Germany Alcohol Ingredients Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Ingredient (Yeast And Enzymes, Colors, Flavors & Salts, Others), By Product Type (Beer, Wine, Whiskey, Spirits, Gin, Rum, Others) - Forecasts From 2022 To 2027

Germany alcohol ingredients market is projected to grow at a CAGR of 1.52% during the forecast period to reach a market size of US$ 662.808 million in 2027 from US$ 596.484 million in 2020. 

The approximate consumption of beer in Germany was 91.8 litres per inhabitant in 2019, which was a slight decrease from 94.0 litres reported in 2018. Whereas the approximate consumption of sparkling wine in Germany was 3.4 litres per inhabitant reported during 2019, which was the same as in 2018. Further, as of 2018, the amount of alcohol taxed in the nation was to the tune of 186 million litres which was reportedly a year-on-year increase of 4.9%. Further, as an effect of regulation brought about by the Alcohol Tax Act over the taxation of alcohol and products containing alcohol since 1 January 2018, the nation reportedly collected € 2.1 billion in revenue from alcohol tax (formerly spirits tax) in 2018. Also, in 2019 15,706 distilleries were licensed in Germany, which was an increase from the reported 14,671 distilleries that were licensed in Germany in 2018. Moreover, the Sales of sparkling wine in 2019 amounted to around 320.8 million litres. This includes taxed domestic sales with 279.8 million litres and tax-free exports with 41.0 million litres. The taxed sales of sparkling wine brought the federal government a target-tax amount of € 377.0 million. [Source: The Federal Statistical Office]. Therefore, such a promising market for alcohol-based beverages is expected to facilitate the growth of the German alcohol ingredients market during the forecast period.

However, due to the lockdown measures brought about by COVID-19, hotels, restaurants, and bars remained closed, which affected alcohol sales. Also, the newer generation of consumers is more health-conscious and is increasingly inclined towards lower alcoholic and /or alcoholic-free beverages. For instance, in 2019, over 4.2 million hectoliters of non-alcoholic beer were produced. In the first quarter of 2020, production amounted to just over 947,000 hectoliters, which was an 8% increase compared with the same period a year earlier [Source: The Federal Statistical Office]. Therefore, these aspects are expected to hinder the growth of the German alcohol ingredients market to a certain extent. However, in June 2020, as far as the German hotels and restaurants sector, the relaxation of the corona prevention measures reportedly had a positive impact. This was evidenced by turnover in the hotels and restaurants sector, which was in real terms, 63.6% in nominal terms, 63.5% higher than in May 2020. This slightly upward shift suggests that during the next few months that in an ideal situation (a scenario devoid of COVID-19 relapse), the German alcohol ingredients are expected to witness healthy growth facilitated by the increasing demand from this sector.

Impact of COVID-19

The sharp drop in overall sales volumes of alcoholic beverages in Germany in 2020 is mostly due to significant losses in the dominating sector of beer, with dropping on-trade sales only somewhat offset by improvements in off-trade sales. The entire closure of food and beverage stores during the lockdown months, followed by a partial reopening between May and November, has posed a direct threat to the lives of many smaller local brewers, who rely heavily on sales into on channels such as indoor and outdoor festivals and concerts. In Germany, restrictions on big meetings began on March 13, 2020. Schools were shuttered, travel was prohibited, and portions of the country's borders were closed, forcing visitors to self-isolate while returning to Germany.

Segmentation

• By Ingredient
  • Yeast and Enzymes
  • Colors, flavors & salts
  • Others
• By Product Type
  • Beer
  • Wine
  • Whiskey
  • Spirits
  • Gin
  • Rum
  • Others