Food Grade Alcohol Market Forecasts to 2030 – Global Analysis By Type (Ethanol and Polyols), By Nature (Organic, Conventional and Synthetic), Source, Function, Distribution Channel, Application and By Geography

Food Grade Alcohol Market Forecasts to 2030 – Global Analysis By Type (Ethanol and Polyols), By Nature (Organic, Conventional and Synthetic), Source, Function, Distribution Channel, Application and By Geography


According to Stratistics MRC, the Global Food Grade Alcohol Market is accounted for $7.3 billion in 2023 and is expected to reach $11.4 billion by 2030 growing at a CAGR of 6.6% during the forecast period. A Food Grade Alcohol is an automated solution designed to refuel vehicles without human intervention. Using robotic arms and specialized equipment, a Food Grade Alcohol enables efficient and precise fueling operations, reducing the risk of spills and improving safety. It enhances productivity in unmanned vehicle operations by eliminating the need for manual refueling processes and ensuring uninterrupted missions.

According to the U.S. Census Bureau data, the number of wineries and breweries in the U.S. increased from 2017 to 2020. The number of breweries in the U.S. in 2020 was 4,493, which grew from 3,305 in 2017.

Market Dynamics:

Driver:

Rising demand for processed foods

Processed food manufacturers utilize food-grade alcohol as a key ingredient in various products, such as sauces, condiments, flavorings, and extracts. Its use as a solvent, preservative, or flavor enhancer contributes to the quality, taste, and shelf life of processed foods. With the increasing consumption of processed and convenience foods worldwide, there is a growing need for food-grade alcohol, leading to expanded market opportunities and driving growth in the industry.

Restraint:

Fluctuations in the prices of raw materials

Raw materials such as grains, fruits, or sugarcane can be subject to price volatility due to factors like weather conditions, agricultural practices, and market demand. These fluctuations directly impact production costs, squeezing profit margins for manufacturers and affecting pricing stability for consumers. Additionally, uncertainty in raw material prices can disrupt supply chains and hinder long-term planning and investment in the food-grade alcohol industry, posing challenges to sustainable growth.

Opportunity:

Expansion of the food and beverage industry

As the demand for alcoholic beverages, flavorings, and food additives continues to grow, so does the need for high-quality food-grade alcohol. With applications ranging from flavor extraction and food preservation to ingredient manufacturing, food-grade alcohol is a vital component in various products. Capitalizing on the expansion of the food and beverage industry allows suppliers of food-grade alcohol to tap into a lucrative market, driving growth and profitability in the sector.

Threat:

Stricter regulations on alcohol content

Stricter regulations on alcohol content pose a threat to the food-grade alcohol market by potentially limiting the permissible levels of alcohol in food and beverage products. Such regulations could impact the formulation and production processes of various products, leading to increased compliance costs and operational challenges for manufacturers. Additionally, restrictions on alcohol content may reduce product diversity and innovation, limiting market growth opportunities.

Covid-19 Impact:

The COVID-19 pandemic significantly impacted the food-grade alcohol market. While demand surged initially due to increased use of hand sanitizers and disinfectants, lockdown measures and disruptions in supply chains led to production challenges. Additionally, reduced demand from sectors like hospitality and events further affected market dynamics. However, the market is expected to gradually recover as economies reopen and demand stabilizes with the easing of pandemic restrictions.

The ethanol segment is expected to be the largest during the forecast period

In the food-grade alcohol market, the ethanol segment is anticipated to dominate during the forecast period due to its widespread applications across various industries. Ethanol is extensively used in the production of alcoholic beverages, flavor extracts, and food additives. Additionally, ethanol's versatility, affordability, and availability make it a preferred choice for manufacturers in the food and beverage sector. Moreover, the rising demand for ethanol-based sanitizers and disinfectants amid the COVID-19 pandemic has further bolstered its market growth.

The sugarcane segment is expected to have the highest CAGR during the forecast period

The sugarcane segment is poised to exhibit the highest growth rate during the forecast period in the food-grade alcohol market. This growth is attributed to several factors, including the widespread availability of sugarcane as a raw material for alcohol production, favorable climatic conditions for sugarcane cultivation in various regions, and increasing demand for bio-based and sustainable ingredients. Additionally, technological advancements in sugarcane processing methods further contribute to the segment's growth potential in the market.

Region with largest share:

The North American region is positioned to dominate the food-grade alcohol market by capturing the largest market share. This is primarily due to several factors, such as the presence of a well-established food and beverage industry, increasing consumer demand for premium and high-quality products, and stringent regulations ensuring food safety standards. Additionally, growing awareness regarding health-conscious consumption patterns and the rising popularity of natural and organic ingredients further contribute to the region's significant market share in the food-grade alcohol industry.

Region with highest CAGR:

Asia Pacific is positioned for rapid growth in the food-grade alcohol market owing to the region's growing population, rising disposable incomes, and increasing urbanization, leading to changing consumer preferences towards premium and high-quality food products. Furthermore, the expansion of the food and beverage industry, coupled with the growing demand for alcoholic beverages and industrial applications, especially in emerging economies like China and India, is driving substantial growth opportunities for food-grade alcohol in the Asia Pacific region.

Key players in the market

Some of the key players in Food Grade Alcohol Market include Archer Daniels Midland Company, Cargill, Incorporated, Cristalco, Croda International Plc, DuPont de Nemours, Inc., Fonterra Co-operative Group Limited, Grain Processing Corporation, Greenfield Global Inc., Jiangsu Lianhai Biological Technology Co., Ltd., Manildra Group, MGP Ingredients, Inc., Purac Biochem BV (Corbion NV), Roquette Frères, Sigma-Aldrich Corporation, The Andersons, Inc. and Wilmar International Limited.

Key Developments:

In February 2024, Roquette is pushing the frontiers of the plant protein market by launching four multi-functional pea proteins designed to improve taste, texture and creativity in plant-based food and high-protein nutritional products. By further expanding its established NUTRALYS® plant protein portfolio, the leading ingredients company is bringing a host of new and improved application opportunities to the table for food manufacturers.

In September 2023, Greenfield Global Inc., the leading producer, manufacturer and distributor of high purity and specialty alcohols, solvents, and custom solutions, has partnered with REMET Alcohols, Inc. to address the growing demand in California and the Western US for bulk and packaged high-purity alcohol and denatured alcohol. With today’s announcement, Greenfield extends its bulk manufacturing and distribution capability and footprint westward, enhancing supply for the industrial, food, fragrance, pharmaceutical, personal care, and beverage industries in California, Nevada, Utah, Oregon, Washington and Arizona.

In July 2022, Grain Processing Corporation (GPC), a part of the Kent Corp. family of companies, has completed its acquisition of Grinnell, Iowa, US-based Natural Products, Inc. (NPI). NPI makes full-fat soy ingredients made from non-GMO or certified organic soybeans. The company also processes other beans and grains, including chickpeas and oats.

Types Covered:
• Ethanol
• Polyols

Natures Covered:
• Organic
• Conventional
• Synthetic

Sources Covered:
• Sugarcane
• Sugar Beet and Molasses
• Grains
• Fruits
• Other Sources

Functions Covered:
• Antioxidants
• Coatings
• Disinfectants
• Flavoring Agent
• Humectants
• Preservatives
• Solvents
• Other Functions

Distribution Channels Covered:
• Direct Sales
• Distributors and Wholesalers
• Retailers
• Online Sales
• Food Service Providers

Applications Covered:
• Food and Beverages
• Healthcare and Pharmaceuticals
• Personal Care and Cosmetics
• Nutraceuticals
• Biofuels
• Industrial Applications
• Other Applications

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances


1 Executive Summary
2 Preface
2.1 Abstract
2.2 Stake Holders
2.3 Research Scope
2.4 Research Methodology
2.4.1 Data Mining
2.4.2 Data Analysis
2.4.3 Data Validation
2.4.4 Research Approach
2.5 Research Sources
2.5.1 Primary Research Sources
2.5.2 Secondary Research Sources
2.5.3 Assumptions
3 Market Trend Analysis
3.1 Introduction
3.2 Drivers
3.3 Restraints
3.4 Opportunities
3.5 Threats
3.6 Application Analysis
3.7 Emerging Markets
3.8 Impact of Covid-19
4 Porters Five Force Analysis
4.1 Bargaining power of suppliers
4.2 Bargaining power of buyers
4.3 Threat of substitutes
4.4 Threat of new entrants
4.5 Competitive rivalry
5 Global Food Grade Alcohol Market, By Type
5.1 Introduction
5.2 Ethanol
5.3 Polyols
5.3.1 Glycerin
5.3.2 Propylene Glycol
6 Global Food Grade Alcohol Market, By Nature
6.1 Introduction
6.2 Organic
6.3 Conventional
6.4 Synthetic
7 Global Food Grade Alcohol Market, By Source
7.1 Introduction
7.2 Sugarcane
7.3 Sugar Beet and Molasses
7.4 Grains
7.5 Fruits
7.6 Other Sources
8 Global Food Grade Alcohol Market, By Function
8.1 Introduction
8.2 Antioxidants
8.3 Coatings
8.4 Disinfectants
8.5 Flavoring Agent
8.6 Humectants
8.7 Preservatives
8.8 Solvents
8.9 Other Functions
9 Global Food Grade Alcohol Market, By Distribution Channel
9.1 Introduction
9.2 Direct Sales
9.3 Distributors and Wholesalers
9.4 Retailers
9.5 Online Sales
9.6 Food Service Providers
10 Global Food Grade Alcohol Market, By Application
10.1 Introduction
10.2 Food and Beverages
10.3 Healthcare and Pharmaceuticals
10.4 Personal Care and Cosmetics
10.5 Nutraceuticals
10.6 Biofuels
10.7 Industrial Applications
10.8 Other Applications
11 Global Food Grade Alcohol Market, By Geography
11.1 Introduction
11.2 North America
11.2.1 US
11.2.2 Canada
11.2.3 Mexico
11.3 Europe
11.3.1 Germany
11.3.2 UK
11.3.3 Italy
11.3.4 France
11.3.5 Spain
11.3.6 Rest of Europe
11.4 Asia Pacific
11.4.1 Japan
11.4.2 China
11.4.3 India
11.4.4 Australia
11.4.5 New Zealand
11.4.6 South Korea
11.4.7 Rest of Asia Pacific
11.5 South America
11.5.1 Argentina
11.5.2 Brazil
11.5.3 Chile
11.5.4 Rest of South America
11.6 Middle East & Africa
11.6.1 Saudi Arabia
11.6.2 UAE
11.6.3 Qatar
11.6.4 South Africa
11.6.5 Rest of Middle East & Africa
12 Key Developments
12.1 Agreements, Partnerships, Collaborations and Joint Ventures
12.2 Acquisitions & Mergers
12.3 New Product Launch
12.4 Expansions
12.5 Other Key Strategies
13 Company Profiling
12.1 Archer Daniels Midland Company
12.2 Cargill, Incorporated
12.3 Cristalco
12.4 Croda International Plc
12.5 DuPont de Nemours, Inc.
12.6 Fonterra Co-operative Group Limited
12.7 Grain Processing Corporation
12.8 Greenfield Global Inc.
12.9 Jiangsu Lianhai Biological Technology Co., Ltd.
12.10 Manildra Group
12.11 MGP Ingredients, Inc.
12.12 Purac Biochem BV (Corbion NV)
12.13 Roquette Frères
12.14 Sigma-Aldrich Corporation
12.15 The Andersons, Inc.
12.16 Wilmar International Limited
List of Tables
Table 1 Global Food Grade Alcohol Market Outlook, By Region (2021-2030) ($MN)
Table 2 Global Food Grade Alcohol Market Outlook, By Type (2021-2030) ($MN)
Table 3 Global Food Grade Alcohol Market Outlook, By Ethanol (2021-2030) ($MN)
Table 4 Global Food Grade Alcohol Market Outlook, By Polyols (2021-2030) ($MN)
Table 5 Global Food Grade Alcohol Market Outlook, By Glycerin (2021-2030) ($MN)
Table 6 Global Food Grade Alcohol Market Outlook, By Propylene Glycol (2021-2030) ($MN)
Table 7 Global Food Grade Alcohol Market Outlook, By Nature (2021-2030) ($MN)
Table 8 Global Food Grade Alcohol Market Outlook, By Organic (2021-2030) ($MN)
Table 9 Global Food Grade Alcohol Market Outlook, By Conventional (2021-2030) ($MN)
Table 10 Global Food Grade Alcohol Market Outlook, By Synthetic (2021-2030) ($MN)
Table 11 Global Food Grade Alcohol Market Outlook, By Source (2021-2030) ($MN)
Table 12 Global Food Grade Alcohol Market Outlook, By Sugarcane (2021-2030) ($MN)
Table 13 Global Food Grade Alcohol Market Outlook, By Sugar Beet and Molasses (2021-2030) ($MN)
Table 14 Global Food Grade Alcohol Market Outlook, By Grains (2021-2030) ($MN)
Table 15 Global Food Grade Alcohol Market Outlook, By Fruits (2021-2030) ($MN)
Table 16 Global Food Grade Alcohol Market Outlook, By Other Sources (2021-2030) ($MN)
Table 17 Global Food Grade Alcohol Market Outlook, By Function (2021-2030) ($MN)
Table 18 Global Food Grade Alcohol Market Outlook, By Antioxidants (2021-2030) ($MN)
Table 19 Global Food Grade Alcohol Market Outlook, By Coatings (2021-2030) ($MN)
Table 20 Global Food Grade Alcohol Market Outlook, By Disinfectants (2021-2030) ($MN)
Table 21 Global Food Grade Alcohol Market Outlook, By Flavoring Agent (2021-2030) ($MN)
Table 22 Global Food Grade Alcohol Market Outlook, By Humectants (2021-2030) ($MN)
Table 23 Global Food Grade Alcohol Market Outlook, By Preservatives (2021-2030) ($MN)
Table 24 Global Food Grade Alcohol Market Outlook, By Solvents (2021-2030) ($MN)
Table 25 Global Food Grade Alcohol Market Outlook, By Other Functions (2021-2030) ($MN)
Table 26 Global Food Grade Alcohol Market Outlook, By Distribution Channel (2021-2030) ($MN)
Table 27 Global Food Grade Alcohol Market Outlook, By Direct Sales (2021-2030) ($MN)
Table 28 Global Food Grade Alcohol Market Outlook, By Distributors and Wholesalers (2021-2030) ($MN)
Table 29 Global Food Grade Alcohol Market Outlook, By Retailers (2021-2030) ($MN)
Table 30 Global Food Grade Alcohol Market Outlook, By Online Sales (2021-2030) ($MN)
Table 31 Global Food Grade Alcohol Market Outlook, By Food Service Providers (2021-2030) ($MN)
Table 32 Global Food Grade Alcohol Market Outlook, By Application (2021-2030) ($MN)
Table 33 Global Food Grade Alcohol Market Outlook, By Food and Beverages (2021-2030) ($MN)
Table 34 Global Food Grade Alcohol Market Outlook, By Healthcare and Pharmaceuticals (2021-2030) ($MN)
Table 35 Global Food Grade Alcohol Market Outlook, By Personal Care and Cosmetics (2021-2030) ($MN)
Table 36 Global Food Grade Alcohol Market Outlook, By Nutraceuticals (2021-2030) ($MN)
Table 37 Global Food Grade Alcohol Market Outlook, By Biofuels (2021-2030) ($MN)
Table 38 Global Food Grade Alcohol Market Outlook, By Industrial Applications (2021-2030) ($MN)
Table 39 Global Food Grade Alcohol Market Outlook, By Other Applications (2021-2030) ($MN)
Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.

Download our eBook: How to Succeed Using Market Research

Learn how to effectively navigate the market research process to help guide your organization on the journey to success.

Download eBook
Cookie Settings