Global Root Beer Market Research Analysis & Insights 2017

Root beer enjoys the growing popularity all across the world. The industry has lots of opportunity for owner such as retail spaces and warehouses to encourage and enable brewers to sell and produce their product. Demographic has also played significant role in the determining the demand for root beer. Demand for root beer is growing among the household with large disposable income. Age also plays a vital role in the sales of root beer. Per capita consumption of root beer is higher among 18-34 years old than other age group.

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Product Overview

Traditionally root beer is produced from sassafras tree, it can be either non-alcoholic and alcohol. It can be decaffeinated and caffeinated. Root beer as high demand in the North America region and manufactured colossally in the United States and Canada. Root beer is one of the fastest growing segment with respect to other beverages in the United States.

Over the years, changing preference of consumer have been the driving factor of the root beer market. Beer market in North America has experience drastic changes over the five-year course. Major players in brewing industry are acquiring mid-size and small brewers that represents large domestically operated and owned brands.

Global Root Beer Market

Breweries industry all around the world has been benefitting from the growth and popularity of root beer. This growth has resulted in revenue growth of enterprises to medium and small-scale breweries. Consumer are shifting their preference from premium and light beer to root and crafted beer. Premium and Light beer currently represents high sales in beer market.

Government regulation and intervention has major impact on the sales of root beer. Some of the common forms of regulation of alcoholic beverages pertaining to the sales is minimum drinking age, limit of the volume of alcohol purchase, hours on the sales of alcohol, minimum retail prices and excise taxes are formed to control the over consumption of alcohol. Such regulation has led to increase the demand for non-alcoholic beverages especially root beer, which can be enjoyed by all age group and is available any time at every retail outlet.

United States Root Beer Market

Consumer shift towards root beer from light and premium beer is major factor behind the growth in the market. Consumer are trading up the alcoholic beverages choices from premium beers, wine and spirits to medium-prices beer such root beer or craft beer. This trend has resulted in brewers to develop root beer at reasonable prices to target adult and children.

Demand of root beer depend on varies factors. Customer demand may fluctuate depending on attractiveness of the product. Root beer substitutes hard liquor and spirits and non-alcoholic beverages. Over the years demand for root beer has stagnantly increased compared to those of its substitutes. Root beer producers have gain advantages over other beverages by expanding their offering to seasonal, specialty and premium type of root beers. Brewers with mildly flavored products invest large portion of their revenue on marketing and promotional campaign. Celebrity endorsement, attractive packaging, advertising campaign and high-end design contributes to the root beer industry’s huge marketing cost and campaign, which has mesmerizing impact on consumers purchasing decision.

Figure 1: United States Non-Alcoholic RTD Beverages Market Size, By Volume (Billion Liter), 2017E, 2019F, 2021F

                                                                                                                                    Source: TechSci Research

The major producers in Global root beer market are channeling their R&D efforts to develop new products to meet the consumer demand to increase their market share. This is one of the major driver to boost the sales of root beer. East 9^th Brewing company producer of root beer recently launched its alcoholic root beer by the brand name Future Memoirs in the Australian market. Mad Jack a well-established company and manufacturer of root beer in Canada launched its root beer with blend of various flavors.
Product Launches 

The major producers in Global root beer market are channeling their R&D efforts to develop new products to meet the consumer demand to increase their market share. This is one of the major driver to boost the sales of root beer. East 9^th Brewing company producer of root beer recently launched its alcoholic root beer by the brand name Future Memoirs in the Australian market. Mad Jack a well-established company and manufacturer of root beer in Canada launched its root beer with blend of various flavors.