Global Food Grade Alcohols Market Size By Type (Ethanol, Polyols), By Source (Sugarcane and Molasses, Grains), By Functionality (Coloring Agent, Flavoring Agent), By Application (Beverages, Pharmaceutical and Healthcare), By Geographic Scope And Forecast

Food Grade Alcohols Market Size And Forecast

Food Grade Alcohols Market size was valued at USD 11.08 Billion in 2020 and is projected to reach USD 14.19 Billion by 2028, growing at a CAGR of 3.16% from 2021 to 2028.

The increasing demand for food-grade alcohol in the food & beverage and health & personal care industries is, driving the Global Food Grade Alcohols Market. Additionally, rising interest in craft beer and other alcoholic drinks with increasing disposable income, improved beverage quality, and advanced marketing activities will fuel the Global Food Grade Alcohols Market. The Global Food Grade Alcohols Market report provides a holistic evaluation of the market. The report offers a comprehensive analysis of key segments, trends, drivers, restraints, competitive landscape, and factors that are playing a substantial role in the market.

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.

Food-grade alcohol is used in the production of vinegar, spices and extracts, caramel icing, food colors, yeast, animal feed additives, and other food sprays. There are three forms of food-grade alcoholindustrial-grade ethanol (either fermentation or synthetic origin) with most impurities eliminated; FCC (food chemical codex)-grade ethanol with heavy metal specified limitations; and GNS-grade ethanol with no heavy metal specified limitations (grain neutral spirits, highly pure-grade ethanol, which is used in beverages).

Global Food Grade Alcohols Market Overview

Food grade alcohol is becoming increasingly popular in several applications, including food preservation, pharmaceutical formulations, cosmetics and fragrance manufacture, and spirits. Alcoholic beverages have long lost their status as luxury item, becoming more of a necessity than a pleasure in many households. During the estimated period, the Food Grade Alcohols Market is, expected to rise significantly. The rise in consumer spending and urbanization has resulted in the growth in the consumption of processed and comfort foods. This tendency has boosted the demand for food ingredients, which has, in turn, increased the need for food-grade alcohol. Also, the global production and consumption of alcoholic beverages are growing with the increasing popularity of alcoholic beverages such as beer, wine, and whiskey in social settings has fueled industry expansion.

Additionally, the customer preference for a healthier lifestyle has led to an emphasis on low-calorie food products and sugar substitutes such as polyols. Polyols (sugar alcohols) have seen an increase in their use in the pharmaceutical business. The increased consumption of nutraceuticals in the form of functional meals, dietary supplements, and functional beverages amongst customers drives the growth of the Food Grade Alcohols Market. Polyols are employed in various pharmaceutical and nutraceutical products due to their coating, sweetening, emollient, bulking, anti-crystallizing, and stabilizing qualities. Moreover, the popularity of craft beer, the escalating worldwide trade in alcohol with the introduction of new goods, and increased consumption in emerging nations due to a growing population have contributed to the market’s expansion.

Furthermore, with the expansion of the pharmaceutical sector, due to increasing demand for hand rubs, sanitizers and disinfectants are expected to drive product demand. However, fluctuating raw material costs (sugarcane, corn, wheat, and others) and stringent government restrictions on using alcohol in food, beverage, and health and personal care goods are the main obstructions faced by the Food Grade Alcohols Market. Additionally, one of the major factors expected to hamper the expansion of the Food Grade Alcohols Market is heightened awareness of the severe side effects of alcohol intake.

Furthermore, the COVID-19 outbreak has had a negative influence on the Food Grade Alcohols Market, resulting in a demand-supply imbalance as a result of government restrictions on traveling around the world. However, the Pharmaceuticals Sector Will Create Opportunities since the pharmaceutical industry is expected to develop as a lucrative revenue hotspot. Pharmaceutical ethanol is useful in the production of cosmetics, antiseptics, medications, lotions, and hand sanitizers. Since the advent of COVID-19, sales of hand sanitizers have increased because alcohol-based sanitizers are the most effective at eliminating surface germs. Additionally, ethanol-based disinfectants are gaining popularity.

Global Food Grade Alcohols MarketSegmentation Analysis

The Global Food Grade Alcohols Market is segmented on the basis of Type, Source, Functionality, Application, And Geography.

Food Grade Alcohols Market, By Type

• Ethanol
• Polyols

Based on Type, the market is bifurcated into Ethanol and Polyols. In the Global Food Grade Alcohols Market, Ethanol holds the highest market share. While the demonstrated health benefits of polyols have led to an increase in their usage as an ingredient in the health care business, the increased production of beer and development in the alcohol trade has led to an increase in the beverage industry’s use of ethanol as significant food-grade alcohol. In the food business, there has also been an increase in the usage of ethanol as a preservative to extend the shelf life of the end products.

Food Grade Alcohols Market, By Source

• Sugarcane and Molasses
• Grains
• Fruits
• Others

Based on Source, the market is bifurcated into Sugarcane and Molasses, Grains, Fruits, and Others. Sugarcane and Molasses dominate the market. Sugarcane has a high sugar content and is so fermented to produce alcohol. Because of the low price of raw sugar on the worldwide market, more sugarcane is being used to produce ethanol.

Food Grade Alcohols Market, By Functionality

• Coloring Agent
• Flavoring Agent
• Others

Based on Functionality, the market is bifurcated into Coloring Agent, Flavoring Agent, and Others. The function segment is anticipated to witness the fastest growth over the forecast period owing to the use of alcohol as an additive in food applications which aids in the even distribution of food colors as well as helps in enhancing the flavor of food extracts.

Food Grade Alcohols Market, By Application

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

Based on Application, the market is segmented into Beverages, Food, and Pharmaceutical and Healthcare. Further, Beverages can be, segmented into Beer, Spirits, Wine, and Others. The beverages segment dominates the Food Grade Alcohols Market owing to exponential demand and consumption for alcoholic beverages. In addition, the Pharmaceutical and Healthcare segment is, predicted to increase significantly.

Because of the demonstrated benefits of polyols, food-grade alcohol is increasingly being used as a component in the healthcare and pharmaceutical industries. As an excellent solvent, ethanol is, used in the production of antibiotics, tablets, pills, vitamins, and a variety of medicines, and the rising demand for alcohol-based sanitizers and ethanol-based disinfectants as a result of the covid 19 outbreak has boosted the demand for food-grade alcohol application.

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.

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.

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• 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

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