Brewing Ingredients Market: Current Analysis and Forecast (2021-2027)

Escalating demand for beers worldwide especially craft beers is a leading factor contributing to the market growth of the brewing ingredients. As per Brewers Association, the total value of the beer market was USD 94.1 billion in 2020. Also, the number of craft breweries in the United States increased from 4,803 in 2015 to 8,764 in 2020, revealed by the Brewers association owing to the emerging demand due to the change in lifestyle, increased disposable income. Moreover, due to the rising awareness among end-users, emerging demand for healthier products in the food & beverage industry witnessed a sharp rise in recent years. Therefore, consumers specially millenniums are shifting towards alcohol-free beer and mocktails.
As per a survey by Heineken USA, 52% of respondents had increased the consumption of alcohol-free beer and mocktails. Another major factor for the increase in demand for zero-alcohol content beer is that it allows consumers to drink in moderation and regularly. The survey also shows that 42% of respondents were likely to choose an alcohol-free beer because it allows them to drink regularly.
The raw materials for beer production generally include cereal (barley malt, rice, or maize), hops, water, and yeast. The malting process converts the starch in the cereal into fermentable sugar which is extracted from the malt during mashing. Extracts from the hop are used as a preservative and to add bitterness to the sugar solution. Yeast converts the sugars into alcohol during fermentation. Brewery operations require heating and cooling, cleaning agents, and packaging materials.
Based on the Source Type, the market is fragmented into Malt Extract, Adjuncts/Grains, Hops, Beer Yeast, and Beer Additives. The malt extract segment grabbed the XX% market share in 2020. Moreover, the market for this segment is expected to increase by XX% CAGR during 2021-27 to reach the market valuation of USD XX Mn by 2027. However, the Beer yeast segment is expected to grow remarkably in the forecast period and the segment would register the CAGR of XX% during 2021-27
Based on the Brewery Size, the market is fragmented into Macro Brewery and Craft Brewery. The Craft Brewery segment of the Global Brewing Ingredients market grabbed the major market share and dominated the market. The segment captured around XX% market share and generated USD XX Mn in 2020 and is expected to grow at a CAGR of XX% during the forthcoming years. However, the macro brewery segment would grow remarkably in the forecast period.
Brewing Ingredients solutions are being sold in different forms such as Dry form and liquid form. The dry segment generated revenue worth USD XX million in 2020 and is expected to reach USD XX million by 2027. However, the liquid segment is expected to witness an exhibit growth during the forecast period
For a better understanding of the market adoption of the Brewing Ingredients market, the market is analyzed based on its worldwide presence in the countries such as North America (the United States and Canada), Europe (Germany, France, Italy, Spain, United Kingdom, and Rest of Europe), Asia-Pacific (China, Japan, India, Australia, South Korea and Rest of APAC), and Rest of World. Asia-Pacific constitutes a major market for the brewing ingredients industry and generated revenue of USD XX Million in 2020 owing to the rising demand for zero alcohol beers and mocktails. Also, a rise in disposable income is contributing to the growing demand for beers therefore the market for brewing ingredients is emerging.
Some of the major players operating in the market are Cargill Incorporated, Boortmalt, Malteurop Groupe, Rahr Corporation,  Lallemand Inc., Viking Malt, Lesaffre, Maltexco S.A., Simpsons Malt among others. Several M&As along with partnerships have been undertaken by these players to develop Brewing Ingredients solutions.