The U.S. retail carbonated soft drink category grew 14% during 2022 and the ginger ale segment increased 13%, according to Reed’s, Inc.
Now the ginger ale segment is a $1.5 billion market.
Reed’s believes the growth of ginger ale is primarily due to consumers perceiving it as a healthier alternative to other soft drinks.
As such, its new line of ginger ales made with real ginger responds to this perception and is poised to break into the segment.
What is ginger ale? A fizzy drink of English origin made with mineral water, ginger, sugar and lemon.
In the wake of the Covid-19 pandemic, consumers are reorienting their consumption towards healthier products.
Reed’s also sees significant growth potential if consumers move away from conventional beverages containing artificial ingredients and preservatives in favor of great-tasting natural alternatives.
Ginger ale
Listed below are the accelerating consumer trends that support Reed’s brands.
- Natural: Interest in natural products is widespread.
- Clean label: 62% of Americans avoid at least one ingredient.
- Reduced sugar: A favorable trend for Reed’s sugar-free beverages, 67% of consumers prefer low-sugar or sugar-free soft drinks. They say they are reducing their sugar consumption.
- Plant-based: 39% of consumers are actively trying to eat more plant-based foods.
- Artisanal: The appeal of higher quality, independent and more authentic brands continues to grow.
- Premium: The trend to go premium has accelerated during the pandemic, with consumers splurging on premium drinks at retail, including premium mixers.
- Healthier cocktails: More and more consumers are looking for non-alcoholic alternatives with bold and unique flavors.
With net sales of $53 million in 2022, Reed’s owns a leading portfolio of craft and natural beverages sold in more than 45,000 retail outlets across the United States.
The U.S. ginger ale market accounts for about one-third of the global ginger ale market, according to Future Market.