Alcohol Ingredients Market

Global Alcohol Ingredients Market Size (2024 to 2029)

The global alcohol ingredients market size is expected to be worth USD 1.84 Billion in 2024. It is expected to grow at a CAGR of 8.3% during the forecast period and reach a value of USD 2.70 Billion by 2029. As the demand for alcoholic beverages increases worldwide, growth in the global alcoholic ingredients market is expected to accelerate in the future.

Alcoholic beverages are drinks made up of significant amounts of ethanol. Small amounts of alcohol can cause sociability, euphoria, and anxiety. Various types of alcoholic beverages are beer, wine, whiskey, and brandy, and their ingredients are mainly produced from yeast, starch, enzymes, etc. Also, long-term drinking can lead to alcoholism, alcohol abuse, and physical dependence. This drink contains flavors, yeast, dyes, and enzymes. They are widely known worldwide as recreational drugs. Drinking is important in many social cultures.

The increasing trend of alcoholic beverages is reflected in economic development, the higher purchasing power of consumers, and the more significant marketing and branding of alcoholic beverages.

Global Alcohol Ingredients Market Drivers:

The adoption of Western culture and rapid urbanization in emerging areas are driving the growth of the global alcohol ingredients market. The market has improved significantly as the number of clubs, pubs, and breweries has increased. In recent years, the number of pubs and bars has increased worldwide. It has become a common platform for socialization, especially among the Millennium generations. The number of pubs, bars, cafes, and liquor bars (PBCLs) in India has increased from approximately 5,300 to 6,700. Increasing demand for craft beer is also a significant growth driver for this industry. North Carolina has more than 250 breweries, most of them in the South. The fragrance and salt products segment held the largest market share in 2018 due to the increased demand for flavored beverages. Furthermore, consumers are increasingly leaning towards craft beer, and as a result, the largest outlets in the UK, Germany, and Italy produce a lot of craft beer. This is another factor driving the global market for alcoholic ingredients.

The leading liquor companies have expanded their product portfolio in this particular segment. The beer had the largest market share. Along with its low alcohol content, the health benefits of beer have made it a popular drink. Craft beer is supposed to show significant growth in the near future as it becomes popular around the world. As beer tourism became more popular, industrial growth accelerated. People are more addicted to alcoholic beverages, leading to the growth of the global market in the near future. Furthermore, drinking alcohol has become a status symbol. This can fuel the global market for alcoholic ingredients. Disposable income for brand-name products and changes in consumer habits are assumed to increase in the future. Socialization progresses as the young population increases worldwide.

The number of pubs, bars, and breweries serving alcoholic beverages has increased significantly due to the demand of young consumers, competitive prices, and the proliferation of options. This phenomenon has led to the growth of the alcoholic ingredients market by increasing the consumption of alcoholic beverages. Consumption patterns have experienced significant growth in the beer market, especially in the last 50 years. These changes were the result of several factors, including rising incomes, liberalizing the economy, increasing beer production, and faster trade. In emerging economies, the rapid increase in alcohol consumption has had a positive impact on the demand for alcohol components. Based on the altering tastes and preferences of consumers, demographic changes and the growing demand for alcohol in emerging markets can be seen as opportunities to launch innovative products to expand the market base.

Global Alcohol Ingredients Market Restraints:

Several campaigns against alcohol are presumed to remain a significant limitation in the industry. In recent years, these campaigns have raised consumer health awareness. Furthermore, increased fiscal and government regulations on the alcohol industry will limit manufacturing production, which will soon limit the scope of market growth.

REPORT COVERAGE:

This research report on the global alcohol ingredients market has been segmented and sub-segmented into the following categories.

Global Alcohol Ingredients Market - By Ingredient Type:

• Enzymes 
• Yeast        
• Colorants
• Salts & Flavors      
• Others    

Global Alcohol Ingredients Market - By Beverage Type:

• Beer          
• Wine         
• Spirits        
• Whisky     
• Brandy     
• Others    

Global Alcohol Ingredients Market - By Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Europe was the dominant region and represented more than 35% of the world's alcohol ingredients market share. The rapid expansion of the alcohol industry is driving demand for products in the area. Europe registers almost 50% of the world's wines. It is the largest alcohol exporter in the world, with the leading producers in the industry. Germany, France, the United Kingdom, and Italy are the main markets in Europe. France, Italy, Spain, Romania, and Portugal consume the highest amounts of wine. Similarly, Germany, the United Kingdom, and Ireland are the largest consumers of beer. Vodka consumption is high in Russia, Poland, Ukraine, and Norway. Of the different types of alcohol, beers have the highest share. However, in recent years, craft beer has gained great popularity in the region. North America is considered a mature market for the liquor market due to the rise in the food and beverage industry. Companies in this region also occupy other areas.

The Asia Pacific region is envisioned to witness the fastest average annual growth rate (9.6%) from 2020 to 2025. Regional markets are growing due to the increased purchasing power of consumers in developing countries, including China, Taiwan, India, Korea, Myanmar, Indonesia, the Philippines, and Thailand. China is the largest market in the region, especially with increased demand for products in urban areas. Wine is the most popular alcohol category in the region. Wine imports grew 16% year-on-year in 2018. Among still wines, red wine represents 75% of the size of the Chinese wine market.

KEY MARKET PLAYERS:

Companies playing a dominating role in the global alcohol ingredients market include Chr. Hansen Holdings A/S, Sensient Technologies Corporation, Cargill Incorporated, Daniels Midland Company, and Ashland Inc       

RECENT HAPPENINGS IN THE MARKET:

• In October 2019, Ashland Inc. launched knockout material for self-directed and sport-oriented consumers at the Supply Side West Trade Fair.
• In March 2018, The Coca-Cola Company launched the latest flavored alcoholic beverage called Alcopop in Japan. The alcohol content of this product ranges from 3% to 8%.
• In March 2019, Archer Daniels Midland announced that it had agreed to take over the Ziegler Group, a provider of natural citrus flavor based in Europe.
• The Boston Beer Company expanded the Samuel Adams beer brand by launching Sam '76, a union of Lager and Ale. Bass Lager and Bass Ale each have their own strain of yeast.
• In April 2019, the Döhler Group, a major player in the alcoholic ingredients market, announced that it would take over the majority stake in Zumos Catalano Aragoneses SA (Zucasa), a producer of modern equipment, ceremonies, juices, and concentrates. Production facilities.