Germany alcohol ingredients market is projected to grow at a CAGR of 6.29% during the forecast period. The approximate consumption of beer in Germany was in the order of 91.8 liters per inhabitant during 2019 which was a slight decrease from 94.0 liters reported during 2018. Whereas the approximate consumption of sparkling wine in Germany was in the order 3.4 liters per inhabitant reported during 2019 which was the same as 2018. Further as of 2018 the amount of alcohol taxed in the nation was to the tune of 186 million liters which was reportedly a year-on-year increase by 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 during 2018. Moreover, in 2019 the Sales of sparkling wine in 2019 amounted to around 320.8 million liters. This includes taxed domestic sales with 279.8 million liters and tax-free exports with 41.0 million liters. 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 of alcohol-based beverages is expected to facilitate the growth of the Germany alcohol ingredients market, during the forecast period.
However, due to the lock-down measures brought about by COVID 19 hotels, restaurants and bars remained closed which had affected alcohol sales. Also, the newer generation of consumers is more health-conscious who are increasingly inclined towards lower alcoholic and /or alcoholic free beverages. For instance, during 2019 over 4.2 million hectoliters of non-alcoholic beer were produced in 2019, and 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, during June 2020, as far as the German hotels and restaurants sector the relaxation of the corona prevention measures had reportedly a positive impact. This was evidenced by turnover in the hotels and restaurants sector which was in real terms 63.6% and 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 Germany alcohol ingredients are expected to witness a healthy growth facilitated by the increasing demand from this sector.