Food Grade Alcohol Market | Current Scenario and Industry Growth Forecast with Major Key Players data

According to Future Market Insights (FMI), the global Food Grade Alcohol market size is estimated to be valued at USD 4.0 billion in 2022 and is projected to reach USD 6.0 billion by 2032, recording a CAGR of 4.0% during the forecast period.

The global food grade alcohol market is expected to register substantial growth during the forecast period 2022-2032, driven primarily by its application as preservatives in foodstuffs.

The surging popularity of instant foods is providing immense scope for ethanol application across the food & beverages domain. Amid the COVID-19 crisis, the global food grade alcohol market is poised to experience minor deceleration in the short-run, attributed to gaps in the demand-supply equation due to government mandated lockdowns.

Food grade alcohol has been acquiring surging popularity across numerous application areas, ranging from food preservation t pharmaceutical formulations, cosmetics & fragrances manufacturing and spirits. Alcoholic beverages have long abandoned their premium tag, becoming more of a necessity than desire in various households.

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Rising disposable incomes have led consumers to demand specialized food and beverage products, compelling manufacturers to introduce innovative formulations across the market. This is touted to be a primary growth accelerator in the coming years.

Key Takeaways from the Report

  • Asia-Pacific likely to emerge as the fastest growing market through 2032
  • Growing demand for clean-label products to accelerate organic food grade alcohol market
  • By function, food preservation to remain lucrative, pharmaceutical usage gaining traction
  • Sugarcane-sourced alcohol demand to remain consistent, fruit-based alcohol acquires momentum
  • Spirits production to remain a key food grade alcohol application area

COVID-19 Impact Insights

The novel coronavirus pandemic has drastically altered the global economic landscape. Several industries are relegating growth projections to much lower levels than the pre-pandemic levels. The food grade alcohol market has made similar adjustments.

According to experts, the near-term forecast appears to be quite sluggish. Growth is being stifled due to strict curbs on logistics, rendering procurement of ingredients required for the production process quite difficult. This is expected to last until the latter half of 2021.

At the same time, uptake across the pharmaceutical and personal care industries is sustaining demand. Since the pandemic’s onset, hand sanitizer sales have spiked exponentially, with consumers hoarding vast quantities of sanitizer sachets and bottles. Most of these use ethanol in conjunction with other alcohol variants.

Since it is highly effective in eradicating surface grade viruses, uptake of food grade alcohol across the aforementioned industries is slated to witness further growth in the upcoming forecast period.

Food Grade Alcohol Market Players

The global food grade alcohol market is interspersed with numerous regional and global level manufacturers, rendering it highly competitive. Prominent players include Archer Daniels Midland Company, Cargill Inc., Fairly Traded Organics, Ethimex Ltd., Organic Alcohol Company, GLACIAL GRAIN SPIRITS, CHIPPEWA VALLEY ETHANOL COMPANY, Essentica, MGP Ingredients, and Altia Industrial.

Common strategies employed by the aforementioned players include product innovations & launches, collaborations & partnerships with existing players, acquisitions and strengthening of regional distribution and supply chain networks. The presence of such a wide number of vendors renders the market highly competitive.

More Valuable Insights on Food Grade Alcohol Market

Future Market Insights, in its new report, offers an unbiased analysis of the global food grade alcohol market, analyzing historical demand from 2015-2019 and forecast statistics for 2022-2032. The study reveals growth projections on the food grade alcohol market on the basis of nature (organic and conventional), application (spirits, vinegars, extracts and cosmetics & fragrances), function (aromas, preservatives, solvents, disinfectants and others) and source (sugarcane, wheat, rye, barley, corn and others) across seven prominent regions.

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Key questions answered in the report

  • How will the food grade alcohol grow from 2022-2032?

According to FMI’s estimates, the global food grade alcohol market is anticipated to embark on a largely positive trajectory, expanding steadily throughout the forecast period. A near-term sluggishness is expected due to disruptions in supply-demand equilibrium as a result of COVID-19.

  • Which is the most lucrative application area for food grade alcohol?

The food segment is expected to generate credible growth opportunities, attributed to its use as preservatives for instant foods. Also, projections indicate the pharmaceutical industry to make extensive usage of food grade alcohol to formulate drugs, anaesthetics, lotions and solvents.

  • Which is the most preferred food grade alcohol source?

Sugarcane is the dominant source for extracting food grade alcohol. However, fruit based alcohol is becoming equally popular, owing to the presence of high sugar content necessary to initiate the fermentation process.

  • How is COVID-19 likely to impact food grade alcohol market?

In the short-run, the global food grade alcohol market is expected to experience deceleration due to constraints in procuring raw materials due to government imposed shutdowns. This is expected to ease eventually, owing to extensive applications across the pharmaceutical industry to manufacture hand sanitizers.

  • Which is the largest food grade alcohol market?

North America currently dominates the global food grade alcohol market. Asia-Pacific, however, is slated to emerge as the most rapidly expanding market through 2032, with countries such as India and Thailand spearheading growth.

  • Which are the prominent food grade alcohol vendors?

Prominent food grade alcohol vendors included in this report are Archer Daniels Midland Company, Cargill Inc., Fairly Traded Organics, Ethimex Ltd., Organic Alcohol Company, GLACIAL GRAIN SPIRITS, CHIPPEWA VALLEY ETHANOL COMPANY, Essentica, MGP Ingredients, Altia Industrial, Highwater Ethanol LLC, Roquette Freres, Grain Processing Corporation, Fonterra Co-operative Group and Malindra Group.

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About FMI

Future Market Insights (ESOMAR certified market research organization and a member of Greater New York Chamber of Commerce) provides in-depth insights into governing factors elevating the demand in the market. It discloses opportunities that will favor the market growth in various segments on the basis of Source, Application, Sales Channel and End Use over the next 10-years.


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