Which Alcohol Ingredients Trends Liquor Businesses Should Keep Note of?

Highlights

• Introduction
• Prominent trends in the alcohol ingredients sector
• New product launches and expansion

Alcohol is derived from grains, fruits, or vegetables. Beer and wine undergo a process known as fermentation, wherein yeast is introduced to the grains, fruits, or vegetables. This process generates ethyl or ethanol (similar to the chemical mixture used as fuel for cars) and carbon dioxide gas from the sugars present.

The alcohol industry has undergone a notable shift toward sustainability and eco-friendly practices in ingredient sourcing and production methods. Distilleries are increasingly adopting "grain-to-glass" distillation, sourcing grains locally, selecting heirloom ingredients, and integrating green technologies to diminish their environmental impact.

Some distilleries have taken steps to cultivate their grains, aiming to reduce energy consumption associated with transportation. Furthermore, there is a tendency within the industry to avoid artificial additives and favor natural, organic botanicals, fruits, and herbs to craft spirits with enhanced complexity and flavor profiles.

Futuristic trends in the alcohol ingredients industry

Surge in demand for craft beer

In recent years, there has been a notable surge in demand for distilleries and craft brewing. Consumers are increasingly interested in unique and flavorful beers, fueling the expansion of the alcohol ingredients sector into the beer industry space. The brewing sector relies on five primary ingredients: adjuncts/grains, malt ingredient extract, hops, beer additives, and beer yeast.

A blend of starch sources is incorporated in brewing processes, including secondary saccharides such as rice, sugar, or maize (corn), commonly referred to as adjuncts. These adjuncts are chosen as cost-effective alternatives to malted barley. In addition to these staples, less conventional starch sources such as millet, sorghum, cassava root, potato, and agave are utilized.

Brewing-grade malt extracts, crafted from premium brewing malts, enrich their character with added colors and tastes by incorporating specialty malts. This process is fundamental in creating a beer with the unique flavor profile desired for each brewing style. Furthermore, the rise in presence of microbreweries and the high craft beer production have fueled the demand for this uniquely crafted beer.

Biotechnological advancements

Startups employ genetic engineering methods to cultivate yeast strains capable of imparting unique flavors and aromas to beer, wine, and spirits. In addition, brands have enhanced bio-enhanced fermentation technologies to produce alcoholic beverages that are both healthier and more sustainable. For instance, immobilized cell technology enhances the stability and efficiency of fermentation processes.

Genetically modified yeasts exhibit increased tolerance to elevated temperatures, pressures, and ethanol levels while generating novel compounds such as vitamins, antioxidants, and enzymes. Consequently, biotechnology plays a vital role in enhancing the sustainability and profitability of the alcoholic beverage industry.

BIOinFOOD, a Brazilian startup, specializes in modifying and customizing natural yeast strains for various applications within the alcoholic beverage industry. Through genetic engineering, the startup develops yeasts that amplify the sensory characteristics of various spirits. This enables alcoholic beverage brands to innovate by experimenting with new flavors and creating unique drinks.

In addition, BIOinFOOD's yeast modifications enhance aromas and infuse beverages with nutritional and functional attributes while ensuring the exclusion of undesirable metabolites that could potentially harm consumers. By offering these modified yeasts, BIOinFOOD empowers alcoholic beverage manufacturers to craft healthier and more sustainable new beverages.

Strategic alliances by frontrunners to lead the supremacy in the alcohol ingredients industry

The global alcohol ingredients industry has experienced growth due to the trend of personalization and rise in demand for alcoholic beverages. Owing to this, the sector is anticipated to manifest a notable CAGR of 4.5% during the forecast timeframe of 2023 to 2032. Frontrunners in the sector have adopted novel strategies to strengthen their position in the competitive industry. For instance, in August 2023, Greenfield Global Inc., a renowned global producer of ethanol and high-purity solvents, revealed its plans to expand its product portfolio and distribution network to better serve the Canadian industry.

With the launch of a new purpose-built warehouse situated in the Greater Toronto Area, Greenfield aims to fulfill the increase in demands from various Canadian industries for access to essential, mission-critical quality materials. This expansion ensures that methanol, acetone, and acetonitrile, among other crucial products, are readily available within Canada, addressing the evolving needs of local customers efficiently.

Moreover, the House of Khemani introduced the Kamanda Matured Indian Spice Rum in July 2023. This exceptional spirit adds a touch of sophistication to the spirited landscape of the Indore and Bhopal regions in Madhya Pradesh, India. Kamanda Matured Indian Spice Rum, enriched with Ginseng and a blend of rich Indian Spices, presents a distinctive experience designed for both rum connoisseurs and enthusiasts. This new spirit enhances Khemani’s product range in the Madhya Pradesh region and highlights its commitment to recognizing and catering to the discerning taste and appreciation for quality spirits prevalent in the state.

To conclude, the global alcohol ingredients industry has gained popularity due to the trend of personalization and rise in demand for alcoholic beverages. Top entities have discovered new techniques and materials to enhance the taste and shelf life of the product. However, innovation in flavor profiles and health & wellness trends are expected to open new avenues for the industry in the future.

To kickstart a new chapter of liquor business with novel strategies and investment opportunities, feel free to contact our experts!

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