According to Future Market Insights, the global alcoholic flavors market is expected to accumulate a market value of US$ 7.3 billion in 2023. By 2033, the market is expected to reach US$ 11.6 billion, registering a CAGR of 4.7%. The market registered a CAGR of 2.9% in the historical period 2018 to 2022. Factors such as the increasing demand for flavored alcoholic beverages, as well as the growing popularity of craft breweries, are expected to boost the market growth over the analysis period.
The demand for flavored alcoholic beverages is growing rapidly due to the increasing popularity of new and unique flavors. Alcoholic flavors are used to add taste and aroma to these beverages, thereby boosting the growth of the alcoholic flavors market. Additionally, with the rise in disposable income, consumers are becoming more willing to spend money on premium alcoholic beverages, including flavored ones. This trend is expected to continue in the coming years, leading to an increase in the demand for alcoholic flavors.
Alcoholic flavors are used in the food industry to add flavor to food products, such as desserts, sauces, and marinades. The use of alcoholic flavors in the food industry is expected to propel the growth of the alcoholic flavors market in the forthcoming years. Companies are investing in R&D to develop new and innovative alcoholic flavors that cater to the changing tastes and preferences of consumers. The launch of new products is projected to augment the growth of the alcoholic flavors market in the near future.
Data Points
Key Statistics
Expected Market Value of the Alcoholic Flavors Industry in 2023
US$ 7.3 billion
Projected Market Value of the Alcoholic Flavors Industry in 2033
US$ 11.6 billion
Growth Rate of the Alcoholic Flavors Market from 2023 to 2033
4.7% CAGR
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Alcoholic Flavors Market: Regional Landscape
The alcoholic flavors market in North America is expected to account for the maximum share during the analysis period.
Factors such as the rising popularity of flavored alcoholic beverages, increasing disposable income, and the growing trend of cocktail culture. The market is also expected to be driven by the increasing use of alcoholic flavors in the food industry.
The United States is the largest market for alcoholic flavors in North America. The growth of the market in the U.S is mainly driven by the increasing demand for premium alcoholic beverages and the growing trend of flavored alcoholic beverages.
Asia Pacific is witnessing significant growth in recent years. The regional market growth is driven by factors such as the increasing demand for flavored alcoholic beverages, rising disposable income, and the growing trend of social drinking.
India is a significant market for alcoholic flavors in the Asia Pacific. The demand for alcoholic flavors in India is mainly driven by the increasing popularity of new and unique flavors and the growing trend of cocktail culture.
Competition Profile
Recent developments in the technology, mergers and acquisitions, and partnerships within the companies involved in the designing of Alcoholic Flavors are expected to create lucrative opportunities for the market growth over the analysis period.
In August 2021, Firmenich SA acquired Scentium, a Spain-based flavor and fragrance company, to strengthen its position in the alcoholic flavors market.
In June 2021, Kerry Group launched a new range of natural and organic alcoholic flavors for the global beverage industry. The flavors are designed to cater to the growing demand for healthier and sustainable options.
In April 2021, Symrise AG launched a new range of alcoholic flavors for beverages, including whiskey, rum, gin, and tequila flavors. The company aims to cater to the growing demand for premium flavored alcoholic beverages.
The alcoholic flavors market saw soaring growth in 2021 with worldwide revenues. A new forecast estimates that alcoholic flavors revenue will nearly double by 2031. As consumers increasingly seek great taste, healthy options, and convenience and sustainability in their foods to fuel their on-the-go lifestyles, the face of alcoholic flavors is changing.
Moreover, consumers are constantly on the lookout for clean label ingredients that are also fit for consumers with allergies or restricted diets, without compromising out on mouthfeel. Consumer’s inclination concerning plant-based eco-relevant preferences due to no trans-fat and lesser levels of saturated fats is escalating the demand for alcoholic flavors across the globe.
The alcoholic flavors market saw soaring growth in 2021 with worldwide revenues. A new forecast estimates that alcoholic flavors revenue will nearly double by 2031. As consumers increasingly seek great taste, healthy options, and convenience and sustainability in their foods to fuel their on-the-go lifestyles, the face of alcoholic flavors is changing.
Moreover, consumers are constantly on the lookout for clean label ingredients that are also fit for consumers with allergies or restricted diets, without compromising out on mouthfeel. Consumer’s inclination concerning plant-based eco-relevant preferences due to no trans-fat and lesser levels of saturated fats is escalating the demand for alcoholic flavors across the globe.
Moreover, due to growing consumer interest in multi-cuisine culture, there is aggregate demand for alcoholic flavors as it is extensively manufactured by food producers as an element owing to preference from consumers.
Also, new product launches have played a dynamic role in assisting the extensive penetration of alcoholic flavors in the global market.
For example, Farm To Fork in September 2019 launched its clean label, sustainably grown, and simple alcoholic flavor with non-GMO labeled certified and do not contain artificial flavors and sugar.
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Growing Application of Alcoholic Flavors Segment to Encourage the Market’s Growth Trajectory
The rising preference for international cuisines, availability of a wide variety of international brands of alcoholic flavors, and growing demand for no preservatives and natural flavors contribute to the growth of the alcoholic flavors market.
The dynamics assisting the growth of the market are the consumer’s preference towards gluten-free diets and plant-based alternatives. Moreover, health-conscious customers favor goods with high dietary content, which helps consumers to enjoy their food without affecting the diet.
Moreover, restaurants and other eateries are also experimenting with numerous flavors and combinations to offer innovative and unique alcoholic flavors to their customers.
Flavour Creativity and Nutrition to Drive Alcoholic Flavors Demand Globally
With the rising consumption of natural products, consumers are strongly influenced by the nutritional benefits of alcoholic flavors and the added benefits of proteins, fiber, fats, vitamins, and minerals.
Moreover, consumers strongly agree that alcoholic flavors enrich the taste of other food while being used as an ingredient. Additionally, the importance of flavors that meet the expectations of more demanding and health-conscious consumers is therefore key. Innovation and distinctiveness need to be combined with consumer appeal and labeling considerations.
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The USA and Canada Demand Outlook for Alcoholic Flavors Market
In terms of sales, the North American market is projected to take the lead in the global target market. With the increased consumption of healthy foods by USA
consumers, nearly 20% of the consumers are inclined towards on-pack claims like “made with real ingredients” while buying food or beverage products. The application of alcoholic flavors in snacking has improved vividly over the years is anticipated to fuel the revenue progression of the alcoholic flavors market.
Moreover, alcoholic flavors have increased by 24.3% volume growth in the USA market over the last three years which is outpacing the overall flavor category, hence promoting the alcoholic flavors market to grow at a high pace.
Europe Alcoholic Flavors Market Outlook
The European alcoholic flavors market is estimated to grow at a moderate pace. Manufacturers are aiming at initiating new and innovative forms hence, alcoholic flavors companies are making swift progress concerning evolving innovative spreads options.
The market for alcoholic flavors is estimated to see swift growth through the projection period driven by huge investments done by market players in social media marketing, and promotional activities towards increasing plant-based trends and consumers' wish to eat more healthy nutritional food products.
Some of the Key Players Manufacturing Alcoholic Flavors Market are a Follows
Kerry Group
Cargill Inc.
ADM
Givaudan
Symrise AG
TOSHEV
Austria Juice
MANE
Dakini Health Foods among others.
The report is a compilation of first-hand information, qualitative and quantitative assessment by industry analysts, inputs from industry experts and industry participants across the value chain.
The report provides an in-depth analysis of parent market trends, macro-economic indicators and governing factors along with market attractiveness as per segments.
The report also maps the qualitative impact of various market factors on market segments and geographies.
Alcoholic Flavors: Market Segmentation
Based on Flavor:
Pineapple
Passion Fruit
Black Currant
Lime
Apple
Cherry
Others
Based on Product Type:
Vodka
Rum
Whiskey
Wine
Tequilla
Other
Based on Distribution Channel:
Direct Sales
Modern Trade
Convenience Stores
Departmental Store
Specialty Store
Online Retailers
Other Sales Channels
Based on Region:
North America
USA and Canada
Latin America
Mexico, Brazil, Peru, Chile, Argentina and others
Western Europe
Germany, United Kingdom, France, Spain, Italy, Nordic countries, Belgium, Netherlands, and Luxembourg
Eastern Europe
Poland and Russia
Asia Pacific
China, India, Japan, South Korea, Malaysia, Indonesia, Australia, and New Zealand
