Modes Used in Fermentation Industry Business Setup

The fermentation industry business setup produces beverages primarily based on three methods, as explained below:

1. Distillation in the Fermentation Industry: A distilled alcohol beverage is made by fermenting a mixture of grains, fruits, or sugar and then heating the mixture to separate and purify the alcohol through distillation. The resulting product is a concentrated form of alcohol used to make a wide range of spirits, including whiskey, rum, brandy, gin, tequila, and vodka.

The specific ingredients, methods, and techniques used in the production of distilled alcohol vary depending on the type of spirit being produced. Currently, distilled alcohol is valued at $34.47 billion industry and is expected to grow at the rate of 5.18% (CAGR 2023-2027).

2. Malting in the Fermentation Industry: The malting process involves soaking the grains in water to allow them to germinate and then drying and kilning the germinated grains to stop the germination process. The kilned grains, also known as malt, are then used as the primary ingredient in beer brewing or as a component in whiskey production.

The malted grains provide the sugars necessary for fermentation within the industry. Furthermore, the kilning process also contributes to the flavour and aroma of the final product. It is one of the popular modes used in fermentation industry factory setup.

3. Brewing in the Fermentation Industry: Brewing is the process through which beer is produced. Various grains, such as corn, barley, rye, rice etc., are used to ferment with water and yeast. The different types of grains and production process result in different beer types. The reports suggest the Beer market grows annually by 8.17% (CAGR 2023-2027), thus making it the most profitable alcoholic product.

Market Size of Fermentation Industry Business Setup

The market size of the fermentation industry business setup is valued at US$ 58.86 billion in 2023, which is projected to grow at a compound annual growth rate (i.e., CAGR) of 4.62% during the forecast period of 2024- 2032.

The significant growth in the market size of the fermentation industry plant setup is supported by the increasing demand for bio-based products, the growing use of fermentation in the food & beverage industry, and the increasing demand from the pharmaceutical industry.