Food Grade Alcohol Market Size To Reach $4.25 Billion By 2030

Food Grade Alcohol Market Growth & Trends

The global food grade alcohol market size is expected to reach USD 4.25 billion by 2030, as per the new report by Grand View Research, Inc. registering a CAGR of 2.9% from 2024 to 2030. The demand is attributed to the increase in consumption of food & beverages by the consumers and the increase in application in personal care, food & beverage, and pharmaceutical industries.

Alcohol is an important ingredient for manufacturing extracts, flavors, yeast, and vinegar. The demand for ethanol has increased in the food industry to expand the shelf life of the product, driven by the changing habits and adoption of ready-to-eat food. The product plays an important role in the healthcare industry owing to its use in the preparation of medicines and sterilizing various medical equipment before use.

Changing consumer behavior and the quality of raw materials used in the production of the product have a significant impact on industry dynamics. Corn, barley, wheat, barley malt, and milo are the most common raw materials used in the manufacturing of the product. These are natural sources that are fermented and then distilled to produce beverages. Because raw resources are so reliant on nature, the industry must evaluate climate change and yield trends in order to efficiently forecast the supply of these products.

Personal care products signify a large category of products that are consumed on a day-to-day basis by a large population. The changing demographics coupled with rising awareness about new beauty trends due to the growth of social media has led to rising demand for these products. The product finds application in product categories such as cleaning formulations, anti-aging creams, anti-inflammatory, anti-wrinkle, anti-dandruff and moisturizing products. The product is used in the above products as a preservative and also to improve antimicrobial properties.

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Food Grade Alcohol Market Report Highlights

• The ethanol segment dominated the market with 72.7% market share in 2023 attributed to the increase in alcohol production globally. Ethanol also called grain alcohol can be derived from various sugar, fruit, and starch sources such as sugar cane, sweet sorghum, corn, wheat, potatoes, etc.

• Molasses & sugarcane accounted for the largest market revenue share in 2023 as it is a prominent source of food grade alcohol production.

• Coloring & flavoring agents dominated the market with a 42.2% share in 2023 attributed to the consumption of alcohol as a food additive which aids the distribution of colors and helps enhance the flavor of food extracts.

• The food segment dominated the market with a 28.2% share in 2023 owing to the increasing demand for natural and clean-label products where food grade alcohol is used as a natural preservative alternative.

• The Europe food grade alcohol market dominated with 34.0% of the global revenue share in 2023.

Food Grade Alcohol Market Segmentation

Grand View Research has segmented the global food grade alcohol market on the basis of type, source, function, application and region:

Food Grade Alcohol Type Outlook (Revenue, USD Million, Volume in Kilotons, 2018 - 2030)

• Ethanol

• Polyols

Food Grade Alcohol Source Outlook (Revenue, USD Million, Volume in Kilotons, 2018 - 2030)

• Molasses & Sugarcane

• Fruits

• Grains

• Others

Food Grade Alcohol Function Outlook (Revenue, USD Million, Volume in Kilotons, 2018 - 2030)

• Coatings

• Preservatives

• Coloring & Flavoring Agent

• Others

Food Grade Alcohol Application Outlook (Revenue, USD Million, Volume in Kilotons, 2018 - 2030)

• Healthcare & Pharmaceutical

• Food

• Beverages

• Personal Care

• Others

Food Grade Alcohol Regional Outlook (Revenue, USD Million, Volume in Kilotons, 2018 - 2030)

• North America

  • U.S.

  • Canada

  • Mexico

• Europe

  • Germany

  • UK

  • France

  • Italy

  • Spain

  • Hungary

• Asia Pacific

  • China

  • Japan

  • India

  • South Korea

  • Indonesia

• Latin America

  • Brazil

  • Argentina

• Middle East and Africa (MEA)

  • UAE

  • Saudi Arabia

List of Key Players of Food Grade Alcohol Market

• MGP Ingredients, Inc.

• Cargill, Incorporated

• ADM

• Cristalco

• Grain Processing Corporation

• Wilmar International Ltd

• Extractohol

• Pure Alcohol Solutions