Alcohol Ingredient Market Size, Industry Analysis Report, Regional Outlook (U.S., Canada, Mexico, Germany, UK, Belgium, France, Italy, Spain, Japan, China, India, Australia, New Zealand, Brazil, South Africa, Saudi Arabia, UAE, Application Development Potential, Price Trends, Competitive Market Share & Forecast, 2019 – 2025
Report ID: GMI4087
Global Alcohol Ingredient Market size is set to experience steady growth in the forecast timeframe owing to multiple application of alcohol as fuel additives, solvents, hard beverages, feedstock and precursor to chemicals including plasticizers and detergents. Growing demand from pharmaceutical, chemical, cosmetic and beverages industry is likely to drive the market.
Isopropanol, methanol and ethanol can be produced by fermentation of high starch ingredients including fruits and grains. Sugarcanes, corns and beets are preferred for producing ethanol.
Isopropanol finds application in the pharmaceutical industry as a sterilizing agent owing to its cooling and disinfecting property. The product is derived from propylene which is a byproduct from the petroleum industry. Bittering agents including benzene iodine and formaldehyde is used in liquor in order to discourage drinking isopropanol owing to its poisonous nature. Isopropanol market size is likely to surpass USD 4.5 billion by 2023 which may drive alcohol ingredient market.
Hard liquor beverages including beers and wines is produced by fermentation of fruit juice would stimulate alcohol ingredient market size. Yeast are single celled microorganisms which in absence of oxygen reacts with sugar or glucose content to produce ethanol and release carbon dioxide. Ethanol produced from fermentation reaction finds application as a bio fuel, paints, inks, cosmetics and chemical intermediates for polymers. Global ethanol market size is projected to reach USD 120 billion by 2026 which may propel the market.
Enzymes find application in process of distillation in production of distilled beverages which would influence alcohol ingredient market. These products are also used for exposing fermentable sugar before the process of fermentation. Low storage cost along with its usage in producing fuel alcohol from starch of surplus agricultural activity is projected to boost market growth.
Hops flower is extensively used in manufacturing of beer as a flavoring, bittering and stabilizing agent. These products impart citrus, flowery and fruity aromas owing to different varieties grown for beer production. Addition of hops provides dryness and acidity and acts as natural filter at end of cooking. Antibacterial properties of hops act as a liquid preservative and helps in contributing to foam retention. Global beer market size is likely to surpass USD 720 billion by 2022. These factors would positively influence alcohol ingredient market size.
Malted grains, a key component influencing the market find application in production of beer and whiskeys. Malt is germinated cereal grain whose germination process have been controlled by soaking in water and drying with hot air respectively. These product helps to develop enzymes to modify the grain starches into sugar molecules to be used by the yeast for fermentation, thus propelling product demand. Malt is used to impart sweeter notes in normal & craft beer. Malt grains including barley, rice, oats, wheat, corn and rye are extensively used beverages to impart softer notes. Global craft beer market size is projected to surpass USD 90 billion by 2025, thereby driving alcohol ingredient market share.
Chemicals including potassium sorbate, potassium metabisulfite, calcium carbonate and sulfur dioxide is added during production of wine could stimulate the market in the projected timeframe. Potassium sulfate and potassium metabisulfite are added to protect yeast from bacteria inhibiting enzymatic browning. Calcium carbide is added for reducing acidity of the final product along with accelerating grapes ripening process. These factors are likely to foster alcohol ingredient market size by 2025.
Specialty flavored created for drinks are used to give different flavors including apple, blueberry, ginger, cola, passion fruit, mango and fruit cocktail. Grape juice concentration is added to wine to boost color and adding extra sugar in the process to improve the taste. Oak is added in form of chips and powder to balance undertone of subtle spices including cloves, cinnamon and roasted marshmallow. Powdered tannins occurring in skin of grapes increases complexity of wine taste, thus stimulating industry size by 2025.
Byproducts from industrial production of alcohols release chemicals are harmful to environment and toxic in nature. These factors might adversely affect growth of alcohol ingredient market and may affect industry profitability.
Europe led by Spain, France, Belgium, U.K. and Germany market is set to experience in significant growth in the projected timeline. Wine production in France and beer production in Germany would be key drivers promoting market growth in the region.
North America led by Mexico, Canada and the U.S. alcohol ingredient market share is projected to grow significantly in the forecasted timeframe. Growing consumption of craft breweries in the U.S. with more than 3000 breweries opened in 2018 will propel regional demand by 2025.
Asia Pacific led by India, China, New Zealand and Australia market is set to expand rapidly owing to growing popularity of beer tourism in the region. Government of New Zealand and Australia support the growth this industry owing to economic development and availability of exclusive flavors unique to this region. Rapid industrialization and growing chemical industry in China and India contribute towards the growing market in the region.
Global alcohol ingredient market is competitive and fragmented owing to large number of local players. Key players operating include The Archer Daniels Midland Company, Treatt Plc, DDW, Chr. Hansen A/S; Döhler, Biospringer, The Color House, Angel Yeast Co., Ltd., Kerry Inc., Ashland Global Specialty Chemicals, Inc. and Sensient Technologies. Key strategies include product innovation in the market. The Coca Cola introduced Alcopop line of alcoholic beverages in Japan.
Alcohol Ingredient Market, By Application, 2014-2025 (Tons) (USD Million)
- Fermenting agent
- Antibacterial agent
- Flavoring agent
Alcohol Ingredient Market, By product, 2014-2025 (Tons) (USD Million)
- Potassium sorbate
- Potassium metabisulfite
- Calcium carbonate
- Sulfur dioxide
Alcohol Ingredient Market, By End-Use, 2014-2025 (Tons) (USD Million)
- Alcoholic Beverage
The above information is provided for the following regions and countries:
- North America
- Asia Pacific
- New Zealand
- Latin America
- Middle East & Africa
- South Africa
- Saudi Arabia
- The Archer Daniels Midland Company
- Treatt Plc
- Chr. Hansen A/S
- Döhler, Biospringer
- The Color House
- Angel Yeast Co., Ltd.
- Kerry Inc.
- Ashland Global Specialty Chemicals, Inc.
- Sensient Technologies
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