Global Alcohol Ingredients Market - Growth, Trends and Forecasts (2017 - 2022)
Alcohol Ingredients Market Recent Industry Insights
Sensient launches new flavors; has now become leading manufacturer and marketer of flavors.
Alcohol ingredients are made from the extraction of yeast, enzymes, colors, and flavors from natural sources like plants, vegetables, and fruits. From a global perspective, interest in alcohol ingredients is expected to increase in the developing regions, where consumer spending on these beverages is on the rise.
The global alcohol ingredients market is expected to grow at a CAGR of XX % during the forecast period of 2017 – 2022. The market, estimated at USD XX million as of 2016, is projected to reach USD XX million by 2022. Improvements in the economic climate, changes in the taxation levels on alcoholic drinks for 2016, successful marketing campaigns, the launch of new brands and a strong drinking culture among consumers will support the growth of this market. Cultural preferences would also influence the demand levels and growth will be extremely dependent on factors such as economic stability and the consumers’ response to the change.
The global alcohol ingredients market is expected to go through a gradual growth throughout the forecast period. The growth is expected to be driven by many factors like the cluster of new trends in emerging economies and changing demand patterns of the consumers. Innovation plays a key role in this market, as the manufacturers try to scale down the costs. Other factors like increase in the consumption and popularity of alcohol, globally, rising disposable incomes, and greater potential in the per capita consumption also act as important market drivers.
Factors like anti-alcohol campaigns, a rise in the health-conscious consumers, skyrocketing taxes, unavailability or rise in the cost of raw materials and strict government guidelines & regulations act as major restraints to this market.
The manufacturers are now more focused on developing regions such as Asia-Pacific, where the consumer’s expenditure on alcohol is rising; hence, it is an opportunity for the manufacturers to capture new markets. Also, as innovation is a vital growth factor in this industry, manufacturers have come up with developments in order to match the changing demand patterns of the consumers. Creative branding and labeling are also key opportunities to tap to break the clutter.
The global alcohol ingredients market can be segmented by ingredient type, beverage type, distribution channel and geography. Under the ingredients type, the market is categorized into yeasts, enzymes, colorants, flavor & salts and others. Yeast can be further classified into top-fermenting saccharomyces cerevisiae, bottom-fermenting saccharomyces Pastorianus, Brettanomyces ferment lambics & Torulaspura Delbrueckii ferments Bavarian Weissbier. By beverage type, the market is segregated into beer, spirits, wine, whiskey, brandy, others. Spirits are further categorized into vodka, rum, scotch, gin, tequila and others. Spirits have been experiencing excessive growth in the sales in recent years.
The flavors and salts segment is expected to account for a market share of more than 50%, by 2022. Flavors are natural or artificial, added to beverages to compensate for any loss of taste during food processing. Flavored alcoholic beverages, such as spirits, wines, and beers, have gained immense popularity in recent years and have become an integral part of the alcoholic drinks market. Beer is expected to be the highest selling alcoholic beverage during the forecast period, considering the different types of beer that are being introduced into the market, such as craft beer, cider beer, and beer made from fruit juice.
The market is also segmented on the basis of geography into North America, Europe, Asia-Pacific, South America and Africa and has been further categorized by the key countries.
The manufacturers are coming up with innovative distribution channels to boost their sales and ensuring the availability of their products in most of the areas. The various distribution channels are supermarket/hypermarket, restaurants & café’ bars, online stores, large or small vendors and others.
Globally, the alcohol ingredients market is expected to increase in developing regions, where consumer expenditure on these beverages is growing rapidly and, therefore, the focus would be on regions like Asia-Pacific. Although Europe market is the biggest consumer and is considered to be one of the already developed markets, more growth potential is shown by emerging markets like Asia-Pacific, South Africa, and Latin America.
The Asia-Pacific region is projected to be the fastest-growing market with a CAGR of XX%, regarding value, throughout the review period. This growth is carried out by the increased consumption of alcoholic beverages, particularly in developing countries like India, Australia, Japan, and China. Manufacturers have adopted better technologies and expansion plans to take over the global market share by expanding their current services and improving global presence in the emerging markets.
The per capita consumption of alcoholic beverages is the highest in Europe, where France is in the lead, followed by Germany, Spain, Italy and the United Kingdom.
The alcohol ingredients market is competitive, with many players operating at regional and local levels. The major players in the market attainted new product development, acquisitions, and expansions as their key strategies. Some of the key players are –
Cargill, Incorporated (U.S.) Sensient Technologies Corporation (U.S.) Archer Daniels Midland Company (U.S.) Ashland Inc. (U.S.) Chr. Hansen A/S (Denmark) Future Spotlight
Manufacturers are expected to pay main focus to innovation in order to keep level with the alterations in the demand patterns of the consumers. For instance, manufacturers have come up with different varieties of alcoholic beverages, such as Breezer (with 5% alcohol content), beer (the alcohol content varies from 6% to about 10%), etc., just by altering the amount of alcohol content of the beverages. This has helped the manufacturers grab different groups as their target audience.
Products manufactured based on gender, age, and other specific factors are the new product spotlight. For instance: Cognac for men and whiskey for women. Also, cocktails like Sangria, Watermelon Vodka, etc. are meant for women.
The market is poised to grow as new players are joining the race and, hence, providing the consumers more options to choose from.
Key Deliverables in the Study
Market analysis for the global alcohol ingredient market, with regio- specific assessments and competition analysis on a global and regional scale. Market definition along with the identification of key drivers and restraints. Identification of factors instrumental in changing the market scenario, rising prospective opportunities, and identification of key companies that can influence this market on a global and regional scale. Extensively researched competitive landscape section with profiles of major companies, along with their market share. Identification and analysis of the macro and micro factors that affect the market on both, global and regional, scales. A comprehensive list of key market players along with the analysis of their current strategic interests and key financial information. A wide-ranging knowledge and insight about the major players in this industry and the key strategies adopted by them to sustain and grow in the studied market. Insights on the major countries/regions where this industry is growing and also identify the regions that are still untapped.