Ginger Beer Market

Market Overview

The global ginger beer market size was valued at USD 5.12 billion in 2023. It is expected to reach USD 10.45 billion in 2032, growing at a CAGR of 8.25% over the forecast period (2024-32). As consumers become more discerning about their beverage choices, there's a growing preference for craft and artisanal products like ginger beer. These beverages are often perceived as higher quality, natural, and offer unique flavor profiles that appeal to a niche market segment.

Ginger beer is naturally sweetened and carbonated and can be both alcoholic and non-alcoholic. It is created through the natural fermentation of ginger spice, yeast, ginger root/syrup, and sugar. Additionally, it can be both organic and inorganic. The processing of inorganic ginger beer involves the addition of chemical preservatives or artificial additives. Organic ginger beer is produced through the natural fermentation of organic sweeteners, additives, and organic ginger roots.

Ginger root used to make ginger beer is a natural oil rich in minerals like magnesium, potassium, copper, vitamin B6, or gingerol. Ginger beer provides various health benefits, including nausea relief, improved digestion, reduced cancer risk, slowed aging, and antibacterial and anti-inflammatory properties. These advantages are the driving force behind ginger beer's high demand on the global market.

Market Dynamics

Global Ginger Beer Market Drivers

Growing Health-Conscious Consumers

As a result of various dietary restrictions, the demand for low-alcohol, gluten-free beverages, particularly among health-conscious consumers, will likely stimulate ginger beer market expansion in the future. The demand for ginger beer beverages is increasing, and critical industry competitors are innovating to meet this demand. For example, G's Hard Ginger Beer and Bundaberg offer an extensive selection of gluten-free beers with organic and vegan ingredients. Additionally, in recent years, the market for ginger beer has been driven by growing awareness of ginger ale's health benefits, such as its ability to boost metabolism and reduce motion sickness. Thus, the demand for ginger beer as a low-calorie beverage is increasing with consumers' growing preference for a healthy lifestyle.

Growing Availability of a Wide Range of Flavors

The market's growth will be helped by the growing availability of a wide variety of flavors. A wide variety of flavors are made available by various market participants. The players' initiative is to provide clients with various flavoring options to boost company revenue. These drinks are now considered suitable for consumption by male and female drinkers due to their widespread appeal. This will probably lead to a significant increase in the consumption of these drinks.

Global Ginger Beer Market Restraint

Stringent Regulations and Restrictions Led by the Government

The expansion of the global market for ginger beer is hindered by the stringent regulations and restrictions imposed on the production of ginger beer by the governments of various countries. The harmful effects of artificial ingredients and added sugar used in the production of ginger beer have led to these regulations and restrictions imposition.

Regional Analysis

The global ginger beer market includes North America, Europe, Asia-Pacific, Central and South America, and the Middle East and Africa.

North America is the most prevalent region in the global ginger beer market. It is anticipated to be driven by consumers' rising awareness of health and wellness in the area. Countries like the U.S. have high consumption levels compared to other nations. Key brand alliances with various manufacturers will advance the market development of new products and aid in boosting its share. Asia Pacific is anticipated to grow with the highest CAGR. The demand for low-alcohol products is stimulated by shifting consumer lifestyles and the uptake of recreational beverages by consumers in developing nations.

Segmental Analysis

The global ginger beer market is segmented by type, flavor, and distribution channel.

Based on type, the market is categorized into alcoholic and non-alcoholic.

The non-alcoholic segment held the most extensive revenue share and is expected to maintain its lead during the forecast period. The consumer trend toward "reducing the alcohol content in beverages and drinks" is expected to hasten the segment's growth. Manufacturers are responding to the trend by releasing non-alcoholic beverages with many health advantages. The market for alcoholic beverages is anticipated to grow at the fastest rate.

Based on flavor, the market is divided into original and flavored.

The flavored segment with the highest revenue share is anticipated to maintain its dominance during the forecast period. The increasing use of ginger beer in alcoholic beverages such as cocktails and mules will bolster the segment's annual growth. Ginger beer cocktails have an energizing, sharp taste with a hint of spice, which has prompted restaurants, bars, and clubs to include them in their menus and broaden their product selection. The original segment is anticipated to expand during the forecast period. The health advantages of these products will raise the demand for the beverage in the future. In order to improve the general health of consumers, natural ginger extract is added to beer to enrich it with putative bioactive phytoconstituents such as shagaol, zingerone, ginger flavonoids, and essential oils.

Based on the distribution channel, the market is divided into on-trade and off-trade.

On-trade dominates the market and will generate the most significant revenue share during the forecast period. The on-trade channel includes bars, clubs, lounges, restaurants, hotels, and cafes. The increased emphasis on gatherings, socializing, and celebrations will likely increase sales through on-trade channels. The off-trade distribution channel segment is anticipated to experience the highest CAGR during the forecast period. The off-trade distribution channel includes supermarkets, hypermarkets, retail stores, caterers, beer/specialty stores, and e-commerce platforms. Consumer preference for e-commerce due to its ease of use and broad product selection on a single platform is anticipated to drive segment expansion.

Recent Developments

• July 2024 - Barritt's Beverages International Ltd, a family-owned business from Bermuda, is celebrating 150 years of its famous ginger beer. To mark this milestone, they have introduced a new line of mixers and updated their brand to reflect the colorful houses of Bermuda.
• March 2024 - Jack Daniel introduced a ready-to-drink ginger ale. The Jack & Ginger Ale canned cocktail is a recent addition to the extensive range of beverages offered by the prominent Tennessee distillery. Jack & Ginger Ale, the newest addition to Jack Daniel's range of ready-to-drink drinks, was released in the United States on March 14th. This beverage has an alcohol by volume (ABV) of 7%.