Global Root Beer Market Set to Reach USD XX Billion by 2030, Driven by Flavor Innovation and Premium Offerings

The global root beer market is on track for notable expansion, projected to reach USD 1.09 billion by 2030, growing at a CAGR of 4.6% from 2022 to 2030. The increasing popularity of low-alcohol beverages—especially among millennials—and the global growth of the foodservice industry are key contributors to this growth trajectory.

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Despite temporary setbacks during the COVID-19 pandemic—such as widespread supply chain disruptions and the closure of bars, restaurants, and hotels—the market has since rebounded. According to the 2020 ProWein Business Report, restaurant sales declined by as much as 91%, and nearly 77% of hotels reported revenue drops of up to 60%. However, root beer’s distinct flavor and expanding global appeal have helped the category recover and grow post-pandemic.

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Distribution Channel Insights

Off-Trade Channel Dominates Sales

The off-trade segment held a commanding 70.9% revenue share in 2021. This channel includes supermarkets, hypermarkets, specialty stores, and online platforms. The pandemic accelerated the shift toward off-trade purchases, supported by work-from-home trends and online convenience. In the U.S., 80% of alcohol sales were attributed to off-trade channels in 2020 (IWSR).

Retail promotions and discounts in supermarkets have further bolstered root beer sales through this channel, making off-trade the most accessible option for consumers.

On-Trade Recovery Underway

The on-trade channel (comprising bars, cafes, restaurants, and hotels) is gradually recovering post-pandemic. Although heavily impacted by lockdowns and travel bans, this segment is expected to see moderate growth as tourism resumes and social venues reopen worldwide.

Type Insights

Conventional Root Beer Dominates

Conventional root beer, accounting for over 82.5% of market revenue in 2021, remains the most widely consumed type. Traditionally made using sassafras root bark, the flavor remains central to the category, although most modern versions now rely on artificial or safrole-free extracts following FDA restrictions on safrole.

Brands like Hansen Beverage use safrole-free sassafras to maintain the authentic taste while ensuring safety. This segment is particularly strong in North America, where traditional root beer is deeply embedded in the beverage culture.

Product Insights

Non-Alcoholic Segment Leads Market Share

In 2021, the non-alcoholic segment dominated with over 89% revenue share. Root beer’s signature flavor, along with its gluten- and caffeine-free formulations, makes it a preferred choice across age groups. Its popularity soared during Prohibition in the U.S. and continues today, with brands like A&W enhancing consumer experience through offerings such as root beer float dessert toppings.