly in marketing efforts. Regulatory bodies are anticipated to establish a standard during the forecast period, addressing the current lack of definition. These factors may hinder the market's growth.
• The Root Beer market faces several challenges. Production involves the use of specific ingredients such as sassafras, carob, and alcohol. Sugars and fruits are also essential components. The sourcing of these raw materials can be difficult due to their unique characteristics and availability. Carbonation is another challenge, requiring specialized equipment and expertise. Regulations regarding the use of certain ingredients, such as sassafras, add complexity to the production process. Competition from other beverage categories also poses a threat. Catering to changing consumer preferences, particularly regarding health and sustainability, is another challenge. Despite these hurdles, the Root Beer market continues to grow, driven by its unique taste and cultural significance.

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Segment Overview 

This root beer market report extensively covers market segmentation by

1. Product 
• 1.1 Decaffeinated
• 1.2 Caffeinated
2. Distribution Channel
• 2.1 Off-trade
• 2.2 On-trade
3. Geography 
• 3.1 North America
• 3.2 Europe
• 3.3 APAC
• 3.4 South America
• 3.5 Middle East and Africa

1.1 Decaffeinated- Root Beer Market is experiencing steady growth, driven by consumer preference for unique and traditional beverage options. Key players include A&W Revenue Industries, Inc. And Barq's Root Beer. They focus on product innovation and distribution expansion to meet increasing demand. Market size is projected to reach USDX billion by 2025, fueled by strong sales in North America and Asia Pacific regions.

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Research Analysis

The Root Beer Market encompasses a wide range of beverages, including both carbonated and non-carbonated varieties. These beverages are derived from the roots, herbs, berries, and barks of various plants, with sassafras tree being a key source. Modern root beers often incorporate synthetic sassafras tastes to mimic the traditional flavor. The market caters to diverse segments, such as millennials, foodservice market, bars, restaurants, hotels, and non-alcoholic consumers. Root beers are available in supermarkets, hypermarkets, specialty stores, liquor shops, and online sales channels. Low-alcoholic and non-alcoholic root beers are popular alternatives in the market. Wintergreen leaf and honey are among the other natural ingredients used in root beer production.

Market Research Overview

The Root Beer market encompasses the production, distribution, and consumption of this unique and flavorful beverage. Root Beer, a non-alcoholic beverage, is known for its distinct taste derived from various herbs, fruits, and spices. The market includes various types of Root Beer, such as traditional, sugar-free, and organic. The market is driven by factors like increasing consumer preference for natural and organic beverages, growing demand for sugar-free and low-calorie drinks, and the expanding foodservice industry. The market also faces challenges like intense competition and changing consumer preferences. The market is segmented based on product type, distribution channel, and region. The market is expected to grow at a significant rate due to these factors and the ongoing trends in the beverage industry.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Product
• Decaffeinated
• Caffeinated
• Distribution Channel
• Off-trade
• On-trade
• Geography
• North America
• Europe
• APAC
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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Website: www.technavio.com/

SOURCE Technavio