Alcohol Ingredients Market is Projected to Grow at a CAGR of 8.10% During the Next 7 Years (2021-2028)

The Global Alcohol Ingredients Market is expected to reach a market size of USD 3.69 Billion by 2028 at a CAGR of 8.10% during the forecast period. Increasing global alcohol trade is a key factor expected to drive the revenue growth of the global alcohol ingredients market during the forecast period. In addition, the rising number of microbreweries is expected to augment the global alcohol ingredients market revenue growth going ahead.

Key findings:

Craft beer has grown in popularity among a wide range of customers. The millennial generation has been a driving force behind the rapid growth of craft beer sales throughout the world. Among the factors influencing the trend toward craft beer consumption are need for diversity, taste for flavor, and beer quality. Craft brewers are shining examples of creativity, rejuvenation, and teamwork. For example, The Boston Beer Company broadened its Samuel Adams beer brand with the release of Sam '76, a lager and ale hybrid. A foundation lager and a basic ale, both with their unique yeast strains.

Market overview:

Alcohol consumption has increased at a faster rate in recent years, with 235.4 billion gallons of alcohol 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 burgeoning demand for alcoholic beverage industries. Furthermore, customers are becoming more interested in craft beer, which has led in an increase in the number of craft brewers throughout the world, with the United Kingdom having the most outlets, followed by Germany, Italy, and others. This is another aspect driving the global alcohol ingredients market.

Regional analysis:

Asia-Pacific, in particular, has enormous craft beer market potential, with strong demand for Westernized craft beer that is merged with local taste and preferences. One of the main causes for the region's alcoholic beverage industry growth has been a shift in customer tastes away from native alcohol and toward imported alcohol. Because of their known legacy and reputation, customers in nations such as China choose wines produced by prominent vineyard areas such as Bordeaux. Whiskies, cognacs, and international wines are becoming increasingly popular throughout the area as customers shift toward higher-end items.

Competitive landscape:

Because of the dominance of multiple local and worldwide competitors in the industry, the global alcohol ingredient market is extremely fragmented. Nonetheless, worldwide significant firms such as DSM, ADM, Cargill, and Döhler Group, as well as various domestic manufacturers, have a considerable position in the industry. Expansion remained the most popular strategy among malt component makers, accounting for a significant portion of overall strategies, followed by product innovation, collaboration, and merger and acquisition. To differentiate themselves from other manufacturers in the industry, the big companies are growing their production capabilities and carefully preparing to augment their export facilities.

Recent developments:

In March 2019 Archer Daniels Midland announced that it has agreed to acquire the Ziegler Group, a European producer of natural citrus flavor.

In April 2019, the Döhler Group, a prominent participant in the alcoholic ingredients industry, announced the acquisition of Zumos Catalano Aragoneses SA (Zucasa), a manufacturer of contemporary equipment, ceremonies, juices, and concentrates.

In March 2018, the Coca-Cola Company announced the launch of its new product i.e., Alcopop, a new flavored alcoholic beverage. The alcohol level of this beverage fluctuates between 3% and 8%.