Food Grade Alcohol Market Size, Share & Trends Report

Food Grade Alcohol Market Size, Share & Trends Analysis Report By Application (Food & Beverage, Pharmaceuticals, Personal Care), By Product (Ethanol, Polyol), By Region, And Segment Forecasts, 2019 - 2025

  • Published Date: May, 2019
  • Base Year for Estimate: 2018
  • Report ID: GVR-2-68038-879-4
  • Format: Electronic (PDF)
  • Historical Data: 2015 - 2017
  • Number of Pages: 80

Industry Insights

The global food grade alcohol market size was valued USD 2.26 billion in 2018 and is expected to register a CAGR of 3.7% from 2019 to 2025. The growth is driven by an increase in the application of food grade alcohol in food and beverage, healthcare and pharmaceuticals, and personal care among other industries. Rising consumption of beverages and trade in alcohol are further propelling the demand for the food grade alcohol.

The product is made using the process of fermentation of plants and grains such as wheat, corn, and barley and is found in alcoholic drinks, such as brandy, whiskey, and beer. Increased sale of these products is anticipated to bode well for market growth. Moreover, increased production of beer and alcohol has spurred use of ethanol in the beverage industry, driving the overall demand for food grade alcholol.

U.S. food grade alcohol market

Alcohol is an important ingredient for manufacturing extracts, flavors, yeast, and vinegars. The demand for ethanol has increased in the food industry to expand the shelf life of the product, driven by the changing food habits and adoption of ready to eat food. Food grade alcohol plays an important role in healthcare industry owing to its use in preparation of medicines and sterilizing various medical equipment before use.

Europe market is projected to continue producing a market growth opportunity, owing to high consumption of alcohol in the region. In countries such as India, China, and Brazil, the market is expected to grow exponentially, owing to increased demand and trade of alcohol. Moreover, urbanization and rising population are anticipated to further drive the market.

Application Insights

On the basis of application, the food grade alcohol market has been segmented into food and beverage, pharmaceuticals, personal care, and others. Food and beverage industry held the largest market share of more than 35% both in terms of volume and revenue in 2018. Wide usage of alcohol in beverages as well as in food products is contributing to the segment growth. The product is odorless and colorless and it can extend shelf life and help preservation of foods and beverages.

In terms of revenue, the personal care segment is expected to register a high CAGR of 3.9%, from 2019 to 2025. By volume the segment is anticipated to expand at a CAGR of 2.5% during the forecast period. Increasing innovation and advancements in cosmetics and personal care are the factors driving the growth. Food grade alcohol is used as a vital ingredient in products like shampoo, perfume, deodorant, and soaps. Increasing application in sterilizing and cleaning of equipment in pharmaceutical industry and in products such as hand wash and sanitizersis anticipated to propel the growth.

Product Insights

Ethanol led the market due its increased use in food and beverage industry. In 2018, ethanol held the leading market share of around 73.47% in terms of volume. It is an essential ingredient in manufacturing alcoholic beverages owing to its properties of being colorless and odorless. With increasing disposable income, improved quality of beverages, and adoption of marketing activities have led to an increase in consumption of alcohol globally, thus driving the segment growth.

Global food grade alcohol market

Polyol is expected to expandat the highest CAGR of 4.0% in terms of revenue over the forecast period. Polyol are low oncalories and can lower blood glucose level and are effective in dental health. Hence, the product finds application in pharmaceuticals industry. Polyols are used as sugar replacers in food items to decrease the overall calorie intake. Increasing demand for healthy food and beverage, driven by inclination of consumers towards a healthy lifestyle, is projected to spur the market growth in the forthcoming years.

Regional Insights

Europe held the largest market share of 35.70% in terms of volume in 2018. Rising application in food and beverage industry to serve the demand of large consumer base is projected to propel the regional growth. Moreover, the food industry in Europe is inclined towards innovation and upgrades in food products, to beat competition and to meet the rising product demand.

Asia Pacific is the fastest growing region in terms of both revenue and volume. In terms of revenue, the region is forecasted to expand at a CAGR of 4.7% from 2019 to 2025. Increase in disposable income and rapid industrial development are the primary factors driving the regional growth. Improved standard of living and increased government investments in urbanization are resulting in increased regional consumption of food and beverages.

Food Grade Alcohol Market Share Insights

Leading market players include MGP Ingredients, Cargill Incorporated, Archer Daniels Midland Company, Jiangsu Huating Biotechnology, Cristalco, Grain Processing, Malindra, Wilmar International, Roquette Freres S.A., Active Char Products Pvt Ltd, Muby Chemicals, Spectrum Chemical MFG Corp, Fonterra Co-operative, among others.

These major players focus on expanding business in emerging economies such as Asia Pacific, Central and South America, and Middle East and Africa. Research, innovation, and product upgrades are some of the strategies adopted by the companies, to gain competitive advantage.

Report Scope

Attribute

Details

Base year for estimation

2018

Actual estimates/Historical data

2015 - 2017

Forecast period

2019- 2025

Market representation

Revenue in USD Million, Volume in Kilo Tons & CAGR from 2019 to 2025

Regional scope

North America, Europe, Asia Pacific, Central & South America, Middle East & Africa

Report coverage

Revenue forecast, company share, competitive landscape, growth factors and trends

Country Scope

U.S., Germany, U.K., India, China

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Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2025. For the purpose of this study, Grand View Research has segmented the global food grade alcohol market report on the basis of application, product, and region:

  • Application Outlook (Volume, Kilo Tons; Revenue, USD Million, 2015 - 2025)

    • Food & Beverage

    • Pharmaceuticals

    • Personal Care

    • Others

  • Product outlook (Volume, Kilo Tons; Revenue, USD Million, 2015 - 2025)

    • Ethanol

    • Polyol

  • Regional Outlook (Volume, Kilo Tons; Revenue, USD Million, 2015 - 2025)

    • North America

      • U.S.

    • Europe

      • Germany

      • U.K.

    • Asia Pacific

      • India

      • China

    • Central & South America

    • Middle East & Africa

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