Launch o0f New Products to Impel the Growth of The Root Beer Market

Posted on: Jun-2017 | By: QY Research | Food & Beverage

Root beer is conventionally produced from sassafras tree. It can be either non-alcoholic or alcoholic. It can even be decaffeinated or contain caffeine. This beer is more famous in the North American region and is manufactured widely in the United States and Canada. It is one of the rapidly expanding segments among craft beers. One such beer was introduced by the East 9th Brewing in March 2016, with the brand Future Memoirs in the Australian market. The product is said to be a combination of several flavors such as vanilla, sassafras, ginger, & cinnamon, and consists of around 4% of alcohol by volume.

The increasing spendable income, the rising digit of bars & restaurants, the mounting population, and the rise in the adoption of western culture are few of the major factors influencing the growth of the root beer market. The rising spendable income of the working population enables the consumer to visit the bars & restaurants more and spend more on breweries.

Few of the factors contributing to the growth of the market are detailed below.

Launch of new products

The launch of new products is one of the major factors fueling the market growth. In order to fulfill the needs of the consumers and boost the revenue streams, market players are constantly making efforts to produce new products.

Entry of new players in the market

The high growth potential of the market globally is attracting several new players to enter the market with their products. This is projected to spur the growth of the market in the near future.

Rising demand among millennial and women

There has been a rising requirement for beer from millennial and women consumers. The households that are led by women form the major part of consumers and have a higher propensity to buy flavored root beer. Hence, the producers are launching their products specifically aiming at women consumers so as to boost their sales. This is anticipated to fuel the market growth in the coming period.

On the other hand, the increasing anti-alcohol campaigns and the growing elderly population are few of the major limitation for the growth of the market.