Brewing is the production of beer done in a brewery by steeping a starch source in water and fermenting the resulting sweet liquid with yeast. It is done with the help of a commercial brewer or by a variety of methods. The main ingredients used in the production of beer include water and a fermentable starch source such as yeast, hops and cereal grains, most popular of which is malted barley. These ingredients provide colour, protein, flavour, bitterness, aroma, stability and dextrins to beer. The water used in beer is approximately 95% and the mineral content of water is adjusted according to the requirements of the beer. Besides, brewing by-products are "spent grain" and the sediment (or "dregs") from the filtration process which may be dried and resold as "brewers dried yeast" for poultry feed, or made into yeast extract which is used in different brands.
The global brewing ingredients market size is predicted to reach over USD 49.1 billion by 2028. This can be ascribed to the rise in global population and increasing disposable income in developing economies. Besides, increasing demand for low- or zero-alcohol content beer is also the key factor driving the market growth for brewing ingredients. With changing lifestyles, there is an increase in health awareness. This awareness has created a demand for healthier products in the food & beverage industry. Due to this, the demand for beer with low-alcohol content is increasing.
However, the beer industry faces many stringent regulations which limit its sale and consumption in different countries. Stringent regulations in the beer industry are hampering the market growth. Furthermore, the increase in beverage consumption has led to intense competition amongst beer brands, resulting in the introduction of new flavors and increasing beer consumption. The introduction of new ingredients and innovative flavors, combining salty, fruity, and tart flavors, are likely to provide lucrative development opportunities for the brewing ingredients market in the forthcoming years.
Brewing Ingredients Market Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2028||USD 49.1 billion|
|Growth Rate||CAGR of 6.3% during 2021-2028|
|Segment Covered||Product Type, Brewery Size, Form, Regions|
|Regions Covered||North America, Europe, Asia Pacific, South America, Middle East and Africa|
|Key Players Profiled||Cargill, Incorporated, Angel Yeast Co. Ltd., Boortmalt, Malteurop Groupe, Rahr Corporation, Lallemand Inc., Viking Malt, Lesaffre, Maltexco S.A., and Simpsons Malt.|
Key Segments of the Global Brewing Ingredients Market
Product Type Overview, 2019-2028 (USD Million)
- Malt Extract
- Beer Additives
Brewery Size Overview, 2019-2028 (USD Million)
- Macro Brewery
- Craft Brewery
Form Overview, 2019-2028 (USD Million)
- Dry Form
- Liquid Form
Regional Overview, 2019-2028 (USD Million)
- Rest of Europe
- Rest of Asia-Pacific
Middle East and Africa
- South Africa
- Rest of Middle East and Africa
- Rest of South America
Reasons for the study
- The purpose of the study is to give an exhaustive outlook of the global brewing ingredients market. Benchmark yourself against the rest of the market.
- Ensure you remain competitive as innovations by existing key players to boost the market.
What does the report include?
- The study on the global brewing ingredients market includes qualitative factors such as drivers, restraints, and opportunities
- The study covers the competitive landscape of existing/prospective players in the brewing ingredients industry and their strategic initiatives for product development.
- The study covers a qualitative and quantitative analysis of the market segmented based on Product type, Brewery Size, and Form. Moreover, the study provides similar information for the key geographies.
- Actual market sizes and forecasts have been provided for all the above-mentioned segments.
Who should buy this report?
- This study is suitable for industry participants and stakeholders in the global brewing ingredients market. The report will benefit Every stakeholder involved in the brewing ingredients market.
- Managers within the brewing ingredients industry looking to publish recent and forecasted statistics about the global brewing ingredients market.
- Government organizations, regulatory authorities, policymakers, and organizations looking for investments in trends of the global brewing ingredients market.
- Analysts, researchers, educators, strategy managers, and government institutions looking for insights into the market to determine future strategies.
Frequently Asked Questions (FAQ) :
Over the past few decades, there is a rise in the consumption of beer all over the world owing to the rise in disposable incomes and consumer preferences. The increasing number of pubs, liquor serving cafes and clubs is accelerating the market growth as these places are a common platform for social gathering. In addition, governments of some countries are promoting craft beer for the economic development along with the growing popularity of beer tourism. In addition, the young-adult consumers who want to manage their alcohol consumption are opting for beer, which is further driving the growth of the market.
Moreover, rising use of fruits in beer as a flavour is attracting new customers in the market and is expanding the market growth. Further, the rising preference of consumers for innovative drinking experiences is pushing them to try variety of new flavours in beer.
Furthermore, adoption of western culture and introduction of sweet & non-alcoholic beer is influencing the consumers towards beer, which will result in the increased demand for brewing ingredients. Therefore, with the increasing economic development, beer is slowly becoming an after work companion for refreshment, which will further augment the market growth over the forecast period.
The market is consolidated as several major market players currently hold the major market share. However, the market is expected to become fragmented in the forthcoming years as several new market players are emerging from developing countries such as India, Japan, China, and other countries.
Product Type Segment
Based on the Product Type segment, the market is bifurcated into Malt Extract, Grains, Yeasts, and Beer Additives. In 2020, the malt extract segment accumulated the maximum market share and it is likely to continue its dominance throughout the forecast years. These malts often have a longer time in the kiln, at higher temperatures, or get roasted to add depth, complexity, and flavor to the resulting beer. However, the Beer Additives segment is projected to attain major growth throughout the forecast years.
Brewery Size Segment
Based on the brewery size, the market is segmented into macro brewery and craft brewery. The macro brewery segment gathered the major market share in 2020 and it is likely to continue its dominance throughout the forecast years. Macro or large breweries are defined as breweries with annual beer production of ≥ 6 million barrels. These breweries employ staff to handle the brewing process, administrative staff, logistics of distribution, teams for marketing and finance, and every role imaginable required for a business to operate. However, in 2020, the Craft brewery segment is expected to experience major industry growth during the forecast years. Craft beers are perceived as healthier beers as they may offer help in lowering the rate of cardiovascular disease, improved bone density due to the presence of bone-developing elements such as silicon.
Based on the form, the market is segmented into dry and liquid. The dry form segment gathered the major market share in 2020 and it is likely to continue its dominance throughout the forecast years. Because of the lower water content, Dry brewing ingredients such as Dry Malt Extract (DME) tends to have a better shelf life without the darkening issues of light malt extract. It offers more fermentable extract by weight. Moreover, as a powder, DME is easier to measure in precise increments. With a digital scale, it can be measured out in fractions of an ounce. This makes DME a great choice for priming, supplementing beer recipes, and for making gravity adjustments. However, in 2020, the liquid form segment is expected to experience major industry growth during the forecast years.
The Asia Pacific region is likely to account for the maximum market contribution during the forecast years. The domination of this region is largely ascribed to the drinking preferences of the population in this region, which is gradually shifting toward alcoholic culture. Another factor is the densely populated areas that are not completely tapped by beer manufacturing and brewing ingredient companies. Rapid industrialization and urbanization, increase in environmental concerns, rise in disposable income of growing middle class, and rising demand for craft beers are factors consequently fueling the demand for brewing ingredients market in this sector. However, the North America is likely to gather noteworthy growth through the forecast years 2021-2028. The growth of the brewing ingredients market in this region is mostly ascribed to the rapid expansion of breweries along with the introduction of unique beers in the region. Further, in order to meet the demand for flavoured beers, the region is incorporating new flavours in their offerings.
The major players of the global brewing ingredients market are Cargill, Incorporated, Angel Yeast Co. Ltd., Boortmalt, Malteurop Groupe, Rahr Corporation, Lallemand Inc., Viking Malt, Lesaffre, Maltexco S.A., and Simpsons Malt. These major players in this market are focusing on increasing their presence through expansions & investments, mergers & acquisitions, partnerships, joint ventures, and agreements. Renowned companies are offering new and modern brewing ingredients. Besides, the previously recognized as well as new market players are approaching the market with advanced and new strategic services and solutions and to remain competitive in the global market.