Food-grade Alcohol Market Projected to Reach .86 Billion by 2022

The food grade alcohol market is driven by the increase in demand for food grade alcohol in various food & beverage and health & personal care industries. The key players in the industry are directing their growth strategies toward the emerging economies for enhancing their research capabilities to develop product portfolios and strengthen their distribution base. The market for food-grade alcohol is largely associated with the sale of beverage products. Investing in emerging markets like Asia Pacific, Latin America, the Middle East, and Africa could prove to be a promising opportunity for business expansions. 

The market is driven increasing global beer production and popularity of craft beer. Also, the increasing consumption of alcoholic beverages in the developing regions supported with the expansion of potential export markets due to demographic and economic reasons, have developed a growing platform for increased alcohol trade which is in turn driving the food-grade alcohol market.

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Ethanol dominated the food-grade alcohol market, by type, in 2015

Food-grade alcohol is defined as a type of alcohol used in a wide range of applications in food & beverages and health care & pharmaceutical sectors. The food-grade alcohol market, based on type, has been segmented into ethanol and polyols. Ethanol contributes to a larger market share as it is largely used in the production of alcoholic beverages. Ethanol is also popularly used as a preservative in the food industry to increase the shelf life of end products and in manufacturing colors and flavors for food applications. Due to its volatility, ethanol is widely used in the food industry as a main ingredient base for the manufacturing of a wide range of alcoholic beverages coupled with diverse functions such as preservative, coloring/flavoring agent, and coatings, hence boosting the demand for food-grade alcohol.

Sugarcane & molasses segment to dominate the food-grade alcohol market

The food-grade alcohol market, by source, is segmented into sugarcane & molasses, grains, fruits, and others which include rice and corn. The sugarcane & molasses segment dominated the market due to the increase in production of ethanol from sugarcane and molasses. The continuously low production price of raw sugar in the global market is fueling the production of ethanol from sugarcane and molasses. Sugar cane and sugar beet plants are the most abundant sources of sucrose, which is fermented to produce alcohol. The low production price of raw sugar in the global market has led to increase in the production of ethanol from sugarcane and molasses.

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Asia-Pacific is projected to be the fastest-growing market for food-grade alcohol

Food-grade alcohol is used not only for manufacturing alcoholic beverages but also for food and healthcare & pharmaceutical products. Hence, as the demand for these consumables increases from end users, manufacturers use food-grade alcohol for making innovative food products. Europe has adopted the usage of food-grade alcohol in food, beverages, and pharma applications. The Asia-Pacific region is estimated to drive the market with the increase in demand for food-grade alcohol. The increase in consumption of alcoholic beverages and convenience food products are significantly impacting the growth of the market in this region, with the growing food-processing industry.

This report includes a study of marketing and development strategies, along with the product portfolio of key players. It includes the profiles of leading companies such as Archer Daniels Midland Company (U.S.), Cargill Inc.  (U.S.), MGP Ingredients (U.S.) Sigma-Aldrich (U.S.), and Roquette Freres S.A. (France).

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Supriya Bhangale Joined: January 21st, 2019