Food-grade Alcohol Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type, By Source, By Application, By Functionality By Region, By Competition, 2020-2030F

Description

The Global Food-grade Alcohol Market, valued at USD 4.34 Billion in 2024, is projected to grow at a CAGR of 4.22% to reach USD 5.56 Billion by 2030. Food-grade alcohol-primarily high-purity ethanol derived from fermented agricultural feedstocks such as corn, sugarcane, or grains-meets strict quality and safety standards for use in beverages, food processing, pharmaceuticals, and personal care applications. Market growth is strongly supported by the steady expansion of the global alcoholic beverage industry, along with the rising use of ethanol as a solvent, preservative, and extraction medium in processed foods. Increasing consumer preference for natural and clean-label ingredients also reinforces demand, as ethanol produced through natural fermentation aligns with these expectations.

Market Overview
Forecast Period	2026-2030
Market Size 2024	USD 4.34 Billion
Market Size 2030	USD 5.56 Billion
CAGR 2025-2030	4.22%
Fastest Growing Segment	Grains
Largest Market	Europe

Key Market Drivers

The food-grade alcohol market is primarily driven by strong demand from the food and beverage industry and rising consumer preference for natural, clean-label formulations. Food-grade ethanol plays a vital role across product categories, from alcoholic spirits to flavor extracts and natural preservatives. Its importance is highlighted by the continued growth of the global spirits sector; according to Vinetur's report "Analysis of the Global Distilled Beverages and Spirits Market 2024," published May 7, 2025, global spirits production for 2024/2025 is valued at USD 128.9 billion-an industry highly dependent on food-grade ethanol.

Key Market Challenges

Volatile raw material prices remain a central challenge for the global food-grade alcohol market, as fluctuations in key feedstocks such as corn and sugarcane directly influence production costs and profitability. This volatility complicates budgeting, limits investment in production capacity, and increases financial risk for producers throughout the value chain. According to the Renewable Fuels Association, returns over operating costs for the ethanol industry averaged just $0.26 per gallon in 2024-a 40% decline from 2023. Such reduced margins demonstrate how price instability significantly constrains the industry's ability to maintain profitability and invest in innovation or expansion. This operational uncertainty ultimately slows market growth and limits producers' ability to meet rising global demand.

Key Market Trends

A major trend shaping the food-grade alcohol market is the strong rise in demand for low-alcohol and alcohol-free beverages. Driven by health consciousness and moderation, consumers are embracing beverages that deliver sophisticated flavors with reduced alcohol content. According to Drinks Ireland, non-alcoholic beer sales in Ireland increased 18% in the past year. Beverage companies are responding aggressively; Diageo, for example, announced an additional €30 million investment in October 2024 to double production capacity of Guinness 0.0 to 176 million pints per year.

Key Market Players

Cargill Incorporated
Archer Daniels Midland Company
Fonterra Co-Operative Group Limited
Manildra Group
Cristalco S.A.S
Grain Processing Corporation
Glacial Grain Spirits
MGP Ingredients
Roquette Freres
Wilmar International Limited

Report Scope:

In this report, the Global Food-grade Alcohol Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Food-grade Alcohol Market, By Type:

Ethanol
Polyols

Food-grade Alcohol Market, By Source:

Sugarcane & Molasses
Fruits
Grains
Others

Food-grade Alcohol Market, By Application:

Food
Beverages
Health Care & Pharmaceutical

Food-grade Alcohol Market, By Functionality:

Colouring/Flavouring Agent
Coatings
Others

Food-grade Alcohol Market, By Region:

North America
- United States
- Canada
- Mexico
Europe
- France
- United Kingdom
- Italy
- Germany
- Spain
Asia Pacific
- China
- India
- Japan
- Australia
- South Korea
South America
- Brazil
- Argentina
- Colombia
Middle East & Africa
- South Africa
- Saudi Arabia
- UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Global Food-grade Alcohol Market.

Available Customizations:

Global Food-grade Alcohol Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

1. Product Overview

1.1. Market Definition
1.2. Scope of the Market
- 1.2.1. Markets Covered
- 1.2.2. Years Considered for Study
- 1.2.3. Key Market Segmentations

2. Research Methodology

2.1. Objective of the Study
2.2. Baseline Methodology
2.3. Key Industry Partners
2.4. Major Association and Secondary Sources
2.5. Forecasting Methodology
2.6. Data Triangulation & Validation
2.7. Assumptions and Limitations

3. Executive Summary

3.1. Overview of the Market
3.2. Overview of Key Market Segmentations
3.3. Overview of Key Market Players
3.4. Overview of Key Regions/Countries
3.5. Overview of Market Drivers, Challenges, Trends

4. Voice of Customer

5. Global Food-grade Alcohol Market Outlook

5.1. Market Size & Forecast
- 5.1.1. By Value
5.2. Market Share & Forecast
- 5.2.1. By Type (Ethanol, Polyols)
- 5.2.2. By Source (Sugarcane & Molasses, Fruits, Grains, Others)
- 5.2.3. By Application (Food, Beverages, Health Care & Pharmaceutical)
- 5.2.4. By Functionality (Colouring/Flavouring Agent, Coatings, Others)
- 5.2.5. By Region
- 5.2.6. By Company (2024)
5.3. Market Map

6. North America Food-grade Alcohol Market Outlook

6.1. Market Size & Forecast
- 6.1.1. By Value
6.2. Market Share & Forecast
- 6.2.1. By Type
- 6.2.2. By Source
- 6.2.3. By Application
- 6.2.4. By Functionality
- 6.2.5. By Country
6.3. North America: Country Analysis
- 6.3.1. United States Food-grade Alcohol Market Outlook
  - 6.3.1.1. Market Size & Forecast
    - 6.3.1.1.1. By Value
  - 6.3.1.2. Market Share & Forecast
    - 6.3.1.2.1. By Type
    - 6.3.1.2.2. By Source
    - 6.3.1.2.3. By Application
    - 6.3.1.2.4. By Functionality
- 6.3.2. Canada Food-grade Alcohol Market Outlook
  - 6.3.2.1. Market Size & Forecast
    - 6.3.2.1.1. By Value
  - 6.3.2.2. Market Share & Forecast
    - 6.3.2.2.1. By Type
    - 6.3.2.2.2. By Source
    - 6.3.2.2.3. By Application
    - 6.3.2.2.4. By Functionality
- 6.3.3. Mexico Food-grade Alcohol Market Outlook
  - 6.3.3.1. Market Size & Forecast
    - 6.3.3.1.1. By Value
  - 6.3.3.2. Market Share & Forecast
    - 6.3.3.2.1. By Type
    - 6.3.3.2.2. By Source
    - 6.3.3.2.3. By Application
    - 6.3.3.2.4. By Functionality

7. Europe Food-grade Alcohol Market Outlook

7.1. Market Size & Forecast
- 7.1.1. By Value
7.2. Market Share & Forecast
- 7.2.1. By Type
- 7.2.2. By Source
- 7.2.3. By Application
- 7.2.4. By Functionality
- 7.2.5. By Country
7.3. Europe: Country Analysis
- 7.3.1. Germany Food-grade Alcohol Market Outlook
  - 7.3.1.1. Market Size & Forecast
    - 7.3.1.1.1. By Value
  - 7.3.1.2. Market Share & Forecast
    - 7.3.1.2.1. By Type
    - 7.3.1.2.2. By Source
    - 7.3.1.2.3. By Application
    - 7.3.1.2.4. By Functionality
- 7.3.2. France Food-grade Alcohol Market Outlook
  - 7.3.2.1. Market Size & Forecast
    - 7.3.2.1.1. By Value
  - 7.3.2.2. Market Share & Forecast
    - 7.3.2.2.1. By Type
    - 7.3.2.2.2. By Source
    - 7.3.2.2.3. By Application
    - 7.3.2.2.4. By Functionality
- 7.3.3. United Kingdom Food-grade Alcohol Market Outlook
  - 7.3.3.1. Market Size & Forecast
    - 7.3.3.1.1. By Value
  - 7.3.3.2. Market Share & Forecast
    - 7.3.3.2.1. By Type
    - 7.3.3.2.2. By Source
    - 7.3.3.2.3. By Application
    - 7.3.3.2.4. By Functionality
- 7.3.4. Italy Food-grade Alcohol Market Outlook
  - 7.3.4.1. Market Size & Forecast
    - 7.3.4.1.1. By Value
  - 7.3.4.2. Market Share & Forecast
    - 7.3.4.2.1. By Type
    - 7.3.4.2.2. By Source
    - 7.3.4.2.3. By Application
    - 7.3.4.2.4. By Functionality
- 7.3.5. Spain Food-grade Alcohol Market Outlook
  - 7.3.5.1. Market Size & Forecast
    - 7.3.5.1.1. By Value
  - 7.3.5.2. Market Share & Forecast
    - 7.3.5.2.1. By Type
    - 7.3.5.2.2. By Source
    - 7.3.5.2.3. By Application
    - 7.3.5.2.4. By Functionality

8. Asia Pacific Food-grade Alcohol Market Outlook

8.1. Market Size & Forecast
- 8.1.1. By Value
8.2. Market Share & Forecast
- 8.2.1. By Type
- 8.2.2. By Source
- 8.2.3. By Application
- 8.2.4. By Functionality
- 8.2.5. By Country
8.3. Asia Pacific: Country Analysis
- 8.3.1. China Food-grade Alcohol Market Outlook
  - 8.3.1.1. Market Size & Forecast
    - 8.3.1.1.1. By Value
  - 8.3.1.2. Market Share & Forecast
    - 8.3.1.2.1. By Type
    - 8.3.1.2.2. By Source
    - 8.3.1.2.3. By Application
    - 8.3.1.2.4. By Functionality
- 8.3.2. India Food-grade Alcohol Market Outlook
  - 8.3.2.1. Market Size & Forecast
    - 8.3.2.1.1. By Value
  - 8.3.2.2. Market Share & Forecast
    - 8.3.2.2.1. By Type
    - 8.3.2.2.2. By Source
    - 8.3.2.2.3. By Application
    - 8.3.2.2.4. By Functionality
- 8.3.3. Japan Food-grade Alcohol Market Outlook
  - 8.3.3.1. Market Size & Forecast
    - 8.3.3.1.1. By Value
  - 8.3.3.2. Market Share & Forecast
    - 8.3.3.2.1. By Type
    - 8.3.3.2.2. By Source
    - 8.3.3.2.3. By Application
    - 8.3.3.2.4. By Functionality
- 8.3.4. South Korea Food-grade Alcohol Market Outlook
  - 8.3.4.1. Market Size & Forecast
    - 8.3.4.1.1. By Value
  - 8.3.4.2. Market Share & Forecast
    - 8.3.4.2.1. By Type
    - 8.3.4.2.2. By Source
    - 8.3.4.2.3. By Application
    - 8.3.4.2.4. By Functionality
- 8.3.5. Australia Food-grade Alcohol Market Outlook
  - 8.3.5.1. Market Size & Forecast
    - 8.3.5.1.1. By Value
  - 8.3.5.2. Market Share & Forecast
    - 8.3.5.2.1. By Type
    - 8.3.5.2.2. By Source
    - 8.3.5.2.3. By Application
    - 8.3.5.2.4. By Functionality

9. Middle East & Africa Food-grade Alcohol Market Outlook

9.1. Market Size & Forecast
- 9.1.1. By Value
9.2. Market Share & Forecast
- 9.2.1. By Type
- 9.2.2. By Source
- 9.2.3. By Application
- 9.2.4. By Functionality
- 9.2.5. By Country
9.3. Middle East & Africa: Country Analysis
- 9.3.1. Saudi Arabia Food-grade Alcohol Market Outlook
  - 9.3.1.1. Market Size & Forecast
    - 9.3.1.1.1. By Value
  - 9.3.1.2. Market Share & Forecast
    - 9.3.1.2.1. By Type
    - 9.3.1.2.2. By Source
    - 9.3.1.2.3. By Application
    - 9.3.1.2.4. By Functionality
- 9.3.2. UAE Food-grade Alcohol Market Outlook
  - 9.3.2.1. Market Size & Forecast
    - 9.3.2.1.1. By Value
  - 9.3.2.2. Market Share & Forecast
    - 9.3.2.2.1. By Type
    - 9.3.2.2.2. By Source
    - 9.3.2.2.3. By Application
    - 9.3.2.2.4. By Functionality
- 9.3.3. South Africa Food-grade Alcohol Market Outlook
  - 9.3.3.1. Market Size & Forecast
    - 9.3.3.1.1. By Value
  - 9.3.3.2. Market Share & Forecast
    - 9.3.3.2.1. By Type
    - 9.3.3.2.2. By Source
    - 9.3.3.2.3. By Application
    - 9.3.3.2.4. By Functionality

10. South America Food-grade Alcohol Market Outlook

10.1. Market Size & Forecast
- 10.1.1. By Value
10.2. Market Share & Forecast
- 10.2.1. By Type
- 10.2.2. By Source
- 10.2.3. By Application
- 10.2.4. By Functionality
- 10.2.5. By Country
10.3. South America: Country Analysis
- 10.3.1. Brazil Food-grade Alcohol Market Outlook
  - 10.3.1.1. Market Size & Forecast
    - 10.3.1.1.1. By Value
  - 10.3.1.2. Market Share & Forecast
    - 10.3.1.2.1. By Type
    - 10.3.1.2.2. By Source
    - 10.3.1.2.3. By Application
    - 10.3.1.2.4. By Functionality
- 10.3.2. Colombia Food-grade Alcohol Market Outlook
  - 10.3.2.1. Market Size & Forecast
    - 10.3.2.1.1. By Value
  - 10.3.2.2. Market Share & Forecast
    - 10.3.2.2.1. By Type
    - 10.3.2.2.2. By Source
    - 10.3.2.2.3. By Application
    - 10.3.2.2.4. By Functionality
- 10.3.3. Argentina Food-grade Alcohol Market Outlook
  - 10.3.3.1. Market Size & Forecast
    - 10.3.3.1.1. By Value
  - 10.3.3.2. Market Share & Forecast
    - 10.3.3.2.1. By Type
    - 10.3.3.2.2. By Source
    - 10.3.3.2.3. By Application
    - 10.3.3.2.4. By Functionality

11. Market Dynamics

11.1. Drivers
11.2. Challenges

12. Market Trends & Developments

12.1. Merger & Acquisition (If Any)
12.2. Product Launches (If Any)
12.3. Recent Developments

13. Global Food-grade Alcohol Market: SWOT Analysis

14. Porter's Five Forces Analysis

14.1. Competition in the Industry
14.2. Potential of New Entrants
14.3. Power of Suppliers
14.4. Power of Customers
14.5. Threat of Substitute Products

15. Competitive Landscape

15.1. Cargill Incorporated
- 15.1.1. Business Overview
- 15.1.2. Products & Services
- 15.1.3. Recent Developments
- 15.1.4. Key Personnel
- 15.1.5. SWOT Analysis
15.2. Archer Daniels Midland Company
15.3. Fonterra Co-Operative Group Limited
15.4. Manildra Group
15.5. Cristalco S.A.S
15.6. Grain Processing Corporation
15.7. Glacial Grain Spirits
15.8. MGP Ingredients
15.9. Roquette Freres
15.10. Wilmar International Limited