The global alcohol ingredients market is expected to grow at a CAGR of 7.85% over the forecast period to reach a total market size of US$103.059 billion by 2025, increasing from US$65.502 billion in 2019. There are several ingredients that are used as a component in alcoholic beverages ranging from ethanol to other sugar contents. Alcohol is widely consumed globally and is classed as a ‘sedative hypnotic’ drug which acts as an agent to depress the central nervous system at high doses. Growing alcohol consumption in various parts of the world is expected to drive the growth of the market during the forecast period. In addition, rising disposable income in developing countries is widening up the growth opportunities for alcohol makers which positively impact the demand for ingredients in the coming years. Growing awareness among consumers about the wide range of flavors of alcohols along with the increasing demand for low alcohol (in percent by volume) content beverages is anticipated to drive the demand. However, stringent government regulations on alcohol products worldwide are expected to act as a restraining factor for the growth of the market.
Growing alcohol consumption globally is driving the growth of the market during the forecast period.
There is an exceptionally broad range of alcohol available around the world and alcoholic beverages today are present in all societies. There is an increasing trend of alcohol consumption in developing countries like Vietnam, India, and China on account of growth in the financial status of the major population in these countries. Also, due to increasing population sizes and growing per capita alcohol consumption the overall volume also increases which propels the market growth opportunities for manufactures and vendors in various parts of the world.
Understanding the Beer industry
Beer is generally made with ingredients such as wheat and barley and has been malted and brewed for a certain time with sugar. Beer is considered one of the most consuming alcoholic beverages in the United States and as per data by National Beer Wholesalers Association (US) the country’s beer industry sells more than $111.1 billion worth of beer and malt-based beverages. Also, the domestic population each year consumes 83 percent of all beer which is locally produced, and the remaining 17 percent is imported from more than 100 different countries around the world. The growth of beer consumption has been uneven as there is a shift in consumption patterns in recent years like the Asia Pacific is now surpassing the European region to become the leading consuming region globally as consumption in traditional beer-drinking nations (in Europe) is shrinking. Besides, the consumer in the traditional beer-drinking countries is getting richer which is becoming a reason for the shift in preference towards expensive and imported beverages such as wine. Globalization has also reduced the cost of imported expensive beverages which has increased the demand for a variety of other alcoholic beverages. Furthermore, the growing number of craft beer enthusiasts coupled with the increasing investment in breweries in the developing countries is expected to have a positive impact on the market.
Understanding Wine industry
Grapes are considered as one of the most common ingredients for wine, but other fruit or vegetables such as pears, pineapples, blackberries, and gooseberries among others are also used. Wine helps in combating inflammation, reducing heart diseases, and promotes healthy gut bacteria leading to increasing demand for wines globally. The global wine market growth is driven by its increased consumption for its health benefits and innovation in flavor. Also, the consumption and popularity of wine are rising particularly among the women population which is also opening the growth opportunities for manufactures and vendors. Besides, changing lifestyle, taste, and preferences among consumers, coupled with the increasing demand for new and exotic flavors, made of tropical fruit are expected to fuel the growth of the wine consumption which will further create ample opportunities in various parts of the world.
Due to the COVID-19 pandemic, major alcohol manufacturers halted their expansion plans and investments which is expected to restrict the growth of the alcohol ingredients market in the short term.
Also, implemented duty hikes increase the prices which have also impacted the demand for alcoholic beverages. After the pandemic consumers are becoming more aware of health and wellness due to which health-conscious drinkers are adopting a policy of modernization which is a cut in the volume consumption or reducing drinking occasion that further restrains the growth opportunities for alcohol ingredients players. In addition, the bars, clubs, and restaurants who have their significant sales from serving alcohol have been negatively affected by the lockdown and social distancing policies of government around the world. Further, in order to strengthen the liquor sale in developing countries like India initiative to expand the home delivery network of alcohol has taken place. However, due to diverse interstate tax policies, the policies failed to gain the potential benefit from these favorable policies.
Some of the recent updates of the market are as follow:
August 2020: Beer-producing giants SAB and Heineken halted their investment and expansion plans of nearly R200-billion into South Africa.
May 2020: South African Breweries (SAB) canceled R5-billion ($290 million) of planned investments due to revenue losses sustained during a nearly three-month ban on alcohol sales during the coronavirus crisis.
November 2019: Coolberg an India based startup that offers malt-based flavored non-alcoholic beers announced that it has secured $3.5 million in Series A round led by RB Investments (a Singapore based company).
December 2019: The world's largest selling spirit Baijiu enters India and the white spirit brand is expected to invest significantly in the coming years.
February 2020: World’s largest craft brewer BrewDog, is entering the Indian subcontinent with plans to open 35 pubs and launch nearly a dozen bottled beer brands over the next four years.
Regional Analysis
By geography, the global alcohol ingredient market is segmented as North America, South America, Europe, the Middle East and Africa, and the Asia Pacific. The North American region is expected to hold a significant share in the market owing to the presence of major players coupled with the ever-growing alcohol consumption in countries like the United States and Canada. In addition, growing awareness regarding the health benefit of wine is further anticipated to boost the growth of the market in the region. The European region is home wine and spirits consuming population and with the increasing product launches the market is expected to witness significant growth in the coming years. In addition, countries like Portugal and Spain are among the leading producers of premium and high-quality wines. Also, crafted spirits are gaining popularity in various parts of the region, and demand is driven mostly driven by the young population. Due to awareness among consumers demand new flavors have contributed to increased investment in innovations and diversification of products offering which is opening up the growth opportunities for more alcohol ingredients companies. The Asia Pacific region is estimated to show promising growth over the forecast period, which is attributable to the fact that wine production is growing considerably in the region.
Perceiving the supply chain of the market
Distribution channels of different ingredients are constituting the downstream supply chain network of the industry. The substantial influence of the existing distribution channels on strategic decisions such as new flavored product development and pricing is there. Regulatory authorities do play an important role between the manufactures and distilleries. Little marketing and promotional strategies are adopted by the companies to strengthen their downstream relationships with distribution channels. Besides, efforts are also needed to be taken to improve the overall complicating factors, i.e. the testability and time.
Competitive Insights
Prominent/major key market players in the global alcohol ingredient market include Calavo Growers, Inc., Del Rey Alcohol ingredients Company, Inc., WestPak, Westfaliafruit, Mission Produce Inc, and Avehass among others. The number of players in the alcohol ingredients market is restricted and is growing with the opportunity to generate significant revenues because of growing demand in various parts of the world. The players in the global alcohol ingredients market are implementing various growth strategies to gain a competitive advantage over its competitors in this market. Major market players in the market have been covered along with their relative competitive position and strategies and the report also mentions recent deals and investments of different market players over the last few years. The company profiles section details the business overview, financial performance (public companies) for the past few years, key products and services being offered along with the recent deals and investments of these important players in the global alcohol ingredients market.
Segmentation:
By Ingredient
By Beverage Type
By Geography
There is an exceptionally broad range of alcohol available around the world and alcoholic beverages today are present in all societies. There is an increasing trend of alcohol consumption in developing countries like Vietnam, India, and China on account of growth in the financial status of the major population in these countries. Also, due to increasing population sizes and growing per capita alcohol consumption the overall volume also increases which propels the market growth opportunities for manufactures and vendors in various parts of the world.
Understanding the Beer industry
Beer is generally made with ingredients such as wheat and barley and has been malted and brewed for a certain time with sugar. Beer is considered one of the most consuming alcoholic beverages in the United States and as per data by National Beer Wholesalers Association (US) the country’s beer industry sells more than $111.1 billion worth of beer and malt-based beverages. Also, the domestic population each year consumes 83 percent of all beer which is locally produced, and the remaining 17 percent is imported from more than 100 different countries around the world. The growth of beer consumption has been uneven as there is a shift in consumption patterns in recent years like the Asia Pacific is now surpassing the European region to become the leading consuming region globally as consumption in traditional beer-drinking nations (in Europe) is shrinking. Besides, the consumer in the traditional beer-drinking countries is getting richer which is becoming a reason for the shift in preference towards expensive and imported beverages such as wine. Globalization has also reduced the cost of imported expensive beverages which has increased the demand for a variety of other alcoholic beverages. Furthermore, the growing number of craft beer enthusiasts coupled with the increasing investment in breweries in the developing countries is expected to have a positive impact on the market.
Understanding Wine industry
Grapes are considered as one of the most common ingredients for wine, but other fruit or vegetables such as pears, pineapples, blackberries, and gooseberries among others are also used. Wine helps in combating inflammation, reducing heart diseases, and promotes healthy gut bacteria leading to increasing demand for wines globally. The global wine market growth is driven by its increased consumption for its health benefits and innovation in flavor. Also, the consumption and popularity of wine are rising particularly among the women population which is also opening the growth opportunities for manufactures and vendors. Besides, changing lifestyle, taste, and preferences among consumers, coupled with the increasing demand for new and exotic flavors, made of tropical fruit are expected to fuel the growth of the wine consumption which will further create ample opportunities in various parts of the world.
Due to the COVID-19 pandemic, major alcohol manufacturers halted their expansion plans and investments which is expected to restrict the growth of the alcohol ingredients market in the short term.
Also, implemented duty hikes increase the prices which have also impacted the demand for alcoholic beverages. After the pandemic consumers are becoming more aware of health and wellness due to which health-conscious drinkers are adopting a policy of modernization which is a cut in the volume consumption or reducing drinking occasion that further restrains the growth opportunities for alcohol ingredients players. In addition, the bars, clubs, and restaurants who have their significant sales from serving alcohol have been negatively affected by the lockdown and social distancing policies of government around the world. Further, in order to strengthen the liquor sale in developing countries like India initiative to expand the home delivery network of alcohol has taken place. However, due to diverse interstate tax policies, the policies failed to gain the potential benefit from these favorable policies.
Some of the recent updates of the market are as follow:
August 2020: Beer-producing giants SAB and Heineken halted their investment and expansion plans of nearly R200-billion into South Africa.
May 2020: South African Breweries (SAB) canceled R5-billion ($290 million) of planned investments due to revenue losses sustained during a nearly three-month ban on alcohol sales during the coronavirus crisis.
November 2019: Coolberg an India based startup that offers malt-based flavored non-alcoholic beers announced that it has secured $3.5 million in Series A round led by RB Investments (a Singapore based company).
December 2019: The world's largest selling spirit Baijiu enters India and the white spirit brand is expected to invest significantly in the coming years.
February 2020: World’s largest craft brewer BrewDog, is entering the Indian subcontinent with plans to open 35 pubs and launch nearly a dozen bottled beer brands over the next four years.
Regional Analysis
By geography, the global alcohol ingredient market is segmented as North America, South America, Europe, the Middle East and Africa, and the Asia Pacific. The North American region is expected to hold a significant share in the market owing to the presence of major players coupled with the ever-growing alcohol consumption in countries like the United States and Canada. In addition, growing awareness regarding the health benefit of wine is further anticipated to boost the growth of the market in the region. The European region is home wine and spirits consuming population and with the increasing product launches the market is expected to witness significant growth in the coming years. In addition, countries like Portugal and Spain are among the leading producers of premium and high-quality wines. Also, crafted spirits are gaining popularity in various parts of the region, and demand is driven mostly driven by the young population. Due to awareness among consumers demand new flavors have contributed to increased investment in innovations and diversification of products offering which is opening up the growth opportunities for more alcohol ingredients companies. The Asia Pacific region is estimated to show promising growth over the forecast period, which is attributable to the fact that wine production is growing considerably in the region.
Perceiving the supply chain of the market
Distribution channels of different ingredients are constituting the downstream supply chain network of the industry. The substantial influence of the existing distribution channels on strategic decisions such as new flavored product development and pricing is there. Regulatory authorities do play an important role between the manufactures and distilleries. Little marketing and promotional strategies are adopted by the companies to strengthen their downstream relationships with distribution channels. Besides, efforts are also needed to be taken to improve the overall complicating factors, i.e. the testability and time.
Competitive Insights
Prominent/major key market players in the global alcohol ingredient market include Calavo Growers, Inc., Del Rey Alcohol ingredients Company, Inc., WestPak, Westfaliafruit, Mission Produce Inc, and Avehass among others. The number of players in the alcohol ingredients market is restricted and is growing with the opportunity to generate significant revenues because of growing demand in various parts of the world. The players in the global alcohol ingredients market are implementing various growth strategies to gain a competitive advantage over its competitors in this market. Major market players in the market have been covered along with their relative competitive position and strategies and the report also mentions recent deals and investments of different market players over the last few years. The company profiles section details the business overview, financial performance (public companies) for the past few years, key products and services being offered along with the recent deals and investments of these important players in the global alcohol ingredients market.
Segmentation:
By Ingredient
- Yeast and Enzymes
- Colors, flavors & salts
- Others
By Beverage Type
- Beer
- Wine
- Whiskey
- Spirits
- Gin
- Rum
- others
- Others
By Geography
- North America
- United States
- Canada
- Mexico
- South America
- Brazil
- Argentina
- Others
- Europe
- Germany
- Spain
- United Kingdom
- Italy
- France
- Others
- Middle East and Africa
- South Africa
- Turkey
- Saudi Arabia
- Others
- Asia Pacific
- China
- Japan
- India
- Vietnam
- Indonesia
- Others
Table of Contents
1. Introduction
2. Research Methodology
3. Executive Summary
4. Market Dynamics
5. Global Alcohol ingredients Market Analysis, By Ingredient (Value in US$ Million)
6. Global Alcohol ingredients Market Analysis, By Beverage Type (Value in US$ Million)
7. Global Alcohol ingredients Analysis, by Geography (Value in US$ Million)
8. Competitive Environment and Analysis
9. Company Profiles
Companies Mentioned
- Cargill, Incorporated
- Archer Daniels Midland Company
- Kerry Group PLC
- Sensient Technologies Corporation
- Ashland Inc.
- D.D. Williamson & Co., Inc.
- Koninklijke DSM NV
- Döhler Group
- Chr. Hansen Holdings A/S
- Treatt PLC The
- list is not exhaustive*
Methodology
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Table Information
| Report Attribute | Details |
|---|---|
| Published | September 2020 |
| Forecast Period | 2019 - 2025 |
| Estimated Market Value ( USD | $ 65.5 billion |
| Forecasted Market Value ( USD | $ 103.06 billion |
| Compound Annual Growth Rate | 7.8% |
| Regions Covered | Global |
| No. of Companies Mentioned | 11 |
