Root Beer Market Size, Share, Growth Analysis, By Product(Alcoholic and Non-alcoholic), By Type(Conventional and Diet), By Distribution Channel(On-trade and Off-trade), By Region - Industry Forecast 2024-2031

Global Root Beer Market size was valued at USD 728.1 million in 2021 and is poised to grow from USD 761.59 million in 2022 to USD 1091.38 million by 2030, growing at a CAGR of 4.6% in the forecast period (2023-2030).

Root beer is growing increasingly well between millennials, and the global foodservice market is growing, which are all major drivers of market growth. Due to the closures and restrictions placed on bars, restaurants, and hotels around the globe to the Coronavirus outbreak, the supply chain and distribution of root beer were disrupted. According to the 2020 ProWein Business Report, the COVID-19 affected about 77% of hotels, causing a 60% decline in sector wide turnover while driving a 91% decline in restaurant sales by year 2020.

The lockdown and travel restrictions, however, have benefited the market in some countries. Sassafras tree root bark has traditionally been used to start making root beer, a popular drink in North America. Because of its distinct flavor and low alcohol content, the beverage is becoming more and more popular on a global scale. A number of businesses, including Dad's Root Beer, Anheuser-Busch Companies, LLC, and Keurig Dr. Pepper, are exporting their root beer. Sassafras root bark, wintergreen leaves, honey, sugar, molasses, vanilla extract, and water are the typical ingredients of non-alcoholic root beer. Black cherry bark, sassafras, vanilla, wintergreen, sweet birch, cinnamon, acacia, anise, nutmeg, licorice root, and caramel are a few of the root beer's well-known flavors. It also has a number of health benefits.

Moreover, an increase in R&D activities and a growth in modernization of recently introduced products will create new opportunities for the root beer market during the projected period. The company's rising cost of R&D activities, however, is the main restraint and it will create new challenges for the root beer market during the forecast period.