Alcohol Ingredients Market, By Ingredient Type (Yeasts, Enzymes, Salts & Flavors, Colorants, and Others) and By Beverage Type (Whiskey, Brandy, Beer, Wine, and Others) - Global Industry Insights, Trends, Outlook, and Opportunity Analysis, 2018-2026

  • To Be Published : Aug 2019 |
  • Format : CMI Insight PPT Format CMI Insight PDF Format

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:

  • Yeasts
  • Enzymes
  • Colorants
  • Salts & flavors
  • Others

On the basis of beverage type, alcohol ingredients market is segmented into:

  • Whiskey
  • Brandy
  • Beer
  • Distilled Spirits
  • Rum
  • Vodka
  • Scotch
  • Tequila
  • Gin
  • Others
  • Wine
  • Others

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

  • Europe held a dominant position in the alcohol ingredients market in 2016, owing to the high consumption of alcoholic beverages in the region. According to the Organization for Economic Co-operation and Development (OECD), in 2012, Lithuania recorded the highest alcohol consumption in European Union and in 2014, the consumption of alcohol among adults was recorded at 15.2 liters per capita. Furthermore, according to the World Bank, in 2015, the per capita consumption of alcohol in Belarus was recorded at 17.1 liters, compared to the global average of 6.3 liters.
  • Asia Pacific is expected to witness fastest growth in the global alcohol ingredients market during the forecast period. This is majorly attributed to the steadily growing food and beverage industry and the increasing expenditure on alcoholic beverages in the region. According to Food Industry Asia (FIA), in 2014, the food industry contributed US$ 10.91 billion to the economy of Singapore, while according to the European Union, the total consumer spending on food and beverages in Singapore is expected to grow by 5 percent annually, from 2016 to 2018. This in turn, is expected to increase growth of the retail food sector in the country. South Korea is the fourth-largest economy in Asia Pacific and according to the Agriculture and Agri-Food Canada, the off-trade volume of total alcoholic beverage consumption in South Korea increased from 2085.0 million liters in 2015 to 2136.3 million liters in 2016.

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.

Research Methodology

Coherent Market Insights followsa comprehensive research methodology focused on providing the most precise market analysis. The company leverages a data triangulation model which helps company to gauge the market dynamics and provide accurate estimates. Key components of the research methodologies followed for all our market reports include:

  • Primary Research (Trade Surveys and Experts Interviews)
  • Desk Research
  • Proprietor Data Analytics Model

In addition to this, Coherent Market Insights has access to a wide range of the regional and global reputed paid data bases, which helps the company to figure out the regional and global market trends and dynamics. The company analyses the industry from the 360 Degree Perspective i.e. from the Supply Side and Demand Side which enables us to provide granular details of the entire ecosystem for each study. Finally, a Top-Down approach and Bottom-Up approach is followed to arrive at ultimate research findings.

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Coherent Market Insights desk research is based on a principle set of research techniques:

  • National level desk research: It Includes research analysis of regional players, regional regulatory bodies, regional trade associations, and regional organization.
  • Multinational level desk research: The research team keeps a track of multinational players, global regulatory bodies, global trade associations, and global organization.

Coherent Market Insights has a large amount of in-house repository of industry database. This is leveraged as a burner for initiating a new research study. Key secondary sources include:

  • Governmental bodies, National and international social welfare institutions, and organizations creating economic policies among others.
  • Trade association, National and international media and trade press.
  • Company Annual reports, SEC filings, Corporate Presentations, press release, news, and specification sheet of manufacturers, system integrators, brick and mortar - distributors and retailers, and third party online commerce players.
  • Scientific journals, and other technical magazines and whitepapers.
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Preliminary Data Mining

The raw data is obtained through the secondary findings, in house repositories, and trade surveys. It is then filtered to ensure that the relevant information including industry dynamics, trends, and outlook is retained for further research process.

Data Standardization:

Holistic approach is used to ensure that the granular and uncommon parameters are taken into consideration to ensure accurate results. The information from the paid databases are further combined to the raw data in order to standardize it.

Coherent Statistical model

We arrive at our final research findings through simulation models. Coherent Data Analytics Model is a statistical tool that helps company to forecast market estimates. Few of the parameters considered as a part of the statistical model include:

  • Micro-economic indicators
  • Macro-economic indicators
  • Environmental indicators
  • Socio-political indicators
  • Technology indicators

Data Processing

Once the findings are derived from the statistical model, large volume of data is process to confirm accurate research results. Data analytics and processing tools are adopted to process large chunk of collected informative data. In case, a client customizes the study during the process, the research finding till then are benchmarked, and the process for new research requirement is initiated again.

Data Validation

This is the most crucial stage of the research process. Primary Interviews are conducted to validate the data and analysis. This helps in achieving the following purposes:

  • It provides first-hand information on the market dynamics, outlook, and growth parameters.
  • Industry experts validates the estimates which helps the company to cement the on-going research study.
  • Primary research includes online surveys, face-to face interviews, and telephonic interviews.

The primary research is conducted with the ecosystem players including, but not limited to:

  • Raw Material Suppliers
  • Manufacturers
  • System Integrators
  • Distributors
  • End-users

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