The market study covers the present scenario and growth prospects of the global root beer market for 2017-2021. The report also lists decaffeinated and caffeinated root beer as the two major product segments, of which the decaffeinated segment accounted for more than 87% of the market share in 2016.
According to Manjunath Reddy, a lead analyst at Technavio for alcoholic beverages research, “An emerging trend in the market is the increasing demand for beer with low alcohol content. Consumers are increasingly opting for a healthier lifestyle, which includes the consumption of healthier food and beverages. Hence, they prefer alcoholic drinks with low alcohol content, which favors the growth of the root beer market.”
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Technavio analysts highlight the following three market drivers that are contributing to the growth of the global root beer market:
- New product launches
- Entry of new players
- Increasing demand among women and Millennials
New product launches
One of the major drivers of the global root beer market is the launch of new products. The players operating in the market are coming up with new products to meet consumer demands and to increase their revenue streams. In March 2016, East 9th Brewing launched its alcoholic root beer under the brand Future Memoirs of a Root Beer in the Australian market. The company claims that the product is a blend of various flavors such as sassafras, vanilla, cinnamon, and ginger, and contains about 4% of alcohol by volume.
Similarly, in April 2016, Mad Jack launched its hard root beer in Canada, which features a blend of various flavors such as cinnamon, cloves, wintergreen, anise, and sweet vanilla bean. The product contains about 5% alcohol by volume.
Entry of new players
Realizing the huge growth potential of the global root beer market, many new players are entering the market with their products. The major players in the global beer market are entering the global root beer market with their products to meet the rising demands for root beer. In August 2015, Boston Beer launched its Coney Island Hard Root Beer in the US market and in November 2015, F.X. Matt Brewing launched its Jed's Hard Soda line.
Increasing demand among women and millennials
The increasing demand for root beer from the women and millennial consumer segments is another growth driver for the market. The major consumers of root beer are women, and it has been seen that households that are led by women have a higher propensity to buy flavored root beer. Therefore, players in the global root beer market are launching marketing campaigns aimed specifically at women consumers, to increase their sales.
“In the US, millennials are the major consumers of craft beer followed by Gen Xers. Millennials demand more variety of flavors and are open to experimenting with new drinks. Also, they prefer to spend more on quality products, which offer more return on investments,” says Manjunath.
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