Alcohol Ingredients Global Market Report 2024

The global alcohol ingredients market has grown strongly in recent years. It will grow from $2.04 billion in 2023 to $2.24 billion in 2024 at a compound annual growth rate (CAGR) of 10.0%. The growth observed in the historical period can be attributed to various factors, including consumer demand for a variety of alcoholic beverages, the impact of globalization and international trade, changing consumer preferences, the influence of regulatory frameworks, and a shift in drinking culture.

The global alcohol ingredients market is expected to see strong growth in the next few years. It will grow to $3.26 billion in 2028 at a compound annual growth rate (CAGR) of 9.8%. The anticipated growth in the forecast period can be attributed to factors such as the incorporation of functional and nutraceutical ingredients, the demand for clean-label and natural ingredients, the rise in beverage tourism, global economic growth, and the influence of an innovative cocktail culture. Major trends expected in the forecast period include the emergence of climate-adaptive ingredients, the popularity of customized flavor blends, a focus on heritage and regional ingredients, a growing demand for transparency in sourcing, and the increasing popularity of low-alcohol and non-alcoholic beverage options.

The surge in alcohol consumption is significantly bolstering the growth of the alcohol ingredients market. The increase in alcohol intake is primarily attributed to factors like elevated stress levels, heightened availability of alcoholic beverages, boredom, and the social acceptance of alcohol consumption. Ethanol, a substance found in alcoholic beverages, is a key alcoholic ingredient produced using components like yeast, enzymes, and colorants. The rise in alcohol consumption directly correlates with an increased demand for ingredients utilized in alcoholic beverages. For instance, data from American Addiction Centers in 2022 highlighted Belarus, a small European country, having the highest per-capita consumption of pure alcohol, with an average annual usage of 14.4 liters per person, surpassing the consumption rate in the United States by 1.5 times. Hence, the escalating consumption of alcohol is a driving force behind the demand surge in the alcohol ingredient market.

The expanding bar and pub industry are expected to propel the growth of the alcohol ingredients market. Bars and pubs, both licensed to serve alcoholic beverages, exhibit distinct characteristics and services, with pubs often offering a more extensive food menu and functioning as community focal points. Essential to the varied beverage offerings in bars and pubs are the alcohol ingredients employed to craft diverse alcoholic drinks catering to consumer preferences. For example, a report from Ireland's Central Statistics Office in December 2022 indicated a substantial annual increase of 54.6% in bar sales volume and a 20.2% rise in January 2023. These statistics underline the industry's growth and its impact on driving the alcohol ingredients market.

Ingredient innovations stand out as a prominent trend in the alcohol ingredients market. Leading companies in this market segment are actively engaged in innovating ingredients to enhance the alcohol fermentation process, increase alcohol yield, and gain a competitive edge. For instance, Novozymes A/S, a Denmark-based biotechnology company, introduced Innova Quantum yeast in October 2021. This robust yeast variant facilitates higher ethanol yields and processing efficiency, even during extended fermentation periods exceeding 60 hours. Notably, it enhances ethanol output by 2-3% for a 100MGY plant, equating to an extra $1-2 million in revenue, without compromising the process. Quantum yeast significantly reduces fermentation by-products like glycerol by up to 40% while accommodating ethanol concentrations exceeding 16% w/v, eliminating the need for expensive supplements and augmenting plant flexibility.

Major companies within the alcohol ingredients market are strategically forging partnerships to introduce innovative products, notably protein-enhanced alcoholic beverages, aiming to secure a competitive edge in the industry. Collaborative endeavors among alcohol ingredient companies serve to broaden market presence, diversify product lines, and elevate production capabilities. For instance, in October 2022, Pulp Culture, a US-based hard beverage start-up, joined forces with The Every Company, a US-based producer of animal-free protein ingredients, to unveil Pulp Culture+. This pioneering creation represents the world’s inaugural protein-boosted alcoholic beverage, marking its inclusion in the 'hyper functional' Pulp Culture+ product line. These beverages incorporate functional components besides protein, such as adaptogens that enhance the body's response to stress and probiotics that promote gut health. Pulp Culture harnesses spontaneous fermentation for its fruit juice-based drinks, allowing natural organisms from the air or the fruit itself to contribute to the fermentation process. Simultaneously, The Every Company specializes in crafting authentic animal proteins through microbial fermentation, entirely excluding the use of animals.

In October 2021, Givaudan, a Switzerland-based manufacturer renowned for flavors, fragrances, and active cosmetic ingredients, completed the acquisition of DDW The Color House, although the financial details remained undisclosed. This strategic acquisition effectively integrates DDW's robust heritage and expertise in natural colorants into Givaudan’s portfolio, bolstering their array of offerings in the realm of natural colorants. DDW The Color House, based in the US, is a key provider of caramel color, burnt sugar, and natural colorings, particularly known for delivering colorants for various alcoholic beverages.

Major companies operating in the alcohol ingredients market report are AngelYeast Co. Ltd., Ashland Global Holdings Inc., Bio Springer SA, Cargill Incorporated, Chr. Hansen Holding A/S, Diageo Plc., Döhler GmbH, Royal DSM N.V., MGP Ingredients Inc., Sensient Technologies Corporation, Synergy Flavours, The Archer-Daniels-Midland Company, Treatt Plc., Crystal Pharma, DDW The Color House, Koninklijke DSM N.V., Kerry Group PLC, The Color House, D.D. Williamson & Co. Inc., The Edlong Corporation, International Flavors & Fragrances Inc., Firmenich SA, Givaudan SA, Takasago International Corporation, Mane SA, Robertet SA, Molson Coors Beverage Company, BASF SE, Ajinomoto Co. Inc., Novozymes A/S

Asia-Pacific was the largest region in the alcohol ingredients market in 2023. Asia-Pacific is expected to be the fastest-growing region in the global alcohol ingredients market share during the forecast period. The regions covered in the alcohol ingredients market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the alcohol ingredients market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The main types of alcohol ingredients include colorants, yeast, flavors, and salt, enzymes, and others. Colorants are employed to replicate the natural colors that a beer would typically have due to the brewing process, often without the accompanying flavors. These ingredients are utilized in a range of applications, including whiskey, beer, wine, brandy, spirits, and others. The distribution of alcohol ingredients occurs through both on-trade channels (e.g., bars and restaurants) and off-trade channels (e.g., retail stores).

This report provides alcohol ingredients market statistics, including alcohol ingredients industry global market size, regional shares, competitors with alcohol ingredients market share, detailed alcohol ingredients market segments, market trends, and opportunities, and any further data you may need to thrive in the alcohol ingredients industry. This alcohol ingredients market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The alcohol ingredients market consists of sales of palms and supplements used in alcoholic drinks. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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