Food Grade Alcohol Market

2020 Analysis and Review: Food Grade Alcohol Market by Nature – Organic and Conventional for 2020-2030


The global food grade alcohol market is expected to register substantial growth during the forecast period 2020-2030, driven primarily by its application as preservatives in foodstuffs.

As an antimicrobial agent, food grade alcohol, or ethanol, prevents spoilage by eliminating moisture accumulation. Moreover, it delays the onset of rancidity by preventing oxidative changes.

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.

Pharmaceuticals Sector will Create Opportunities

The pharmaceutical industry is likely to emerge a lucrative revenue hotspot. While pharmaceutical agricultural ethanol is useful in preparing anaesthetics, antiseptics, drugs and lotions, it is also being incorporated as an important ingredient for hand sanitizers. Players such as Cargill Foods are at the forefront of producing pharma grade ethanol.

The onset of COVID-19 has spiked hand sanitizer sales. Alcohol based sanitizers are an amalgamation of ethanol, isopropyl alcohol and n-propanol, with versions consisting of 60-95% alcohol proving most effective in eliminating surface viruses. Additionally, ethanol based disinfectants are also garnering significant popularity.

The Organic Revolution

Demand for clean-label foodstuffs has led to prolific developments across food grade alcohol market, with organically derived alcohol gaining massive traction. Simply speaking, organic alcohol is alcohol derived from organically grown grains, grapes, or other products.

Extractohol is a prominent organic alcohol manufacturer, producing and marketing a range of natural extractors available to make herbal extractions, oils and concentrates.

Its product line involves the Extractohol 200 Proof USP Food Grade Ethyl Alcohol and Extractohol-O Certified 190 Proof (Food Grade) Cane Alcohol respectively.


Sugarcane Remains the Preferred Source

By source, sugarcane derived food grade alcohol is expected to remain the most preferred. This is because of high sugarcane production across countries like India, Brazil, China and Thailand. In 2019, India produced ~5 billion litres of rectified spirits across more than 300 distilleries.

Simultaneously, fruit based alcohol is proliferating, with grapes being the primary source of spirits extraction. Grapes are extensively used as a base for producing wine and brandy. They possess high sugar content, which is sufficient for the fermentation process.

Asia Pacific to Witness Prolific Growth

North America continues to be one of the most lucrative markets for food grade alcohols. High consumption of alcoholic beverages and applications across foodstuffs is expected to propel the region’s growth through 2030.

Asia-Pacific is touted to be the fastest growing market, owing to the presence of key alcohol producing countries such as India and Thailand. Rising per capita incomes combined with a large population base is stimulating demand throughout the Asia-Pacific.

Food Grade Alcohol Market Prominent Players

FMI’s report has profiled the following food grade alcohol market players for the forthcoming decade’s assessment*:

  • Archer Daniels Midland Company
  • Cargill Inc.
  • Fairly Traded Organics
  • Ethimex Ltd.
  • Organic Alcohol Company
  • Essentica
  • MGP Ingredients
  • Altia Industrial
  • Highwater Ethanol LLC
  • Roquette Freres
  • Grain Processing Corporation
  • Fonterra Co-operative Group 
  • Malindra Group.

*This list is indicative- full details about food grade alcohol players is available upon request.

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.

Food Grade Alcohol Market- Report Scope



Forecast Period


Historical Data Available for


Market Analysis

US$ Mn for Value & Tons for Volume

Key Regions Covered

North America, Latin America, Europe, South Asia, East Asia, Oceania and Middle East & Africa

Key Countries Covered

U.S., Canada, Brazil, Mexico, Germany, Italy, France, U.K., Spain, BENELUX, India, Thailand, Indonesia, Malaysia, China, Japan, South Korea, Australia, New Zealand, GCC and South Africa

Key Segments Covered

Nature, Application, Function & Source

Key Companies Profiled

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.

Report Coverage

Market Overview, Key Trends, Success Factors, Demand Analysis, Market Background, COVID-19 Impact Analysis, Segmental Analysis, Regional Profiling, Market Structure Analysis & Competition Analysis

Customization & Pricing

Available upon Request

Key questions answered in the report

  • How will the food grade alcohol grow from 2020-2030?

    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 2030, 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.

Enquiry before Buying

  • Is this research conducted by Future Market Insights?

    Yes, the food grade alcohol market research has been conducted by expert analysts of Future Market Insights through a combination of primary and secondary research. To know more about how the research was conducted, you can speak to the research analyst

  • What research methodology is followed by FMI?

    FMI follows a methodology that encompasses the demand side assessment of the market, and triangulates the same through a supply side analysis. This methodology is based on use of standard market structure, methods and definitions.

  • Who are the respondents for primary research?

    FMI speaks to stakeholders across the spectrum, including C-level executives, distributors, product manufacturers, industry experts. For a full list of primary respondents, please reach out to us.

  • What are the sources of secondary research?

    FMI conducts extensive secondary research through proprietary databases, paid databases, and information available in the public domain. We refer to industry associations, company press releases, annual reports, investor presentations, and research papers. More information about desk research is available upon request. 

  • Is a sample of this report available for evaluation?

    Yes, you can request a sample and it will be sent to you through an email.

  • How can I buy this report?

    FMI provides a secure online payment system to buy report seamlessly. You can buy the report securely and safely.

Key Segments


  • Organic
  • Conventional


  • Spirits
  • Vinegars
  • Extracts
  • Cosmetics & Fragrances


  • Aromas
  • Preservatives
  • Solvents
  • Disinfectants
  • Others


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


  • North America (U.S & Canada)
  • Latin America (Brazil, Mexico & Rest of Latin America)
  • Europe (Germany, Italy, France, U.K., Spain, BENELUX, Nordics, Russia, Poland & Rest of Europe)
  • Middle East & Africa (GCC, South Africa & Rest of MEA)
  • East Asia (China, Japan & South Korea)
  • South Asia (India, Thailand, Indonesia, Malaysia & Rest of South Asia)
  • Oceania (Australia & New Zealand)

Need specific information?

In the news

How Businesses Can Utilize Market Research to Create Reactive, Recession-proof Strategies for Survival

by - Sudip Saha, Managing Director and Co-Founder of Future Market Insights

Our Clients

View Our Reports from Food and Beverage

View Reports


Food Grade Alcohol Market