Food Grade Alcohol Market by Type (Ethanol, Sorbitol, Xylitol, and Others), Source (Sugarcane, Sugar Beet & Molasses, Grains, and Others), and Application (Food, Beverages, and Pharmaceutical & Nutraceutical): Global Opportunity Analysis and Industry Forecast, 2021–2027

The global food grade alcohol market was valued at USD 6,975.2 million in 2019, and is projected to reach USD 8,847.8 million by 2027, registering a CAGR of 5.4% from 2021 to 2027. Food grade alcohol is considered safe for human consumption, owing to its purity (lack of additives). Purity level, concentration, and grade of the alcohol depend on its end use. It is derived from various sources, including sugarcane, sugar beet, molasses, grains, fruits, and others.

 

Food grade alcohol is broadly used in the food & beverage industry as an ingredient in products such as flavorings, extracts, dyes, and others. Rise in consumer spending and growth in urbanization have led to an increase in the consumption of processed & comfort food. This trend has created an upsurge for food ingredients, which inversely generated the demand for food grade alcohol.

 

Production and consumption of alcoholic beverages globally are continuously expanding. The trend of consuming alcoholic beverages, such as beer, wine, whiskey, among others, in social gatherings has propelled the market growth. This has been a crucial factor that drives the market for ethanol. Furthermore, consumer inclination toward a healthier lifestyle has created focus on low-calorie food products and sugar alternatives such as polyols. In addition, the application of polyols (sugar alcohols) in the pharmaceutical industry has risen exponentially. Rise in consumption of nutraceutical among consumers in the form of functional foods, dietary supplements, and functional beverages boosts the growth of the food grade alcohol market. This is attributed to the fact that polyols are used in numerous pharmaceutical and nutraceutical products, owing to their coating, sweetening, emollient, bulking, anti-crystallizing, and stabilizing properties. However, fluctuations in raw material prices of sugarcane, corn, wheat, and others are expected to hinder the food grade alcohol market growth.

 

According to the global food grade alcohol market report, the market is segmented on the basis of type, source, application, and region. Based on type, the market is categorized into ethanol, sorbitol, xylitol, and others. By source, the market is classified into sugarcane, sugar beet & molasses, grains, and others. Depending on application, the market is distributed into food, beverages, and pharmaceutical & nutraceutical. Region wise, the market is studied across North America (the U.S., Canada, and Mexico), Europe (Germany, France, the UK, Italy, Spain, and rest of Europe), Asia-Pacific (China, India, Japan, Australia, and rest of Asia-Pacific), and LAMEA (the Middle East, Latin America, and Africa).

 

The key players operating in the food grade alcohol market include Cargill Incorporated, Spectrum Chemical Manufacturing Corp., MGP Ingredients, Inc., Archer Daniels Midland Company, Roquette Freres SA, Manildra Group, Wilmar International Limited, Molindo Group, Grain Processing Corporation, Cristalco S.A.S., and Ingredion.

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KEY MARKET SEGMENTS