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Food-grade Alcohol Market Size, Share & Industry Analysis, By Product (Ethanol, Polyols), By Source (Grains, Sugarcane, Fruits, Others), By Application (Food & Beverage, Pharmaceuticals, Personal Care & Cosmetics)and Regional Forecast, 2024-2032

Region : | Report ID: FBI101622 | Status : Ongoing



The global food-grade alcohol market is projected to witness a steep rise during the forecast years, due to escalating demand for alcoholic beverages, coupled with rising consumer expenditure on food & beverage products across developed as well as developing economies. Increasing utilization of food-grade alcohol (as a preservative and solvent) in pharmaceutical or drug formulation is further projected to propel the growth of the global food-grade alcohol market.

Key companies operating in the global food-grade alcohol market are focusing on expanding their production capabilities and strengthening their product portfolio to maintain their prominence in the global market. Archer Daniels Midland Company (U.S.), Cargill Incorporated (U.S.), and Wilmar International Limited (Singapore) are some of the key companies performing in the global food-grade alcohol market.

The process of production of food-grade alcohol is different from that of fuel-grade alcohol. Ethanol, which composes a major fraction of the food-grade alcohol is generally produced by the process of wet milling. To develop food-grade alcohol, with high value, additional purification is required to remove even the finest of impurities from the ethanol. Distillation, adsorption, and ozonation are some of the commonly used purification methods used for food-grade alcohol.

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Key Market Driver -

Key Market Driver – High demand from end-use industries is projected to drive the market growth.

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Key Market Restraint -

Key Market Restraint – Adverse health effects due to over-consumption of food-grade alcohol is projected to restrain the market growth.

The food-grade alcohol market is expected to expand significantly during the forecast years, due to a rise in the sale of alcoholic beverages, coupled with improving the trade of alcohol across developing economies attributed to favorable trade regulations. Rising sophistication in food & beverage industry is leading to increasing usage of efficient preservatives, flavorings and other ingredients that can contribute in enhancing the taste of the product along with improving its shelf-life, which in turn is expected to fuel the growth of food-grade alcohol market in the foreseeable years. However, Negative health impacts of consuming alcoholic beverages in excessive amounts, coupled with demographic and legal aspects associated with the consumption of alcohol is expected to hinder the market growth during the forecast years.

Key Players Covered:

Some of the major companies that are present in the global food-grade alcohol market are Cargill, Incorporated, Roquette Freres S.A., Wilmar International Limited, Archer Daniels Midland Company, MGP Ingredients, Manildra Group, Grain Processing Corporation, Sigma-Aldrich, Cristalco SAS, and Fonterra Co-operative.

On the basis of product, the global food-grade alcohol market has been segmented into ethanol and polyols. The ethanol segment is projected to hold the major market share in the global food-grade alcohol market owing to its wider applications in the production of various alcoholic beverages. High utilization of ethanol as food preservatives, coloring agent, and flavoring agent in production of various food products is further expected to boost the growth of the segment in the forthcoming years.

On the basis of application, the global food-grade alcohol market has been segmented into food & beverage, pharmaceuticals, and personal care & cosmetics. The application of food-grade alcohol is expected to be the highest in food & beverage industry, owing to high demand for the product among food flavor, colorant and preservative manufacturers across developed and developing regions. The demand for food-grade alcohol across personal care & cosmetics industry is expected to rise considerably during the forecast years, due to increasing utilization of the product in the production of perfumes, mouthwashes, deodorants, face & body lotions, and others.

Regional Analysis:

Europe holds the major market share in the global food-grade alcohol market and is expected to retain its dominance during the forecast years, owing to higher consumption of alcohol by end-use industries, such as food, pharmaceutical, and cosmetics & personal care industry across European countries. Well-established food & beverage industry of the region and high incorporation of food-grade alcohol in preparation of various types of food flavors, vinegar preparation, and others is expected to propel the market growth of the region.

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Asia Pacific is projected to exhibit significant growth during the forecast years, due to rapid urbanization across major Asian economies, such as India, China, and others. The increasing population of Asia Pacific, which is leading to the growth of food & beverage industry of the region, coupled with rising per capita income of consumers are further expected to aid the growth of food-grade alcohol market of APAC during the forecast years.




By Product

  • Ethanol

  • Polyols

By Source

  • Grains

  • Sugarcane

  • Fruits

  • Others

By Application

  • Food & Beverage

  • Pharmaceuticals

  • Personal Care & Cosmetics

By Geography

  • North America (USA, Canada, and Mexico)

  • Europe (France, Germany, Italy, Spain, U.K., Russia, and Rest of Europe)

  • Asia Pacific (China, India, Japan, Australia, and Rest of Asia Pacific)

  • South America (Brazil, Argentina, and Rest of South America)

  • Middle East & Africa (South Africa and Rest of ME&A)

Key Industry Developments

  • In May 2017, Cargill Incorporated acquired Rogers, Arkansas-based BioBased Technologies and Agrol, their vegetable-based polyol product line.

  • Ongoing
  • 2023
  • 2019-2022

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