The global food-grade alcohol market is to be worth USD 4.16 billion in 2023 and USD 6.16 billion by 2033, developing at a CAGR of 4.0% during the forecast period, according to Future Market Insights (FMI).
The conventional food-grade alcohol is ethyl alcohol safe for human consumption. Food-grade alcohol is also known as food-grade ethanol, non-denatured alcohol, grain alcohol, and Anhydrous Ethanol in the industry.
Organic food-grade alcohol is a potent natural human-safe solvent that can be used in a variety of food-safe applications such as extraction and foods that may come into contact with people. Food-grade ethanol is therefore particularly helpful in the kitchen, lab, and workshop.
Food-grade alcohol, also known as ethyl alcohol, has been gaining appeal across a wide range of application fields, including food preservation, medicinal formulations, the production of cosmetics and fragrances, and spirits. Alcoholic beverages no longer carry the premium stigma they once did, and in many households, they are now more of a necessity than a want.
Consumer demand for specialty food and beverage items has increased as a result of rising disposable incomes, forcing food-grade alcohol manufacturers to release cutting-edge formulas on the market. In the upcoming years, this is to be the leading growth accelerator for ethyl alcohol of the food grade.
| Attributes | Details |
|---|---|
| Food Grade Alcohol Market HCAGR (From 2018 to 2022) | 2.4% |
| Food Grade Alcohol Market CAGR (From 2023 to 2033) | 4% |
| Food Grade Alcohol Market Size (2023) | USD 4.16 billion |
| Food Grade Alcohol Market Size (2033) | USD 6.16 billion |
| Food Grade Alcohol Market Size (2022) | USD 4.0 billion |
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On a semi-annual basis, FMI evaluates and compares market growth rates and future development prospects for the global organic-food grade alcohol market. Certain demographic and innovation factors have a substantial influence on the market due to the subjective influence of macro and industry factors.
Recent Advancements in the Market
From 2018 to 2022, the global conventional food-grade alcohol market accelerated by 2.4%. This growth, however, is not evenly distributed across all geographical areas, with developing markets experiencing high growth rates of 4.4%.
The principal causes of this variation in growth rate are attributed to the market's slow or rapid uptake during the first half of the forecast period due to improved end-user food-grade alcohol demand in important economies and their expanding populations.
The food-grade alcohol demand is increasing as consumption trends, particularly in China and India, both witness expansion. In the second half of the anticipated timeframe, numerous additional market categories should also perform well and have promising growth potential.
Notwithstanding these encouraging advances, the company is still to confront substantial challenges, including evolving consumer preferences, stringent trade barriers, and an unreliable supply of raw materials and other industrial inputs.
The organic food grade alcohol, or ethanol, functions as an antibacterial agent that delays the beginning of rancidity by halting oxidative changes and prevents rotting by eradicating moisture accumulation.
Alcohol-based sanitizers combine ethanol, isopropyl alcohol, and n-propanol; versions with 60–95% alcohol are the most successful at getting rid of surface viruses. Additionally, growing in popularity are disinfectants made from ethanol.
The emergence of the pharmaceutical sector works as a lucrative revenue hotspot. While grain alcohol is being used as a key component in hand sanitizers and disinfectants, such as the food-grade isopropyl alcohol that is used to clean medical equipment, technical-grade ethanol is still valuable in the preparation of anesthetics, antiseptics, medicines, and lotions.
Innovators like Cargill Foods are at the forefront of ethanol production for pharmaceutical use. As a result, the conventional food-grade alcohol market is to grow notably during the next forecast period.
Principal Consultant
Several everyday items, including deodorants, perfumes, and lotions, use food-grade industrial alcohol, including prescription medications, antibiotics, and pharmaceuticals. In the production of flavors and extracts, food colors, confectionery glazes, yeast, different sprays, and animal feed additions, industrial alcohol is a crucial component.
Supplementary applications of food-grade industrial alcohol include domestic and industrial cleaning solutions, biocides, insecticides, and fungicides. With the expanding population during the forecast period, food-grade alcohol demand is likely to increase.
The main raw material used to create alcoholic beverages is extra-neutral alcohol (ENA), a colorless, food-grade alcohol that is free of contaminants, has a neutral odor, and often contains over 95 percent alcohol by volume.
Extra Neutral Alcohol, (ENA) is used in the creation of alcoholic drinks like organic food-grade alcohol such as whisky, vodka, gin, cane liqueurs, and alcoholic fruit beverages. It is obtained from various sources, including sugarcane molasses and grains. ENA also acts as a vital element in creating cosmetics and personal care items such as perfumes, toiletries, hair spray, etc.
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Global consumer demand for clean-label foodstuffs has sparked a flurry of innovation in the food-grade alcohol market over technical-grade alcohol, with organically derived alcohol gaining tremendous traction. Organic ethanol is alcohol obtained from organically farmed grains, grapes, or other things.
Extractohol is a famous organic alcohol company that creates and markets a range of natural extractors available to make herbal extractions, oils and concentrates. Its product range contains the Extractohol 200 Proof USP Food Grade Ethyl Alcohol.
Alcohol made from sugarcane is projected to continue being the popular source. This is because of high sugarcane cultivation across countries like India, Brazil, China, and Thailand. In 2019, more than 300 distilleries in India produced 5 billion liters of rectified spirits.
Grapes are the main source of spirits extraction, and fruit-based alcohol is becoming more and more prevalent. They contain high sugar content, which is adequate for the fermentation procedure.
Spirits applications are estimated to account for 20% of the profit share in 2023. The growth is to strengthen consumption of beverages among the population. With the uptick in the young generation in different regions is gaining traction the demand for alcohol consumption among the population.
Microbreweries that offer cutting-edge craft beers to avid consumers have developed as a result of the increasing desire for uncommon flavors and distinctive beverages. Due to a high standard of living and a rise in social indulgence, imported beers are in high food -grade alcohol demand in Asia Pacific despite their high prices.
The cosmetics and fragrances segment is to register a CAGR of 4.6%. The growth is intended to boost consumer demand for personal care food-grade alcohol products and increaseawareness among people about their health.
Natural preservatives made from food-grade alcohol are used in natural cosmetic products. In the event that the backup fails, having a backup plan is a smart idea. Products made from food-grade alcohol are used in personal care products.
The skin is sterilised with food-grade alcohols prior to injections. In the pharmaceutical and healthcare industries, it is utilized to sterilize medical devices. Due to the pandemic lockdown, the supply chains of two significant manufacturers of active pharmaceutical ingredients as well as a small portion of the typical workforce have been impacted.
Government assistance is being used by pharmaceutical companies all over the world to combat the outbreak. It is anticipated that using the food-grade alcohol products in pharmaceutical applications may benefit the market.
| Countries | Value Share in Global Market(2023) |
|---|---|
| The United States | 9.8% |
| Germany | 5.8% |
| Japan | 4.2% |
| Australia | 3.0% |
| Countries | Value CAGR(2023) |
|---|---|
| China | 3.8% |
| India | 15.2% |
| The United Kingdom | 2.8% |
In 2023, Europe held 34% of the revenue market share. Europe has a significant market share in the global food-grade alcohol market and is to maintain its dominance over the forecast years, owing to increased alcohol consumption by end-use industries such as food, pharmaceutical, and cosmetics & personal care across Europe countries.
The region's well-established food and beverage industry, as well as the high incorporation of food-grade alcohol in the creation of various types of food tastes, vinegar preparation, and others, are likely to accelerate the region's food-grade alcohol products market expansion.
Over the projected period, North America is to record a CAGR of 4.5%. The surge is anticipated as a result of a rise in the consumption of food products made with food-grade alcohol products. Customers as well as manufacturers of food and beverages are beginning to favor the product because of its versatility in producing a wide variety of culinary flavors.
There are more than 2,500 distilleries and brewers in North America that use food-grade alcohol for a variety of industrial uses. The candy coatings used in American confectioneries are made using conventional food-grade alcohol. When added in the proper quantity, food-grade alcohol also functions as a preservative.
The production of flavors and extracts, food colors, yeast, and other sprays also heavily rely on industrial food-grade alcohol. The use of polyols in non-cariogenic confectionery and oral care is well-established.
The industry leader in polyols is a corporation with its headquarters in the United States called Roquette.
Between 2023 and 2033, Asia Pacific is to experience a swift rate of growth in terms of product consumption. The rising food-grade alcohol demand coming from emerging economies like India, China, and Japan is responsible for the region's rise. It is believed that the rising population, rising per capita income and easy access to raw materials may drive the growth of the food-grade alcohol products market.
The growing food-grade alcohol market in Asia Pacific is expected to expand over the next years as a result of the region's expanding food and beverage industry as well as the region's expanding population and per capita income.
The establishment of long-term relationships with end consumers is a top priority for the major worldwide brands in the highly competitive global conventional food-grade alcohol market. In the upcoming years, competition is expected to rise due to the continued growth of the food and beverage, pharmaceutical, and personal care industries.
Due to their involvement in both the production of the food-grade alcohol products and the value chain, businesses like Cargill Incorporated, ADM, Grain Processing Corporation, and Greenfield Global Inc. have a high level of integration. These businesses have established themselves as producers and concentrate on product development and research for new applications.
Significant Business Breakthrough
Acquisition
| Date | May 2017 |
|---|---|
| Company | Cargill |
| Details | Cargill Incorporated purchased Rogers, Arkansas-based BioBased Technologies and Agrol, their vegetable-based polyol product line. |
The global food grade alcohol industry is valued at USD 4.16 billion by the end of 2023.
Archer Daniels Midland Company, Cargill Inc. and Fairly Traded Organics are the leading food grade alcohol market players.
The sugarcane segment is expected to lead the worldwide food grade alcohol market.
Over the historical period from 2018 to 2022, food grade alcohol market surged at a 2.4% CAGR.
India’s food grade alcohol market is expected to surge at a CAGR of 15.2% through 2033.
1. Executive Summary | Food Grade Alcohol Market 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Nature 5.1. Organic 5.2. Conventional 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Product Type 6.1. Ethanol 6.2. Sorbitol 6.3. Xylitol 6.4. Others 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Source 7.1. Sugarcane 7.2. Sugar Beet & Molasses 7.3. Grains 7.4. Other Sources 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Application 8.1. Food 8.2. Beverages 8.3. Pharmaceutical & Nutraceutical 8.4. Cosmetics & Fragrances 8.5. Other Applications 9. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 9.1. North America 9.2. Latin America 9.3. Europe 9.4. Asia Pacific 9.5. MEA 10. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. Asia Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. MEA Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. Key Countries Market Analysis 16. Market Structure Analysis 17. Competition Analysis 17.1. Archer Daniels Midland Company 17.2. Cargill Inc. 17.3. Fairly Traded Organics 17.4. Ethimex Ltd. 17.5. Organic Alcohol Company 17.6. MGP Ingredients 17.7. Altia Industrial 17.8. Highwater Ethanol LLC 17.9. Grain Processing Corporation 17.10. Fonterra Co-operative Group 17.11. Malindra Group 18. Assumptions & Acronyms Used 19. Research Methodology
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