- According to Transparency Market Research’s latest report on the global white oak alternatives market for the forecast period of 2021–2029, the market is estimated to grow, owing to the demand for alcoholic beverage with an enhanced taste
- The global white oak alternatives market is expected to clock a CAGR of 6.8% during the forecast period. White oak alternatives have become highly popular as multiple brewing and winemaking companies try to distinguish themselves from their competitors.
Growing Consumer Preference for Low Alcoholic Drinks to Augment Growth of White Oak Alternatives Market
- Low and non-alcoholic beverages are gaining traction in European nations as per Ireland’s brewing trade body. Customers are growing concerned about their well-being. Low-alcoholic drinks refer to drinks, which have an ‘alcoholic strength by volume’ (ABV) between 0.05 and 1.2% without any compromise of the quality or taste. Consuming lower strength alternatives means consuming fewer units of alcohol which retains fitness.
- According to the U.K.’s International Wines and Spirits Record (IWSR) based research in 2019 “Low- and No-Alcohol Report”, “Dry January” movement is a sign that health and wellness trends are “gaining traction across the world and providing new opportunities for the global beverage alcohol industry.”
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- In the U.S., 52% of adults who drink alcohol incline toward trying low alcoholic drinks or trying to reduce alcohol consumption. Low alcoholic beverages are gaining traction in Asia Pacific as well due to low calorie content and occasional suitability. Some of these health benefits of choosing low alcoholic drinks are driving consumer attraction toward it and fueling the growth of the white oak alternatives market globally.
White Oak Alternatives: A Cost Effective Adjunct to Oak Barrels
- Over the years, oak alternatives such as chips, spirals or staves were uncommon and were banned from being used in the brewing/winemaking processes. It was only two decades ago that the U.S. officially allowed winemakers to use oak chips in their processes, and only over a decade ago, the European Union also discarded the prohibition on use of oak chips.
- The classic method of fermenting and aging wine is quite expensive, as a winery would have to purchase several oak barrels costing around US$ 1,000 per barrel to ferment and age their wines. On the other hand, oak alternatives are a bit economical as wineries can purchase cheaper fermenting or aging tanks. Furthermore, another downside of oak barrels is that they release their oak in a time span of one to two years. Moreover, maintenance for oak barrels by burning sulfur wicks is essential to prevent contamination. This increases the total cost of producing the alcoholic beverages. Thus, white oak alternatives provide a cost effective solution to winemakers, which is anticipated to augment its growth in the years to come.
Home Brewing to Drive Sales of White Oak Alternatives Market
- Home brewing trend has picked up post the COVID-19 pandemic. States imposed stay-at-home orders and brewpubs were closed. With increase in sale of home brewing equipment, fermentation becomes an important step when considering the outcome in terms of taste, mouth feel or aroma of the alcohol. This trend led to increase in the sale of small packets or quantities of oak alternatives. Multiple options such as light, medium, and heavy toast oak chips allowed the customers to determine the taste and aroma of the alcoholic beverage. Furthermore, the flexibility of adding white oak alternative at any stage makes it more versatile.
- Interest of customers to home brew their desired flavor profile led to the sale of multiple toast and oak varieties. Oak powders, cubes, and chips were highly preferred, as they are easy to carry or deliver. Chips have been a popular alternative for both commercially and at home brewing to impart oak flavors. The reason for the same is oak barrels have many drawbacks, including cost, weight, storage, care, spoilage, etc., which makes oak alternatives a more preferable option for home brewing.
White Oak Alternatives Market: Key Findings
- The oak chips and oak cubes segments together are estimated to account for more than 3/5th of the market in the year 2021. Both segments are expected to generate maximum revenue.
- Wine segment is likely to hold more than 2/5th of the market share in the year 2021. The high market share can be attributed to the large demand of white oak alternatives for the wine making process. Multiple wine manufacturers use oak alternatives, as they reduce the effect of herbs in wines. Moreover, oak alternatives are convenient, easy to use, and have a high surface-area-to-mass ratio.
- In terms of market share, North America is likely to emerge as the dominating region in global white oak alternatives market. Since white oak is a popular species of hardwood from North America, large production of white oak has led to production of white oak products.
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White Oak Alternatives Market: Competition Landscape
- TMR analysed that the global white oak alternatives market is vastly fragmented due to presence of a large number of domestic players in the market
- TMR Group includes outlines of key players in the latest white oak alternatives market study, which includes
- Suber Oak International
- Speyside Bourbon Cooperage,Inc.
- Protéa France
- Oak Chips, Inc.
- G3 Enterprises, Inc.
- J. RETTENMAIER & SÖHNE GmbH + Co KG
- Bouchard Cooperages
- Innerstave
- Gusmer Enterprises, Inc.
- Canadell SAS
- The Barrel Mill®
- The Vintner Vault
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