The growth of the beverage industry in emerging markets and the increasing consumption of alcoholic beverages result in the growth of the alcohol ingredients market. The increasing consumption of alcoholic beverages and easy incorporation alcohol ingredients in a wide range of beverage applications are driving the market. Increased research and development activities of the key players are also another driving factor for this market.
The alcohol ingredients market is estimated to be valued at USD 1,130.4 Million in 2015 and at USD 1.8 Billion by 2020.
The alcohol ingredients market is highly fragmented and competitive; key market players have adopted growth strategies such as new product developments, acquisitions, and expansion of business operations to meet the changing industry demands. The leading players are focusing on strengthening their R&D capabilities by investing in advanced technology to offer a diversified product portfolio for different applications, particularly the beverage industry. The key driving factors of the alcohol ingredients market include increasing consumption of alcoholic beverages and easy incorporation alcohol ingredients in a wide range of beverage applications.
The key market players expand their business by increasing their presence in new regions so as to increase their market share. Sensient Technologies Corporation (U.S.) opened a new production and distribution facility in South Africa to strengthen its beverage offerings for the customers in Africa and Sub-Saharan Africa. Apart from various product launches and expansions, the companies are also involved in acquisitions, joint ventures, investments, and partnerships.
The alcohol ingredients market requires special expertise and hence the overall market is mainly dominated by a few players. Key players such as Sensient Technologies Corporation (U.S.), Ashland Inc. (U.S.), Cargill, Incorporated (U.S.), Archer Daniels Midland Company (U.S.), and Chr. Hansen A/S (Denmark) together accounted for more than 50% of the total alcohol ingredients market. Other players, which include Döhler Group (Germany), Koninlijke DSM N.V. (The Netherlands), D.D. Williamson & Co., Inc. (U.S.), Kerry Group plc (Ireland), and Treatt plc (U.K.) also have a strong presence in the global alcohol ingredients market.
