Summary

Market Overview
The adjuncts such as malted grains, sugar, cassava, and potatoes are significantly used in the beer market as brewing ingredients. These adjuncts enhance the characteristics of beer and help reduce the overall production cost. The rising number of small-scale brewers worldwide supports product sales growth. Furthermore, the collaboration of beer adjunct suppliers with brewers and research organizations to develop quality raw materials becomes a potential factor in driving product demand.
The global beer adjuncts market was valued at USD YY million in 2021. It is forecasted to reach USD YY million by 2029, growing at a CAGR of 4.95% during the forecast period (2022-2029).
Market Dynamics: Growing beer adjuncts market with increasing breweries and expanding beer production
The rising demand for adjuncts is primarily driven by craft brewers and microbrewers, focusing on expanding the product portfolio with innovative flavors. Currently, consumers are no longer associated with mainstream beers. With changing lifestyles, there is an increase in health awareness. This awareness has created a demand for healthier food and beverage products. The increase in beverage consumption has led to intense competition amongst beer brands, resulting in the introduction of new flavors and increasing beer consumption. Craft beers are growing in popularity as they offer various flavors besides the regular ones offered by macro breweries. Due to this, the demand for beer is increasing. Consumers worldwide are gravitating towards a more craft and artisanal approach to beer.
Craft brewers and microbrewers are witnessing ample market potential for beer products worldwide. Therefore, they are investing in R&D and new product launches. The increasing number of craft brewers globally is expected to take the industry to the next level. For instance, in November 2020, DG Yuengling & Son, an American craft brewer, expanded its Tampa campus breweries expansion. The company aims to complete this new project by early 2022. Moreover, according to Brewers Association, beer consumption volume in the U.S. increased by 1.0% in 2021, wherein craft beer consumption holds nearly 13.1%. Total craft beer volume consumption increased by 7.9% to 24,489,945 BBLS (billion barrels).
According to Brewers Association, overall, U.S. beer volume sales were up 1% in 2021, while craft brewer volume sales grew 8%, raising small and independent brewers’ share of the U.S. beer market by volume to 13.1%. Retail dollar sales of craft increased 21%, to $26.8 billion, and now account for just under 27% of the $100 billion U.S. beer market (previously $94 billion). The primary reason for the larger dollar sales increase was the shift back in beer volume to bars and restaurants from packaged sales.
However, the products are often used in the brewing industry as an alternative cost-efficient extract source. Cost reduction is one of the decisive factors when using several adjuncts in beer production. Brewing with unmalted grains and cereal adjuncts, especially at higher concentrations, may impose several technical challenges on the brewers. A higher concentration of unmalted grain adjuncts significantly impacts the functionality and processability of the grist; thus, it affects the production process and product quality of beer.
Market Segmentation: The unmalted grains type segment had the most increased demand in the beer adjuncts market
Unmalted grains hold a significant share in the global adjuncts market, owing to the wide availability of unmalted grains, including corn and rice. Unmalted grains, main corn, are typically used in brewing beer across North America and Europe. Unmalted corn contains beneficial yeast carbohydrates, which boost the quality of wort and beer; thus, it is used as an adjunct in brewing. Unmalted grains also help to improve the levels of bioactive compounds and give new organoleptic characteristics to the beer. It is available abundantly at a lesser price. Hence, it helps the brewers in reducing the overall production cost.
The potato segment is likely to witness considerable growth in the upcoming years as it has a high carbohydrate concentration; therefore, it has great potential in the brewing industry as an adjunct. It is also a source of β-amylases, which is more stable than β-amylases from barley. Several industrial studies recommended that sweet potato flour has high diastatic power and can replace sorghum malt in brewing. It is one of the factors to increase the segmental demand in the upcoming years. For instance, in March 2022, Athletic Brewing Company, a U.S.-based brewing company, launched a new product, “Athletic Lite,” in the U.S. market, and it is targeted at health-conscious beer drinkers. The newly launched product is produced from organic and non-GMO grains infused with spices and citrus fruits for an exotic flavor. This beer is also vegan-friendly and contains less than 0.5% of ABV.
Geographical Penetration: Asia Pacific the dominating region during the forecast period
Asia Pacific holds the leading proportion in the global market space. Increasing micro brewers and craft beer manufacturers pushes the industry's growth. Thus, the market will likely witness rapid growth at a CAGR of YY% during the forecast period. The Asian manufacturers are keenly investing in manufacturing rice-based beers, as Asia is one of the largest rice producers, which further paves the way for the global beer adjuncts market growth. Since global beer consumption is increasing rapidly, manufacturers will face challenges in raw material procurement, especially barley. Thus, industrial researchers are conducting numerous research activities to develop new formulas using various beer adjuncts such as rye, rice, corn, sorghum, and cassava. The research assists microbrewers and craft brewers in running their businesses sustainably and competing with global players. This factor is further supporting the market growth of beer adjuncts. For instance, in May 2022, Ecliptic Brewing, a Japanese company, launched two new ranges of rice lagers with floral notes of jasmine.
North America has emerged as one of the largest beer consumers in the global market, supported by the robust economy, increased income, and customer associations. Various beer adjuncts such as corn grits, rice, barley, liquid adjuncts, syrups and sugars, and processed adjuncts, including cereal flakes or fortified cereals, are conventionally used in the U.S. brewing industry. Corn grits are primarily produced in the U.S.; thus, they are the most commonly used adjunct in mass-market beer, owing to their cost-effective quality, low extract residue, and color, flavor, and smoothness-enhancing properties. The growing adoption of different cultures is influencing researchers to invest in several brewing innovations in microbreweries, such as craft beers and artisanal beers, thereby shaping the overall market growth to a greater extent. Europe beer adjuncts market growth is very progressive; countries such as Poland, France, and Spain contribute significant revenue to the beer adjuncts industry, attributed to the increased market entrants in the beer industry.
Competitive Landscape:
Prominent key players operating in the market have realized the growth potential of this market and, therefore, are making continuous efforts to innovate, launch new products, and enhance their beer adjuncts products in the market to establish their prominence. The leading companies, such as Anheuser-Busch InBev SA/NV, Carlsberg Breweries A/S, and Heineken N.V., are embarking on expanding their product portfolio with the acquisition of small and medium-sized companies. The brewers focus on R&D and innovation activities to develop new formulas using adjuncts. It creates opportunities for adjunct manufacturers, including Thomas Fawcett's Sons, to maintain appropriate supply. The key market players utilize their huge clientele base, unique product offerings, strong brand loyalty, and distribution network to increase their geographical footprint while focusing on achieving a competitive edge.
For instance, on 27 June 2022, Zambian Breweries PLC announced an investment of USD 80 million in Zimbabwe to expand its current production plant. According to the Director of Zambian Breweries, the capital investment is supported by the enabling investment and trade climate under the New Dawn Administration. The investment will enhance the company’s beer production capacity and significantly contribute to the wider national economy.
In February 2020, Cruzcampo, one of the leading Spanish brands, launched its range of fruit ale, “Mangos de Malaga,” at a brewery in Malaga. This new beer launch aims to promote the use of local ingredients, which will further cater to the evolving needs of the manufacturers. The product is enriched with fruity notes of mango or citrus and caramelized malts.
In September 2021, the Ugandan subsidiary of AB InBev, Nile Breweries Limited, signed five years of MOU agreement with the National Agricultural Research Organization (NARO) to boost the commercial production of cassava in the country. The increasing research & development and innovation activities to develop new beer formulas using adjuncts will further elevate the market growth in the forecasting years.
COVID-19 Impact: Negative impact on the global beer adjuncts market
Since the COVID-19 virus outbreak in December 2019, the disease has spread to almost every country around the globe, with the World Health Organization declaring it a public health emergency. The global impacts of the coronavirus disease 2019 (COVID-19) are started to be felt and significantly affected the Brewing Adjunct market in 2021. The outbreak of COVID-19 has bright affected many aspects, like flight cancellations; travel bans and quarantines, restaurants being closed, and all indoor/outdoor events being restricted. Over forty countries' state of emergency was declared; with massive slowing of the supply chain; stock market volatility; falling business confidence, growing panic among the population, and uncertainty about the future.
During the COVID-19 crisis, industry players experienced numerous hurdles and challenges in managing sustainable business operations. Due to the lockdown and restrictions on large public gatherings, companies reduced employee strength in production plants. To overcome these challenges, producers needed to restructure their strategies to achieve sustainability in business. Strong impact on the brewing industry during the pandemic affected adjuncts demand. According to the Brewers of Europe's report on COVID-19 impact on the brewing industry, the pandemic was responsible for the decline of nearly 42% of the beer volume sales. The net volume sales of beer fell by 9% (34 million hectoliters) in Europe in 2020.
The global beer adjuncts market report would provide access to approximately 61 market data tables, 56 figures and 170 pages

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