Root Beer Market - Positive Long-Term Growth Outlook 2025

The beverage industry has shown the tremendous growth in past few years. Root beer is a non-alcoholic or slightly alcoholic beverage which is majorly consumed by Americans. Root beer is produced by distillation of sugar, yeast, and water. Root beer is originated from the small beer which has the alcohol content from 2-12%. Root beer was originated by Native Americans.

Market Segmentation: Root Beer

Root beer can be segmented on the basis of alcohol presence, flavor, and caffeine content and distribution channel.

Root beer market can be segmented on the basis alcohol presence. Most of the companies sell alcohol-free root beer while in many parts of North America; you may find alcoholic root beer also. Root beer market is again segmented on the basis of the flavor of the root beer. There are different flavors accessible in the market of root beer, some of them are vanilla, wintergreen, cherry tree husk, licorice root, nutmeg, acacia, anise, molasses, cinnamon, sweet birch, and nectar. Root beer market is also segmented on the basis of caffeine presence. Whether root beer has caffeine or decaffeinated. Root beer market is also segmented on the basis of distributive channels as supermarket/ hypermarket, specialty stores, liquor shops, online sales, retail stores and departmental stores etc.

Root Beer Market: Regional Outlook

Depending on geographic regions global root beer market is segmented into five key regions: North America, Latin America, Europe, APAC, and MEA.

Root beer is almost exclusively a North American drink. America and Canada are the main producers and consumer of the root beer. Sassafras, the main flavoring agent of root beer is banned in the USA because of the presence of safrole, a carcinogenic ingredient. Root beer is emerging in many other countries like Australia, Argentina, Germany, and Mexico etc.

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Global Root Beer Market: Drivers

Rising disposable income, the ever-increasing population, increasing in the number of bars, restaurants, increase in the acceptance of western culture and relaxation in the rules and regulation related to the operation of the beer industry, preference to on to go beverages are some of the major driving force for root beer market. Increasing disposable income among the working class population allows the customer to go out more to restaurants and bars and spend more on brewer industry. In addition, consumers are now willing to pay more for premium segments also. Quick adoption of western culture has largely influenced the drinking habits in the Asia Pacific region. People living in the west usually have a habit of drinking beer with their meals, at parties and even during meetings. Teenagers wish to drink, parents allow to drink root beer which has less or no alcohol; also give the kick to root beer. Rising Anti-alcohol campaigns and rising aging population are some of the major restraints for beer market.

Global Root Beer: Key Players

Some of the key players identified across the value chain of the global root beer market include: DR PEPPER SNAPPLE GROUP, THE COCA-COLA COMPANY, Blitz-Weinhard Brewing Co., The Dad's Root Beer Company, LLC., Sprecher Brewing Co. Inc., Stewart’s Restaurants, Inc., Berghoff Beer, WHOLE FOODS MARKET IP L.P.