Food-Grade Alcohol Market Share Driven by Expanding Food and Beverage Applications | Valuates Reports

Food-Grade Alcohol Market Size
In 2024, the global market size of Food-Grade Alcohol was estimated to be worth US$ 11370 million and is forecast to reach approximately US$ 13660 million by 2031 with a CAGR of 2.7% during the forecast period 2025-2031.

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The Food-Grade Alcohol Market is witnessing significant market growth driven by rising demand from the food and beverage sector, expanding applications in healthcare, and the growing use of ethanol as a key ingredient in flavoring, extraction, and preservation. Increasing consumer preference for clean-label ingredients and natural formulations is influencing market trends, encouraging manufacturers to adopt sustainable production methods. Moreover, the growing integration of alcohol in confectionery, bakery, and functional beverages is expanding the market size across multiple industries.

By type, ethanol holds the largest market share due to its wide utilization as a solvent, flavor enhancer, and preservative in food and beverage processing. Ethanol's versatility, cost-effectiveness, and compatibility with various formulations make it the dominant segment. The polyols segment, which includes sugar alcohols such as sorbitol and xylitol, is showing strong market growth driven by increasing demand for low-calorie and diabetic-friendly products. Both ethanol and polyols are gaining importance as key components supporting the clean-label and natural ingredient trends.

In terms of application, the food and beverages segment dominates the global food-grade alcohol market, supported by its widespread use in flavor extraction, bakery goods, confectionery, and beverage formulations. The healthcare and pharmaceutical segment is expanding rapidly as food-grade alcohol finds applications in the production of sanitizers, medicines, and supplements. Additionally, the chemical industry is leveraging food-grade alcohol for formulations that require purity and compliance with food safety standards, adding to overall market growth.

The competitive landscape of the food-grade alcohol market features leading players such as Archer Daniels Midland Company, Cargill, MGP Ingredients, Huating Biotechnology, Roquette Freres S.A., Fonterra Co-operative Group, Cristalco SAS, Grain Processing Corporation, and Manildra Group. These companies are focusing on innovation, sustainable sourcing, and process optimization to strengthen their market share. Strategic partnerships, technological upgrades in fermentation, and expanding production capacities are helping them maintain a strong global presence and respond to shifting consumer and industrial demand patterns.

From a regional perspective, North America and Europe collectively account for a significant share of the global market, supported by well-established food processing industries, strict regulatory frameworks, and high consumer demand for quality ingredients. The Asia-Pacific region is experiencing the fastest market growth due to rapid urbanization, increasing processed food consumption, and expanding manufacturing capacities in countries such as China, India, and Japan. Meanwhile, Latin America and the Middle East & Africa are emerging as promising markets, driven by growing investments in food and beverage production. Looking ahead, the market forecast indicates sustained expansion, supported by innovation in bio-based production, health-conscious consumer trends, and regulatory emphasis on product safety and sustainability.

Segment by Type

• Ethanol
• Polyols

Segment by Application

• Food & Beverages
• Healthcare & Pharmaceuticals
• Chemical Industry

By Company

Archer Daniels Midland Company, Cargill, MGP Ingredients, Huating Biotechnology, Roquette Freres S.A., Fonterra Co-operative Group, Cristalco SAS, Grain Processing Corporation, Manildra Group

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