Food Grade Alcohols Market By Type (Ethanol, Sorbitol, Xylitol, Other), By Source (Sugarcane, Sugar Beet & Molasses, Grains, Others), By Application (Food, Beverages, Pharmaceutical & Nutraceutical), By Nature (Organic, Conventional) Global Analysis to 2024

Food Grade Alcohols Market Size And Forecast

According to the new report titled " Food Grade Alcohols Market By Type (Ethanol, Sorbitol, Xylitol, Other), By Source (Sugarcane, Sugar Beet & Molasses, Grains, Others), By Application (Food, Beverages, Pharmaceutical & Nutraceutical), By Nature (Organic, Conventional), By Functions (Aromas, Preservatives, Solvents, Disinfectant and Others), Global Analysis to 2023".

The valuation of the Food Grade Alcohols market was $7.20 Billion in 2023 and is projected to reach $12.02 Billion by 2032, at a CAGR of 5.83% from 2021 to 2032.

Global Food Grade Alcohols Market Definition

Alcohol, also known as Ethanol, is a versatile product that can be utilized in a variety of applications, including food, medications, and industrial solvents. Food-grade alcohol, often known as fermented distilled liquor, is pure ethyl alcohol suitable for human consumption (lack of additives). Food-grade alcohol is also known as food-grade ethanol, non-denatured alcohol, grain alcohol, 190 proof grain, food-grade EtOH, and Anhydrous Ethanol in the industry. Food-grade alcohol is ethanol that is derived from natural food ingredients such as sugarcane, corn, cereals, and fruits.

It is a potent natural human-safe solvent that can be used in a variety of food-safe applications that may come into contact with people. Food-grade alcohol is a colorless and odorless liquid that is volatile and combustible and is generally used as a pharmaceutical or a beverage – particularly in the manufacture of alcohols. Ethanol is also employed in the production of beverages. Food-grade ethanol can be either pure ethanol or water-based. As a result, food-grade ethanol is particularly beneficial in the kitchen, laboratory, and workshop. Food grade alcohol is widely utilized in the food and beverage sector as a component in commodities such as flavorings, extracts, colors, and others.

The Food Grade Alcohols Market was valued at $7.20 Billion by 2023 and expected to grow at CAGR of 5.83% over forecast period. Food-grade alcohols are alcohols that are safe for human consumption and are used in various food and beverage applications. These alcohols must meet specific purity and safety standards set by regulatory authorities, such as the Food and Drug Administration (FDA) in the United States or the European Food Safety Authority (EFSA) in the European Union. As the global population continues to grow, the demand for food and beverages also increases. Food-grade alcohols are essential ingredients in various food products and beverages, including alcoholic beverages, flavorings, and food additives, contributing to their consistent demand. There is a growing trend towards natural and organic products, which has led to an increased demand for natural food ingredients, including food-grade alcohols. Consumers are seeking products with fewer synthetic additives and are willing to pay a premium for products made with natural ingredients. Food-grade alcohols are used extensively in the food processing industry as solvents, preservatives, and flavor enhancers. As the demand for processed and convenience foods continues to rise globally, so does the demand for food-grade alcohols.

Online held the largest share in the Food Grade Alcohols market

By Source (Sugarcane, Sugar Beet & Molasses, Grains, Others) where Sugarcane plays a crucial role in the Food Grade Alcohols market. Sugarcane is a major feedstock for ethanol production globally. The demand for ethanol, including its use in food-grade alcohol, is influenced by factors such as government regulations (e.g., ethanol blending mandates), consumer preferences (e.g., preference for biofuels), and economic conditions (e.g., fuel prices). Sugarcane-derived ethanol is used in various applications within the food and beverage industry. It serves as a solvent, flavoring agent, and preservative in the production of alcoholic beverages, flavor extracts, and food flavorings. The demand for ethanol in these applications can impact the demand for sugarcane. Sugarcane is used for various purposes besides ethanol production, such as sugar production and biomass for energy generation. The demand for sugarcane in these competing uses can influence its availability and pricing for ethanol production. Increasing awareness of environmental issues and the need for sustainable practices may drive demand for biofuels like sugarcane ethanol, thus affecting the demand for sugarcane as a feedstock. Consumer preferences for products derived from renewable sources or those perceived as environmentally friendly can also influence the demand for sugarcane-based ethanol in food-grade alcohol applications.

North America headed the Food Grade Alcohols market in 2024

The demand for food-grade alcohol in North America is influenced by several factors- Food-grade alcohol, particularly ethanol, is used in various applications within the food and beverage industry. It serves as a solvent, flavoring agent, and preservative in the production of alcoholic beverages, flavor extracts, food flavorings, and food-grade extracts. The demand for food and beverages, including alcoholic beverages, directly impacts the demand for food-grade alcohol. Food-grade alcohol is also used in pharmaceuticals and cosmetics. It serves as a solvent in pharmaceutical formulations and as an ingredient in various cosmetic and personal care products. The demand from these industries contributes to the overall demand for food-grade alcohol. Government regulations and standards regarding the production, sale, and labeling of food-grade alcohol products influence market demand. Compliance with regulations such as labeling requirements, purity standards, and safety regulations affects market dynamics. Consumer preferences for natural, organic, and clean-label products drive demand for food-grade alcohol derived from natural sources. Health-conscious consumers may prefer products made with food-grade alcohol over synthetic alternatives. Economic conditions, including disposable income levels, inflation rates, and overall consumer spending, affect the demand for food-grade alcohol products. Changes in economic conditions can influence consumer purchasing behavior and industry dynamics.

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Key Players

The “Global Food Grade Alcohols Market” study report will provide valuable insight with an emphasis on the global market. The major players in the market are Cargill, Archer Daniels Midland Company, Roquette Freres, Sigma Aldrich, Cristalco SAS, MGP Ingredients, Wilmar International Limited, Manildra Group, Fonterra Co-Operative Group, and Grain Processing Corporation. The competitive landscape section also includes key development strategies, market share, and market ranking analysis of the above-mentioned players globally.

Key market players operating in the market that are profiled in the report are -

• Archer Daniels Midland Company
• Cargill Inc.
• Fairly Traded Organics
• Ethimex Ltd.
• Organic Alcohol Company
• GLACIAL GRAIN SPIRITS
• CHIPPEWA VALLEY ETHANOL COMPANY
• Essentica
• MGP Ingredients
• Altia Industrial
• Highwater Ethanol LLC
• Roquette Freres etc.

Food Grade Alcohols Market, By Type

• Ethanol
• Polyols

Food Grade Alcohols Market, By Source

• Sugarcane and Molasses
• Grains
• Fruits
• Others

Food Grade Alcohols Market, By Functionality

• Coloring Agent
• Flavoring Agent
• Others

Food Grade Alcohols Market, By Application

• Beverages
  1. Beer
  2. Spirits
  3. Wine
  4. Others
• Food
• Pharmaceutical and Healthcare

Food Grade Alcohols Market, By Geography

• North America
• Europe
• Asia Pacific
• Rest of the world

On the basis of Regional Analysis, the Global Food Grade Alcohols Market is classified into North America, Europe, Asia Pacific, and the Rest of the world. The European region dominated the food & beverage industry due to the adaptation of innovative and new product development strategies to meet the demand and competition in this region. The Asia Pacific region is experiencing the highest growth rate due to industrial development policies adopted by the government. Also, the increased government investments in urbanization and the improved standard of living of consumers have led to an increase in the consumption of food & beverage products.

Reasons to Purchase this Report

• Qualitative and quantitative analysis of the market based on segmentation involving both economic as well as non-economic factors
• Provision of market value (USD Billion) data for each segment and sub-segment
• Indicates the region and segment that is expected to witness the fastest growth as well as to dominate the market
• Analysis by geography highlighting the consumption of the product/service in the region as well as indicating the factors that are affecting the market within each region
• Competitive landscape which incorporates the market ranking of the major players, along with new service/product launches, partnerships, business expansions, and acquisitions in the past five years of companies profiled
• Extensive company profiles comprising of company overview, company insights, product benchmarking, and SWOT analysis for the major market players
• The current as well as the future market outlook of the industry with respect to recent developments which involve growth opportunities and drivers as well as challenges and restraints of both emerging as well as developed regions
• Includes in-depth analysis of the market from various perspectives through Porter’s five forces analysis
• Provides insight into the market through Value Chain
• Market dynamics scenario, along with growth opportunities of the market in the years to come
• 6-month post-sales analyst support