Food Grade Alcohol Market Value to Surpass US$ 5.8 Bn in 2028
The food grade alcohol market is expected to rise at a CAGR of ~7% during the forecast period of 2019-2028. Increasing demand for alcoholic beverages such as craft beer and other alcoholic beverages is expected to fuel the demand for food grade alcohol in the beverages industry during the forecast period. The FMI study reveals that the market will grow at a steady pace during 2019 - 2028.
Key Highlights
Food Grade Alcohol Market - Key Research Findings
- Global sales of food grade alcohol totaled US$ 3.2 Bn in 2019, with CAGR projected at 7% through 2028.
- The market revenue, however, may witness a slight downturn in 2020 due to significant manufacturing and supply chain disruptions triggered by COVID-19.
- Polyol accounts for a major share of manufacturers’ bottom lines, while demand for ethanol is expected to increase at a significant pace.
- Rise in demand for food grade alcohol as cleaning agent during the pandemic is creating tailwinds for the market growth.
- The emergence of experience-hungry millennial and Gen-Z as the generation of biggest consumer will fuel the adoption of food grade alcohol in F&B and personal care industry.
- Asia Pacific excluding Japan remains at forefront of the global market.
- North America and Europe collectively account for ½ of the total market revenue.
Key Factors Shaping Food Grade Alcohol Market
High Demand for Alcoholic Beverages
Rise in consumption of alcoholic beverages worldwide has been primarily influencing the demand for food grade alcohol. Driven by ‘convenience’ factor, growing popularity of ready-to-drink (RTD) alcoholic drinks is also contributing to the market growth. Furthermore, food grade alcohol finds a wide range of application in food & beverage industry, ranging from flavors and extracts to yeast and vinegars.
Increased Usage in Hand Sanitizers and Cleaning Chemicals
Alcohol and medicine have long been intertwined with each other. Food-grade alcohols such as ethanol are widely used as an antiseptic and solvent in medicines. With the rapid spread of Covid-19 across key economies and major markets, consumers have been increasingly demand for hand sanitizer and home cleaning chemicals. While the demand is on a significant rise, supply is declining at rapid pace, thereby compelling food-grade alcohol manufacturers to take part in the production of hand sanitizers and cleaning agents to maintain business continuity during the pandemic.
Halt in Food Processing and Foodservice Industry Operations During the Pandemic
As with many industries, the impact of COVID-19 on the food grade alcohol market has been evident in line with effective shutdown of food processing and supply chain operations. Unprecedented decline in foot traffic in foodservice sectors globally also has a negative impact on the market growth.
Food Grade Alcohol Market Structure Analysis
- The global-food grade alcohol market represents a fair level of consolidation.
- Leading manufacturers are focused on investing in R&D and new product launches to resonate with increasing demand for alcoholic beverages in Latin America and Middle East & Africa.
- Portfolio extension is also recognized as one of the key development step adopted by manufacturers of the food-grade alcohol.
- Top key players uphold their strategic focus on the development of joint ventures and solid distribution partnerships, with a target of stronger global footprint.
|
Report Metric |
Details |
|
Base year considered |
2019 |
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Actual estimates/Historical data |
2014 - 2018 |
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Forecast period |
2019 - 2028 |
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Market Value in 2019 |
US$ 3.2 Bn |
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Segments covered |
Product and Application |
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Regions covered |
North America, Latin America, Europe, APEJ, Japan, and MEA |
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Key Players |
Cargill Incorporated, Archer Daniel Midland Company, MGP Ingredients (US), Roquette Freres S.A, Sigma-Aldrich, Fonterra Co-operative Group. Major 12 players covered. |
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Report coverage |
Revenue forecast, company share, competitive landscape, growth factors, and trends |
Expansion Strategies by Leading Companies will Boost Growth
Food grade alcohol market is witnessing increasing competition. As a result of this, leading players are adopting various strategies to strengthen their foothold in the market. For instance, several market players are seeking out strategic collaborations to expand their product portfolio. Furthermore, mergers and acquisitions have become popular as leading companies look to set their foot in emerging nations across Asia Pacific. Besides this, product innovation and upgrading existing portfolio are key strategies adopted by the market players to gain competitive advantage.
Asia Pacific is forecast to Emerge as Lucrative Food-Grade Alcohol Market
Asia Pacific is expected to be the dominant region in the food grade alcohol market by the end of 2028, due to increasing consumption rate of alcoholic beverages. Food grade alcohol is used in different industries for different purposes such as in the food and beverages industry, it is used as additives in many food and beverage products increasing the shelf life of products. Food grade alcohol is used in the personal care industry as a common ingredient in many beauty products, where it acts as astringent to clean skin and as preservative in lotions. It is also used in the pharmaceutical industry.
Ethanol with Diverse Functional Properties is Grabbing Consumer Attention
Ethanol contributes a larger market share in the food grade alcohol market as it is majorly used in the production of alcoholic beverages. The demand for alcoholic beverages is growing worldwide. Food grade ethanol is also used as a preservative in food and beverage products to increase the shelf life of products. Along with that, it is used as an ingredient to enhance color and flavor of food products. Hence, ethanol has diverse functional properties as a coloring/flavoring agent, preservative, and is also used for coating in various food products. These properties are expected to boost the demand for food grade ethanol at the global level and thus benefitting the food grade alcohol market.
Polyol holds leading revenue share
Ethanol to showcase rapid growth with noteworthy CAGR
Personal Care to see high demand
Demand in food and beverage on rise
How Growth will Unfold
The beverage industry is growing at a very fast pace due to increasing innovations in beverage products. Due to which, the beverage industry holds extreme potential for food grade alcohol manufacturers to assist the bigger sector and develop more innovative beverages. Many leading players of the food grade alcohol market are investing in research and development activities to develop more innovative and unique products to attract large number of customers. This growing trend of unique and innovative beverages among consumers generate opportunities for players to serve the large segment of customers, worldwide. Leading manufacturers of food grade alcohol are currently investing in R&D and new product launches at priority to resonate with the increasing demand for alcoholic beverages in Latin America, and Middle East and Africa.
* This data is only a representation. Actual data may vary and will be available in report.
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Overview
Food Grade Alcohol Market: Global Industry Analysis 2014-2018 & Opportunity Assessment 2019-2028
A recent market study published by Future Market Insights on the food grade alcohol market offers global industry analysis for 2014-2018 & opportunity assessment for 2019-2028. The study offers a comprehensive assessment of the most important market dynamics. After conducting a thorough research on the historical, as well as current growth parameters, the growth prospects of the market are obtained with maximum precision.
Food Grade Alcohol Market Taxonomy
The global food grade alcohol market is segmented in detail to cover every aspect of the market and present complete market intelligence to readers.
Product Type
- Ethanol
- Polyol
Application
- Food & Beverages
- Pharmaceuticals
- Personal Care
- Other (Cleaning agent)
Region
- North America
- Latin America
- Europe
- APEJ
- Japan
- MEA
What's Included
The executive summary of the food grade alcohol market includes the market country analysis, demand-side and supply-side trends, opportunity assessment, and recommendations on the global food grade alcohol market.
Readers can find the detailed segmentation and definition of the food grade alcohol market in this chapter, which will help them understand basic information about the food grade alcohol market. This section also highlights the inclusions and exclusions, which help the reader understand the scope of the food grade alcohol market report.
The associated industry assessment of the food grade alcohol market is carried out in this section. The macroeconomic factors affecting growth of the food grade alcohol market are provided in this section and the impact of these macroeconomic indicators on the food grade alcohol market is analyzed. The processing overview and technological advancements in the food grade alcohol market is also provided.
Profit margins at each level of the food grade alcohol market are analyzed and readers can find detailed information on top importers and exporters as well as the value chain of the market.
The drivers and restraints impacting the growth of the food grade alcohol market are explained in this chapter. Opportunities and ongoing trends in the food grade alcohol market are also comprehensively discussed.
This chapter includes detailed analysis of the historical food grade alcohol market (2014-2018), along with an opportunity analysis for the forecast period (2019-2028). Readers can also find the absolute $ opportunity for the current year (2019 - 2020) and incremental opportunity for the forecast period (2019-2028). This chapter provides details about the food grade alcohol market on the basis of different segments. In this chapter, readers can understand market attractive analysis for all segments. This chapter explains how the food grade alcohol market is anticipated to grow across North America, Latin America, Europe, Asia Pacific Excluding Japan, Japan and the Middle East and Africa.
This chapter includes a detailed analysis of the growth of the food grade alcohol market in the North America region, along with a country-wise assessment that includes the U.S. and Canada. Readers can also find regional trends, regulations, and market growth based on application and countries in the North America region.
Readers can find detailed information about several factors, such as the pricing analysis and regional trends, which are impacting growth of the food grade alcohol market in the Latin America region. This chapter also includes growth prospects of the food grade alcohol market in leading LATAM countries such as Brazil, Mexico, Chile, Argentina, and the Rest of Latin America.
Important growth prospects of the food grade alcohol market based on its end user in several countries such as Germany, U.K., Russia, France, Italy, and Rest of Europe are included in this chapter.
This chapter includes a detailed analysis of the growth of the food grade alcohol market in East Asia region including the important growth prospects of the food grade alcohol in several countries such as China, India, ASEAN, Australia & New Zealand, and Rest of APEJ are included in this chapter.
This chapter offers insights into how the food grade alcohol market is expected to grow in Japan, along with different segments of the market during the forecast period of 2019-2028.
This chapter offers insights into how the food grade alcohol market is expected to grow in major countries in the MEA region such as GCC Countries, South Africa, North Africa, and Rest of MEA, during the forecast period 2019-2028.
In this chapter, readers can find detailed information about tier analysis and market concentration of the key players in the food grade alcohol market along with their market presence analysis by region and product portfolio.
In this chapter, readers can find a comprehensive list of leading manufacturers in the food grade alcohol market, along with detailed information about each company, which includes company overview, revenue shares, strategic overview, and recent company developments. Some of the market players featured in the report are Cargill, Incorporated, Archer Daniel Midland Company, MGP Ingredients (US), Roquette Freres S.A, Sigma-Aldrich, Fonterra Co-operative Group, Cristalco SAS, Wilmar International Limited, Grain Processing Corporation, Manildra Group among others.
This chapter includes a list of acronyms and assumptions that provide a base to the information and statistics included in the food grade alcohol report.
This chapter helps readers understand the research methodology followed to obtain various conclusions, as well as important qualitative and quantitative information, on the food grade alcohol market.
How the research was conducted?
Primary Research
- C - Level Executives
- Marketing Directors
- Sales Heads
- Production Managers
- Distributors Heads
- Sales Executives
- Product Manufacturers
- Distributors
- Traders
- Industry Experts
- End Users
- Current Market Dynamics and Challenges
- Market Characteristics
- Market Performance and Growth Quadrants
- Competition Structure and Market Structure
- Strategic Growth Initiatives
- Near-term and Long-term Market Growth Prospects
- Market Segment Splits and Authenticity
- Opinions on Market Projections and Validity Of Assumptions
Secondary Research
- Industry Publications
- Industrial Week
- Industrial Product Review
- Industrial Magazine
- Industry Associations
- Company Press Releases
- Annual Reports and Investor Presentations
- Research Papers
- Government Websites and Publications
- Trade Websites
Primary Interview Splits
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