Alcohol Ingredients Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The Global Alcohol Ingredients Market is segmented by Ingredient Type (Yeast, Enzymes, Colorants, Flavors, and Salts), by Beverage Type (Beer, Spirits, Wine, Whisky, and Brandy), and by Geography (North America, Europe, Asia-Pacific, South America, and Middle East and Africa). The report offers market size and values in (USD million) for the above segments during the forecast years.

Alcohol Ingredients Market Size

Alcohol Ingredients Market Summary
share button
Study Period 2018 - 2028
Market Size (2023) USD 8.25 Billion
Market Size (2028) USD 9.00 Billion
CAGR (2023 - 2028) 1.75 %
Fastest Growing Market Asia Pacific
Largest Market Europe

Major Players

Alcohol Ingredients Market Major Players

*Disclaimer: Major Players sorted in no particular order


Need a report that reflects how COVID-19 has impacted this market and its growth?

Alcohol Ingredients Market Analysis

The Alcohol Ingredients Market size is estimated at USD 8.25 billion in 2023, and is expected to reach USD 9.00 billion by 2028, growing at a CAGR of 1.75% during the forecast period (2023-2028).

According to Lucas Bols's annual reports, in recent years, alcohol consumption has increased significantly around the globe. Bols, a Dutch public company specializing in producing, distributing, selling, and marketing alcoholic beverages, reported a revenue increase in Western Europe from EUR 34.4 million in 2016 to EUR 42.11 million in 2021. But the company's revenue dropped to EUR 30.75 million as a result of COVID-19. However, post-pandemic, the market has recovered, and ingredient manufacturers are increasing their production to meet the burgeoning demand coming from the alcoholic beverage sector. Moreover, consumers are increasingly inclined toward craft beer, which has resulted in an increasing number of craft breweries around the globe, with the highest number of outlets in the United Kingdom, followed by Germany, Italy, and others.

This is yet another factor driving the alcohol ingredients market around the globe. Additionally, manufacturers are increasing their production capacity owing to the rising demand. For instance, in August 2021, Angel Yeast invested heavily in acquisitions and production. Together with Shandong Lufa Holding company, a local investment corporation within the Chinese mainland, the company announced the acquisition of Bio Sunkeen for RMB 60 million (USD 9.2 million). Additionally, manufacturers are innovating various types of ingredients colorants, yeast, flavors & salt, enzymes, and others to enhance the quality of alcoholic beverages.

Alcohol Ingredients Market Trends

This section covers the major market trends shaping the Alcohol Ingredients Market according to our research experts:

Increasing Demand For Craft Beer

The demand for the craft brewing and distilling industries experienced significant growth during the past few years. Consumers across the world are seeking distinctive and flavored beers. This is pushing the alcohol ingredients market into the beer market space. The brewing industry utilizes five major ingredients, namely malt ingredient extract adjuncts/grains, hops, beer yeast, and beer additives. A mixture of starch sources may be used, with a secondary saccharide, such as maize (corn), rice, or sugar, as these are often termed adjuncts, especially when used as a lower-cost substitute for malted barley. Less widely used starch sources include millet, sorghum, and cassava root in Africa, potato in Brazil, and agave in Mexico, among others. Brewing-grade malt extracts are made with the highest-quality brewing malts and get additional colors and flavors from using specialty malts. This gives beer the unique character and flavor desired for the particular style of brew. These malts often have a longer time in the kiln, at higher temperatures, or get roasted to add depth and complexity to the resulting beer. Moreover, the increasing development of microbreweries and the growing production of craft beer led to a growing demand for craft beers.

Alcohol Ingredients Market - Number of operating craft breweries, United States, 2016-2021

Asia-Pacific Remains the Fastest Growing Region

Asia-Pacific, in particular, holds immense potential for the craft beer market, with robust demand for Westernized craft beer that is blended with local tastes and preferences. Shift in consumer preferences from traditional alcohol toward imported alcohol has been one of the driving factors for the growth of the alcoholic beverage market in the region. For instance, according to the Ministry of Agriculture, Forestry, and Fisheries, in 2021, approximately 188 billion Japanese Yen of wine was imported to Japan, making up most of the imports. Despite the fact that fruit wine was produced in various prefectures in Japan, imports covered the majority of domestic demand. In countries like China, consumers are inclined toward wines manufactured by famous vineyard regions, such as Bordeaux, owing to renowned heritage and prestige. Whiskies, Cognacs, and imported wines are becoming popular across the region as consumers are more inclined toward premium products.

Alcohol Ingredients Market -  Market Size (in %), by Region, Global, 2021

Alcohol Ingredients Industry Overview

The global alcohol ingredient market is highly fragmented due to the dominance of several local and global players present in the market. Nonetheless, the market exhibits a strong presence of global key players, such as DSM, ADM, Cargill, and Döhler Group, alongside other domestic producers. Expansion remained the most adopted strategy among malt ingredient manufacturers, holding a major chunk of total strategies, followed by product innovation, partnership, and merger and acquisition. The major players are expanding their production capacities and strategically planning to supplement their export facilities in order to stand out among other manufacturers in the market.

Alcohol Ingredients Market Leaders

  1. Kerry Group plc

  2. Cargill, Incorporated

  3. Archer Daniels Midland Company

  4. Dohler Group SE

  5. Koninklijke Dsm N.V

*Disclaimer: Major Players sorted in no particular order

Alcohol Ingredients Market Concentration

Alcohol Ingredients Market News

  • December 2021: Givaudan acquired DDW, the Color House, a US-based natural color company. The acquisition of DDW further strengthened Givaudan’s leadership position in the color business globally.
  • December 2021: The AEB Group launched FERMOALE New-E, a new yeast in active dry form suitable to produce juicy beer styles.
  • September 2021: Archer-Daniels-Midland Co., a grain merchant from the United States, announced that it opened a new flavor production factory in China to manufacture food and beverages in response to the growing consumer demand.

Alcohol Ingredients Market Report - Table of Contents


    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study




    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Porter's Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry


    1. 5.1 Ingredient Type

      1. 5.1.1 Yeast

      2. 5.1.2 Enzymes

      3. 5.1.3 Colorants

      4. 5.1.4 Flavors & Salts

    2. 5.2 Beverage Type

      1. 5.2.1 Beer

      2. 5.2.2 Spirits

      3. 5.2.3 Wine

      4. 5.2.4 Whisky

      5. 5.2.5 Brandy

    3. 5.3 Geography

      1. 5.3.1 North America

        1. United States

        2. Canada

        3. Mexico

        4. Rest of North America

      2. 5.3.2 Europe

        1. Spain

        2. United Kingdom

        3. Germany

        4. France

        5. Italy

        6. Russia

        7. Rest of Europe

      3. 5.3.3 Asia-Pacific

        1. China

        2. Japan

        3. India

        4. Australia

        5. Rest of Asia-Pacific

      4. 5.3.4 South America

        1. Brazil

        2. Argentina

        3. Rest of South America

      5. 5.3.5 Middle East and Africa

        1. South Africa

        2. United Arab Emirates

        3. Rest of Middle East and Africa


    1. 6.1 Most Adopted Strategies

    2. 6.2 Market Share Analysis

    3. 6.3 Company Profiles

      1. 6.3.1 Cargill, Incorporated

      2. 6.3.2 Archer Daniels Midland Company

      3. 6.3.3 Ashland Inc.

      4. 6.3.4 D.D. Williamson & Co. Inc.

      5. 6.3.5 Koninklijke Dsm NV

      6. 6.3.6 Kerry Group PLC

      7. 6.3.7 Treatt PLC

      8. 6.3.8 Chr Hansen Holdings A/S

      9. 6.3.9 Sensient Technologies Corporation

      10. 6.3.10 Dohler Group

    4. *List Not Exhaustive

**Subject to Availability

Alcohol Ingredients Industry Segmentation

Alcohol ingredients are added to grains, fruits, or vegetables, which are fermented with yeast, enzymes, color, flavor, and salt as part of the production process. The global alcohol ingredients market (henceforth, referred to as the market studied) is segmented by ingredients type, beverage type, and geography. By ingredient type, the market is segmented into yeast, enzymes, colorants, flavors, and salts. By beverage type, the market is segmented into beer, wine, brandy, whiskey, and spirits. It provides an analysis of emerging and established economies across the world, comprising North America, Europe, South America, Asia-Pacific, and Middle East and Africa. For each segment, the market sizing and forecasts have been provided on the basis of value (in USD million).

Ingredient Type
Flavors & Salts
Beverage Type
North America
United States
Rest of North America
United Kingdom
Rest of Europe
Rest of Asia-Pacific
South America
Rest of South America
Middle East and Africa
South Africa
United Arab Emirates
Rest of Middle East and Africa

Report scope can be customized per your requirements. Click here.

You can also purchase parts of this report. Do you want to check out a section wise price list?

Alcohol Ingredients Market Research FAQs

The Alcohol Ingredients Market size is expected to reach USD 8.25 billion in 2023 and grow at a CAGR of 1.75% to reach USD 9.00 billion by 2028.

In 2023, the Alcohol Ingredients Market size is expected to reach USD 8.25 billion.

Kerry Group plc, Cargill, Incorporated, Archer Daniels Midland Company, Dohler Group SE and Koninklijke Dsm N.V are the major companies operating in the Alcohol Ingredients Market.

Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2023-2028).

In 2023, the Europe accounts for the largest market share in the Alcohol Ingredients Market.

Alcohol Ingredients Industry Report

Statistics for the 2023 Alcohol Ingredients market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Alcohol Ingredients analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.

80% of our clients seek made-to-order reports. How do you want us to tailor yours?

Please enter a valid email id!

Please enter a valid message!