Alcohol Ingredients Market Outlook 2031
The alcohol ingredients market size was USD 8.11 Billion in 2022 and is anticipated to reach USD 9.48 Billion by 2031 expand at a significant CAGR 1.75% during the forecast period, 2023–2031. Growth of the market is attributed to rising urbanization and acceptance of western culture in emerging countries.
Alcohol beverages contain a significant quantity of ethanol, with the amount of alcohol varying depending on the kind of beverage. Beer, spirits, wine, whiskey, and brandy are examples of different forms of alcohols, and their main components include yeast, starch, enzymes, and other substances.
According to recent study from the Centre for Addiction and Mental Health, the overall amount of alcohol drunk per year in middle-income nations, particularly in Asia-Pacific, grew by as much as 70% between 1990 and 2017. This upward trend can be linked to rising consumer spending power, population growth, economic development, and enhanced alcoholic beverage marketing and branding.
Alcohol consumption has increased at a high rate in recent years, with 235.4 billion liters consumed in 2017 (according to a survey conducted by Banco do Nordeste), paving the way for ingredient manufacturers to expand their production capacity to meet the rising demand of alcoholic beverage. Furthermore, consumers are becoming more interested in craft beer, resulting in an increase in the number of craft brewers throughout the world.
Alcohol Ingredients Market Trends, Drivers, Restraints, and Opportunities
- Rising alcohol consumption across the world is estimated to propel the market during the forecast period.
- Increasing acceptance of western culture and fast urbanization in emerging countries such as Asia Pacific is the major factor fueling the market.
- Anti-alcohol initiatives are anticipated to hamper the market growth.
- Increased government control and taxes on the alcohol sector act as major challenges that can hinder the market expansion in the coming years.
- Changing demographics, consumer tastes, and preferences are projected to create lucrative opportunities for the market players.
Scope of The Alcohol Ingredients Market Report
The report on the alcohol ingredients market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
Alcohol Ingredients Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
Ingredient Type (Yeast, Enzymes, Colorants, Flavors, and Salts), and Beverage (Beer, Spirits, Wine, Whisky, and Brandy)
Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
Key Players Covered in the Report
Koninklijke Dsm N.V, Archer Daniels Midland Company, Kerry Group plc, Cargill, Incorporated, and Dohler Group SE.
Alcohol Ingredients Market Segment Insights
The flavors and salts segment is projected to hold a major market share
On the basis of ingredient types, the alcohol ingredients market is segmented into yeast, enzymes, colorants, flavors, and salts. The flavors and salts segment is expected to hold a key share of the market during the forecast period due to the rising popularity of flavored drinks such as flavored beer, whiskey, and wine. Growing use of fruits as flavors in recent years has expanded the range of flavored beverages and piqued customer interest, which is estimated to fuel the market during the projected period.
The yeast segment is projected to expand at a substantial CAGR during the forecast period. Yeast is an important component in the fermentation of alcohol and the conversion of sugar to ethanol and carbon dioxide, it is utilized extensively.
The beer segment is expected to expand at a rapid pace
On the basis of beverages, the alcohol ingredients market is divided into beer, spirits, wine, whisky, and brandy. The beer segment accounted for a revenue share of more than 40% of global share. Major ingredients of beer production include cereal grains, yeast, hops, and water. Rising awareness about the health benefits associated with beer has fueled the market. It contains vitamins, natural antioxidants, proteins, low calories, and carbohydrates.
These nutritional qualities aid in the prevention of CVDs, kidney stones, high cholesterol levels, and muscle regeneration. Over the last few years, the craft beer industry has grown significantly. Craft beer accounts for 23% of total beer sales in the US. In 2018, the Alcohol and Tobacco Tax and Trade Bureau (TTB) of the United States granted 1,252 additional licenses.
Asia Pacific is expected to dominate the market
On the basis of regions, the alcohol ingredients market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. The market of Asia Pacific is anticipated to dominate the market during the forecast period. Due to rising per capita alcohol consumption and consumer purchasing power, Asia-Pacific is the fast expanding market for alcohol components.
China, Japan, Malaysia, Taiwan, South Korea, and Indonesia are some of the prospective markets that have contributed to the region's growing consumption. Several well-known firms have established manufacturing bases in the region in order to expand geographically and drive market in the coming years.
The alcohol ingredients market has been segmented on the basis of
- Flavors and Salts
- Asia Pacific
- North America
- Latin America
- Middle East & Africa
Key players competing in the alcohol ingredients market include Koninklijke Dsm N.V, Archer Daniels Midland Company, Kerry Group plc, Cargill, Incorporated, and Dohler Group SE.
Product innovation, collaboration, and merger and acquisition are the most popular strategies among the producers, accounting for a large portion of overall strategies. To differentiate themselves from other manufacturers in the industry, the top companies are growing their production capacity and carefully preparing to complement their export facilities.