Food-grade Alcohol Market Report

Food-grade Alcohol Market Analysis, Market Size, Application Analysis, Regional Outlook, Competitive Strategies and Forecasts To 2025

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  • Report ID: GVR4776
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Food-grade alcohol is the ethanol prepared from naturally sourced food ingredients. The food-grade alcohols are used in variety of applications in industries including food & beverage, healthcare,and pharmaceuticals. Food-grade alcohol can be called as ethyl alcohol is the purest form of the substance. Commercially, the product is generally sourced from sugarcane, grains and fruits as products exhibit abundant availability . The product is used extensively for the production of alcoholic beverages which is anticipated to drive the market for ethanol over the forecast period.

The product is manufactured by the fermentation process of sugars through petrochemical processes. It is a volatile, flammable, colorless and odorless liquid which is generally used as a drug or as a beverage. The food-grade alcohol market can be segmented on the basis of source, type, application, functionality and region. On the basis of type, it is segmented into ethanol and polyols where ethanol is the basic form of the substance. The product finds extensive use in the food & beverage industry. The demand for the aforementioned product for the production of natural vinegar is also anticipated to fuel growth. The demand for polyols is expected to rise on account of their low sugar content. In addition, polyols are used in combination with high-intensity sweeteners and find extensive application in the production fo confectionery.

The food-grade alcoholmarket is anticipated to grow on account of its use in large amounts in alcoholic beverages coupled with its widespread use as a preservative to increase the shelf life of products in food industry. Ethanol is a volatile compound and thus it is used as a preservative, coloring agents, among others in food industry. In addition, the food-grade alcohol market is anticipated to grow on account of rising population and development of urban areas with respect to improved quality of foods.

The market can also be segmented on the basis of its function where it is produced by fermentation or by synthetic processing. The industrial grade alcohols vary on the purity levels with the level of purity deciding the application for which the product is used for.. The highest purity level is neutral spirit which is generally sourced from wheat or corn and it is used for human consumption. The otherform of the industrial alcohols are categorized under USP grade and NF grade where the impurities are around 20-25 ppm.Theleast pure form is the fuel grade alcohol which is added to gasoline as an octane enhancer and aids in the reduction of carbon monoxide and nitrous oxide from atmosphere..

The food-grade alcohols are segmented based on applications into food& beverage and healthcare& pharmaceuticals , and personal care industries.. In food industry, it is used in the manufacturing of vinegar, flavors&extracts, food dyes, sprays, animal feed supplements, and candy glazes. High demand for alcohol in pharmaceuticals for manufacturing cough syrups, decongestants, vaccines, andantibiotics,is expected to drive the market growth over the forecast period. In addition, the product finds extensive use in the personal care industry where it is used in the formulations for the production of soaps, deodorants, perfumes, and shampoos..The product also finds extensive use in the production of herbal extraction formulations as the product is derived from natural sources.

The growth of the market is expected to be impacted by the rising awareness among the consumers regarding the negative effects of alcohol consumption coupled with the presence of stringent government regulations regarding the distribution and manufacture of alcoholic beverages.High demand for food grade alcohol in North America on account of factors including adoption of innovative technologies coupled with high demand for alcoholic beverages and confectionery product is expected ot drive the market over the forecast period. The market in Asia Pacific is expected to grow at the fastest rate on account of rapid development of the food & beverage industry. In addition, rising consumer expenditure on the food & beverage products is expected to fuel the demand for the food grade alcohol leading to market growth. The demand for the product in Europe is expected to grow at a lower rate on account of growing market maturity. However, high demand for the product by the consumers in developed economies such as Germany
and UK is expected to drive the market growth over the forecast period.

The food-grade alcohol market is characterized by the presence of a large number of players operating in key areas including 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.

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