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Spike In Alcoholic Beverage Consumption Fuels Growth In The Food-Grade Alcohol Market: Transformative Forces Shaping the Food Grade Alcohol Market Landscape in 2025
Food Grade Alcohol Market
What Will the Food Grade Alcohol Industry Market Size Be by 2025?
The market size of food grade alcohol has seen a substantial expansion in the past few years. It is projected to increase from $6.38 billion in 2024 to $6.71 billion in 2025, recording a compound annual growth rate (CAGR) of 5.2%. Factors contributing to this growth during the historic period include the surge in the beverage industry, rising demand from food and flavor industries, applications in pharmaceuticals and healthcare, consumer inclination towards natural ingredients, rigorous quality norms, and use of alcohol-based extracts in cosmetics.
What's the Long-Term Growth Forecast for the Food Grade Alcohol Market Size Through 2029?
In the forthcoming years, the food grade alcohol market is poised to witness considerable growth, expanding to $8.25 billion by 2029, at a compound annual growth rate (CAGR) of 5.3%. This growth during the predictive period can be linked to environmentally friendly and sustainable approaches, expansive utilization in the world of gastronomy, insistence on accountability and clearness, infused and functional drinks, and a growing fascination with local and craft products. Key trends for the forecast period comprise progress in fermentation technologies, an upswing in transparent label products, flavor injects and extracts, exploration and progression for groundbreaking applications, and technological improvements in manufacturing.
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What Are the Key Growth Drivers Fueling the Food Grade Alcohol Market Expansion?
The escalating usage of alcohol-based drinks is forecasted to fuel the advancement of the food-grade alcohol market. Alcoholic drinks consist of more than a certain level of alcohol by volume. Several of these beverages are formulated using food-grade or neutral alcohol, sourced from various agricultural products like cereals, grapes, molasses, potatoes, and other horticultural items. One can create Gin, for instance, using neutral-grain alcohol that has been blended with herbs and spices. For example, according to statistics published in December 2023 by Kirin Holdings Co. Ltd., a Japanese company known for its alcoholic, non-alcoholic beverages and pharmaceuticals, there was an increase in global beer consumption in 2022 by approximately 5.4 million kiloliters. This is equivalent to nearly 8.5 billion bottles (each 633 ml) in comparison to the former year. Consequently, the increasing consumption of alcohol-containing drinks is propelling the expansion of the food-grade alcohol market.
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What Are the Key Trends Driving Food Grade Alcohol Market Growth?
The emergence of new methods in craft brewing is a significant trend gathering momentum in the food-grade alcohol industry. The primary businesses in this market are centering their efforts on creating original craft breweries in order to maintain their dominance. For example, in April 2022, Bira 91, a craft beer firm headquartered in India, launched Imagined in India, a special series of four seasonal brews influenced by indigenous elements and the rich, dynamic Indian creative tradition. The collection features Bollywood IPA, Kokum Sour (made with kokum fruit from the Konkan coast of India), Brown Ale and Mango Lassi (a mix of Bira's Wheat Ale and milkshake beer). Every beer is brewed with distinctive local and seasonal ingredients, providing a flavorful and unique drinking experience.
How Is the Food Grade Alcohol Market Segmented?
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 Companies Are Leading the Charge in Food Grade Alcohol Market Innovation?
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.
Which Regions Are Leading the Global Food Grade Alcohol Market in Revenue?
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
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