PUBLISHER: The Business Research Company | PRODUCT CODE: 1409423
PUBLISHER: The Business Research Company | PRODUCT CODE: 1409423
“Food Grade Alcohol Global Market Report 2024 ” from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on food grade alcohol market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for food grade alcohol? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? “The food grade alcohol market global report ” from The Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
Food-grade alcohol, specifically ethyl alcohol, is deemed safe for consumption due to its purity and absence of additives. This volatile natural solvent is considered safe for human use and finds application in various food-grade contexts that involve direct contact with people. Its versatility extends across the food and beverage industries, as well as pharmaceuticals, medical, cosmetic, and electronic sectors.
The primary products falling under the category of food-grade alcohol include ethanol and polyols. Polyols are a class of alcohols characterized by multiple hydroxyl groups, with notable examples such as maltitol, sorbitol, and isomalt. Sourced from sugarcane, molasses, fruits, and grains, food-grade alcohols serve diverse functions such as coatings, preservatives, flavoring agents, and more. These applications span a wide range, including the production of spirits, vinegar, extracts, cosmetics, pharmaceuticals, and industrial processes.
The food grade alcohol market research report is one of a series of new reports from The Business Research Company that provides food grade alcohol market statistics, including food grade alcohol industry global market size, regional shares, competitors with a food grade alcohol market share, detailed food grade alcohol market segments, market trends and opportunities, and any further data you may need to thrive in the food grade alcohol industry. This food grade alcohol market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The food grade alcohol market size has grown strongly in recent years. It will grow from $6.07 billion in 2023 to $6.38 billion in 2024 at a compound annual growth rate (CAGR) of 5.1%. The growth observed in the historical period can be attributed to the expansion of the beverage industry, increased demand from the food and flavor industry, the utilization of alcohol in pharmaceutical and healthcare applications, consumer preferences favoring natural ingredients, adherence to stringent quality standards, and the incorporation of alcohol-based extracts in the cosmetics sector.
The food grade alcohol market size is expected to see strong growth in the next few years. It will grow to $7.83 billion in 2028 at a compound annual growth rate (CAGR) of 5.3%. The anticipated growth in the forecast period can be attributed to a heightened emphasis on sustainable and eco-friendly practices, a surge in the use of food-grade alcohol in culinary arts, increased focus on traceability and transparency, the popularity of functional and infused beverages, and a rising interest in local and artisanal products. Major trends expected in this forecast period include innovations in fermentation technologies, a rise in the demand for clean label products, exploration of flavor infusions and extracts, ongoing research and development for new applications, and advancements in technology within the production processes.
The anticipated rise in the consumption of alcoholic beverages is poised to significantly drive the growth of the food-grade alcohol market. Alcoholic beverages, containing a specified alcohol content by volume, often incorporate food-grade alcohol, also known as neutral alcohol, derived from various agricultural or horticultural sources such as cereals, grapes, molasses, or potatoes. Certain alcoholic beverages such as gin utilize neutral-grain alcohol infused with spices and herbs during the preparation process. Notably, the Distilled Spirit Council reported an upsurge in revenue from alcoholic beverages in the US between 2020 and 2021, reaching $35.8 billion with a year-on-year growth rate of 12.0%. Concurrently, the volume of alcoholic beverages escalated to 291.1 million cases (9-liter cases) at a year-on-year growth rate of 9.3%. Consequently, the escalating consumption of alcoholic beverages serves as a driving force behind the expansion of the food-grade alcohol market.
The escalating demand for natural and organic food products is expected to be a pivotal driver fueling growth within the food-grade alcohol market. Natural and organic food items are produced and processed without synthetic chemicals, pesticides, GMOs, antibiotics, or artificial additives. Food-grade alcohol plays a crucial role as a key ingredient in the production of natural and organic food products, ensuring compliance with organic standards and the absence of synthetic elements. A report by the Organic Trade Association showcased a record surge in the U.S. organic food market, reaching $61.7 billion in sales in 2022, marking a 4.4% increase compared to $59.1 billion in 2021. Notably, organic beverages emerged as the second highest-selling category among organic products, accounting for $9 billion in sales, reflecting a 4% increase. This surge underscores the growing preference for natural and organic offerings, consequently propelling the food-grade alcohol market's growth.
Innovations within craft breweries have surfaced as a notable trend driving the food-grade alcohol market's evolution. Leading companies operating in this sector are actively engaged in developing innovative craft breweries to maintain their market positions. For instance, in August 2021, Hopsteiner, a prominent US-based hops supplier catering to breweries, introduced ALTUS, an alcohol-flavored hop designed for crafting beers. ALTUS boasts notes of spicy tangerine, alpha-acid percentages nearing 20%, and an impressive yield of nearly 3,500 PPA (parts per million). This unique hop variety has gained recognition among brewers seeking new aromas and improved brewing efficiencies, offering versatility in various recipes and being particularly effective in malt-heavy brewing processes. This trend underscores the market's focus on innovation, catering to evolving consumer preferences and enhancing brewing capabilities within the food-grade alcohol sector.
Leading companies within the market are concentrating on strategic investments in production facilities to cater to burgeoning demand and widen their consumer reach. This involves allocating resources and capital toward the development, expansion, or enhancement of manufacturing or industrial facilities. For instance, in October 2022, Mishtann Foods Limited, an India-based agricultural-products company, unveiled plans to establish a cutting-edge grain-based ethanol manufacturing facility in Gujarat, boasting a daily capacity of 1,000 kiloliters (KLPD). The company foresees improved financial performance in the forthcoming quarters, attributing it to recent investments, product launches, and a robust order book. Through a formal Memorandum of Understanding (MoU) with the Government of Gujarat, Mishtann Foods is set to embark on India's largest grain-based ethanol project, valued at 1,000 KLPD. The projected investment for this endeavor stands at approximately Rs 2,250 crore ($30.82 million), with an expected annual revenue of around Rs 3,500 crore ($47.95 million) for the company.
In October 2022, CIE, a US-based provider specializing in high-quality, grain-based specialty alcohols, acquired the assets of Elkhorn Valley Ethanol from Louis Dreyfus Company, a Netherlands-based agricultural commodities firm, for an undisclosed sum. This strategic acquisition bolsters CIE's capacity, broadens its market footprint, and expands its customer base by integrating Elkhorn Valley Ethanol's assets. Elkhorn Valley Ethanol, a US-based ethanol producer, joins forces with CIE to fortify the latter's position and offerings within the ethanol production domain.
Major companies operating in the food grade alcohol market report are MGP Ingredients inc., Cargill Incorporated, Archer Daniels Midland Co., Cristalco SAS, Grain Processing Corporation, Wilmar International Ltd., Malindra Group., MOLINDO Group, Extractohol, Pure Alcohol Solutions, Ethimex Ltd., Roquette Freres SA, Glacial Grain Spirits LLC, INGREDION Inc., Fonterra Co-Operative Group Ltd., Ethanolsa Pty Ltd., Bartow Ethanol of Florida L.C., Greenfield Global Inc., Bartlett Grain Company, United Ethanol LLC, Pacific Ethanol Inc., Valero Energy Corporation, Flint Hills Resources, Green Plains Inc., The Andersons Inc., White Energy, Big River Resources LLC, Southwest Iowa Renewable Energy LLC, Marquis Energy LLC, ICM Inc. .
Asia-Pacific was the largest region in the food grade alcohol market share in 2023. The regions covered in the food grade alcohol market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
The countries covered in the food grade alcohol market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The food-grade alcohol market consists of sales of food-grade alcohol opted from grapes, potatoes. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.