Food Grade Alcohol Market Size, Share & Trends Analysis 2020 — 2027 (PDF)

Food Grade Alcohol Market Size, Share & Trends Analysis 2020 — 2027 (PDF)

Report Summary: 

The food grade alcohol market was calculated at USD 2.87 billion by the end of 2019 and is anticipated to grow at a CAGR of 4.2 over the next 5-6 years. The tremendous growth in the food processing industry along with the rising demand for alcoholic beverages is one of the prime reasons for the growth of this market. Alcoholic beverages which were earlier used to be considered as a premium offering in households and hotels are now becoming an essential product of consumption. The availability of a variety of beverages and the increased consumption across all the economies are expected to drive the growth of this market. Over the last decade, the volume consumption of alcohol has elevated the food-grade industry as it is one of the important consumptions. The drinking habits of people across the globe and the increase in the number of distilleries have assisted the growth of the Food Grade Alcohol Market. 

Additionally, the increasing number of varieties in the food and beverages and per ratio increasing population of consumption of the same has increased the market share and volume of Food Grade Alcohol market in recent years. These trends are expected to grow at a substantial rate over the next few years with the increased offerings of alcohol manufacturers worldwide. 

The rise of COVID-19 at the end of 2019 and its fatal outcomes in the Asia Pacific, European region, and the North American Region have created a huge gap in the supply-demand gap. The months stretched lockdown in countries like India, Italy, Germany, France, Singapore, USA, and Canada have restrained the product demand for the food-grade alcohol market. On the other hand, these serious healthcare issues created an opportunity for the utilization of alcohols in hand sanitizers and hand rubs which has stabilized the product demand and is anticipated to grow over the next few years as the COVID-19 will exist. 

Type Dynamics: 

On the basis of Types, food-grade alcohols are classified into Ethanol and Polyols. The ethanol type has valued to be the largest with a market share of more than 70% by the end of 2019. It is widely used in the food and beverages industry to increase the shelf life of the products. Similarly, polyols are largely used as an alternative to sugar and their demand is expected to rise in the upcoming years. Ethanol is used widely in the end-use products industries such as pharmaceuticals, personal care, and food and beverages. In the personal care and hygiene industry, ethanol is primarily used in anti-foaming agent astringent and several products in oral care, hair care, skincare, and dental care. It is also widely used as a food additive in improving the quality and flavor of various food items. 

By 2019, the US was one of the prime manufacturers and exporters of ethanol and as per the study, Brazil accounted for importing almost 35% of the total US exports of ethanol. 

Source Dynamics: 

By source types, food-grade alcohols are largely classified into grains, fruits, molasses, and sugarcane. Molasses and sugarcane dominated the market in terms of volume with a market share of more than 35% by the end of 2019. These are the most preferred sources of food-grade alcohol preparation and key counties exporting alcohol by molasses and sugar are India, Brazil, China, and Thailand owing to the wide range of availability of raw materials. 

As per the study of 2019, India had over 300 distilleries that produced over 4 billion liters of alcohol, out of which almost half had the capacity of distilling 2.8 billion liters of alcohols which are then widely used in a large number of applications like pharmaceuticals, fuel production, etc. 

Fruits such as grapes, apples, Oranges, and bananas are used extensively in alcohol preparation in which grapes are used largely in alcohol fermentation in order to produce end products such as wine or brandy. Fruits with sugar levels greater than 10% and below 20% are widely used in the preparation of alcohols such fruits are mangoes, guavas, pineapples, cashews, etc. 

Function Dynamics: 

By the end of 2019, coloring and flavoring agents are valued as the dominant segmented functions covering more than 40% and also anticipated to witness the fastest growth in the upcoming period. Alcohols with the properties of additives help in the even distribution of coloring agents and food extracts. In the pharmaceutical industry, polyols such as mannitol and xylitol are most widely used in the hard covering of tablets. It is also used to cover the pungent smell of the components present in the tablets. Additionally, xylitol is widely used in creating mint tablets and is a common practice of manufacturing mint tablets across the globe. 

Application Dynamics:

As per the research study, food is the most common and dominant application segment in 2019 with a revenue share of more than 28% owing to the extensive use of food-grade products in a number of applications such as vaccines, antibiotics, pills and tablets, blood plasma, etc. Food grade alcohols are globally used to sterilize body parts before injections and also used to sterilize medical devices in the health care industry. These sterilization techniques are expected to increase the market growth owing to the COVID-19 situation, however, limited options to manage supply and demand and restrained logistics are expected to limit its growth. 

Regional Dynamics: 

As per the data collected and studied at the end of 2019, the European region was the largest region of manufacturing and supply of food-grade alcohols with a revenue share of 33%. Growing consumption of food-grade alcohols in the food and beverages sector and having a large consumer base is one of the main reasons for its growth which is also expected to grow at a significant rate in upcoming years. North American region is expected to grow at a CAGR of 3.7% in the upcoming years owing to the presence of more than 2500 breweries and distilleries which is aimed to satisfy local needs and export food-grade alcohols. 

Key Players and Insights 

The food-grade alcohol market has witnessed a huge number of players at a local, regional, and global level. Due to intense market competition, the key players are focusing on maintaining a competitive edge over one another. This has resulted in increased production of ethanol with significant exports. The market also witnesses an extensive amount of research and development and new product development which a focus of consumer preference. Some of the key market players are Wilmar International Ltd., Cristalco, MGP, Ethanolsa Pty. Ltd., Greenfield Global Inc., Manildra Group, ADM, and many more. 

Market segmentation:

UpGraph Research has segmented the food-grade alcohol market in the following ways. 

Type Insights (Volume, Revenue, USD Million, 2020 – 2027)

    • Polyols
    • Ethanol

Source Insights (Volume, Kilotons; Revenue, USD Million, 2020 – 2027)

    • Fruits
    • Grains
    • Molasses & Sugarcane
    • Others (corn & rice)

Function Insights (Volume, Kilotons; Revenue, USD Million, 2020 – 2027)

    • Preservatives
    • Coatings
    • Colouring & Flavouring Agent
    • Others

Application Insights (Volume, Kilotons; Revenue, USD Million, 2020 – 2027)

    • Healthcare & Pharmaceutical
    • Personal Care
    • Beverages
    • Food
    • Others

Regional Insights (Volume, Kilotons; Revenue, USD Million, 2020 – 2027)

    • Europe
      • Italy
      • Hungary
      • Spain
      • Germany
      • The U.K.
      • France
    • North America
      • Canada
      • Mexico
      • The U.S.
    • Asia Pacific
      • Japan
      • India
      • Indonesia
      • South Korea
      • China
    • Middle East & Africa
      • UAE
      • Saudi Arabia
    • Central & South America
      • Argentina
      • Brazil
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