Alcohol ingredients are specialty ingredients, including yeast, flavors & salts, enzymes, and colors, which are majorly used in the fermentation of plant-derived carbohydrate materials such as fruits, vegetables, berries, and grains in order to produce alcoholic beverages as well as a variety of food applications. Rising consumption of alcoholic beverages is one of the key factors boosting the demand for alcohol ingredients. According to Coherent Market Insights, France recorded the highest per capita consumption of whiskey, accounting for 2.36 liters in 2014. Uruguay was placed second, with a per capita consumption of 1.85 liters, while the U.S. ranked third with 1.32 liters. Furthermore, the South Asian Nations consumed over 1.8 billion liters of whiskey in 2015. These countries are majorly responsible for the high demand for alcohol ingredients. Additionally, rising young adult demographic and rising purchasing power of consumers are major factors boosting the demand for alcoholic beverages, in turn fuelling growth of the alcohol ingredients market.
However, excessive consumption of alcohol has adverse effects on human health such as the development of head and neck cancers irregular heartbeat, increased risk of strokes and liver cell inflammation, which hampering growth of the alcoholic beverages sector, which in turn, is expected to restraint growth of the alcohol ingredients market. According to the World Health Organization (WHO), over 3.6 million deaths occurred each year across the globe, due to excess consumption of alcohol.
Alcohol Ingredients Market Taxonomy
On the basis of ingredient type, alcohol ingredients market is segmented into:
On the basis of beverage type, alcohol ingredients market is segmented into:
Among ingredients type, the salts & flavors segment held a dominant position in the global alcohol ingredients market in 2016. Dominance of this segment is attributed to the extensive use of natural or artificial flavors in alcoholic beverages, including spirits, beers, and wines.
Among beverage type, the distilled spirits segment is expected to record the fastest growth during the forecast period, owing to the rising consumption of distilled spirits worldwide. According to Coherent Market Insights’ analysis, the global distilled spirits market is expected to cross over US$ 37 billion by 2025.
Alcohol Ingredients Market Outlook
The alcohol ingredients market is marked by intense competition from the major players operating in this market. Frequent mergers and acquisitions, joint ventures and partnerships, product innovation, and geographical expansions are among the key strategies adopted by these players, to ensure long-term sustenance in the market. In 2014, Chr. Hansen Holdings A/S launched a new range of viniflora products such as viniflora NoVA. It is a new generation lactobacillus plantarum, best suited for the production of red wine in warm climate conditions.
Key players operating in the alcohol ingredients market include Chr. Hansen Holdings A/S, Ashland Inc., Sensient Technologies Corporation, Cargill, Inc., Archer Daniels Midland Company, Dohler GmbH, Angel Yeast Co. Ltd., Lesaffre et Compagnie S.A., D.D. Williamson and Co. Inc., Kerry Group Plc, Koninklijke DSM N.V., and Synergy Flavors Inc.