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Spike In Alcoholic Beverage Consumption Fuels Growth In The Food-Grade Alcohol Market Driver: A Major Catalyst in the Evolution of the Food Grade Alcohol Market in 2025
Food Grade Alcohol Market
The food-grade alcohol market is anticipated to experience significant growth due to the increasing consumption of alcoholic drinks. Alcoholic beverages, which contain a specifically measured amount of alcohol volume, are primarily produced using food-grade or neutral alcohol. This type of alcohol is extracted from various agricultural commodities such as cereals, grapes, molasses, potatoes, among others. For example, gin can be manufactured using neutral-grain alcohol infused with a variety of spices and herbs. As per the data released by Kirin Holdings Co. Ltd., a Japanese company that deals with alcoholic, non-alcoholic beverages, and pharmaceutical products, in December 2023, worldwide beer consumption in 2022 rose by approximately 5.4 million kiloliters. This is equivalent to almost 8.5 billion bottles, each of 633 ml, as compared to the previous year. Consequently, the growing consumption of alcoholic drinks is boosting the expansion of the food-grade alcohol market.
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What Is the projected market size and growth rate for the food grade alcohol market?
There has been remarkable growth in the market size of food grade alcohol in the past years. The market is expected to expand from $6.38 billion in 2024 to $6.71 billion in 2025, reflecting a compound annual growth rate (CAGR) of 5.2%. The progression during the historical phase is rooted in the surge in the beverage industry, demand from the food and flavor sectors, usage in the pharmaceutical and healthcare sectors, preference for natural ingredients among consumers, rigid quality norms, and the use of alcohol-based extracts in cosmetic products.
Expectations are high for robust expansion in the food grade alcohol market size in the upcoming years. The market is projected to intensify to $8.25 billion in 2029, with a compound annual growth rate (CAGR) of 5.3%. This anticipated expansion during the forecasted period is largely due to sustainable and eco-friendly practices, an increase in culinary arts usage, emphasis on traceability and transparency, functionally infused drinks, and a growing interest in local and artisan goods. Significant trends expected during the forecast period include advancements in fermentation technologies, an uptick in clean label products, flavor infusions and extracts, as well as research and technological progression aimed at new applications and improved production.
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What new trends are reshaping the food grade alcohol market and its opportunities?
The proliferation of innovations within craft breweries has been identified as a main trend within the food-grade alcohol industry. Major industry players are honing their focus on creating novel craft breweries to maintain their market standing. For instance, in April 2022, Bira 91, a craft beer brand from India, launched Imagined in India, a limited-edition series of four seasonal beers that derive inspiration from local ingredients and the country's vibrant creative culture. This includes Bollywood IPA, Kokum Sour (which is brewed with kokum fruit from India's Konkan coast), Brown Ale, and Mango Lassi (a fusion of Bira's Wheat Ale and milkshake beer). Each beer is crafted using unique local and seasonal ingredients, promising a unique and delectable experience.
What major market segments define the scope and growth of the food grade alcohol market?
The food grade alcohol market covered in this report is segmented -
1) By Product: Ethanol, Polyols
2) By Source: Sugarcane And Molasses, Fruits, Grains
3) By Function: Coatings, Preservatives, Flavoring, Other Functions
4) By Application: Spirits, Vinegar, Extracts, Cosmetics, Pharmaceutical, Industrial Application
Subsegments:
1) By Ethanol: Distilled Ethanol, Synthetic Ethanol
2) By Polyols: Sorbitol, Glycerol, Mannitol, Xylitol
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Which region dominates the food grade alcohol market?
Asia-Pacific was the largest region in the food grade alcohol market share in 2024. The regions covered in the food grade alcohol market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
Which key market leaders are driving the food grade alcohol industry growth?
Major companies operating in the food grade alcohol market include 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., 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.
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What Is Covered In The Food Grade Alcohol Global Market Report?
• Market Size Forecast: Examine the food grade alcohol market size across key regions, countries, product categories, and applications.
• Segmentation Insights: Identify and classify subsegments within the food grade alcohol market for a structured understanding.
• Key Players Overview: Analyze major players in the food grade alcohol market, including their market value, share, and competitive positioning.
• Growth Trends Exploration: Assess individual growth patterns and future opportunities in the food grade alcohol market.
• Segment Contributions: Evaluate how different segments drive overall growth in the food grade alcohol market.
• Growth Factors: Highlight key drivers and opportunities influencing the expansion of the food grade alcohol market.
• Industry Challenges: Identify potential risks and obstacles affecting the food grade alcohol market.
• Competitive Landscape: Review strategic developments in the food grade alcohol market, including expansions, agreements, and new product launches.
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