Food Grade Alcohol Market Size, Share & Trends Analysis Report By Nature (Organic, Conventional), By Application (Spirits, Vinegars, Extracts, Cosmetics & Fragrances), By Source, By Functions, By Region, And Segment Forecasts, 2025-2034

Food Grade Alcohol Market Size is valued at 6.08 Billion in 2024 and is predicted to reach 10.99 Billion by the year 2034 at a 6.2% CAGR during the forecast period for 2025-2034.

Key Industry Insights & Findings from the Report:  

• The demand for food-grade alcohol is expected to rise due to greater emphasis on personal care and health and the rising population.
• The market for food-grade alcohol is being driven by innovations in meal and drink compositions and the increasing demand for craft, premium, and artisan alcoholic beverages.
• North America dominated the market and accounted for a global revenue share in 2023.
• The stringent rules and guidelines and rising health concerns are expected to slow the expansion of the food-grade alcohol industry.

Food grade alcohol is ethyl alcohol that is safe to consume. Food-grade alcohol is also known as food-grade ethanol, non-denatured alcohol, grain alcohol, and Anhydrous Ethanol in the industry. Food-grade ethanol is a potent natural human-safe solvent that can be used in a variety of food-safe applications such as extraction and foods that may come into contact with people. The key driving reason assisting market expansion for food grade alcohol is an increase in consumer income and expenditure, as well as rising urbanization, which is resulting in growth in the processed food market. This increase in demand for food additives creates potential for expansion in the food grade alcohol market. Furthermore, the use of alcoholic beverages as part of social meet and greet events has fueled market growth. Polyols, for instance, are widely used in the pharmaceutical and nutraceutical industries as dietary supplements, functional food and beverages, and sanitization solutions.

Meanwhile, changing raw material prices and strict restrictions are projected to stymie expansion in the food grade alcohol market. However, due to new product development and the shift of associated products from the luxury to the basic’s segments, these barriers are expected to be insignificant in the next years.

Competitive Landscape

Some Of The key players in the Global Food Grade Alcohol Market:

• Cargill, Inc.,
• Fairly Traded Organics,
• Ethimex Ltd.,
• Organic Alcohol Company,
• GLACIAL GRAIN SPIRITS,
• CHIPPEWA VALLEY ETHANOL COMPANY,
• Essentia,
• MGP Ingredients,
• Altia Industrial,
• Highwater Ethanol, LLC,
• Roquette Frères,
• Grain Processing Corporation,
• Fonterra Co-Operative Group,
• Manildra Group

Market Segmentation:

The Food Grade Alcohol market is segmented on the basis of nature, application, functions, and sources. Based on nature, the market is categorized as Organic and Conventional. The application segment includes Spirits, Vinegars, Extracts and Cosmetics & Fragrances. By functions, the market is segmented into Aromas, Preservatives, Solvents, Disinfectants and Others. By sources segment, the market is segmented into, Sugarcane, Wheat, Rye, Barley, Corn and Others.

Based on source, the sugarcane segment is accounted as a major contributor in the Food Grade Alcohol market

Sugarcane sources dominated the food grade alcohol market. The need is attributable to the fact that it is a major source of food-grade alcohol manufacturing. Due to extensive raw material availability, key countries sourcing alcohol from sugarcane include Brazil, India, China, and Thailand. Over the projection period, the grains segment is expected to rise at a CAGR. Its consumption in the production of various forms of alcohol is expected to drive growth. Wheat, corn, maize, and rice are some of the grains utilized in the manufacturing of alcohol. Corn and rye are frequently used in the production of whiskey all over the world. The fundamental function of rye grain is to impart flavour to the final product.

The spirits segment witnessed growth at a rapid rate.

The spirit category dominated the market over the forecast period due to a rise in premium/super-premium whiskey consumption and a shift in demand from beer to distilled spirits, including rum, whiskey, vodka, and others. It's made by distilling grains, fruits, vegetables, or sugar that have already been fermented alcoholically. Distilled beverages are often slightly sweet, bitter, and have a scorching feeling, as well as a strong odour from the alcohol; the specific flavour varies depending on the type of liquor and the impurities it contains. As a result of its prompt growth rate and substantial revenue contribution, this segment is anticipated to deliver strong demand stability as well as a considerable return on investment for stakeholders.

In the region, the Europe Food Grade Alcohol market holds a significant revenue share.

Europe held the largest market share. The demand is attributed to an upsurge in food and beverage consumption and expanded regional consumer expenditure. Europe is a large buyer of alcoholic beverages, with demand patterns altering significantly across the continent. Cultural changes, economic development, affordability, and easy access to alcohol are all necessary reasons for the region's high alcohol use. The region of North America, on the other hand, is expected to grow at the fastest rate during the projection period. An increase in the consumption of food products made with food-grade alcohol is predicted to drive the expansion. The product is gaining popularity among customers as well as food and beverage producers due to its adaptability in providing a wide range of culinary flavors.

Recent Developments:

• In Dec 2023, Supported by LIC Integra Essentia unveiled a recent acquisition as it aimed to make significant advancements in the beverage sector. The occurrence was noteworthy since it coincided with Coca-Cola India's inaugural venture into the domestic alcohol industry. The Lemon-Dou, a ready-to-drink alcoholic beverage with global availability, was launched.

The Food Grade Alcohol Market Report Scope

Segmentation of Food Grade Alcohol Market-

By Nature

• Organic
• Conventional

By Applications

• Spirits
• Vinegars
• Extracts
• Cosmetics & Fragrances

By Functions

• Aromas
• Preservatives
• Solvents
• Disinfectants
• Others

By Source

• Sugarcane
• Wheat
• Rye
• Barley
• Corn
• Others

By Region-

North America-

• The US
• Canada

Europe-

• Germany
• The UK
• France
• Italy
• Spain
• Rest of Europe

Asia-Pacific-

• China
• Japan
• India
• South Korea
• South East Asia
• Rest of Asia Pacific

Latin America-

• Brazil
• Argentina
• Mexico
• Rest of Latin America

 Middle East & Africa-

• GCC Countries
• South Africa

Rest of Middle East and Africa