North America Alcohol Ingredients Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

North America alcohol ingredients market is growing at a CAGR of 7.5% during the forecast period (2020-2025).

Key Highlights

• The market has witnessed a significant growth due to rise in the number of consumers looking for new, more exciting offerings compared to their usual spirit options thus, pushing the revenue generation in the market.
• The consumer’s increasing disposable income and increasing perception of drinking better quality alcohol are the primary factors driving the demand for premium ingredients across the region.
• Brand consciousness among consumers and significant rise in per capita spending are expected to drive the growth of the market, over the forecast period.

Key Market Trends

Growing Preference for Craft Spirits in the Region

Craft spirits are gaining popularity across the globe primarily in major consuming regions such as North America. The market is majorly driven by the demand from young consumers. These consumers seek authenticity in terms of quality and techniques used for manufacturing alcoholic beverages, such as spirits. Small-batch products are rising in popularity, as one in seven new products introduced in 2016 were craft or small batch spirits. As per studies by distilled spirits council, the number of distilleries has increased approximately 35% per year since 2011, while the craft spirits market has grown 19% per year since 2015. And while lagging the overall category penetration, the U.S. craft spirits market has grown by approximately 20% per year by value since 2012 and is forecast to grow by approximately 15%-20% per year through 2022.

United States Dominates the Market

Alcohol consumption is stagnating as consumers pay increasing attention to health and wellness, which has led to preferences for quality over quantity. The value category, bottles less than USD 12, fell slightly in terms of incremental growth, but high-end (USD 20-35) and super-premium (USD 35 and over) products showed strong growth in terms of case sales and gross supplier revenue.The growing preferences towards craft spirits owing to the inclination towards experimental drinking is also a major factor boosting the market in the country. There are currently more than 1,500 craft spirits distillers in the US, most heavily represented on the west coast.

Competitive Landscape

North America alcohol ingredients market is a highly competitive market with the presence of various major players in the market. Some of the major players operating in the market are Archer Daniels Midland Company, Cargill, Koninklijke Dsm N.V, Dohler Group, Chr Hansen etc. Major players operating in the market are developing innovative products to enhance the quality of the final product and efficiency of production.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support