Global Alcohol Ingredients MarketMarket was worth USD 1.38 billion in 2016 and expected to be growing at a CAGR of 9.9%, to reach USD 2.21 billion by 2021. Alcoholic beverages are produced by the fermentation of fruit, vegetables or cereals. Alcohol ingredients are specialty ingredients used in a variety of food & beverage applications, especially in the production of alcoholic beverages.
Alcohol ingredients such as yeast, flavours & salts, enzymes, colours and other ingredients are extracted from natural sources such as plants, vegetables, and fruits. Furthermore, Beer is produced by fermentation of malted barley or other cereals with the addition of hops. Wine is made from fermented grape juice or crushed grapes; fortified wines include additional distilled spirits.
The alcohol ingredients demand essentially depends on the performance quality and legislations imposed by the both local as well as international government on the production of alcohol beverage ingredients and alcohol beverages. The major driving force of the market is the rise in alcohol consumption in emerging countries due to huge population base, more acceptance of socializing places like bars and pubs and growing consumption of alcohol becoming a new trend among the younger generation.
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Distribution channel advancement such as online sales, separate counter for females, outlets in public places like airport are also few important driving factors for alcohol beverage industry. The changing demand patterns of the consumers is also set to drive the market. A few restraints in the alcohol industry include stringent government regulations on manufacturing and selling liquor, high taxes, and ban on advertisements among others. Health-conscious consumers and high costs of raw materials are also among the major restraints of the alcohol Ingredients market.
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The global alcohol ingredients market is segmented by ingredient type, beverage type and geography. By the ingredients type, the market is classified into yeasts, enzymes, colorants, salts & flavours and others. Yeast can be additionally categorized into bottom-fermenting and top-fermenting. By beverage type, the market is separated into beer, spirits, wine, whiskey, brandy, others. Further categorisation of spirits includes vodka, rum, scotch, gin, tequila and others. Spirits are accounting for a major part of market growth in recent times.
The market is geographically divided into North America, Europe, Asia-Pacific, Latin America and Middle-East & Africa. The Europe market is the largest consumer and is considered a developed market, also, there is enormous growth potential shown by emerging markets like Asia-Pacific, South Africa, and Latin America, this is because the market is projected to expand in developing regions, where consumer expenditure on these beverages is mounting rapidly.
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The global alcohol ingredients market is quite competitive because of numerous players operating at the global and local levels. Some key players in the market are Chr. Hansen Holdings A/S (Denmark), Ashland Inc. (U.S.), are Sensient Technologies Corporation (U.S.), Cargill, Incorporated (U.S.) and Archer Daniels Midland Company (U.S.).
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