Grain Alcohol Market Report 2025

This Grain Alcohol market report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The grain alcohol market size has grown strongly in recent years. It will grow from $14.58 billion in 2024 to $15.31 billion in 2025 at a compound annual growth rate (CAGR) of 5%. The growth in the historic period can be attributed to traditional use of grain alcohol in beverage and spirits production, global demand for alcoholic beverages and spirits, cultural significance and consumption of spirits in various regions, expansion of the craft distillery and artisanal spirits industry, regulatory policies and licensing for alcohol production and distribution.

The grain alcohol market size is expected to see strong growth in the next few years. It will grow to $19.8 billion in 2029 at a compound annual growth rate (CAGR) of 6.6%. The growth in the forecast period can be attributed to consumer interest in premium and high-quality alcoholic beverages, innovation in flavored and infused grain alcohol products, demand for ethanol in industrial and pharmaceutical applications, sustainable and organic grain sourcing for alcohol production, emerging markets and increasing affluence of middle-class consumers. Major trends in the forecast period include flavored and infused grain spirits, barrel-aged and specialty releases, cocktail culture and mixology, ready-to-drink (rtd) cocktails, local and terroir-driven spirits.

The rising consumption of alcoholic beverages is fueling the growth of the grain alcohol market. This increase in consumption can be attributed to several factors, including higher disposable incomes and a growing urban population. For example, in March 2023, the National Drugs Library, a data collection organization based in Ireland, reported that in 2022, the average alcohol consumption for individuals aged 15 and older reached 10.2 liters of pure alcohol per capita, reflecting a 7.6% increase compared to 2021. Therefore, the growing rate of alcoholic beverage consumption is driving the grain alcohol market.

The rising global beer production is anticipated to drive the growth of the grain alcohol market in the future. Beer production involves the process of brewing beer, an alcoholic beverage made through the fermentation of malted grains (typically barley), hops, yeast, and water. Grain alcohol serves as a primary ingredient in beer production due to its highly purified and neutral characteristics. It is mainly used for non-fermentation purposes, contributing to the flavor, aroma, body, preservation, and carbonation of beer. For example, in December 2023, Kirin Holdings Company, Limited, a beverage company based in Japan, reported that global beer consumption reached approximately 192.1 million kiloliters in 2022, representing a 2.9% increase compared to the previous year. Therefore, the increasing global beer production is driving the growth of the grain alcohol market.

Major companies in the grain alcohol market are concentrating on developing innovative products such as whiskies to capitalize on the increasing demand for high-quality alcoholic beverages. Whiskies are distilled spirits made from fermented grain mash, which can include barley, corn, rye, or wheat, and are aged in oak barrels. The aging process adds unique flavors, varying from sweet and smooth to smoky and rich. For example, in August 2023, Pernod Ricard India, a beverage company based in India, launched Royal Stag Double Dark Peaty Whisky and Blenders Pride Four Elements Premium Whisky. Royal Stag Double Dark Peaty Whisky offers a smoky blend, featuring double-distilled Scotch malts aged in charred American and European oak barrels, combined with select peated malts and grain-neutral spirits. Blenders Pride Four Elements showcases a creative blend of four Scotch malts and Indian grain spirits, providing a vibrant and complex flavor profile.

Major players in the grain alcohol industry are strategically adopting partnership approaches to broaden their offerings and services through collaborative efforts. Strategic partnerships involve companies leveraging each other's strengths and resources to achieve mutual benefits and success. In a notable example from October 2022, Pernod Ricard, a France-based liqueur company, entered into a strategic partnership with Sovereign Brands, a US-based spirits company. The objective of this collaboration is to access a portfolio of rapidly growing premium spirits brands, enhance their presence in the US market, and expand their grain alcohol portfolio with a focus on super-premium spirits brands.

In September 2023, Greenfield Global Inc., a grain alcohol producer based in the US, formed a partnership with REMET Alcohols Inc. for an undisclosed amount. This collaboration provides unparalleled supply security, distribution capabilities in rapidly growing markets, and improved efficiency for both REMET Alcohols and Greenfield customers. REMET Alcohols is a US-based distributor of pure ethyl alcohol and a blending company.

Major companies operating in the grain alcohol market include Archer-Daniels-Midland Company, Cargill Inc., Kweichow Moutai Co. Ltd., Roquette Frères SA, MGP Ingredients Inc., Cristalco SAS, Wilmar International Limited, Manildra USA, Glacial Grain Spirits LLC, Wuliangye Yibin Co., Diageo plc, Pernod Ricard SA, ChemCeed LLC, Ethanol US, Pinal Energy LLC, Pacific Distillery LLC, Teichene SA, Duplais Verte, La Fée Absinthe, Kübler Absinthe Superieure, Hill's Liquere North America, La Clandestine, Doubs Mystique, Butterfly Absinthe, Lucid Inc., Metelka AS, C.F. Berger Ltd., Jade Nouvelle Orleans.

Europe was the largest region in the grain alcohol market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the grain alcohol market analysis report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the grain alcohol market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.

Grain alcohol is a distilled neutral spirit produced through the fermentation of various grains such as corn, rye, wheat, grapes, and others. It serves as a base for the production of other alcoholic beverages such as wine, vodka, homemade liqueurs, and more. Grain alcohol is essentially a purified form of ethyl alcohol, also known as ethanol, neutral grain spirit, or rectified spirit.

The primary sources for producing grain alcohol include sugarcane, grains, fruits, and other raw materials. Sugarcane-based grain alcohol is typically prepared by fermenting either sugarcane juice or molasses diluted with water, including the addition of yeast to facilitate sugar fermentation. There are different types of grain alcohol, including ethanol and polyols, which find applications in beverages, food, pharmaceuticals, healthcare, and various other industries. Grain alcohol serves various functionalities such as acting as preservatives, coloring/flavoring agents, coatings, and more.

The grain alcohol market research report is one of a series of new reports that provides grain alcohol market statistics, including grain alcohol industry global market size, regional shares, competitors with grain alcohol market share, detailed grain alcohol market segments, market trends and opportunities, and any further data you may need to thrive in the grain alcohol industry. This grain alcohol market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The grain alcohol market consists of sales of polyols grain alcohol and ethanol grain alcohol. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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