Market Size and Growth
The Global Food Grade Alcohol Market reached USD million in 2022 and is projected to witness lucrative growth by reaching up to USD million by 2030. The market is growing at a CAGR of 6.1% during the forecast period (2023-2030).
In the sector of food and beverages, food-grade alcohol is primarily used as an ingredient in products like extracts, colors, flavorings and others. The consumption of processed and comfort foods has increased as a result of rising consumer spending and urbanization. Due to this tendency, demand for food ingredients has increased, which has in turn increased the demand for food-grade alcohol.
Additionally, both worldwide production and consumption of alcoholic beverages are rising. Consumption of alcoholic beverages, including wine, beer and whisky, and others, has fueled the food-grade alcohol market expansion. The use of polyols (sugar alcohols) in the pharmaceutical and nutraceutical industries has also grown significantly. This has also been a significant driver of the food-grade alcohol market.
Market Scope and Summary
| Metrics | Details |
| CAGR | 6.1% |
| Size Available for Years | 2021-2030 |
| Forecast Period | 2023-2030 |
| Data Availability | Value (US$) |
| Segments Covered | Type, Source, Application, Functionality, and Region |
| Regions Covered | North America, Europe, Asia-Pacific, South America and Middle East & Africa |
| Fastest Growing Region | Asia-Pacific |
| Largest Region | North America |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and Acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, Porter’s Analysis, Pricing Analysis, Regulatory Analysis, Supply-Chain Analysis and Other key Insights. |
Market Dynamics and Trends
Rising Urbanization and Shifting Dietary Preferences
The key factors fueling the market expansion for food-grade alcohol include rising consumer income and spending, as well as increased urbanization, which is fueling the expansion of the processed food sector. The market for food-grade alcohol has growth potential as a result of the spike in demand for food components.
Alcohol use during social meet-and-greet gatherings has also contributed to the market's expansion. The pharmaceutical and nutraceutical industries also use a variety of alcohol-based compounds, like polyols, extensively in dietary supplements, functional foods and beverages, and sanitization products, among others, which is driving the market growth for food-grade alcohol.
Growing Consumption of Personal Care Products
Personal care products require food-grade alcohol in their manufacturing. The market has gained traction as consumers increasingly consume personal care products coupled with nutraceuticals in the form of functional meals, dietary supplements, and functional drinks.
Because of their coating, sweetening, emollient, bulking, anti-crystallizing and stabilizing qualities, polyols are a common ingredient in pharmaceutical and nutraceutical products. These factors are responsible for the food-grade alcohol market growth during the forecast period.
Market Segments
The Global Food Grade Alcohol Market is segmented based on type, source, application, functionality and region.
Rising Demand for Ethanol in the Type Segment
In 2022, the ethanol segment accounted for the greatest market share. Alcoholic beverages are produced using ethanol. It is utilized as a primary ingredient base to create a wide variety of alcoholic beverages due to its volatility.
Additionally, ethanol is frequently used in the food industry as a preservative to extend the shelf life of finished goods, as well as in the production of preservatives, colorings and flavorings, as well as for coating food products.
These uses have increased the demand for food-grade alcohol on the international market. Also, the manufacturers began using ethanol as a natural flavoring agent in response to consumer demand for food goods created with natural components.
Source: DataM Intelligence Analysis (2023)
Market Regional Analysis
The High Demand for Food Grade Alcohol in North America
North America held the highest market share in 2022. There are more than 2,500 distilleries and brewers in North America that use food-grade alcohol for a variety of industrial uses. The sweets coatings used in American confectioneries are made using food-grade alcohol. Additionally, when added in the proper quantity, food-grade alcohol also functions as a preservative.
The production of flavors and extracts, food colors, yeast, and other sprays also heavily relies on industrial food-grade alcohol. The use of polyols in non-cariogenic confectionery and dental care is well-established. These are the factors that drive the growth of the North American food-grade alcohol market.
Source: DataM Intelligence Analysis (2023)
Key Players
The major global players in the market include Roquette Frères, ADM, Fonterra Co-operative Group, MGP, Jiangsu Huating Biotechnology Limited Company, GREENFIELD GLOBAL INC., Wilmar International Ltd, Cargill, Inc., The Andersons, Inc., , Manildra Group, Grain Processing Corporation.
Key Developments
- In October 2022, Elkhorn Valley Ethanol's assets were purchased from Louis Dreyfus Company, a Dutch agricultural commodities company, for an unknown sum by CIE, a US-based developer of grain-based, high-quality, speciality alcohols. Elkhorn Valley Ethanol's assets are added to CIE's inventory, expanding its footprint and broadening its customer base. Ethanol is produced in the US by Elkhorn Valley Ethanol.
- In April 2022, Jubilant Ingrevia Ltd., has announced its expansion by launching its new Green Ethanol based food-grade Acetic Acid plant near its manufacturing plant in Gajraula, UP, to meet the highest standards of product certifications like FSSAI, ISO 22000, to increase demand for food preservative segment across the world.
- In November 2020, Lallemand Inc., has announced the launch of ABV Aromazyme, a food-grade dry enzyme preparation, that is derived from a strain of Non-GMO Aspergillus niger.
Why Purchase the Report?
- To visualize the global food-grade alcohol market segmentation based on type, source, application, functionality, and region, as well as understand key commercial assets and players.
- Identify commercial opportunities in the market by analyzing trends and co-development.
- Excel data sheet with numerous data points of food grade alcohol market-level with all segments.
- PDF report consisting of cogently put-together market analysis after exhaustive qualitative interviews and in-depth market study.
- Product mapping available as Excel consisting of key products of all the major market players.
The Global Food Grade Alcohol Market Report Would Provide Approximately 93 Tables, 109 Figures and 190 Pages.
Target Audience 2023
- Manufacturers / Buyers
- Industry Investors / Investment Bankers
- Research Professionals
- Emerging Companies
