Australia Ginger Beer Market, By Type (Alcoholic, Non-alcoholic), By Distribution Channel (On-trade, Off-trade), By Flavor (Original, Flavored), By Region, Competition, Forecast & Opportunities, 2020-2030F

Market Overview

Australia ginger beer market was valued at USD 97.28 Million in 2024 and is expected to reach USD 156.79 Million by 2030 with a CAGR of 8.28% during the forecast period. The Australian ginger beer market is experiencing steady growth, driven by increasing consumer demand for premium, craft, and healthier beverage alternatives. The market benefits from the rising popularity of non-alcoholic ginger beer as a refreshing, naturally spicy drink, while alcoholic ginger beer gains traction among younger consumers seeking unique, low-ABV options.

A key trend is the shift toward natural and organic ingredients, with brands emphasizing no artificial additives, reduced sugar, and cold-pressed ginger extracts to cater to health-conscious buyers. The craft beverage movement has also influenced the market, with small-batch producers like Stone & Wood and Brookvale Union offering artisanal, small-brewed ginger beers with distinctive flavors. Flavored variants, such as lemon-ginger, raspberry-ginger, and chili-infused ginger beers, are expanding the category’s appeal, particularly in the on-trade sector (bars, restaurants, and cafes). Meanwhile, off-trade sales (supermarkets, liquor stores, and online retailers) remain dominant due to convenience and wider product availability, with e-commerce playing an increasingly vital role in distribution. The market is also seeing sustainability-driven innovations, including eco-friendly packaging and locally sourced ingredients, aligning with Australia’s growing environmental consciousness. Additionally, collaborations with mixologists and the use of ginger beer in cocktails (e.g., Moscow Mule) are boosting its visibility in the hospitality sector. With strong competition from established players like Bundaberg and Schweppes, as well as emerging craft brands, the Australian ginger beer market is poised for continued expansion, supported by evolving consumer preferences and product diversification.

Key Market Drivers

Rising Demand for Health-Conscious and Natural Beverages

One of the primary drivers of the Australian ginger beer market is the increasing consumer preference for healthier, natural, and functional beverages. 73% of Australian consumers prefer beverages with natural ingredients, with ginger ranked among the top 5 functional ingredients. Ginger beer, traditionally made from fermented ginger root, is perceived as a better alternative to sugary sodas due to its natural spice, lower sugar variants, and digestive health benefits. Consumers are actively seeking drinks with no artificial preservatives, organic ingredients, and reduced-calorie formulations, prompting brands like Bundaberg, CAPI, and Bickford’s to emphasize clean-label products. 55% of shoppers check sugar content before purchasing soft drinks, fuelling demand for reduced-sugar ginger beers (Australian Health Survey, 2024). Additionally, the immunity-boosting and anti-inflammatory properties of ginger have further elevated its appeal, especially post-pandemic, as shoppers prioritize wellness-focused beverages. The shift toward craft and small-batch production also aligns with this trend, as artisanal brands highlight authenticity and premium quality, attracting health-aware demographics.

Growth of Alcoholic Ginger Beer and Premiumization in the Beverage Sector

The expansion of alcoholic ginger beer as a popular low-ABV (alcohol by volume) and craft alternative is another major market driver. Moscow Mule cocktails (made with ginger beer) are now served in 1 in 3 Australian bars, boosting alcoholic ginger beer demand (Drinks Trade Magazine, 2024). With the rise of moderation trends and the demand for sessionable, flavorful alcoholic drinks, brands like Brookvale Union, Stone & Wood, and Mojo Beverages have introduced ginger beer variants that cater to younger legal-drinking-age consumers. The ready-to-drink (RTD) cocktail boom has further propelled this segment, with ginger beer being a key ingredient in cocktails like the Moscow Mule and Dark ’n’ Stormy. Furthermore, premiumization is influencing the market, as consumers show willingness to pay more for small-batch, locally brewed, and exotic-flavored ginger beers. This trend is particularly strong in the on-trade sector (bars, pubs, and restaurants), where mixologists use premium ginger beer to elevate cocktail offerings.

Expansion of Distribution Channels and E-Commerce Accessibility

The third key driver is the diversification and ease of access through modern retail and e-commerce channels. While supermarkets and liquor stores (off-trade) remain dominant sales avenues, the rapid growth of online grocery platforms (e.g., Woolworths Online, Dan Murphy’s, Amazon Australia) has made ginger beer more accessible to a broader audience. 42% of Australians purchased beverages online in 2024 (Roy Morgan), up from 31% in 2022, driven by convenience. The convenience of home delivery and subscription services has boosted impulse purchases and trial of new flavors. Additionally, direct-to-consumer (DTC) sales through brand websites and craft beverage marketplaces allow smaller producers to reach niche markets without heavy reliance on traditional retail. The hospitality sector’s recovery post-COVID has also reinvigorated on-trade demand, with bars and restaurants increasingly stocking gourmet and craft ginger beers for both standalone consumption and cocktail mixes. This omnichannel availability ensures sustained market growth by catering to diverse consumer purchasing preferences.

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Key Market Challenges

Intense Competition and Market Saturation

One of the primary challenges in the Australian ginger beer market is the high level of competition, both from established players and new craft entrants. Dominant brands like Bundaberg and Schweppes hold significant market share, making it difficult for smaller producers to gain visibility. Additionally, the growing popularity of ginger beer has led to a flood of new brands, resulting in market saturation. Consumers are faced with an overwhelming number of choices, forcing companies to invest heavily in marketing, branding, and product differentiation to stand out. Smaller craft breweries, in particular, struggle with limited shelf space in retail stores, as large supermarkets prioritize well-known brands with proven sales performance. This competitive pressure also drives down profit margins, especially for artisanal producers who rely on premium pricing but face cost constraints in production and distribution.

Supply Chain Disruptions and Rising Ingredient Costs

The ginger beer market is highly susceptible to supply chain volatility and fluctuating raw material costs. Ginger, the key ingredient, is subject to seasonal variations, climate-related production issues, and geopolitical trade uncertainties, as much of Australia’s ginger is imported or dependent on domestic harvest conditions. Recent global supply chain disruptions, including shipping delays and increased freight costs, have further exacerbated these challenges. Additionally, the rising cost of packaging materials (glass, aluminum, and eco-friendly alternatives) has squeezed profit margins for manufacturers. Many brands are forced to either absorb these costs—impacting profitability—or pass them on to consumers, risking reduced demand in a price-sensitive market. Smaller producers, lacking the economies of scale of larger corporations, are particularly vulnerable to these fluctuations, making long-term planning difficult.

Regulatory and Consumer Shift Toward Sugar Reduction

Another significant challenge is the increasing regulatory scrutiny and consumer demand for low-sugar beverages. Health authorities in Australia are implementing stricter labeling requirements and sugar taxes (similar to global trends), pushing brands to reformulate their products. Traditional ginger beer is often perceived as high in sugar, which conflicts with the growing consumer preference for healthier, low-calorie, and diabetic-friendly options. Reformulating recipes to reduce sugar while maintaining taste and carbonation is technically challenging and costly, requiring investment in natural sweeteners or fermentation adjustments. Additionally, brands risk alienating loyal customers who prefer the classic taste of traditional ginger beer. The push for clean-label, organic, and natural ingredients further complicates production, as sourcing compliant ingredients at scale can be difficult and expensive. Failure to adapt to these shifting demands could result in lost market share to competitors who successfully navigate these regulatory and consumer trends.

Key Market Trends

Premiumization and Craft Innovation

The Australian ginger beer market is experiencing a surge in premium and craft offerings, driven by consumers’ growing preference for high-quality, artisanal beverages. While mass-produced brands like Bundaberg and Schweppes dominate mainstream retail, smaller craft producers are gaining traction by emphasizing small-batch production, unique flavor profiles, and locally sourced ingredients. Brands such as Brookvale Union, Stone & Wood, and The Ginger Beer Factory are experimenting with cold-pressed ginger, organic spices, and barrel-aged fermentation techniques to create differentiated products. This trend is particularly strong in the on-trade sector, where bars and restaurants seek exclusive ginger beers for cocktails and premium non-alcoholic pairings. Additionally, limited-edition seasonal releases (e.g., spiced winter ginger beers or tropical summer blends) are becoming popular, catering to consumers looking for novelty and exclusivity. As premiumization continues, brands that can combine authentic craftsmanship with storytelling (e.g., heritage brewing methods or sustainable sourcing) will stand out in a crowded market.

Sustainability and Eco-Conscious Packaging

Environmental concerns are reshaping the ginger beer industry, with brands under increasing pressure to adopt sustainable packaging and production practices. Consumers, particularly younger demographics, are prioritizing eco-friendly brands, leading to a shift away from single-use plastics and traditional glass bottles toward recyclable cans, biodegradable materials, and refillable containers. Companies like CAPI and Mojo Beverages are leading this movement by using lightweight aluminum cans (which have a lower carbon footprint than glass) and plant-based labels. Some craft producers are even experimenting with zero-waste brewing processes, repurposing spent ginger pulp into food products or compost. Beyond packaging, sustainability efforts extend to ethical sourcing, with brands highlighting partnerships with fair-trade ginger farms or carbon-neutral supply chains. As regulations tighten and consumer expectations grow, sustainability will transition from a differentiator to a market necessity, forcing even large manufacturers to rethink their environmental impact.

Flavor Experimentation and Hybrid Beverages

Innovation in flavor profiles and hybrid beverage formats is a major trend energizing the ginger beer market. While traditional ginger beer remains popular, brands are expanding their appeal by introducing bold, exotic, and fusion flavors such as blood orange-ginger, turmeric-ginger, chili-lime, and even floral-infused varieties (e.g., lavender-ginger). These innovations cater to adventurous consumers seeking complex taste experiences beyond standard soda alternatives. Another emerging trend is the blending of ginger beer with other functional ingredients, such as kombucha (for probiotic benefits), cold-brew coffee (for a spicy kick), or botanical extracts (like adaptogens). These hybrid drinks straddle multiple beverage categories, attracting health-conscious shoppers and cocktail enthusiasts alike. Alcoholic ginger beers are also evolving, with brewers incorporating hops, tropical fruits, or even whiskey-barrel aging to create sophisticated, beer-like profiles. As competition intensifies, flavor innovation will remain a critical strategy for brands aiming to capture niche markets and drive repeat purchases.

Segmental Insights

Flavor Insights

Ginger beer is segmented into original (traditional) and flavored varieties. Original ginger beer remains the leading segment, favored for its classic, spicy-sweet profile and versatility as a mixer or standalone drink. Established brands like Bundaberg and Schweppes have built strong loyalty around their traditional recipes, appealing to consumers who prefer authenticity. However, flavored ginger beer is the fastest-growing segment, driven by consumer demand for innovative and exotic taste experiences. Variants such as lemon-ginger, raspberry-ginger, chili-lime, and tropical-infused options are gaining popularity, particularly among younger demographics. Craft brands are leading this trend, experimenting with botanical infusions (e.g., hibiscus, turmeric) and functional ingredients (e.g., kombucha blends). The flavored segment’s growth is also supported by its appeal in cocktail culture, where unique ginger beer flavors enhance mixology creativity. While original ginger beer maintains a strong base, flavored innovations are driving market expansion and attracting new consumers.

Distribution Channel Insights

The market is divided into on-trade (bars, restaurants, cafes) and off-trade (supermarkets, liquor stores, online retail) distribution channels. Off-trade is the leading segment, accounting for most sales due to the convenience and wide availability of ginger beer in supermarkets like Coles and Woolworths, as well as liquor chains such as Dan Murphy’s and BWS. The off-trade segment benefits from bulk purchasing, promotional discounts, and the rise of e-commerce, with online grocery platforms making ginger beer more accessible. However, the on-trade segment is experiencing faster growth, particularly for alcoholic and craft ginger beers. Bars and restaurants are increasingly stocking premium ginger beers for cocktails, mocktails, and standalone consumption, driven by consumer demand for experiential drinking occasions. The post-pandemic recovery of the hospitality industry has further boosted this segment, with mixologists using artisanal ginger beers to elevate drink menus. While off-trade remains dominant due to its mass-market appeal, on-trade growth highlights the increasing premiumization and social consumption trends in the ginger beer market.

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Regional Insights

In Australia, New South Wales (NSW), along with the Australian Capital Territory (ACT), represents the largest and most mature market for ginger beer in Australia. Sydney’s vibrant hospitality scene and high population density drive strong demand across both on-trade (bars, restaurants) and off-trade (retail) channels. The region’s cosmopolitan consumer base favors premium and craft ginger beers, with brands like Brookvale Union and Stone & Wood performing well in boutique bars and liquor stores. Additionally, the ACT’s affluent demographic supports health-conscious and organic ginger beer variants, making it a key hub for innovation. NSW’s dominance is further reinforced by strong distribution networks, with major supermarkets and independent retailers stocking a wide variety of local and national brands.

Recent Developments

• In 2024, Bundaberg Brewed Drinks expanded its portfolio with a new sparkling alcoholic ginger beer alternative, targeting sober-curious consumers while maintaining its signature craft-brewed flavor profile.
• In 2024, the popular alcoholic ginger beer brand secured nationwide distribution in Coles supermarkets, significantly increasing its retail footprint and competing with mainstream players like Schweppes.
• In 2024, Stone & Wood’s Limited-Edition Ginger & Yuzu Beer debuted a seasonal ginger-yuzu fusion beer, capitalizing on the demand for exotic flavors and premium RTD (ready-to-drink) options.

Key Market Players

• Bundaberg Brewed Drinks Pty Ltd
• The Coca-Cola Company Australia
• Asahi Beverages Oceania Pty Ltd
• Lion Pty Ltd
• CAPI Pty Ltd
• Brookvale Union Pty Ltd
• Stone & Wood Brewing Co.
• Bickford's Australia Pty Ltd
• Mojo Beverages Pty Ltd
• The Ginger Beer Factory Pty Ltd

Report Scope:

In this report, the Australia Ginger Beer market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Australia Ginger Beer Market, By Type:

o   Alcoholic

o   Non-alcoholic

• Australia Ginger Beer Market, By Distribution Channel:

o   On-trade

o   Off-trade

• Australia Ginger Beer Market, By Flavor:

o   Original

o   Flavored

• Australia Ginger Beer Market, By Region:

o   Australia Capital Territory & New South Wales

o   Northern Territory & Southern Australia

o   Western Australia

o   Queensland

o   Victoria & Tasmania

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Australia Ginger Beer market.

Available Customizations:

Australia Ginger Beer market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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