Brewing Ingredients Market Size, Share, Industry, Forecast and outlook (2024-2031)

Global Brewing Ingredients Market is Segmented By Source (Grains, Beer Yeast, Malt Extract, Beer Additives, Others), By End User (Microbreweries, Brewpubs, Craft Brewers, Others), By Function Type (Fragrance, Preservatives, Flavors, Proteins, Others), By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis,  2024- 2031

Brewing Ingredients Market Size

The Global Brewing Ingredients Market reached US$ 5.8 billion in 2022 and is expected to reach US$ 9.3 billion by 2031 and is expected to grow with a CAGR of 6.1% during the forecast period 2024-2031. The trend of using alternative grains in brewing, such as quinoa and sorghum, is gaining popularity. For instance, breweries like Dogfish Head in the United States have incorporated ancient grains like quinoa and teff into their beer recipes, appealing to consumers seeking unique flavors and gluten-free options. 

The brewing ingredients market is witnessing steady growth due to the increasing demand for craft beer and innovative flavors. Key ingredients such as malt, hops, yeast, and water play a vital role in determining the taste and quality of beer. Rising consumer preferences for unique and premium brews are driving the market. The market is also influenced by factors like growing awareness of health benefits associated with moderate beer consumption and the rise of home brewing enthusiasts.

One key driver in the brewing ingredients market is the rising popularity of craft beer. For example, the surge in craft breweries such as Dogfish Head Brewery has fueled the demand for diverse and high-quality ingredients, including unique hop varieties, specialty malts, and specialty yeasts, to create distinct flavors and profiles, driving the growth of the brewing ingredients market.

Market Summary

For more details on this report – Request for Sample 

Market Dynamics

Growing Demand for Craft Beer and Flavor Innovation Ignites Brewing Ingredients Market

The brewing ingredients market trend is driven by the increasing demand for craft beer and the constant pursuit of flavor innovation. Craft beer enthusiasts seek unique and diverse beer styles, pushing breweries to experiment with different brewing ingredients. This driver fuels the demand for specialty grains and adjunct grains, allowing brewers to create distinctive flavor profiles. 

Water, a key ingredient, plays a vital role in achieving desired taste characteristics and maintaining product consistency. Enzymes contribute to efficient fermentation, ensuring faster production and consistent quality. The growing consumer interest in craft beer and flavor experimentation drives the brewing ingredients market, inspiring breweries to continuously innovate and meet the evolving preferences of beer connoisseurs.

Technological Advancements and Sustainable Practices Propel the Brewing Ingredients Market

Technological advancements and sustainable practices act as strong drivers for the brewing ingredients market. The industry embraces innovations in water treatment and management, ensuring access to high-quality water while minimizing environmental impact. Advancements in enzyme technology enhance brewing efficiency, allowing for faster production and reduced resource consumption. 

Sustainable sourcing practices for specialty grains and adjunct grains promote environmental responsibility and social consciousness. Breweries and ingredient suppliers invest in research and development to optimize ingredient quality, improve yields, and reduce waste. The combination of technological advancements and sustainable practices drives the growth of the brewing ingredients market, meeting the industry's demand for efficiency, sustainability, and responsible production.

Ingredient Availability and Pricing Volatility Pose Challenges for Brewing Ingredients Market

One restraint in the brewing ingredients market is the volatility in ingredient availability and pricing. Factors such as climate change, crop diseases, and fluctuations in agricultural yields can lead to variations in the supply of key ingredients like water, adjunct grains, specialty grains, and enzymes. Unpredictable weather patterns and natural disasters can disrupt ingredient sourcing, impacting the stability and consistency of beer production. 

Additionally, shifts in global commodity markets and trade policies can result in price fluctuations, affecting the cost of brewing ingredients. Breweries must navigate these challenges, ensuring a secure supply chain, managing inventory efficiently, and adapting to market dynamics to maintain stable ingredient sourcing and pricing, ensuring the continuity of their brewing operations.

Market Segmentation Analysis

The global Brewing Ingredients market is segmented based on source, function type, end user, and region.

Grains Segment Holds Commanding Market Share in Brewing Ingredients Industry

The global brewing ingredients market has been segmented by source into grains, beer yeast, malt extract, beer additives, and others.

Within the grains subsegment of the brewing ingredients market, key ingredients include barley and wheat. Barley is the most commonly used grain in brewing due to its high enzyme content, which aids in the conversion of starches into fermentable sugars during the mashing process. It provides the foundation for the beer's color, flavor, and body. 

Wheat is another important grain used in brewing, often employed as a secondary malted grain. It contributes to the overall mouthfeel and head retention of the beer, and can also impart specific flavor characteristics. The grains subsegment holds a significant market share, estimated to be around 40% to 50%, making it the largest segment within the brewing ingredients market.

Market Geographical Share

The North America Region Held the Largest Share of the Brewing Ingredients Market

The North America brewing ingredients market is a dynamic and thriving industry that encompasses a wide range of beer producers, breweries, and craft beer enthusiasts. It is characterized by a rich and diverse brewing culture, with a strong emphasis on quality, innovation, and consumer preferences. The brewing ingredients market share is driven by factors such as changing consumer tastes, increasing demand for craft beer, and the presence of established brewing companies. 

North America is home to numerous prominent breweries and craft beer hubs, offering a wide variety of beer styles to cater to different preferences. The region's brewing market also benefits from advancements in brewing technology, distribution networks, and marketing strategies. With a growing consumer base and a vibrant craft beer scene, the North America brewing market size continues to expand and evolve.

Market Major Players

The major global players in the market include Cargill Incorporated, Boortmalt, Angle Yeast Co. Ltd, Malteurop Groupe S.A., Rahr Corporation, Lallemand Inc., Viking Malt, Lesaffre, Simpsons Malt, and Maltexco S.A.

COVID-19 Impact On Brewing Ingredients Market

The COVID-19 pandemic has disrupted the brewing ingredients market through supply chain disruptions and reduced on-premise beer consumption. However, there has been an increase in off-premise consumption and home brewing, driving demand for brewing ingredients. Fluctuating consumer demand, international trade challenges, and shifts in beer preferences have further impacted the market. As the situation evolves, the brewing ingredients market is expected to recover and present new opportunities for ingredient suppliers.

Key Developments

• On March 24, 2023, New Belgium Brewing, based in the U.S., acquires a 259,000-square-foot production brewery in Daleville, VA from Constellation Brands. The facility, originally built for Ballast Point, expands New Belgium's capacity by 125,000 barrels per year and enables the production of various beverages, including beer, flavored malt beverages, seltzer, and ready-to-drink beverages.
• On April 26, 2023, HEINEKEN N.V. based in Amsterdam, Netherlands, acquires Distell Group Holdings Ltd and Namibia Breweries Ltd, forming 'HEINEKEN Beverages in Southern Africa. The rebranded entity reflects a multi-category portfolio and commitment to delivering quality beverages across the continent.
• On Jan 25, 2023, KALS, an Indian-based company expands its market presence in the Indian beer industry with the acquisition of Foster's Beer. The addition of Foster's brand and three ABI breweries strengthens KALS' product portfolio and production capabilities. This strategic move positions KALS to capture a larger share of the growing beer market in India.

Why Purchase the Report?

• To visualize the global Brewing Ingredients market segmentation based on source, function type, end user, and region, as well as understand key commercial assets and players.
• Identify commercial opportunities in the market by analyzing trends and co-development. 
• Excel data sheet with numerous data points of brewing ingredients market-level with all segments.
• The PDF report consists of a cogently put-together market analysis after exhaustive qualitative interviews and an in-depth market study.
• Product mapping is available as Excel consists of key products of all the major market players.

The global brewing ingredients market report would provide approximately 61 tables, 62 figures, and 190 Pages.

Target Audience 2024

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies