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.
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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.
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