Alcohol Ingredient Market size is likely to expand at a notable pace over 2021-2027 given the rising consumption of alcoholic beverages worldwide as a result of the growing purchase parity, economic developments, and rapid urbanization.
Moreover, surging number of pubs, clubs, and breweries across various developing and developed nations is bolstering the market demand considerably. Besides, elevating establishment of craft breweries worldwide has urged consumers to pivot to the consumption of craft beer, driving the product demand further.
The increasing prominence of beer tourism would boost the demand for alcohol ingredients, resulting in a strong alcohol ingredient market growth through 2027. Various governments and organizations have been consistently promoting the craft beer industry and beer tourism. For instance, D.G Yuengling & Son, Inc., had in 2021 announced launching its new campus in Tampa Bay, which is slated to open in early 2022. This establishment would mark the company’s continued commitment to the Greater Tampa Bay community and the region’s expanding tourism and local craft beer markets.
However, the presence and introduction of various anti-alcohol campaigns globally are anticipated to remain major obstruction for industrial growth in the coming years.
Based on the ingredient type, the yeast segment would record considerable growth over the forecast period. The ingredient is used for the fermentation of alcohol to convert the sugar into CO2 and ethanol. Different types of yeast strains have been used in fermentation for ethanol production including recombinant, hybrid, and wild-type yeasts.
In terms of the end-user, beer segment is projected to gain lucrative gains by 2027. Some of the ingredients used in the fermentation of beer include barley, hops, yeast, and water. The sugar from barley is extracted and converted to alcohol by yeast. Meanwhile, increasing awareness about the health benefits of beer consumption has propelled the industry growth. Reportedly, beer is considered to be more nutritious than other alcoholic beverages and can help protect heart health.
Asia Pacific alcohol ingredients market would register significant growth through 2027. The region holds immense potential for the craft beer industry, with strong demand for Westernized craft beer. Furthermore, consumers are pivoting to imported alcohol from conventional alcohol, which is further driving the product demand. Moreover, increased consumption of alcoholic beverages and increased disposable incomes of the residents would further accentuate the regional market progression.
The global alcohol ingredient market is highly concentrated and boasts the presence of Treatt PLC, The Archer Daniels Midland Company (ADM), Biospringer, Angel Yeast Co., Ltd, Chr. Hansen A/S, Döhler, Kerry Inc., and Ashland Global Specialty Chemicals, Inc., amongst others.
These companies are involved in various industrial practices like acquisitions, mergers, product launches, and more to take over a significant position in the overall market space.
The novel outbreak of COVID-19 pandemic during 2020 has brought about a significant impact on the global alcohol ingredient market. Although the alcoholic beverages industry witnessed a considerable downfall during the first half of 2020, due to stringent lockdown norms and closure of various shops, the pharmaceuticals and medical industry observed an upscale. This can be credited to the use of alcohol in hand sanitizers and other hygiene products that were recommended to be used by WHO.