The growing awareness of the importance of knowledge of alcohol ingredients, the inclination of making a purchase, the evolving responsibility of alcoholic beverage manufactures and ingredient producers to provide consumers with the required information, the increased trend of premiumization of alcoholic beverages, the reinvigoration of artisanal brewing resulting in an upswing in craft beer consumption, development of new flavors, rising preference of wine consumption as well as low alcoholic beverage consumption are few of the factors which are anticipated to facilitate robust growth of the global alcohol ingredients market that as per Knowledge Sourcing Intelligence has been forecasted to grow at a CAGR of 7.85% during the forecast period. Further, the market is forecasted to attain US$103.059 billion in 2025 from a market value of US$65.502 billion that has been estimated from 2019.
Malt plays an important role in alcoholic beverages among others. Malt derived from barley, wheat, rye, and oats are expected to hold a significant share of the market. Rye malt is expected to gain more currency as it has been the staple for German-style Roggenbier production and its recent use in the surging craft brewing industry. Further, due to consumers who suffer from celiac disease that necessitates a strict gluten-free diet, oat malt is gaining worldwide popularity.
The growing consumption of beer is expected to facilitate a robust demand for malts thus in part contributing to the alcohol ingredients market growth. For instance, according to the Alcohol and Tobacco Tax and Trade Bureau, Department of the Treasury, the Government of the USA the total stock of barrels of beers on hand were in the order of 9,549,458 barrels in January 2020 that increased to 10,498,920 in May 2020. Further with regards to the European Union (the EU), as per Eurostat, the year 2018 had registered a production of 39 billion liters of beer containing alcohol which was reportedly equivalent to 76% liters per inhabitant. Around two-thirds of the beer that contained alcohol that was manufactured in the EU originated from 6 member states with Germany registering as the top producer in 2018. Germany’s production was in the order of 8.3 billion liters that reportedly accounted for 21% of the EU total production.
Therefore, approximately 1 out of every 5 alcoholic beers that were produced in the EU came from Germany. Further, with 4.5 billion liters, the United Kingdom accounted for 12% of the EU’s beer production; with 4.0 billion liters Poland accounted for 10% of the EU’s beer production; with 3.6 billion liters Spain accounted for 9 % of the EU’s beer production; with 2.4 billion liters the Netherlands accounted for 6 % of the EU’s beer production, and with 2.4 billion liters Belgium also accounted for 6 % of the EU’s beer production. Further, in comparison with 2017 Italy had reportedly registered the highest increase in alcoholic beer production which was an increase of 21%. Along the lines of the same development, Hungary and the Czech Republic had registered growth in alcoholic beer production by 11% and 6% respectively.
Besides, there is a marginal internal market in the EU for alcoholic beers that are produced in non-EU countries. To this extent it is pertinent to note that there is a preference for Mexican beer which accounted for 250 million liters, or 52% of all extra-EU imports of beer in 2018, followed by beer manufactured in Serbia that accounted for 57 million liters, or 12% of all extra-EU imports of beer in 2018; beer manufactured in the US that accounted for 43 million liters, or 9% of all extra-EU imports of beer in 2018; beer manufactured in Belarus that accounted for 23 million liters, or 5% of all extra-EU imports of beer in 2018; beer manufactured in Ukraine that accounted for 19 million liters, or 4% of all extra-EU imports of beer in 2018; beer manufactured in China that accounted for 17 million liters, or 4% of all extra-EU imports of beer in 2018; beer manufactured in Russia that accounted for 14 million liters, or 3% of all extra-EU imports of beer in 2018; and finally beer manufactured in Thailand that accounted for 10 million liters, or 2% of all extra-EU imports of beer in 2018.
Albeit the global food and beverage industry is known to witness constantly evolving trends which are inclusive of but not limited to beers, from the perspective of the EU exports of beer, the Netherlands was reportedly the top exporter of alcoholic beers which was in the order of 1.9 billion liters in 2018; followed by Belgium and Germany both accounting for exports of 1.6 billion liters the same year and then finally by the UK that reportedly accounted for 1.5 billion liters. From the perspective of prominent consuming nations of alcoholic beers produced in the EU that are outside the EU, the US was the main destination market in 2018 that had accounted for 1 billion liters of alcoholic beers or 29% of total extra-EU exports of beer. Following the US, China was 2nd most prominent destination for alcoholic beers produced in the EU that had accounted for 453 million liters or 9 % of total extra-EU exports of beer.
Then comes Russia that had accounted for 234 million liters or 7 % of total extra-EU exports of beer. Thereafter, Canada had r accounted for 217 million liters or 6 % of total extra-EU exports of beer. Canada was followed by Korea that had accounted for 198 million liters or 6 % of total extra-EU exports of beer. Switzerland had accounted for a total of 101 million liters or 3 % of total extra-EU exports of beer and Australia had accounted for 99 million liters or 3% of total extra-EU exports of beer. Finally, Taiwan had accounted for 91 million liters or 3 % of total extra-EU exports of beer. This also suggests that the segment of beer is expected to hold a substantial share in the global alcohol ingredient market. Moreover, concerning the prospects of the APAC region, it is expected to hold a substantial market share owing to the growing population, increasing availability of disposable income, and rapid urbanization.