Alcohol Ingredients Market Size (2022 – 2030)
The global Alcohol Ingredients Market size is estimated to register a CAGR of 7.34%. The market is estimated to reach USD 3,067.4 million in 2030 from USD 1,787. 7 million in 2022 during the forecasted period. 
 

Industry Overview.

Alcohol is a drink containing a huge amount of ethanol. Depending on the beverage type, the alcohol varies. Alcohol is produced using fermentation processes like fruits, nuts, and grains. Alcohol ingredients are those used for producing alcohol.

Flavored alcoholic drinks can be substituted with non-alcoholic flavored beverages like low-carb drinks, soft drinks, and energy drinks are posing a challenge for the growth of the alcohol ingredients market.

 
Market Drivers

The consumption of alcohol is growing day by day. The consumption is increasing due to the traditions and western culture followed by the population and the demand for alcohol is increasing globally. The increasing demand is due to the is administered by the performance quality, their combination in beverage applications is climbing the alcohol ingredients market size. Quick urbanization with growing western culture strengthens the market growth.

On the other side, shifting census and the increase in demand for alcohol in emerging markets as per changes in the taste and consumers choice considers as an opportunity for the market players and augments the market growth. Factors like soil quality, favorable climate, and terrain influence the easy availability of ingredients for producing alcohol fosters market growth.

The growth of the global alcohol ingredients owes to the mounting number of microbreweries, and the growing alcohol trade worldwide fuels the revenue of the market. The heightening of consumers' inclination for a changeover from beer to high-cost spirits.

 
Market Restrains
However, government rules towards producing cheap and less available alcohol and anti-alcohol campaigns diminish the alcohol ingredients market.

 
Recent Market Developments

• On March 19, 2022, Archer Daniel Midland Company (ADM) decided to acquire the Zeigler Group, a European provider, a natural citrus flavor ingredient. 

• On November 22, 2022, Kerry's Botanicals Collection ZERO 2.0, 0% ethanol botanical extracts for the alcohol beverages sector. The company has announced second-generation taste extracts for alcoholic beverages. 

Segment Analysis

The global alcohol ingredients market is segmented based on product and application.

Alcohol Ingredients Market - By Product

• Yeast
• Enzymes
• Colorants
• Flavors& Salts
• Others

The flavors and salts segment is the largest product segment in the global alcohol ingredients market.

The yeast segment grows with the highest CAGR in the alcohol ingredients market. The yeast is the primary ingredient in beer production for starting the fermentation process. Yeast is used as raw material in producing functional drinks in probiotic drinks is accelerating the growing use of producing alcoholic beverages. 

Alcohol Ingredients Market - By Application

• Wine
• Whiskey
• Brandy
• Beer
• Spirits

The beer segment leads the alcohol ingredients market and is expected to remain in its dominant position during the foretold period. The beer segment held 40% and more share globally. Consumers are more aware of the health benefits associated with consuming beer accentuates the market growth.

The craft beer segment has observed significant growth since years. In 2018, the U.S. Alcohol and Tobacco Tax and Bureau (TTB) issued new 1,252 new approvals. Craft beer has a share of 23% in the U.S beer industry. 

Regional Analysis
The North American market for alcohol ingredients is expected to experience momentous growth. The increasing number of consumers opting for new alcohol drinks with new tastes. Increasing disposable income and the growing principle of consuming better quality alcohol propel the alcohol ingredients market growth in North America.

Pabst Brewing, MillerCoors, LLC, Heineken USA are some of the major brewers in the U.S.

The U.S dominates the alcohol ingredients market. Consumers in the United States are paying more attention to wellness and health. The increasing significance towards craft spirits due to the rising trend for experimental drinking fosters the market in the country.

As per the researchers from the Centre for Addiction and Mental Health, Canada, the consumption of alcohol in 1990 was 21 billion liters to 35.7 billion in 2017 to 35.7 billion liters in 2017, with a 70% increase in consumption.

Europe is accounted for the largest share in terms of revenue in 2022. The alcohol industry is witnessing quick growth in Europe. Furthermore, half of the wine is produced in Europe globally. Craft beer is more popular in Europe. Europe is the largest exporter of alcohol with the presence of an immense number of producers of alcohol. In the U.K., the number of young drinkers increased prominently.

France, Portugal, Spain, Romania, and Italy are the largest producers of wine.

Asia-Pacific is expected to experience a brisk CAGR growth rate of 10% during the foreseen period. The purchasing power of consumers is high across countries like India, Indonesia, Myanmar, China, South Korea, and Taiwan. Wine is the most popular in Asia-Pacific. APAC holds huge potential for craft beer with strong demand for westernized craft beer.

China is the largest market for alcohol ingredients in APAC.

Consuming alcoholic beverages is increasing in the APAC region.

Vietnam, China, and India have contributed majorly due to the growing consumption of alcohol.

As per the World Health Organization (WHO), in 2017, the major alcohol-consuming country is South Korea.

For instance, New Zealand's Wellington city is such a market for craft beer since such beers are offered in unique tastes due to special types of ingredients used and obtained.

Latin America is expected to have notable growth with the growing share in terms of revenue in the global alcohol ingredients market. The growth in LATAM attributes to increasing alcohol consumption because of the immense population of bars and visiting places like bars, pubs.

Brazil is leading the alcohol ingredients market in Latin America with the highest share.

The national drink of Brazil is Caipirinha which is a refreshing cocktail. The cocktail is ready to prepare and needs only a few ingredients.

The Middle East and Africa region is anticipated to have a noteworthy growth in the alcohol ingredients worldwide. Africa and UAE are leading the region’s market growth during the foretold period.

 Key players in the global Alcohol Ingredients Market

1. Treatt Plc

2. Biospringer

3. AngelYeast Co., Ltd

4. Chr. Hansen A/S

5. DDW

6. The Color House

7. Sensient Technologies

8. The Archer Daniels Midland Company

9. Döhler

10. Kerry, Inc

11. Ashland Global Specialty Chemicals, Inc. 

COVID-19 Impact on alcohol ingredents market
The sudden outbreak of the novel coronavirus (COVID-19) has affected the global economy. The SARS-CoV-2 reagent is the reason for the new virus coronavirus (COVID-19). The World Health Organization (WHO) announced an emergency public health issue. To avoid the quick virus spread, nations across the globe have decided to impose lockdowns. The strict regulations on imposing lockdown have affected the food and beverages industry including the alcohol ingredients market.
During the lockdown, all the manufacturing plants were temporarily closed to avoid the quick spread of the virus. The laborers had no work during the pandemic crisis.