Global Alcohol Ingredients Market Revenue is Estimated to Reach USD 3.6 billion by 2031, Growing at a CAGR of 8%: Straits Research

Craft beer’s rising popularity drives the global alcohol ingredients market. Key components like malt extract, adjuncts/grains, hops, beer yeast, and additives enhance beer flavors. Specialty malts, favored for their unique characteristics, are in high demand due to the expansion of craft beer production and microbreweries, shaping the market.

New York, United States, Feb. 09, 2024 (GLOBE NEWSWIRE) — Beer is made with fresh yeast, providing perfect texture and flavor balance. Different alcoholic beverages can be flavored with a wide range of other ingredients, giving rise to various tastes and flavors. This suggests a higher demand for alcoholic ingredients, which fuels the global market for components used in alcohol infusions.

Download Free Sample Report PDF @

Growing Popularity of Craft Beer Drives the Global Market

According to Straits Research, “The global alcohol ingredients market size was valued at USD 1.8 billion in 2022. It is projected to reach USD 3.6 billion by 2031, growing at a CAGR of 8% during the forecast period (2023-2031).” Over recent years, there has been a noticeable increase in craft brewing and distilling demand. The demand for distinctive and delicious beers among consumers worldwide is driving the market for alcoholic additives in the beer industry. Malt extract, adjuncts/grains, hops, beer yeast, and beer additives are the five main ingredients used in brewing. A combination of starch sources may be used in place of malted barley when it is more affordable to do so, along with a secondary saccharide like maize (corn), rice, or sugar. Adjuncts is a term that frequently refers to these. A few less well-known sources of starch include agave in Mexico, potatoes in Brazil, millet, sorghum, and cassava root in Africa.

Brewing-grade malt extracts are made from the best brewing malts and gain from specialty malts’ additional colors and flavors. This gives the specific beer style the desired distinctive taste and character. These malts are frequently baked at higher temperatures for a longer time or roasted to add richness and complexity to the finished beer—the expansion of microbreweries and the production of craft beers both increased demand for specialty malts.

Development of New Flavors Creates Tremendous Opportunities

New flavors have been created due to the intense brand and ingredient competition caused by the surge in alcoholic beverage consumption. Since more beer flavors are now available besides the traditional ones that big breweries offer, they are getting increasingly popular. Craft beers incorporating novel ingredients and creative flavors with salty, fruity, and tart traits are becoming increasingly well-liked among millennials worldwide. In reaction to the altering consumer expectations, some large-scale and specialized brewers are also acting. These ingredients can also contain a variety of fruits, such as berries, pineapple, mango, and others, as well as other herbs and spices. As a result, it is anticipated that businesses looking to sell alcohol-related ingredients will have several options.

Regional Analysis 

Europe is the most significant revenue contributor and is expected to grow at a CAGR of 2.05% during the forecast period. The demand for alcohol in the UK is rising as more people are willing to try out unique flavors and eye-catching hues. In order to create new alcoholic beverages, there is an increase in demand for ingredients associated with alcohol, such as colorants, tastes, and salts. Malt is one of the additional ingredients used in the production of alcohol. Malt is primarily produced in the UK from malting barley, a higher-quality crop, and it is purchased from domestic farmers, many of whom are based in the east of the nation. The country’s most widely used all-malt product for brewing is barley malt.

Asia-Pacific Alcohol Ingredients industry share is expected to grow at a CAGR of 1.2% during the forecast period. Changes in social and cultural factors increased the potential of China’s alcohol industry. More places to drink emerged as China’s bar culture expanded. Additionally, the fact that 251 brewing companies now operate 550 breweries in China has led to a spike in the need for alcoholic ingredients there recently. A traditional Chinese alcoholic beverage made from grains is used to make spirits. For instance, baijiu, a type of alcoholic beverage typically made from sorghum, rice, wheat, and barley, is most frequently consumed on special occasions and during religious holidays. Since baijiu is the national beverage of China, it accounts for nearly all of the worldwide spirits market.

Europe is expected to grow significantly over the forecast period. Michigan is one of the critical states in the US for producing alcoholic beverages like malt. As a result, the US government and the country’s agricultural producers have made an effort to quickly increase the number of acres used for growing high-quality barley, hops, and malting barley. The increased percentage of heavy drinkers in Canada is one of the significant factors fueling the growth of the market for alcohol-related products. New artisan distilleries have also increased across the country, producing a wide range of liqueurs and spirits, such as vodka and gin.

Key Highlights

  • Based on ingredient type, the global alcohol ingredients market is bifurcated into yeast, enzymes, colorants, flavors and salts, malt ingredients, and other ingredients. The malt ingredients segment is the highest contributor to the market and is estimated to boost at a CAGR of 1.65% during the forecast period.
  • Based on beverage type, the global alcohol ingredients market is bifurcated into beer, spirits, wine, and other beverage types. The beer segment is the highest contributor to the market and is estimated to grow at a CAGR of 1.95% during the forecast period.
  • Europe is the most significant revenue contributor and is expected to grow at a CAGR of 2.05% during the forecast period.

Competitive Players

The global alcohol ingredients market’s major key players are Archer Daniels Midland Company, Koninklijke Dsm NV, Dohler Group, Chr Hansen Holding AS, Ashland Global Holdings Inc., Givaudan, Rahr Corporation, AEB Group, Lallemand Inc., Breko, Lesaffre International, Esseco Group, Axial.

Market News

  • In February 2020, Innova Fit, a new yeast technology, was introduced in North America by Novozymes A/S. The solution is a non-GMO yeast that removes the limitations placed on other types’ ability to produce alcohol. With this new initiative, the corporation expands its product line and provides improved chances for effective alcohol manufacturing.
  • In July 2019, Smirnoff Infusions, a new spirit beverage introduced by Diageo plc under the Smirnoff brand name, with a somewhat lower alcohol by volume (ABV) percentage than the standard 37.5% ABV. The company introduced the product due to consumers’ increasing preference for delicious drinks.

Global Alcohol Ingredients Market: Segmentation

By Ingredient Type

  • Yeast
  • Enzymes
  • Colorants
  • Flavors and Salts
  • Malt Ingredients
  • Other Ingredients 

By Beverage Type

  • Beer
  • Spirits
  • Wine
  • Other Spirits 

By Regions

  • North America
  • Europe
  • Asia-Pacific

Get Detailed Market Segmentation @

About Straits Research Pvt. Ltd.

Straits Research is a market intelligence company providing global business information reports and services. Our exclusive blend of quantitative forecasting and trends analysis provides forward-looking insight for thousands of decision-makers. Straits Research Pvt. Ltd. provides actionable market research data, especially designed and presented for decision making and ROI.

Whether you are looking at business sectors in the next town or crosswise over continents, we understand the significance of being acquainted with the client’s purchase. We overcome our clients’ issues by recognizing and deciphering the target group and generating leads with utmost precision. We seek to collaborate with our clients to deliver a broad spectrum of results through a blend of market and business research approaches.

For more information on your target market, please contact us below:

Phone: +1 646 905 0080 (U.S.)

+91 8087085354 (India)

+44 203 695 0070 (U.K.)

Email: [email protected]

Follow Us: LinkedIn | Facebook | Instagram | Twitter

Primary Logo

Originally published at