The global reusable barrels market was valued at US$ 104.3 million in 2020, according to Global Reusable Barrels Market Report, by Material Type (French Oak Wood, American Oak Wood, and Others), by Toast Level (Heavy Toast, Medium Toast, and Light Toast), by End-use Industry (Scotch Industry, Tequila Industry, Rum Industry, Beer Industry, and Décor Industry), and by Region (North America, Latin America, Europe, Asia Pacific, and Middle East & Africa), published by Coherent Market Insights

The global reusable barrels market was valued at US$ 104.3 million in terms of revenue in 2020, and is estimated to exhibit a CAGR of 3.8% during the forecast period (2021 to 2028). Reusable barrels are cylindrical wooden plank containers and are mostly used to store spirits. The market demand for reusable barrels is forecasted to rise as the millennial population increases. Furthermore, new flavor advancements may increase market demand for reusable barrels. When it comes to fermenting and ageing wines, brand owners prefer reusable barrels. Reusable barrels reduce the amount of oxygen in the wine, improving the taste and quality. This is anticipated to increase the demand for reusable barrels in the market.

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https://www.coherentmarketinsights.com/market-insight/reusable-barrels-market-4808

Browse 50 market data tables* and 45 figures* on “Reusable Barrels Market” - Global Forecast to 2028.

Key Trends and Analysis of the Global Reusable Barrels Market:

  • Continuous product innovation by key players is one of the growing trends in the global reusable barrels market and this trend is projected to drive the market in the forecast period. Manufacturers are focused on using bourbon aged barrels to launch new products in order to expand their product portfolio. For instance, in 2018, Lillie’s Q (supplier of complete range of traditional, deep-rooted barbecue sauces based in Chicago, U.S.) launched its limited edition bourbon barrel aged smoky sauce. The new sauce is Lillie’s Q popular Memphis-style sweet smoky recipe aged for six months in 20 Kentucky bourbon barrels.

Market Opportunities

  • The emergence of craft beer market is expected to increase demand for bourbon aged barrels from craft breweries. Craft breweries use bourbon aged barrels to add new oaky, vanilla, and boozy flavor elements to the selected batches. For instance, according to the U.S. Brewers Association, craft beer market in the U.S. was valued at US$ 29.3 billion in 2019, which showed an increase of 6% from 2018. Furthermore, in 2019, craft beer accounted for more than 25% of the U.S. beer market. In terms of volume, in 2019, the U.S. craft beer market was pegged at 26,086,145 barrels showing an increase of 3.6% from 2018.

Market Restraints

  • The market is restricted by new amendments made by Scotch whisky association regarding used barrels. For instance, in June 2019, the Scotch Whisky Association made an amendment in Scotch Whisky Technical File regarding the type of casks that can be used to mature scotch whisky. Scotch Whisky Technical File is used by HMRC (Her Majesty's Revenue and Customs is a non-ministerial department of the U.K. Government) to ensure compliance with the main requirements for scotch whisky and is essential for maintaining Scotch whisky’s Geographical Indication status in the U.K. and European Union.

Key Takeaways

  • On the basis of end-use industry, scotch industry dominated the global reusable barrels market in 2020, with around 58.0% of market share, in terms of revenue, followed by tequila Industry, rum industry, beer industry, and décor industry. The growth is attributed to rising demand for premium and high-quality alcoholic beverages, owing to increase in the purchasing power of consumers.

Key Players

  • Key players operating in the global reusable barrels market include Annandale Distillery, Rocky Mountain Barrel Company, Exotic Barrels, Esty Inc., Midwest Barrel Co., Mystic Barrels, Red Head Barrels, Kentucky Bourbon Barrel (Independent Stave Company), Country Connection, and Kelvin Cooperage.
  • These players are constantly engaged in mergers and acquisitions to gain competitive advantage over other players. For instance, in August 2017, Independent Stave Company, a leading manufacturer of the new oak barrels and other products for the spirits, wine, and brewing industries, acquired Kentucky Bourbon Barrel Company. The acquisition will allow Kentucky Bourbon Barrel Company to diversify its product portfolio.

Global Reusable Barrels Market - Impact of Coronavirus (COVID-19) Pandemic

  • The COVID-19 pandemic has had a negative impact on the global reusable barrels market, particularly in the export-driven scotch whiskey industry. Few of the largest export regions for scotch whisky by value share are Europe (30%), North America (26%), and Asia Pacific (25%). For instance, according to Scotch Whisky Association (SWA), the scotch whisky industry has significantly scaled back operations to protect safety of staff during the pandemic. Moreover, the SWA said in a statement released on May 14, 2020, that 87% of production sites are either operating at reduced capacity or have closed entirely. The low production rate will decrease demand for reusable barrels from scotch whisky sector. Furthermore, in the first half of 2020, scotch whisky exports fell by 30% worldwide owing to collapse of global hospitality, tourism, and travel retail sectors.

Market Taxonomy

By Material Type

  • French Oak Wood
  • American Oak Wood
  • Others

By Toast Level

  • Heavy Toast
  • Medium Toast
  • Light Toast

By End-use Industry

  • Scotch Industry
  • Tequila Industry
  • Rum Industry
  • Beer Industry
  • Décor Industry

By Region

  • North America
  • Latin America
  • Europe
  • Asia Pacific
  • Middle East & Africa

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