Global Grain Alcohol Market Analysis and Forecast by 2026

The global grain alcohol market, as outlined in the report titled "Grain Alcohol Market by Type (Ethanol, Polyols), Application (Food, Beverages, Pharmaceutical & Healthcare), Source (Sugarcane, Grains, Fruits), Functionality (Preservative, Coloring/flavoring agent, Coatings), and by Region - Global Forecast to 2026," was valued at USD 12.2 billion in 2021 and is anticipated to grow at a CAGR of 4.1% to reach USD 14.9 billion by 2026.

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The demand for grain alcohol across various industries such as food & beverages and health & personal care is a significant driver of the global grain alcohol market. This growth is particularly fueled by increased beer production and a rising demand for craft beer. Ethanol, a sub-segment of grain alcohol, dominates the market owing to its wide usage in the food industry as a flavoring and coloring agent, as well as its antimicrobial properties beneficial for pharmaceutical applications.

The fruits sub-segment within the source category is expected to witness the fastest growth in the grain alcohol market. Alcohol production from fruits like grapes, berries, and apples is gaining traction, especially in the production of premium alcoholic beverages such as wine and brandy.

In terms of applications, the beverage sub-segment holds the largest market share, driven by the growing consumption of alcoholic beverages globally. North America leads the global market, with the United States being a dominant player due to its substantial consumption of beer, spirits, and wine.

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Key market players such as ADM (US), Cargill (US), Wilmar Group (Singapore), Merck Group (Germany), and Roquette Frères (France) are actively expanding their presence through agreements and collaborations. With strong manufacturing facilities and distribution networks across North America, Asia Pacific, and Europe, these companies are poised to capitalize on the increasing demand for grain alcohol across various industries worldwide.

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