Food Grade Alcohol Market
PUBLISHED: 2024 ID: SMRC25511
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Food Grade Alcohol Market

Food Grade Alcohol Market Forecasts to 2030 - Global Analysis By Type (Ethanol and Polyols), By Nature (Organic, Conventional and Synthetic), Source, Function, Distribution Channel, Application and By Geography

4.9 (54 reviews)
4.9 (54 reviews)
Published: 2024 ID: SMRC25511

This report covers the impact of COVID-19 on this global market
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Years Covered

2021-2030

Estimated Year Value (2023)

US $7.3 BN

Projected Year Value (2030)

US $11.4 BN

CAGR (2023-2030)

6.6%

Regions Covered

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

Countries Covered

US, Canada, Mexico, Germany, UK, Italy, France, Spain, Japan, China, India, Australia, New Zealand, South Korea, Rest of Asia Pacific, South America, Argentina, Brazil, Chile, Middle East & Africa, Saudi Arabia, UAE, Qatar, and South Africa

Largest Market

North America

Highest Growing Market

Asia Pacific


According to Stratistics MRC, the Global Food Grade Alcohol Market is accounted for $7.3 billion in 2023 and is expected to reach $11.4 billion by 2030 growing at a CAGR of 6.6% during the forecast period. A Food Grade Alcohol is an automated solution designed to refuel vehicles without human intervention. Using robotic arms and specialized equipment, a Food Grade Alcohol enables efficient and precise fueling operations, reducing the risk of spills and improving safety. It enhances productivity in unmanned vehicle operations by eliminating the need for manual refueling processes and ensuring uninterrupted missions.

According to the U.S. Census Bureau data, the number of wineries and breweries in the U.S. increased from 2017 to 2020. The number of breweries in the U.S. in 2020 was 4,493, which grew from 3,305 in 2017.

Market Dynamics: 

Driver: 

Rising demand for processed foods

Processed food manufacturers utilize food-grade alcohol as a key ingredient in various products, such as sauces, condiments, flavorings, and extracts. Its use as a solvent, preservative, or flavor enhancer contributes to the quality, taste, and shelf life of processed foods. With the increasing consumption of processed and convenience foods worldwide, there is a growing need for food-grade alcohol, leading to expanded market opportunities and driving growth in the industry.

Restraint:

Fluctuations in the prices of raw materials

Raw materials such as grains, fruits, or sugarcane can be subject to price volatility due to factors like weather conditions, agricultural practices, and market demand. These fluctuations directly impact production costs, squeezing profit margins for manufacturers and affecting pricing stability for consumers. Additionally, uncertainty in raw material prices can disrupt supply chains and hinder long-term planning and investment in the food-grade alcohol industry, posing challenges to sustainable growth. 

Opportunity:

Expansion of the food and beverage industry

As the demand for alcoholic beverages, flavorings, and food additives continues to grow, so does the need for high-quality food-grade alcohol. With applications ranging from flavor extraction and food preservation to ingredient manufacturing, food-grade alcohol is a vital component in various products. Capitalizing on the expansion of the food and beverage industry allows suppliers of food-grade alcohol to tap into a lucrative market, driving growth and profitability in the sector.

Threat:

Stricter regulations on alcohol content

Stricter regulations on alcohol content pose a threat to the food-grade alcohol market by potentially limiting the permissible levels of alcohol in food and beverage products. Such regulations could impact the formulation and production processes of various products, leading to increased compliance costs and operational challenges for manufacturers. Additionally, restrictions on alcohol content may reduce product diversity and innovation, limiting market growth opportunities.

Covid-19 Impact: 

The COVID-19 pandemic significantly impacted the food-grade alcohol market. While demand surged initially due to increased use of hand sanitizers and disinfectants, lockdown measures and disruptions in supply chains led to production challenges. Additionally, reduced demand from sectors like hospitality and events further affected market dynamics. However, the market is expected to gradually recover as economies reopen and demand stabilizes with the easing of pandemic restrictions.

The ethanol segment is expected to be the largest during the forecast period

In the food-grade alcohol market, the ethanol segment is anticipated to dominate during the forecast period due to its widespread applications across various industries. Ethanol is extensively used in the production of alcoholic beverages, flavor extracts, and food additives. Additionally, ethanol's versatility, affordability, and availability make it a preferred choice for manufacturers in the food and beverage sector. Moreover, the rising demand for ethanol-based sanitizers and disinfectants amid the COVID-19 pandemic has further bolstered its market growth.

The sugarcane segment is expected to have the highest CAGR during the forecast period

The sugarcane segment is poised to exhibit the highest growth rate during the forecast period in the food-grade alcohol market. This growth is attributed to several factors, including the widespread availability of sugarcane as a raw material for alcohol production, favorable climatic conditions for sugarcane cultivation in various regions, and increasing demand for bio-based and sustainable ingredients. Additionally, technological advancements in sugarcane processing methods further contribute to the segment's growth potential in the market.

Region with largest share:

The North American region is positioned to dominate the food-grade alcohol market by capturing the largest market share. This is primarily due to several factors, such as the presence of a well-established food and beverage industry, increasing consumer demand for premium and high-quality products, and stringent regulations ensuring food safety standards. Additionally, growing awareness regarding health-conscious consumption patterns and the rising popularity of natural and organic ingredients further contribute to the region's significant market share in the food-grade alcohol industry.

Region with highest CAGR:

Asia Pacific is positioned for rapid growth in the food-grade alcohol market owing to the region's growing population, rising disposable incomes, and increasing urbanization, leading to changing consumer preferences towards premium and high-quality food products. Furthermore, the expansion of the food and beverage industry, coupled with the growing demand for alcoholic beverages and industrial applications, especially in emerging economies like China and India, is driving substantial growth opportunities for food-grade alcohol in the Asia Pacific region.

Key players in the market

Some of the key players in Food Grade Alcohol Market include Archer Daniels Midland Company, Cargill, Incorporated, Cristalco, Croda International Plc, DuPont de Nemours, Inc., Fonterra Co-operative Group Limited, Grain Processing Corporation, Greenfield Global Inc., Jiangsu Lianhai Biological Technology Co., Ltd., Manildra Group, MGP Ingredients, Inc., Purac Biochem BV (Corbion NV), Roquette Frères, Sigma-Aldrich Corporation, The Andersons, Inc. and Wilmar International Limited.

Key Developments:

In February 2024, Roquette is pushing the frontiers of the plant protein market by launching four multi-functional pea proteins designed to improve taste, texture and creativity in plant-based food and high-protein nutritional products. By further expanding its established NUTRALYS® plant protein portfolio, the leading ingredients company is bringing a host of new and improved application opportunities to the table for food manufacturers.

In September 2023, Greenfield Global Inc., the leading producer, manufacturer and distributor of high purity and specialty alcohols, solvents, and custom solutions, has partnered with REMET Alcohols, Inc. to address the growing demand in California and the Western US for bulk and packaged high-purity alcohol and denatured alcohol. With today’s announcement, Greenfield extends its bulk manufacturing and distribution capability and footprint westward, enhancing supply for the industrial, food, fragrance, pharmaceutical, personal care, and beverage industries in California, Nevada, Utah, Oregon, Washington and Arizona.

In July 2022, Grain Processing Corporation (GPC), a part of the Kent Corp. family of companies, has completed its acquisition of Grinnell, Iowa, US-based Natural Products, Inc. (NPI). NPI makes full-fat soy ingredients made from non-GMO or certified organic soybeans. The company also processes other beans and grains, including chickpeas and oats.

Types Covered:
• Ethanol
• Polyols
 
Natures Covered:
• Organic
• Conventional
• Synthetic

Sources Covered:
• Sugarcane
• Sugar Beet and Molasses
• Grains
• Fruits
• Other Sources

Functions Covered:
• Antioxidants
• Coatings
• Disinfectants
• Flavoring Agent
• Humectants
• Preservatives
• Solvents
• Other Functions

Distribution Channels Covered:
• Direct Sales
• Distributors and Wholesalers
• Retailers
• Online Sales
• Food Service Providers

Applications Covered:
• Food and Beverages
• Healthcare and Pharmaceuticals
• Personal Care and Cosmetics
• Nutraceuticals
• Biofuels
• Industrial Applications
• Other Applications

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan        
o China        
o India        
o Australia  
o New Zealand
o South Korea
o Rest of Asia Pacific    
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa 
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings: 
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances

Table of Contents

1 Executive Summary      
       
2 Preface      
 2.1 Abstract     
 2.2 Stake Holders     
 2.3 Research Scope     
 2.4 Research Methodology     
  2.4.1 Data Mining    
  2.4.2 Data Analysis    
  2.4.3 Data Validation    
  2.4.4 Research Approach    
 2.5 Research Sources     
  2.5.1 Primary Research Sources    
  2.5.2 Secondary Research Sources    
  2.5.3 Assumptions    
       
3 Market Trend Analysis      
 3.1 Introduction     
 3.2 Drivers     
 3.3 Restraints     
 3.4 Opportunities     
 3.5 Threats     
 3.6 Application Analysis     
 3.7 Emerging Markets   
 3.8 Impact of Covid-19
       
4 Porters Five Force Analysis      

 4.1 Bargaining power of suppliers     
 4.2 Bargaining power of buyers     
 4.3 Threat of substitutes     
 4.4 Threat of new entrants     
 4.5 Competitive rivalry     
       
5 Global Food Grade Alcohol Market, By Type      
 5.1 Introduction     
 5.2 Ethanol     
 5.3 Polyols     
  5.3.1 Glycerin    
  5.3.2 Propylene Glycol    
       
6 Global Food Grade Alcohol Market, By Nature      
 6.1 Introduction     
 6.2 Organic     
 6.3 Conventional     
 6.4 Synthetic     
       
7 Global Food Grade Alcohol Market, By Source       
 7.1 Introduction     
 7.2 Sugarcane     
 7.3 Sugar Beet and Molasses     
 7.4 Grains     
 7.5 Fruits     
 7.6 Other Sources     
       
8 Global Food Grade Alcohol Market, By Function      
 8.1 Introduction     
 8.2 Antioxidants     
 8.3 Coatings     
 8.4 Disinfectants     
 8.5 Flavoring Agent     
 8.6 Humectants     
 8.7 Preservatives     
 8.8 Solvents     
 8.9 Other Functions     
       
9 Global Food Grade Alcohol Market, By Distribution Channel      
 9.1 Introduction     
 9.2 Direct Sales     
 9.3 Distributors and Wholesalers     
 9.4 Retailers     
 9.5 Online Sales     
 9.6 Food Service Providers     
       
10 Global Food Grade Alcohol Market, By Application      
 10.1 Introduction     
 10.2 Food and Beverages     
 10.3 Healthcare and Pharmaceuticals     
 10.4 Personal Care and Cosmetics     
 10.5 Nutraceuticals     
 10.6 Biofuels     
 10.7 Industrial Applications     
 10.8 Other Applications     
       
11 Global Food Grade Alcohol Market, By Geography      
 11.1 Introduction     
 11.2 North America     
  11.2.1 US    
  11.2.2 Canada    
  11.2.3 Mexico    
 11.3 Europe     
  11.3.1 Germany    
  11.3.2 UK    
  11.3.3 Italy    
  11.3.4 France    
  11.3.5 Spain    
  11.3.6 Rest of Europe    
 11.4 Asia Pacific     
  11.4.1 Japan    
  11.4.2 China    
  11.4.3 India    
  11.4.4 Australia    
  11.4.5 New Zealand    
  11.4.6 South Korea    
  11.4.7 Rest of Asia Pacific    
 11.5 South America     
  11.5.1 Argentina    
  11.5.2 Brazil    
  11.5.3 Chile    
  11.5.4 Rest of South America    
 11.6 Middle East & Africa     
  11.6.1 Saudi Arabia    
  11.6.2 UAE    
  11.6.3 Qatar    
  11.6.4 South Africa    
  11.6.5 Rest of Middle East & Africa    
       
12 Key Developments      
 12.1 Agreements, Partnerships, Collaborations and Joint Ventures     
 12.2 Acquisitions & Mergers     
 12.3 New Product Launch     
 12.4 Expansions     
 12.5 Other Key Strategies     
       
13 Company Profiling      
 12.1 Archer Daniels Midland Company     
 12.2 Cargill, Incorporated     
 12.3 Cristalco     
 12.4 Croda International Plc     
 12.5 DuPont de Nemours, Inc.     
 12.6 Fonterra Co-operative Group Limited     
 12.7 Grain Processing Corporation     
 12.8 Greenfield Global Inc.     
 12.9 Jiangsu Lianhai Biological Technology Co., Ltd.     
 12.10 Manildra Group     
 12.11 MGP Ingredients, Inc.     
 12.12 Purac Biochem BV (Corbion NV)     
 12.13 Roquette Frères     
 12.14 Sigma-Aldrich Corporation     
 12.15 The Andersons, Inc.     
 12.16 Wilmar International Limited     
       
List of Tables       
1 Global Food Grade Alcohol Market Outlook, By Region (2021-2030) ($MN)      
2 Global Food Grade Alcohol Market Outlook, By Type (2021-2030) ($MN)      
3 Global Food Grade Alcohol Market Outlook, By Ethanol (2021-2030) ($MN)      
4 Global Food Grade Alcohol Market Outlook, By Polyols (2021-2030) ($MN)      
5 Global Food Grade Alcohol Market Outlook, By Glycerin (2021-2030) ($MN)      
6 Global Food Grade Alcohol Market Outlook, By Propylene Glycol (2021-2030) ($MN)      
7 Global Food Grade Alcohol Market Outlook, By Nature (2021-2030) ($MN)      
8 Global Food Grade Alcohol Market Outlook, By Organic (2021-2030) ($MN)      
9 Global Food Grade Alcohol Market Outlook, By Conventional (2021-2030) ($MN)      
10 Global Food Grade Alcohol Market Outlook, By Synthetic (2021-2030) ($MN)      
11 Global Food Grade Alcohol Market Outlook, By Source  (2021-2030) ($MN)      
12 Global Food Grade Alcohol Market Outlook, By Sugarcane (2021-2030) ($MN)      
13 Global Food Grade Alcohol Market Outlook, By Sugar Beet and Molasses (2021-2030) ($MN)      
14 Global Food Grade Alcohol Market Outlook, By Grains (2021-2030) ($MN)      
15 Global Food Grade Alcohol Market Outlook, By Fruits (2021-2030) ($MN)      
16 Global Food Grade Alcohol Market Outlook, By Other Sources (2021-2030) ($MN)      
17 Global Food Grade Alcohol Market Outlook, By Function (2021-2030) ($MN)      
18 Global Food Grade Alcohol Market Outlook, By Antioxidants (2021-2030) ($MN)      
19 Global Food Grade Alcohol Market Outlook, By Coatings (2021-2030) ($MN)      
20 Global Food Grade Alcohol Market Outlook, By Disinfectants (2021-2030) ($MN)      
21 Global Food Grade Alcohol Market Outlook, By Flavoring Agent (2021-2030) ($MN)      
22 Global Food Grade Alcohol Market Outlook, By Humectants (2021-2030) ($MN)      
23 Global Food Grade Alcohol Market Outlook, By Preservatives (2021-2030) ($MN)      
24 Global Food Grade Alcohol Market Outlook, By Solvents (2021-2030) ($MN)      
25 Global Food Grade Alcohol Market Outlook, By Other Functions (2021-2030) ($MN)      
26 Global Food Grade Alcohol Market Outlook, By Distribution Channel (2021-2030) ($MN)      
27 Global Food Grade Alcohol Market Outlook, By Direct Sales (2021-2030) ($MN)      
28 Global Food Grade Alcohol Market Outlook, By Distributors and Wholesalers (2021-2030) ($MN)      
29 Global Food Grade Alcohol Market Outlook, By Retailers (2021-2030) ($MN)      
30 Global Food Grade Alcohol Market Outlook, By Online Sales (2021-2030) ($MN)      
31 Global Food Grade Alcohol Market Outlook, By Food Service Providers (2021-2030) ($MN)      
32 Global Food Grade Alcohol Market Outlook, By Application (2021-2030) ($MN)      
33 Global Food Grade Alcohol Market Outlook, By Food and Beverages (2021-2030) ($MN)      
34 Global Food Grade Alcohol Market Outlook, By Healthcare and Pharmaceuticals (2021-2030) ($MN)      
35 Global Food Grade Alcohol Market Outlook, By Personal Care and Cosmetics (2021-2030) ($MN)      
36 Global Food Grade Alcohol Market Outlook, By Nutraceuticals (2021-2030) ($MN)      
37 Global Food Grade Alcohol Market Outlook, By Biofuels (2021-2030) ($MN)      
38 Global Food Grade Alcohol Market Outlook, By Industrial Applications (2021-2030) ($MN)      
39 Global Food Grade Alcohol Market Outlook, By Other Applications (2021-2030) ($MN)      
       
Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.       

List of Figures

RESEARCH METHODOLOGY


Research Methodology

We at Stratistics opt for an extensive research approach which involves data mining, data validation, and data analysis. The various research sources include in-house repository, secondary research, competitor’s sources, social media research, client internal data, and primary research.

Our team of analysts prefers the most reliable and authenticated data sources in order to perform the comprehensive literature search. With access to most of the authenticated data bases our team highly considers the best mix of information through various sources to obtain extensive and accurate analysis.

Each report takes an average time of a month and a team of 4 industry analysts. The time may vary depending on the scope and data availability of the desired market report. The various parameters used in the market assessment are standardized in order to enhance the data accuracy.

Data Mining

The data is collected from several authenticated, reliable, paid and unpaid sources and is filtered depending on the scope & objective of the research. Our reports repository acts as an added advantage in this procedure. Data gathering from the raw material suppliers, distributors and the manufacturers is performed on a regular basis, this helps in the comprehensive understanding of the products value chain. Apart from the above mentioned sources the data is also collected from the industry consultants to ensure the objective of the study is in the right direction.

Market trends such as technological advancements, regulatory affairs, market dynamics (Drivers, Restraints, Opportunities and Challenges) are obtained from scientific journals, market related national & international associations and organizations.

Data Analysis

From the data that is collected depending on the scope & objective of the research the data is subjected for the analysis. The critical steps that we follow for the data analysis include:

  • Product Lifecycle Analysis
  • Competitor analysis
  • Risk analysis
  • Porters Analysis
  • PESTEL Analysis
  • SWOT Analysis

The data engineering is performed by the core industry experts considering both the Marketing Mix Modeling and the Demand Forecasting. The marketing mix modeling makes use of multiple-regression techniques to predict the optimal mix of marketing variables. Regression factor is based on a number of variables and how they relate to an outcome such as sales or profits.


Data Validation

The data validation is performed by the exhaustive primary research from the expert interviews. This includes telephonic interviews, focus groups, face to face interviews, and questionnaires to validate our research from all aspects. The industry experts we approach come from the leading firms, involved in the supply chain ranging from the suppliers, distributors to the manufacturers and consumers so as to ensure an unbiased analysis.

We are in touch with more than 15,000 industry experts with the right mix of consultants, CEO's, presidents, vice presidents, managers, experts from both supply side and demand side, executives and so on.

The data validation involves the primary research from the industry experts belonging to:

  • Leading Companies
  • Suppliers & Distributors
  • Manufacturers
  • Consumers
  • Industry/Strategic Consultants

Apart from the data validation the primary research also helps in performing the fill gap research, i.e. providing solutions for the unmet needs of the research which helps in enhancing the reports quality.


For more details about research methodology, kindly write to us at info@strategymrc.com

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