The global food grade alcohol market was valued at USD 6,975.2 million in 2019, and is projected to reach USD 8,847.8 million by 2027, registering a CAGR of 5.4% from 2021 to 2027. In 2019, the ethanol segment accounted for the highest market share. Food grade alcohol is considered safe for human consumption, owing to its purity (lack of additives). The purity level, concentration, and grade of the alcohol depend on its end use.
Food grade alcohol is essentially used in the food & beverages industry as an ingredient in products such as flavorings, extracts, dyes, and others. Rise in consumer spending and growth in urbanization have led to an increase in the consumption of processed and comfort food. This trend has created an upsurge for food ingredients, which has inversely generated demand for food grade alcohol. Furthermore, production and consumption of alcoholic beverages globally are also expanding. The trend of consuming alcoholic beverages, such as beer, wine, whiskey, among others, in social gatherings has propelled the market growth. This has also been a crucial factor to drive the market for ethanol. In addition, the application of polyols (sugar alcohols) in the pharmaceutical & nutraceutical industry has risen exponentially. The rise in consumption of nutraceutical among consumers in the form of functional foods, dietary supplements, and functional beverages has gained momentum for the market. This is attributed to the fact that polyols are used in numerous pharmaceutical and nutraceutical products, owing to their coating, sweetening, emollient, bulking, anti-crystallizing, and stabilizing properties. However, fluctuations in prices of sugarcane, corn, wheat, and others are expected to hinder the food grade alcohol market growth.
On the contrary, consumers in the Asia-Pacific region are investing more in food and nutraceutical products, which is expected to add value to their choice of living a healthy lifestyle. With rise in disposable income, consumer spending, and growing health consciousness, the demand for low-calorie and low-sugar food items is expected to gain traction in the region. Therefore, the use of sugar alternatives, such as polyols, is expected to gain substantial recognition. This can be regarded as an opportunity for polyol manufacturers for further growth and expansion of the global food grade alcohol market.
According to the global food grade alcohol market report, the market is segmented on the basis of type, source, application, and region. Based on type, the market is categorized into ethanol, sorbitol, xylitol, and others. By source, the market is classified into sugarcane, sugar beet & molasses, grains, and others. Depending on application, the market is distributed into food, beverages, and pharmaceutical & nutraceutical. Region wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.
On the basis of type, the ethanol segment accounted for the maximum share in the global market in 2019. Food grade ethanol has the highest rate of consumption by means of alcoholic beverages such as beer, wine, whiskey, and other liquors. Rise in social gatherings coupled with increase in consumer spending has created higher market traction for alcoholic beverages. Thus, owing to this expanding market base and propelling consumption, the ethanol segment accounted for a higher value share in the global food grade alcohol market analysis.
By Type
The Other Food Grade Alcohol segment would witness the fastest growth, registering a CAGR of 6.10% during the forecast.
On the basis of source, the sugarcane, sugar beet & molasses category was the dominant segment in 2019, and accounted for 42.6% share in the market. This was attributed to the fact that sugarcane accounts for one of the largest sources in producing ethanol worldwide. However, the grains segment is anticipated to grow at a faster rate during the food grade alcohol market forecast period.
By Source
Grains segment would witness the fastest growth, registering a CAGR of 5.90% during the forecast period.
On the basis of application, the beverages category was the dominant segment in 2019, with 41.9% global food grade alcohol market share. Ethanol is largely used in the production of alcoholic beverages such as beer, wine, whiskey, and other liquors. The beverages segment accounted for a higher market share in 2019 due to exponential demand and consumption for alcoholic beverages over the years.
By Application
Pharmaceutical & Nutraceutical segment would witness the fastest growth, registering a CAGR of 5.60% during the forecast period.
On the basis of region, North America was the prominent food grade alcohol market segment in 2019. This is attributed to the tremendous popularity and substantial consumption of alcohol and processed food in the region. However, Asia-Pacific is expected to witness a significant CAGR, owing to rapid demand and acceptance of alcohol for social drinking coupled with rise in income spending and young consumers.
By Region
Asia-Pacific region woud witness the fastets growth, registering a CAGR of 6.60% from 2019-2026.
The key players operating in the global food grade alcohol market include Cargill Incorporated, Spectrum Chemical Manufacturing Corp., MGP Ingredients, Inc., Archer Daniels Midland Company, Roquette Freres SA, Manildra Group, Wilmar International Limited, Molindo Group, Grain Processing Corporation, Cristalco S.A.S., and Ingredion.
Key Benefits For Stakeholders
- The report provides a quantitative analysis of the current food grade alcohol market trends, estimations, and dynamics of the market size from 2021 to 2027 to identify the prevailing opportunities.
- Porter’s five forces analysis highlights the potency of buyers and suppliers to enable stakeholders to make profit-oriented business decisions and strengthen their supplier–buyer network.
- In-depth analysis, food grade alcohol market size, and segmentation assist in determining the prevailing opportunities.
- The major countries in each region are mapped according to their revenue contribution to the market.
- The market player positioning segment facilitates benchmarking and provides a clear understanding of the present position of the market players in the food grade alcohol industry.
Food Grade Alcohol Market Report Highlights
| Aspects | Details |
 By Type |
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 By Source |
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 By Application |
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 By Region |
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 Key Market Players | MOLINDO GROUP, ARCHER DANIELS MIDLAND COMPANY, MANILDRA GROUP, INGREDION, CARGILL INCORPORATED, SPECTRUM CHEMICAL MANUFACTURING CORP., WILMAR INTERNATIONAL LIMITED, CRISTALCO S.A.S., GRAIN PROCESSING CORPORATION, MGP INGREDIENTS, INC. |
Analyst Review
The food grade alcohol market is expected to grow gradually during the forecast period, owing to various factors such as rise in consumption of alcoholic beverages, growth in inclination toward low-calorie food & beverages, and propelling growth in the nutraceutical industry.
Rise in the number of health-conscious consumers has led to increase in adoption of products that contribute toward achieving a healthier lifestyle. These products include dietary supplements and functional food & beverages. Polyols are majorly used in the production of these products, owing to their functional properties. Moreover, consumers are also opting for food & beverages, which are low in calories or are produced with less sugar. Therefore, the need for traditional sugar alternative has increased exponentially. These factors have created lucrative growth opportunities for polyols, a type of food grade alcohol.
Furthermore, Asia-Pacific is projected to register a significant growth of ethanol compared to the mainstream markets of Europe and North America, due to rise in consumer spending, increase in consumption of alcoholic beverages along with its acceptance in social gatherings and events, especially in countries such as India, China, and Singapore.
The global food grade alcohol was valued at $6,975.2 million in 2019.
The forecast period in the Food Grade Alcohol Market report is 2021-2027.
The base year calculated in the Food Grade Alcohol Market report is 2019.
The top companies considered in the Food Grade Alcohol Market include Cargill Incorporated, Spectrum Chemical Manufacturing Corp., MGP Ingredients, Inc., Archer Daniels Midland Company, Roquette Freres SA, Manildra Group, Wilmar International Limited, Molindo Group, Grain Processing Corporation, Cristalco S.A.S. and Ingredion.
The most influencing segment growing in the Food Grade Alcohol Market report is the beverages segment.
The ethanol segment holds the maximum market share of the Food Grade Alcohol Market.
The key players offering highest share and production of food grade alcohol have been selected for company profiling.
The market value of the Food Grade Alcohol Market in 2019 was $6,975.2 million.
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