Food Grade Alcohol Market Report by Product, Source, Function, Application, and Region 2024-2032

The global food grade alcohol market size reached US$ 8.8 Billion in 2023. Looking forward, the publisher expects the market to reach US$ 13.1 Billion by 2032, exhibiting a growth rate (CAGR) of 4.5% during 2023-2032. The growing demand for naturally sourced food products that offer enhanced purity, rising focus on maintaining health and hygiene, and increasing adoption of personal care products are some of the major factors propelling the market.

Food grade alcohol, also known as food-grade ethanol or culinary alcohol, is a high-purity ethanol that is derived from natural sources, such as grains, sugarcane, or corn. It undergoes a thorough distillation and purification process to ensure it is free from impurities, contaminants, and harmful chemicals. It has a high level of purity that ensures that it does not introduce unwanted flavors or contaminants into food products. As it is widely utilized in various culinary applications, such as the preparation of extracts, flavorings, and tinctures, and to produce alcoholic beverages, the demand for food grade alcohol is rising worldwide.

At present, the increasing consumer preference for natural and organic personal care products is influencing the market positively. Moreover, the rising popularity of craft and artisanal beverages is strengthening the growth of the market. Apart from this, the growing demand for hygienic products among individuals is offering a favorable market outlook. Additionally, the rising popularity of non-genetically modified organisms (GMO) products among the masses around the world is offering lucrative growth opportunities to industry investors. Besides this, governing agencies of several countries are implementing stringent regulations and quality standards about the usage of safe and pure ingredients in various sectors, which is impelling the growth of the market. In addition, advancements in distillation and purification technologies for improved efficiency and cost-effectiveness are contributing to the growth of the market.

Food Grade Alcohol Market Trends/Drivers:

Growing demand for naturally sourced food products

The growing demand for naturally sourced food products among the masses is offering a positive market outlook. In addition, food grade alcohol is renowned for its natural sourcing and purity and is widely utilized in various culinary applications. It is used in the production of flavorings, extracts, and alcoholic beverages that assist in enhancing both taste and aroma. Besides this, consumers are increasingly seeking high-quality, natural ingredients in their food and drinks, which is contributing to the growth of the market. In line with this, companies are focusing on maintaining stringent quality standards to meet sustainability goals while ensuring product safety and compliance with regulatory requirements.

Increasing focus on maintaining health and hygiene

The rising focus on maintaining health and hygiene among individuals is bolstering the growth of the market. In line with this, food grade alcohol is widely used in pharmaceutical and healthcare sectors. Apart from this, ethanol serves as an essential ingredient in the formulation of hand sanitizers, disinfectants, and certain medications, which is offering a positive market outlook. There is a rise in the adoption of these disinfectants to prevent the spread of various diseases among individuals across the globe. Additionally, food grade alcohol is used in compounding pharmacies and as a carrier for some pharmaceutical drugs. It has a high purity and safety, which makes it a preferred choice in these applications.

Rising adoption of personal care products

The rising adoption of cosmetics and personal care products among individuals due to the increasing focus on personal care is supporting the growth of the market. In addition, food grade alcohol offers enhanced versatility and safety, which makes it an ideal choice for formulating perfumes, lotions, creams, and toiletries. It serves as a solvent for many fragrances and active ingredients, ensuring product stability and quality. Moreover, it can quickly evaporate without leaving residue on the skin, which enhances its appeal in these applications. Besides this, consumers are increasingly becoming conscious of the ingredients in their personal care products and are preferring natural and safe components.

Food Grade Alcohol Industry Segmentation:

The publisher provides an analysis of the key trends in each segment of the global food grade alcohol market report, along with forecasts at the global, regional and country levels from 2024-2032. The report has categorized the market based on product, source, function and application.

Breakup by Product:

• Ethanol
• Polyols

Ethanol represents the largest market segment

The report has provided a detailed breakup and analysis of the market based on the product. This includes ethanol and polyols. According to the report, ethanol represented the largest segment. Ethanol, also known as ethyl alcohol or grain alcohol, is a colorless, flammable liquid that is used in various industries. In the food and beverage sector, ethanol serves as a primary ingredient in the production of alcoholic beverages, such as spirits, wines, and beers. It is also used in the formulation of flavorings and extracts, to provide enhanced taste and aroma in food products. On the other hand, in the pharmaceutical and healthcare industry, ethanol is employed as an essential component in the manufacturing of hand sanitizers, disinfectants, and some medications due to its antimicrobial properties.

Breakup by Source:

• Molasses and Sugarcane
• Fruits
• Grains
• Others

Molasses and sugarcane accounts for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the source. This includes molasses and sugarcane, fruits, grains, and others. According to the report, molasses and sugarcane represented the largest segment. Molasses and sugarcane serve as vital sources of food-grade alcohol, catering to different needs of individuals. Molasses is a byproduct of the sugar refining process, primarily derived from sugarcane or sugar beet processing. Molasses-based food-grade alcohol is highly regarded for its rich flavor profile, which makes it a preferred choice in the production of certain alcoholic beverages, such as rum. It has a distinct taste and aroma that contribute to the unique characteristics of these spirits. On the other hand, sugarcane is a natural and abundant raw material to produce ethanol. Sugarcane-derived food-grade alcohol is versatile and widely used across various applications, such as the manufacturing of alcoholic beverages, flavorings, extracts, and pharmaceutical products.

Breakup by Function:

• Coatings
• Preservative
• Coloring and Flavoring Agent
• Others

Coloring and flavoring agent holds the biggest market share

The report has provided a detailed breakup and analysis of the market based on the function. This includes coatings, preservative, coloring and flavoring agent, and others. According to the report, coloring and flavoring agent represented the largest segment. Food grade alcohol is utilized as a coloring agent in the food and beverage industry to impart or enhance color in various products. It has colorless and neutral properties, which makes it an ideal solvent for dissolving and dispersing natural or synthetic food colorants. This clear and pure solution can then be added to foods, beverages, and confectionery items to achieve desired color shades. It also serves as a flavoring agent, contributing to the taste and aroma of various food and beverage products. It is used to extract and preserve the flavors from botanicals, herbs, spices, and fruits.

Breakup by Application:

• Healthcare and Pharmaceutical
• Food
• Beverages
• Personal Care
• Others

The report has provided a detailed breakup and analysis of the market based on the application. This includes healthcare and pharmaceutical, food, beverages, personal care, and others.

In the healthcare and pharmaceutical sectors, it serves as a key ingredient in the formulation of hand sanitizers, disinfectants, and antiseptic products due to its antimicrobial properties. Moreover, it is used as a solvent for certain medications and as a carrier for various pharmaceutical drugs. It has a high level of purity that assists in meeting stringent safety and quality standards in the pharmaceutical industry. In line with this, it plays a vital role in ensuring hygiene and safety.

In the food industry, it is used to create extracts and flavorings to enhance the taste and aroma of various food products. It offers enhanced neutrality and purity, which makes it an ideal choice in these applications, as it does not introduce unwanted flavors or contaminants into the final products. The growing consumer demand for natural and high-quality ingredients in food is offering a positive market outlook.

In the beverage sector, it is a primary ingredient in the production of alcoholic beverages, such as spirits, wines, and beers. It is a crucial component in the creation of a wide range of culinary delights and alcoholic beverages. The rising demand for ready-to-drink (RTD) beverages among individuals is strengthening the growth of the market.

Breakup by Region:

• North America
• United States
• Canada
• Asia-Pacific
• China
• Japan
• India
• South Korea
• Australia
• Indonesia
• Others
• Europe
• Germany
• France
• United Kingdom
• Italy
• Spain
• Russia
• Others
• Latin America
• Brazil
• Mexico
• Others
• Middle East and Africa

Asia Pacific exhibits a clear dominance, accounting for the largest food grade alcohol market share

The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Asia Pacific accounted for the largest market share.

Asia Pacific held the biggest market share due to the thriving food and beverage (F&B) industry. In line with this, the rising consumption of processed foods among the masses is bolstering the growth of the market in the region. Moreover, the presence of sugarcane and molasses producers in the region is supporting the growth of the market. Apart from this, the rising production of hand sanitizers and disinfectants is contributing to the growth of the market in the Asia Pacific region.

Competitive Landscape:

Several companies are investing in expanding their production facilities and capabilities by upgrading distillation and purification processes to increase efficiency and output. They are also ensuring the highest levels of purity and safety of the products. In line with this, key players are continuously improving their quality control processes to meet stringent regulatory requirements and industry standards. Apart from this, manufacturers are diversifying their product offerings to cater to a wider range of applications. This includes producing different types of food grade alcohol, such as ethanol, methanol, and exploring new sources of raw materials. Furthermore, key players are adopting eco-friendly practices in their production processes by exploring renewable energy sources, reducing water consumption, and minimizing waste.

The report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• Archer-Daniels-Midland Company
• Cargill Incorporated
• Cristalco
• Ethimex Ltd
• Extractohol
• Glacial Grain Spirits
• Grain Processing Corporation (Kent Corporation)
• Manildra Group
• MGP Ingredients Inc
• Molindo Group
• Pure Alcohol Solutions
• Roquette Frères
• Wilmar Sugar Pty Ltd. (Wilmar International Limited)

Recent Developments:

In January 2021, MGP Ingredients, Inc., a leading supplier of premium distilled spirits and specialty wheat proteins and starches, announced a definitive agreement to acquire Luxco, Inc., a leading branded beverage alcohol company, to increase branded-spirits sector of MGP and strengthen its platform.

In 2021, Grain Processing Corp. (GPC), a member of the Kent Corp. family of companies, completed the expansion of its distillery in Muscatine, Iowa, US, that assist the company in producing a significantly more high-quality alcohol.

In 2022, CRISTALCO unveiled the AMPLIFY™, a 1st European sugar and alcohol agroecological solution, to take part in decarbonization and regenerative agriculture.

Key Questions Answered in This Report

1. What was the size of the global food grade alcohol market in 2023?
2. What is the expected growth rate of the global food grade alcohol market during 2024-2032?
3. What has been the impact of COVID-19 on the global food grade alcohol market?
4. What are the key factors driving the global food grade alcohol market?
5. What is the breakup of the global food grade alcohol market based on the product?
6. What is the breakup of the global food grade alcohol market based on the source?
7. What is the breakup of the global food grade alcohol market based on the function?
8. What are the key regions in the global food grade alcohol market?
9. Who are the key players/companies in the global food grade alcohol market?