Global Alcohol Ingredients Market Size, Share, and COVID-19 Impact Analysis, By Ingredient (Yeast, Enzymes, Colorants, Flavours & salts & Others), By Beverage (Beer, Spirits, Wine, Whisky & Others), and by Region (North America, Europe, Asia-Pacific, South America, Middle East, and Africa) Analysis and Forecast 2022-2030
KEY MARKET INSIGHTS
The alcohol ingredients market was valued at US$ 1.89 Bn in 2021 and is projected to reach US$ 3.93 Bn by 2030, at a CAGR of 7.4%. Yeast, grains, and fruits are used in the fermentation process, which is the main method of producing alcohol. These materials are used to create a variety of alcoholic beverages, including beer, wine, whiskey, vodka, and others. Due to consumers' increasing preference for unique and flavorful beverages like cocktails, beer, and others, the market for alcohol additives is expanding. Additionally, producers are adding numerous unusual flavors to alcoholic beverages to enhance their flavor and catch consumers' interest, which is driving the market's expansion. The increasing use of alcohol worldwide is a major element influencing product demand. Additionally, emerging regions like Asia Pacific are rapidly urbanizing and embracing western culture, which is fostering market expansion.
COVID-19 ANALYSIS
Major alcohol producers stopped investing in expansion because to the COVID-19 pandemic, which is anticipated to limit the growth of the market for alcohol ingredients in the near future. Additionally, enacted tariff increases raise prices, which also has an impact on alcoholic beverage demand. Following the pandemic, consumers are more concerned about their health and wellness, leading them to adopt a modernization policy that involves cutting back on their drinking frequency or volume, thus limiting the chances for the producers of alcohol ingredients. The lockdown and social segregation policies of governments around the world have also had a negative impact on pubs, clubs, and restaurants that depend heavily on supplying alcohol.
TREND
Rising Number of Nightclubs and Pubs Across the World
The rising number of pubs and nightclubs are one of the key causes promoting alcohol consumption all over the world. The rise in small-scale brewers, pubs, and restaurants that serve alcoholic beverages is another factor contributing to the market expansion for alcohol ingredients.
DRIVERS
Increasing Demand of Alcohol Consumption Among Millennial
Alcohol consumption has raised demand for alcoholic beverages which is the main element driving the brewery industry. Alcohol addiction is a widespread problem, which fuels the expansion of the global market. Additionally, drinking alcohol has evolved into a status symbol, which could expand the market for alcohol ingredients globally. Additionally, customers' propensity to experiment with novel alcoholic beverages has increased the consumption of craft beer and other flavor-infused spirits, forcing the producers of alcohol ingredients to focus on premiumization their products.
RESTRAINT
Increased Amount of Taxation is hampering the Market Growth
The policies failed to reap the potential benefits from these advantageous policies because of various interstate tax policies. The demand for healthy alternatives to alcoholic beverages from consumers who want low- or no-alcohol beverages has also slowed the market's expansion.
SEGMENTATION INSIGHTS
The global alcohol ingredients market is segmented by Ingredient (Yeast, Enzymes, Colorants, Flavours & salts & Others), by Beverage (Beer, Spirits, Wine, Whisky & Others) and region. Based on the ingredient, the market is categorized into yeast, enzymes, colorants, flavours & salts & others. Based on beverage, the market is categorized into beer, spirits, wine, whisky & others. Based on the region, the market is categorized into North America, Europe, Asia-Pacific, South America, Middle East and Africa.
By Ingredient
Based on the ingredient segment, the global alcohol ingredients market is categorized into yeast, enzymes, colorants, flavours & salts & others. The yeast segment accounted largest market share in 2020 due to the existence of primary component that drives the entire fermentation process for the manufacture of alcohol. Yeast is also frequently included since it helps maintain a healthy, balanced digestive system, which has contributed to the market expansion of this ingredient.
By Beverage
Based on the beverage segment, the global alcohol ingredients market is categorized into beer, spirits, wine, whisky & others. The beer segment accounted largest market share in 2020 due to the growing health benefits since it contains substances like barley and hops, which are abundant in numerous healthy nutrients. Additionally, these components give beer antioxidant and bone-building capabilities, which has significantly increased consumption.
REGIONAL INSIGHTS
The global alcohol ingredients market is categorized into North America, Europe, Asia-Pacific, Latin America, Middle East and Africa. Asia Pacific is expected to dominate the market share of global alcohol ingredients market owing to the shift in customer preferences from traditional alcohol toward imported alcohol. Due to its known tradition and reputation, customers in nations like China are drawn to wines produced in renowned vineyard regions like Bordeaux. The region is seeing an increase in demand for whiskies, cognacs, and imported wines as people gravitate more toward high-end goods. However, Europe is anticipated to emerge as the fastest-growing region over the forecast period. The market is driven due to the rise in alcohol consumption in nations like Russia, Germany, France, and the United Kingdom. Additionally, the area is a major producer of alcoholic beverages. Italy, France, and Spain are the world's top producers of wine. The region's favorable temperature, soil quality, and topography determine the ease with which components are available for the production of alcohol, which in turn spurs market expansion for alcohol ingredients.
LIST OF KEY COMPANIES PROFILED:
· AngelYeast Co., Ltd.
· Ashland
· Biospringer
· Cargill, Incorporated
· Chr. Hansen Holding A/S
· Diageo
· Döhler GmbH
· DSM
· MGP
· Sensient Technologies Corporation
· Synergy Flavours
· ADM
· DDW, Inc.
· Treatt Plc
KEY INDUSTRY DEVELOPMENTS:
- July 2022- Diageo announced to invest €200 million in Ireland’s first purpose-built carbon neutral brewery on a greenfield site in Littleconnell, Newbridge which will brew lagers and ales.
- June 2022- Diageo acquired Vivanda to provide customised brand experiences across all channels and to expand FlavorPrint technology to other categories.
- May 2022- Ashland has launched Polyclar brewbrite granules to strengthen its current product portfolio.
- March 2020- Cargill has donated 100 kl disinfected alcohol to the Belgian government to produce disinfectant hand gel for the emergency services.
- April 2019- Döhler Group announced the acquisition of majority of the shares of Zumos Catalano Aragoneses S.A., which aims at expanding the former company’s offer of fruit concentrates, purees, and juices.
SEGMENTATION
By Ingredient
- Yeast
- Enzymes
- Colorants
- Flavours & salts
- Others
By Beverage
- Beer
- Spirits
- Wine
- Whisky
- Others
By Region
- North America- U.S., Mexico, Canada
- Europe- UK, France, Germany, Italy, Spain, Rest of Europe
- Asia-Pacific- China, Japan, India, South Korea, Rest of Asia Pacific
- South America- Brazil, Argentina, Colombia, Rest of South America
- The Middle East and Africa- GCC, South Africa, Rest of Middle East & Africa
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Global Alcohol Ingredients Market Size
- August-2022
- 148
- Global
- Chemicals-and-Advanced-Materials
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