Global Food Grade Alcohol Market Insights Forecasts to 2033

• The Global Food Grade Alcohol Market Size was Valued at USD 3.47 Billion in 2023
• The Market Size is Growing at a CAGR of 2.63% from 2023 to 2033
• The Worldwide Food Grade Alcohol Size is Expected to Reach USD 4.50 Billion by 2033
• Asia-Pacific is Expected to Grow the fastest during the forecast period.

The Global Food Grade Alcohol Market Size is Anticipated to Exceed USD 4.50 Billion By 2033, Growing at a CAGR of 2.63% from 2023 to 2033.

Market Overview:

Food-grade alcohol is referred to as non-denatured alcohol or grain alcohol that is safe for human consumption. Technological advancements in distillation and purification have improved the efficiency and cost-effectiveness of food-grade alcohol production, allowing manufacturers to produce high-purity alcohol more efficiently and meet the growing demand. Additionally, the implementation of stringent regulations and quality standards by governing agencies regarding the use of safe and pure ingredients in various sectors has supported market growth. Furthermore, the growing trend for natural food additives and clean-label products is driving up demand for food-grade alcohol, particularly in the creation of organic beverages and natural extracts. The food-grade alcohol market is predicted to grow further due to rising demand in emerging regions and increased usage in a variety of industries.

Report Coverage:

This research report categorizes the market for the global food grade alcohol market based on various segments and regions forecasts revenue growth and analyses trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the global food grade alcohol market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the global food grade alcohol market.

Driving Factors:

The food grade alcohol market is being driven by rising demand from several end-use sectors, including food and drinks, pharmaceuticals, and personal care products. Alcohol is widely utilized in the food and beverage sector for a variety of applications, including flavoring, preservation, and solvent for extracting and distilling natural food ingredients. The worldwide food processing sector has made a substantial contribution to the expansion of this market.

Restraining Factors:

Stricter controls on alcohol content that limit product introductions could hinder industry growth. The manufacturing of food grade alcohol necessitates adherence to quality and purity criteria established by regulatory organizations, which raises operational costs.

Market Segmentation:

The global food grade alcohol market share is classified into product type and application.

• The ethanol segment is projected to hold the largest share of the market during the forecast period.

Based on the product type, the global food grade alcohol market is categorized into ethanol and polyols. Among these, the ethanol segment is projected to hold the largest share of the market during the forecast period. Ethanol, also known as grain alcohol, is created from a variety of sugar, fruit, and starch sources, including sugar cane, sweet sorghum, maize, wheat, and potatoes. Corn starch is often employed in the production of ethanol due to its abundant availability. Ethanol's versatility and effectiveness as a solvent, preservative, and flavoring ingredient have resulted in extensive use in industries such as food and beverage, pharmaceuticals, and personal care products.

• The food segment is expected to hold the largest share of the market over the forecast period.

Based on the application, the global food grade alcohol market is categorized into healthcare & pharmaceutical, food, beverages, personal care, and others. Among these, the food segment is expected to hold the largest share of the market over the forecast period. There is an increasing demand for natural and clean-label products that employ food grade alcohol as a natural preservation option. The bakery and confectionery sectors have made significant contributions, using food grade alcohol in items like cakes, chocolates, and candies to enhance flavor and extend shelf life. Furthermore, the growing popularity of processed and convenience foods, combined with a preference for premium and artisanal products, has increased the usage of natural coloring and flavoring ingredients. These substances improve the sensory appeal of food products, making them more appealing to customers.

Regional Segment Analysis of the Global Food Grade Alcohol Market

• North America (U.S., Canada, Mexico) 
• Europe (Germany, France, U.K., Italy, Spain, Rest of Europe)
• Asia-Pacific (China, Japan, India, Rest of APAC)
• South America (Brazil and the Rest of South America) 
• The Middle East and Africa (UAE, South Africa, Rest of MEA)

North America is projected to hold the largest share of the global food grade alcohol market over the forecast period.

North America has the biggest market share due to the presence of important producers and a thriving craft beverage industry. The United States is a major exporter of food-grade alcohol and home to several of the world's leading spirits and beer industries. The demand for food-grade alcohol from these enterprises has boosted the regional market. The region's stringent restrictions and quality standards ensure that the supply of high-quality alcohol fulfills the needs of end-use industries. This has prompted several multinational players to establish production facilities in the region to meet local demand.

Asia-Pacific region is also expected to fastest CAGR growth during the forecast period. The burgeoning middle class increased disposable incomes, and changing lifestyles have boosted demand for alcoholic beverages in nations such as China, India, and Japan. Local producers are collaborating with multinational firms to acquire access to cutting-edge technologies and knowledge for producing premium alcoholic beverages. Countries such as India have seen exponential expansion in the craft beer sector. This industry has received a boost from the government's backing in the form of reduced regulations.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the global food grade alcohol market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies:

• CHIPPEWA VALLEY ETHANOL COMPANY
• Essentica
• MGP Ingredients
• Altia Industrial
• Highwater Ethanol LLC
• Roquette Freres
• Grain Processing Corporation
• Fonterra Co-operative Group
• Malindra Group.
• Archer Daniels Midland Company
• Cargill Inc.
• Fairly Traded Organics
• Ethimex Ltd.
• Organic Alcohol Company
• GLACIAL GRAIN SPIRITS
• Others

Key Market Developments:

• In April 2022, Jubilant Ingrevia has announced the opening of their new Green Ethanol-based food-grade Acetic Acid factory in Gajraula, Uttar Pradesh.

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)  

Market Segment

This study forecasts revenue at global, regional, and country levels from 2020 to 2033. Spherical Insights has segmented the global food grade alcohol market based on the below-mentioned segments: 

Global Food Grade Alcohol Market, By Product Type

• Ethanol
• Polyols

Global Food Grade Alcohol Market, By Application

• Healthcare & Pharmaceutical
• Food
• Beverages
• Personal Care
• Others

Global Food Grade Alcohol Market, By Regional

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • Uk
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of the Middle East & Africa