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Focus on Product Differentiation and Innovation Will Sustain Alcohol Ingredients Market Finds Frost & Sullivan - Decline in alcohol consumption in more mature markets like Europe offset by growing demand from developing economies - Food.Frost.com
Focus on Product Differentiation and Innovation Will Sustain Alcohol Ingredients Market Finds Frost & Sullivan

 

PRZOOM - /newswire/ - London, United Kingdom, 2014/07/16 - Decline in alcohol consumption in more mature markets like Europe offset by growing demand from developing economies - Food.Frost.com.

   
 
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The global alcohol ingredients market, which covers flavours, colours and other ingredients for beers, spirits and wines, is expected to see steady growth despite the dominance of a few companies. While flavours remain the biggest segment in the market, strong growth is projected in the "other ingredients" segment due to booming demand for yeast and enzymes.

Geographically, focus is expected to increase on developing regions such as Asia-Pacific, where consumer spending on alcohol is rising. Understanding the traditional and cultural tastes and preferences of consumers in these regions will be crucial to take full advantage of this trend.

New analysis from Frost & Sullivan, Analysis of the Global Alcohol Ingredients Market, finds that the market earned revenues of $989.2 million in 2013 and estimates this to reach $1.18 billion in 2019. While Western markets, Europe in particular are the largest consumers, the strongest growth potential is presented by emerging markets such as Asia-Pacific, South Africa and Latin America. Spirits have the largest market share of alcohol beverage ingredients, mainly driven by the extensive use of flavours.

"As innovation is a key success factor in the alcohol beverage industry, new product development is likely to gain pace in the ingredients space," said Frost & Sullivan Chemicals, Materials & Food Industry Analyst Tosin Jack. "Brand image and customer loyalty will also drive growth, with consumers embracing authenticity and sticking to products they know best."

However, the decline in alcohol consumption in developed regions reduces the incentives for manufacturers to invest in production, thus, stifling innovation and restraining alcohol ingredients market growth. Campaigns launched to tackle alcoholism also hamper market expansion. Further, price volatility and limited availability of raw materials to manufacture alcohol ingredients are challenging market participants.

"Within this scenario, finding ways to add value to the alcohol ingredients on offer, and providing robust technical support, will be of utmost importance," noted Ms Jack. "For companies with a global presence, consolidating with regional and smaller companies that have substantial knowledge of the local market will allow them to tailor alcoholic beverage production to suit varying regional and local tastes."

For more information on this study, please email Julia Nikishkina, Corporate Communications, at julia.nikishkina[.]frost.com.

Analysis of the Global Alcohol Ingredients Market is part of the Food and Beverage Ingredients (food.frost.com) Growth Partnership Service program. Frost & Sullivan’s related studies include: North American Plant Health Improvement Agents (PHIA) Market, Global Food and Beverage Processing Support Market, and Global Dairy Ingredients Market. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

About Frost & Sullivan
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Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
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Analysis of the Global Alcohol Ingredients Market / M99A-88

 
 
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Focus on Product Differentiation and Innovation Will Sustain Alcohol Ingredients Market Finds Frost & Sullivan

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