Growing Popularity of Craft Beer and Microbrewery Trends is Driving the Growth of the Global Beer Ingredients Market

Beer ingredients include malt, hops, yeast, and water. Malt, usually derived from barley, provides fermentable sugars for alcohol production. Hops add bitterness, aroma, and act as a natural preservative. Yeast ferments the sugars into alcohol and carbon dioxide, influencing the beer flavor and texture. Water, making up about 90-95% of beer, affects its taste based on mineral content. The beer ingredients market supplies these essential components to both commercial and craft breweries. Breweries use these ingredients to produce various beer styles, from lagers to ales.

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Data Bridge Market Research analyzes that the Global Beer Ingredients Market is expected to grow with a CAGR of 6.7% during the forecast period of 2024 to 2031 and is expected to reach USD 33.18 billion by 2031 from USD 19.75 billion in 2023.

Key Findings of the Study

Increasing Beer Consumption around the Globe

The rise in global beer consumption can be attributed to changing lifestyles, increasing disposable incomes, and the growing popularity of craft beer. This trend has led to a higher demand for quality ingredients such as malt, hops, yeast, and adjuncts, which are essential in brewing various types of beer. Brewers are increasingly focusing on sourcing premium ingredients to produce distinctive flavors and meet consumer expectations, thereby fueling the growth of the beer ingredients market.

Craft beer, in particular, has seen a substantial rise in popularity, with consumers seeking unique and diverse beer options. This shift has driven small and large breweries to experiment with new ingredients and brewing techniques to differentiate their products. The need for specialized ingredients, such as exotic hops and artisanal malts, has surged, pushing the beer ingredients market to expand.

Report Scope and Market Segmentation

Segment Analysis

Global beer ingredients market is segmented into six notable segments based on ingredients, beer type, form, nature, category, and end use brewery.

• On the basis of ingredients, the global beer ingredients market is segmented into malt and malt extracts, hops, yeast, enzymes, beer adjuncts, and others

In 2024, the malt and malt extracts segment is expected to dominate the Global Beer Ingredients Market

In 2024, the malt and malt extracts segment is expected to dominate the market with a market share of 36.70% as they provide essential fermentable sugars, flavors, and enzymes needed for brewing, ensuring the desired alcohol content and taste.

• On the basis of beer type, the global beer ingredients market is segmented into ale beer, lager beer/pilsner, stout beer, porter beer, wheat beer, and others

In 2024, the ale beer segment is expected to dominate the Global Beer Ingredients Market

In 2024, the ale beer segment is expected to dominate the market with a market share of 39.52% due to its diverse flavor profiles, shorter fermentation times, and growing popularity among craft breweries, appealing to consumers seeking unique and varied beer experiences.

• On the basis of nature, the global beer ingredients market is segmented into non-GMO and GMO. In 2024, the non-GMO segment is expected to dominate the market with a market share of 84.93%
• On the basis of form, the global beer ingredients market is segmented into dry and liquid. In 2024, the dry segment is expected to dominate the market with a market share of 92.78%
• On the basis of category, the global beer ingredients market is segmented into organic and conventional. In 2024, the organic segment is expected to dominate the market with a market share of 75.69%
• On the basis of end use brewery, the global beer ingredients market is segmented into micro-brewery, craft brewery, macro-brewery, and others. In 2024, the micro-brewery segment is expected to dominate the market with a market share of 33.06%

Major Players

Cargill, Incorporated (U.S.), Agraria (Brazil), Associated British Foods plc (U.K.), Fermentis (France), DSM (Netherlands), RahrBSG (Subsidiary of Rahr Corporation) (U.S.) are the major players in the global beer ingredients market.

Recent Developments

• In June 2024, the cooperatives Agrária, Bom Jesus, Capal, Castrolanda, Coopagrícola, and Frísia jointly inaugurated Maltaria Campos Gerais, marking a significant milestone for Paraná as Brazil's leading producer of malt. Situated along PR-151 between Ponta Grossa and Carambeí, this new facility ensures that four out of every ten beers brewed in Brazil will use malt sourced from Paraná. The plant boasts an impressive annual production capacity of 240,000 tons
• In December 2023, AEB Group spa, a well-known international group specializing in biotechnologies, natural ingredients, sanitation, and filtration systems for wine, beer, and other food and beverages, announced the acquisition of ExperTi. ExperTi, an Italian company based in the province of Verona, emerged from the takeover of the Tebaldi business unit, which had been active for over 30 years in distributing and selling biotechnologies and advanced plant solutions for the wine and beer industry. The acquisition of ExperTi bolstered AEB's capabilities in distributing biotechnologies and advanced plant solutions for the wine and beer industry
• In November 2024, from November 28th to 30th, AngelYeast Co., Ltd. participated in the International Exhibition for Beer, Brewing, and Beverage Technology (BrauBeviale) which was held in Nuremberg, Germany. At the exhibition, Angel showcased American Ale, Lager beer, and beer nutrition products, focusing on cost reduction and efficiency. They received positive feedback, and Food Ingredient First interviewed and promoted Angel. The exhibition helped AngelYeast Co., Ltd. by increasing brand exposure, receiving positive feedback from customers, and showcasing their products and solutions, leading to enhanced recognition and potential market growth
• In May 2024, Breiess attended Lager & Friends, an annual festival by Gathering Place Brewing in Milwaukee, which showcased over 40 lagers from Wisconsin's top breweries. Held at the Riverwest Taproom, attendees enjoyed unlimited samples, paired with brats, dogs, and Bavarian. This will increase the brand awareness of the company among the people
• In December 2023, Kerry Group plc announces an agreement to acquire part of Chr. Hansen and Novozymes' global lactase enzyme business. The acquisition, pending European Commission approval, enhances Kerry’s biotechnology solutions with NOLA® Products, known for enabling lactose-free and sugar reduced dairy products while maintaining taste. The business generated around USD 42.78 Million in revenue in 2022 across 50+ countries. Kerry will pay USD 160.42 Million, with the transaction expected to finalize by the first half of 2024 as part of merger approval processes

Regional Analysis

The countries in the global beer ingredients market are U.S., Canada, Mexico, China, Australia, Japan, India, South Korea, Thailand, Philippines, Singapore, Malaysia, Indonesia, Rest of Asia-Pacific, Germany, France, U.K., Belgium, Russia, Netherlands, Spain, Italy, Turkey, Switzerland, Rest of Europe, Brazil, Argentina, Rest of South America, South Africa, U.A.E., Saudi Arabia, Qatar, Oman, Kuwait, Bahrain, and Rest of Middle East and Africa.

As per Data Bridge Market Research analysis:

Europe is the fastest growing and expected to be the dominating region in the Global Beer Ingredients Market

Europe is expected to dominate the market due to its large population, increasing urbanization, and rising income levels. The region has a growing demand for beverages such as beer, driven by changing lifestyles and dietary preferences.

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