The Brewing Ingredient Market Size was estimated at 72.06 (USD Billion) in 2022. The Brewing Ingredient Market Industry is expected to grow from 74.5(USD Billion) in 2023 to 100.6 (USD Billion) by 2032. The Brewing Ingredient Market CAGR (growth rate) is expected to be around 3.39% during the forecast period (2024 - 2032).
Source Primary Research, Secondary Research, MRFR Database and Analyst Review
Key Brewing Ingredient Market Trends Highlighted
Several key trends impact the Brewing Ingredient Market
Consumer demand for low-alcohol and non-alcoholic beverages This trend creates scope for the brewing ingredient suppliers to further innovate the new ingredients that would serve this growing market category.
Rising popularity of craft beers The growing consumer interest in craft beers, which often utilize distinct and rare ingredients, creates opportunities for ingredient suppliers to offer special ingredients suitable for craft brewers.
Sustainability concerns Society is becoming more environmentally friendly, hence creating a new market for brewing ingredients that are environmentally friendly in their production.
Technological advancements Improvement in brewing science, for example, ingredient metabolism and fermentation processing, enhance opportunities for suppliers to come up with novel and upgraded ingredients for better efficiency in beer manufacturing.
Health and wellness The rate at which consumers are looking for healthy beverage options is on the rise, and therefore, such a market provides opportunities for suppliers to work on ingredients with health benefits or functional features.
Brewing Ingredient Market Drivers
Changing Consumer Preferences
The increase in demand for premium and craft beers is one of the main factors driving the growth of the Brewing Ingredient Market Industry. Not only are consumers becoming increasingly sophisticated in their taste for beer, which has unique flavors and aromas, but they are also producing craft beers themselves, which is contributing to the growing demand for malts, hops, and other brewing ingredients.
Technological Advancements
The Brewing Ingredient Market Industry is also being driven by technological advancements. The development of new brewing techniques and equipment is making it possible for brewers to produce higher-quality beers with greater efficiency. This is leading to increased demand for brewing ingredients as brewers are looking to improve the quality of their beers.
Growing Popularity of Craft Beer
Another key driver of growth for the Brewing Ingredient Market Industry is the increasing popularity of craft beer. Craft beers are typically made with better ingredients than those used in mass production, and they generally come in more flavors and styles. As such, they are becoming more and more attractive to consumers who are looking to enjoy a different, more flavorful beer.
Brewing Ingredient Market Segment Insights
Brewing Ingredient Market Ingredient Type Insights
The Brewing Ingredient Market is segmented by ingredient type into yeast, hops, malt, adjuncts, and additives and enzymes. In 2023, the malt segment held the largest market share of 45%, primarily due to its essential role in providing fermentable sugars and contributing to the beer's flavor and aroma. The yeast segment is projected to experience significant growth during the forecast period, owing to increasing demand for specialty and craft beers that require specific yeast strains to achieve desired flavors and characteristics. The hops segment accounted for a market share of around 28% in 2023 and is expected to continue growing steadily.Hops impart bitterness, aroma, and flavor to beer and are increasingly used in craft and specialty beers to create distinct taste profiles. Adjuncts, such as corn and rice, are used to enhance beer's fermentability, reduce costs, and lighten the flavor. The adjuncts segment is expected to witness moderate growth over the forecast period. Additives and enzymes play a crucial role in beer production by improving fermentation, enhancing flavor, and increasing stability. The increasing use of enzymes in craft brewing to improve efficiency and consistency is driving the growth of this segment.The additives and enzymes segment is anticipated to grow significantly during the forecast period, reaching a market size of approximately USD 3.8 billion by 2032.
Source Primary Research, Secondary Research, MRFR Database and Analyst Review
Brewing Ingredient Market Application Insights
The Application segment of the Brewing Ingredient Market is segmented into Lager, Stout, Pale Ale, Wheat Beer, and Craft Beer. The Lager segment held the largest market share in 2023, accounting for over 40% of the Brewing Ingredient Market revenue. The Stout segment is expected to grow at the highest CAGR during the forecast period, owing to the increasing popularity of craft beers. The Pale Ale segment is also expected to witness significant growth, due to the rising demand for flavorful and hoppy beers. The Wheat Beer segment is expected to grow at a moderate pace, driven by the growing popularity of light and refreshing beers.The Craft Beer segment is expected to grow at a robust pace, due to the increasing demand for unique and artisanal beers. Overall, the Brewing Ingredient Market is expected to grow at a steady pace during the forecast period, driven by the increasing demand for beer and the growing popularity of craft beers.
Brewing Ingredient Market Fermentation Insights
The Fermentation segment is a crucial component of the Brewing Ingredient Market, contributing significantly to the industry's overall revenue. It encompasses various fermentation methods, each with unique characteristics and applications in beer production. Top-fermenting, bottom-fermenting, and wild fermentation are the primary techniques employed in the brewing process. Top-fermenting, also known as "ale" fermentation, utilizes top-fermenting yeast strains that thrive in warmer temperatures. This method is commonly used to produce ales, which are characterized by their fruity and aromatic flavors.Bottom-fermenting, also known as "lager" fermentation, employs bottom-fermenting yeast strains that perform optimally in cooler temperatures. Lagers produced through this method exhibit a crisp, clean, and refreshing taste. Wild fermentation, on the other hand, involves the use of naturally occurring yeast and bacteria present in the environment. This method imparts a unique and complex flavor profile to beers, making them highly sought after by craft beer enthusiasts. The Brewing Ingredient Market is projected to witness steady growth in the coming years, driven by increasing consumer demand for premium and flavorful beers.
Brewing Ingredient Market Regional Insights
Regionally, North America held the largest market share in 2023, accounting for approximately 35% of the revenue. Europe followed closely, contributing around 30% to the market size. Asia Pacific is anticipated to witness the fastest growth over the forecast period, driven by increasing demand for craft beers and growing disposable income. South America and MEA are expected to contribute significantly to the overall market, with their respective market shares increasing over the coming years.
Source Primary Research, Secondary Research, MRFR Database and Analyst Review
Brewing Ingredient Market Key Players And Competitive Insights
Major players in the Brewing Ingredient Market industry are constantly striving to maintain their leadership position by implementing innovative strategies and expanding their reach. They are investing heavily in research and development to introduce new products and improve existing ones. The Brewing Ingredient Market industry is characterized by intense competition, with leading players engaging in strategic partnerships, acquisitions, and expansions to strengthen their market position. These players also focus on product differentiation and value-added services to cater to the evolving needs of customers.A leading player in the Brewing Ingredient Market is Associated British Foods, a food, ingredients, and retail company headquartered in the United Kingdom. The company has a strong presence in the brewing industry, providing a wide range of brewing ingredients, including malt, hops, and yeast. Associated British Foods has a footprint, with operations in over 50 countries and a diverse portfolio of brands. The company is committed to innovation and sustainability, and it invests heavily in research and development to support the growth of its brewing ingredient business.A competitor company in the Brewing Ingredient Market is Cargill, an American multinational corporation headquartered in Minnesota. Cargill is a major supplier of agricultural commodities, food ingredients, and industrial products. The company has a strong presence in the brewing industry, providing a range of brewing ingredients, including malt, hops, and corn. Cargill has a reach, with operations in over 70 countries and a diverse customer base. The company is focused on providing high-quality products and services to its customers, and it is committed to sustainability and innovation.
Key Companies in the Brewing Ingredient Market Include
Brewing Ingredient Market Industry Developments
The brewing ingredient market is projected to reach USD 100.6 billion by 2032, exhibiting a CAGR of 3.39% during the forecast period (2024-2032). Increasing demand for craft beers and the growing popularity of homebrewing are key factors driving market growth. Technological advancements in brewing techniques and the introduction of innovative ingredients are also contributing to market expansion.Recent developments include the launch of new specialty malts and hops by leading suppliers, catering to the evolving preferences of craft brewers. The rising adoption of sustainable practices in the brewing industry is also creating opportunities for suppliers of organic and eco-friendly ingredients.Key market players are focusing on expanding their product portfolios and geographical reach through strategic partnerships and acquisitions. Mergers and collaborations are expected to intensify competition and drive market consolidation.
Brewing Ingredient Market Segmentation Insights
Brewing Ingredient Market Ingredient Type Outlook
Brewing Ingredient Market Application Outlook
Brewing Ingredient Market Fermentation Outlook
Brewing Ingredient Market Regional Outlook
| Report Attribute/Metric | Details |
| Market Size 2022 | 72.06(USD Billion) |
| Market Size 2023 | 74.5(USD Billion) |
| Market Size 2032 | 100.6(USD Billion) |
| Compound Annual Growth Rate (CAGR) | 3.39% (2024 - 2032) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year | 2023 |
| Market Forecast Period | 2024 - 2032 |
| Historical Data | 2019 - 2023 |
| Market Forecast Units | USD Billion |
| Key Companies Profiled | Tsingtao Beer, Constellation Brands, Diageo PLC, Heineken, AB InBev, CocaCola, Sapporo Breweries, Pernod Ricard, Suntory Holdings, AnheuserBusch InBev, Asahi Breweries, Kirin Holdings, Molson Coors, Carlsberg |
| Segments Covered | Ingredient Type, Application, Fermentation, Regional |
| Key Market Opportunities | Rising demand for better-for-you beers Growing popularity of craft beers Increasing health awareness among consumers Technological advancements in brewing techniques Expansion into new geographic markets |
| Key Market Dynamics | Rising consumer preferences, technological advancements, increasing demand for low-alcohol beverages, expansion into emerging markets, and growing popularity of craft beers |
| Countries Covered | North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Brewing Ingredient market was valued at USD 74.5 billion in 2023 and is expected to reach USD 100.6 billion by 2032, exhibiting a CAGR of 3.39% during the forecast period.
The North America region is expected to be the fastest-growing region in the Brewing Ingredient market, owing to the increasing demand for craft beers and the growing popularity of beer consumption in countries like China and India.
Brewing ingredients are primarily used in the production of beer, and other fermented beverages, and can be categorized into malt, hops, yeast, and other adjuncts.
The key players in the Brewing Ingredient market include Archer Daniels Midland Company, Cargill, Incorporated, and Malteurop Group, among others.
The growing demand for craft beers, the increasing popularity of homebrewing, and the rising awareness of the health benefits associated with beer consumption are some of the key trends driving the growth of the Brewing Ingredient market.
The Brewing Ingredient market is expected to grow at a CAGR of 3.39% from 2024 to 2032.
The rising costs of raw materials, the intense competition from local and players, and the stringent government regulations are some of the key challenges faced by the Brewing Ingredient market.
The growing popularity of craft beers, the increasing demand for premium beers, and the expansion of the brewing industry in emerging markets are some of the key opportunities for growth in the Brewing Ingredient market.
Technological advancements such as the use of automated brewing systems, the development of new brewing techniques, and the use of data analytics are expected to have a positive impact on the Brewing Ingredient market.
The growing demand for craft beers, the increasing popularity of homebrewing, and the rising awareness of the health benefits associated with beer consumption are some of the key factors driving the growth of the Brewing Ingredient market.
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