American oak barrels are cylindrical containers made of wooden planks. The main purpose of the American oak barrels is to store spirits. Global consumption of alcoholic drink such as wine has led to growth in the American oak barrels market. Furthermore, the growing millennial population is expected to increase the market demand for American oak barrels. In addition, developments in new flavours might hike the market demand for American oak barrels. American oak barrels are the preferred choice for fermenting and ageing wines by brand owners. American oak barrels limit the amount of oxygen into wine which enhances the taste and quality of the wine. This is likely to fuel the market demand for American oak barrels.
American oak barrels are used to smoothen the texture of wine once it is fermented. The winemaking process is associated with longer duration and American oak barrels last up for around 100 years. Though there are steel tanks available as a viable alternative in the market, wine stored in American oak barrel has superior ageing potential. This is expected to boost the demand for American oak barrels. Premium brands of wines use American oak barrels for the sedimentation process. American oak barrels are associated with premiumization and high-end brands. To enhance their goodwill and brand proposition many brand owners might prefer American oak barrels to store their premium products. Moreover, the surface is of the American oak barrel allows in the infusion of aroma and flavour of oak in the blend, providing creamier and rich texture to the wine. Thus, micro-oxygenation in the American oak barrels due to porous nature cannot be replicated easily using oak alternatives. This is expected to fuel the growth of American oak barrels market.
Transportation is another predominant aspect as American oak barrels are designed to be stored and transported between facilities easily. Compared to oak alternatives, where storage and transportation function is combined other alternatives such as steel containers would require different set-ups for storage and transportation. This enhances cost-effectiveness and utilization of American oak barrels. Furthermore, the use of American oak barrels in the bars, lounges and restaurants from a décor perspective to portray the quality of the restaurants might augment the demand for American oak barrels. However, the cost of the American oak barrels and availability of oak might limit the growth of American oak barrels market.
American Oak Barrels can be segmented on the basis of wine processed, type and toast level.
By Wine Processed, American Oak Barrels can be segmented as
By Type, American Oak Barrels can be segmented as
By Toast Level, American Oak Barrels can be segmented as
North America is likely to dominate the global American oak barrel market due to rapidly growing wine market. Furthermore, the presence of a large number of manufacturers in the region is expected to boost the market demand for American oak barrels market in the region. Consumption of alcoholic drinks and preferences for various flavours is anticipated to increase the market demand for American oak barrels. Europe region is expected to grow at a high rate owing to the increasing demand for wine in the region. Asia Pacific region is expected to grow due to the rising population, changing lifestyles and growing demand for alcoholic drinks in the region.
Wineries across the world are facing the heat of COVID 19 outbreak due to enforced closure of bars, pubs and restaurants. Temporary closures have resulted in the cash flows of the wineries. Though wines do not have the threat of old and expired stock if stored properly. Furthermore, the bars, pubs and restaurant are unlikely to open soon the alcoholic drinks market is likely to suffer. However, the advent of home deliveries and online shops is likely to prevail demand for alcoholic drinks. Disruption in the supply chain can lead to a temporary imbalance between supply and demand. Many wineries have halted their production or reduced their production capacity due to the anticipated drop in sales of wines due to low imports for the year 2020. Thus, this might hinder the growth for American oak barrels in the short run.
Key Players in the American Oak Barrels Market are as follows,
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American Oak Barrels Market
