Market Trends of Alcohol Ingredients Industry
This section covers the major market trends shaping the Alcohol Ingredients Market according to our research experts:
Increasing Demand For Craft Beer
The demand for the craft brewing and distilling industries experienced significant growth during the past few years. Consumers across the world are seeking distinctive and flavored beers. This is pushing the alcohol ingredients market into the beer market space. The brewing industry utilizes five major ingredients, namely malt ingredient extract adjuncts/grains, hops, beer yeast, and beer additives. A mixture of starch sources may be used, with a secondary saccharide, such as maize (corn), rice, or sugar, as these are often termed adjuncts, especially when used as a lower-cost substitute for malted barley. Less widely used starch sources include millet, sorghum, and cassava root in Africa, potato in Brazil, and agave in Mexico, among others. Brewing-grade malt extracts are made with the highest-quality brewing malts and get additional colors and flavors from using specialty malts. This gives beer the unique character and flavor desired for the particular style of brew. These malts often have a longer time in the kiln, at higher temperatures, or get roasted to add depth and complexity to the resulting beer. Moreover, the increasing development of microbreweries and the growing production of craft beer led to a growing demand for craft beers.
Asia-Pacific Remains the Fastest Growing Region
Asia-Pacific, in particular, holds immense potential for the craft beer market, with robust demand for Westernized craft beer that is blended with local tastes and preferences. Shift in consumer preferences from traditional alcohol toward imported alcohol has been one of the driving factors for the growth of the alcoholic beverage market in the region. For instance, according to the Ministry of Agriculture, Forestry, and Fisheries, in 2021, approximately 188 billion Japanese Yen of wine was imported to Japan, making up most of the imports. Despite the fact that fruit wine was produced in various prefectures in Japan, imports covered the majority of domestic demand. In countries like China, consumers are inclined toward wines manufactured by famous vineyard regions, such as Bordeaux, owing to renowned heritage and prestige. Whiskies, Cognacs, and imported wines are becoming popular across the region as consumers are more inclined toward premium products.
