Market Size of Alcohol Ingredients Industry
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 8.39 Billion |
| Market Size (2029) | USD 9.16 Billion |
| CAGR (2024 - 2029) | 1.75 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Europe |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Alcohol Ingredients Market Analysis
The Alcohol Ingredients Market size is estimated at USD 8.39 billion in 2024, and is expected to reach USD 9.16 billion by 2029, growing at a CAGR of 1.75% during the forecast period (2024-2029).
According to Lucas Bols's annual reports, in recent years, alcohol consumption has increased significantly around the globe. Bols, a Dutch public company specializing in producing, distributing, selling, and marketing alcoholic beverages, reported a revenue increase in Western Europe from EUR 34.4 million in 2016 to EUR 42.11 million in 2021. But the company's revenue dropped to EUR 30.75 million as a result of COVID-19. However, post-pandemic, the market has recovered, and ingredient manufacturers are increasing their production to meet the burgeoning demand coming from the alcoholic beverage sector. Moreover, consumers are increasingly inclined toward craft beer, which has resulted in an increasing number of craft breweries around the globe, with the highest number of outlets in the United Kingdom, followed by Germany, Italy, and others.
This is yet another factor driving the alcohol ingredients market around the globe. Additionally, manufacturers are increasing their production capacity owing to the rising demand. For instance, in August 2021, Angel Yeast invested heavily in acquisitions and production. Together with Shandong Lufa Holding company, a local investment corporation within the Chinese mainland, the company announced the acquisition of Bio Sunkeen for RMB 60 million (USD 9.2 million). Additionally, manufacturers are innovating various types of ingredients colorants, yeast, flavors & salt, enzymes, and others to enhance the quality of alcoholic beverages.
Alcohol Ingredients Industry Segmentation
Alcohol ingredients are added to grains, fruits, or vegetables, which are fermented with yeast, enzymes, color, flavor, and salt as part of the production process. The global alcohol ingredients market (henceforth, referred to as the market studied) is segmented by ingredients type, beverage type, and geography. By ingredient type, the market is segmented into yeast, enzymes, colorants, flavors, and salts. By beverage type, the market is segmented into beer, wine, brandy, whiskey, and spirits. It provides an analysis of emerging and established economies across the world, comprising North America, Europe, South America, Asia-Pacific, and Middle East and Africa. For each segment, the market sizing and forecasts have been provided on the basis of value (in USD million).
| Ingredient Type | |
| Yeast | |
| Enzymes | |
| Colorants | |
| Flavors & Salts |
| Beverage Type | |
| Beer | |
| Spirits | |
| Wine | |
| Whisky | |
| Brandy |
| Geography | |||||||||
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Alcohol Ingredients Market Size Summary
The alcohol ingredients market is experiencing a steady growth trajectory, driven by the increasing global demand for alcoholic beverages, particularly craft beer. This demand has prompted ingredient manufacturers to enhance their production capabilities and innovate new products such as colorants, yeast, flavors, and enzymes. The craft brewing and distilling industries have seen significant expansion, with consumers seeking unique and flavored beers, which has further propelled the market. The brewing process relies on a variety of ingredients, including malt extracts, hops, and yeast, which are essential for creating the desired beer characteristics. The rise of microbreweries and the growing popularity of craft beer, especially in regions like Asia-Pacific, where Westernized craft beer is gaining traction, are key factors contributing to the market's growth.
The global alcohol ingredients market is characterized by its fragmented nature, with numerous local and international players competing for market share. Major companies such as DSM, ADM, Cargill, and Döhler Group are prominent in the market, employing strategies like expansion, product innovation, and strategic partnerships to strengthen their positions. The market's competitive landscape is further shaped by acquisitions, such as Givaudan's acquisition of DDW, which bolstered its color business. The increasing consumer preference for premium imported alcoholic beverages in regions like Asia-Pacific, along with the strategic expansion of production facilities by key players, underscores the dynamic nature of the market. This ongoing evolution reflects the industry's response to shifting consumer tastes and the growing demand for diverse and high-quality alcoholic products.
Alcohol Ingredients Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Drivers
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1.2 Market Restraints
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1.3 Porter's Five Forces Analysis
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1.3.1 Threat of New Entrants
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1.3.2 Bargaining Power of Buyers/Consumers
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1.3.3 Bargaining Power of Suppliers
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1.3.4 Threat of Substitute Products
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1.3.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION
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2.1 Ingredient Type
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2.1.1 Yeast
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2.1.2 Enzymes
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2.1.3 Colorants
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2.1.4 Flavors & Salts
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2.2 Beverage Type
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2.2.1 Beer
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2.2.2 Spirits
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2.2.3 Wine
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2.2.4 Whisky
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2.2.5 Brandy
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2.3 Geography
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2.3.1 North America
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2.3.1.1 United States
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2.3.1.2 Canada
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2.3.1.3 Mexico
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2.3.1.4 Rest of North America
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2.3.2 Europe
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2.3.2.1 Spain
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2.3.2.2 United Kingdom
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2.3.2.3 Germany
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2.3.2.4 France
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2.3.2.5 Italy
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2.3.2.6 Russia
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2.3.2.7 Rest of Europe
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2.3.3 Asia-Pacific
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2.3.3.1 China
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2.3.3.2 Japan
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2.3.3.3 India
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2.3.3.4 Australia
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2.3.3.5 Rest of Asia-Pacific
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2.3.4 South America
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2.3.4.1 Brazil
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2.3.4.2 Argentina
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2.3.4.3 Rest of South America
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2.3.5 Middle East and Africa
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2.3.5.1 South Africa
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2.3.5.2 United Arab Emirates
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2.3.5.3 Rest of Middle East and Africa
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Alcohol Ingredients Market Size FAQs
How big is the Alcohol Ingredients Market?
The Alcohol Ingredients Market size is expected to reach USD 8.39 billion in 2024 and grow at a CAGR of 1.75% to reach USD 9.16 billion by 2029.
What is the current Alcohol Ingredients Market size?
In 2024, the Alcohol Ingredients Market size is expected to reach USD 8.39 billion.
