Alcohol Ingredients Market Growth – Fueling a New Breed of Adventurous Connoisseurs
The forecasts related to the certain markets mentioned below have the potential to influence the alcohol ingredients market growth. Since time immemorial wines have been one of the most widely consumed kinds of alcoholic beverages in the entire globe. Like any other beverage category, it too has undergone several stages of evolution and is an integral part of many national identities. Fast-forwarding to the current day and age consumers are increasingly picking up wines at the grocery store which suggests that the preference of wines will be based on the name they trust the most than the ones that are based on the score by Wine Spectator. Therefore, it has created opportunities for many retailers to woo in more clients by way of offering exclusivity through wines. In this regard, it is important to note that private label wines have been gain a lot of traction during recent years.
The food and beverage industry has also been instrumental to aid recuperation from maladies of various nature from ancient times. To this end, it’s important to note that wine also has been known to have health benefits. Especially with regards to the health of the heart, it is pertinent to note that heart stents that are commercially available, can reportedly result in the release of toxic substances that result in the narrowing of blood vessels. To this end, two antioxidant compounds found in red wine, namely quercetin and resveratrol are being considered as a part of new stents that ate being developed to promote healing while preventing blood clotting and inflammation. Moreover, Resveratrol is essentially a polyphenol found in red wine which is often considered as the potential to prevent heart diseases. Further, there have also been suggestions made by scientists that it is capable of aiding in the prevention of decline of memory that is often associated with age as well as assisting the gut microbiome.
Further today’s wine consumers have become adventurous connoisseurs but have evolved and have embraced a broader range of wines as a result of the expansion of their palates. The key consumer group which is the pool of millennials is inclined to spend on the experience due to their proclivities to experiment. Further Gen x, the cohort following baby boomers but preceding millennials have also been identified to be the group of consumers who are known to spend more time to appreciate the nuances in wine and tend to understand the value of spending more. They are also known to have access to more disposable income than millennials. Thus, the aforementioned factors are partly responsible for the healthy growth of the global wine market which Knowledge Sourcing Intelligence has estimated to grow from 2019 to 2024 at a CAGR of 1.98%. On the other hand, according to estimates by Knowledge Sourcing Intelligence the wine bottle closure market is expected to grow at a CAGR of 6.43% over the same forecast period as that of the alcohol ingredient market from a value of US$3.194 billionthat has been estimated for 2019 to reach a total market size of US$4.642 billion in 2025. Also, the fortified wine market is forecasted to grow at a CAGR of 4.64% by Knowledge Sourcing Intelligence from a market value of US$18.331 billion that was estimated for 2019 to attain a market value of US$24.058 billion by 2025.
Besides the inclinations to experiment and gain new insights are not restricted to wines only but also has spilled over to craft spirits which have gained a lot of currency due to the growing preference for cocktails. Also following the footsteps of the prolonged success of craft beer in the US and due to several celebrity endorsements, there has been a growing popularity of craft spirits. To this end in February 2020, Pennsylvania-based Holla Spirits have reportedly invested in reinventing vodka with savory ingredients like pickle brine and jalapenos. Moreover, back in November 2018, a US-based startup Shots Box had reportedly entered the alcohol home delivery market with a monthly membership box, which was then valued at $39.99 comprising 10 miniature craft spirits samples in 50 ml sized bottles. This a response to the inclination of consumers to expand their access to a wide variety of spirits and the need for independent distillers to expand their reach and customer base which otherwise is normally confined to their local region and rely on word of mouth to buoy sales. Thus in light of such recent developments that are partially fostering the growth of the global craft spirits market, which according to Knowledge Sourcing Intelligence is expected to grow at a CAGR of 32.61% over the same forecast period from a value of USD15.289 billion that has been estimated for 2019 to reach a total market size of USD83.147 billion in 2025.
Vermouth and Other Wine of Fresh Grapes, Flavoured With Plants or Aromatic Substances (Exports)
Source: International Trade Centre
In Thousands OF US$
A few market developments are an attestation to the potential growth of the alcohol ingredient market during the forecast period
November 2020 – Product Launch
lemon myrtle a natural-Australian native plant flavor that is becoming increasingly popular with product developers looking for a point of difference. To this extent it pertinent to note that a Yarra Valley-based Australian distiller Four Pillars had reportedly launched the Modern Australian Gin which has been made using its German-manufactured copper pot stills reportedly contains Australian and Asian botanicals that comprise a combination of fresh grapefruit peel, lemon myrtle, macadamia nuts, quandong, red and green Szechuan, Rosie Glow apples as well as juniper.
October 2020 – Product Launch
DSM (AMS: DSM) has reportedly announced the latest addition to its brewing portfolio with the unveiling of Maxadjunct ß L adjunct brewing enzyme. This product is reportedly an innovation that has been derived from selected bacillus strains and is known to enable brewers to increase the adjunct level in beer facilitating a switch from malted to unmated raw materials. In other words, by employing this enzyme brewers can reportedly bypass the cereal cooking stage of production, leverage local non-malted materials save on energy consumption, and reportedly increase capacity by 25%, ultimately creating a premium beer with locally available ingredients that may vary in quality.
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