The global grain alcohol market size is expected to be valued at USD 15.6 Billion in 2022 and is poised to expand at a CAGR of 4.2% from 2022 to 2032. Overall grain alcohol sales are likely to account for ~26.5% of the demand in the global ethanol Market, valued at USD 59 Billion in 2022.
| Attribute | Details |
|---|---|
| Global Grain Alcohol Market Size (2022E) | USD 15.6 Billion |
| Market Projected Size (2032F) | USD 22.2 Billion |
| Value CAGR (2022 to 2032) | 4.2% |
| Top 3 Countries' Market Share | 76.4% |
Ethanol is the active element in alcoholic beverages such as beer, wine, and distilled spirits and is a consumable chemical. It used to be the most common component in several food products in a variety of tonics and cough medications.
It is also used as a patented treatment for therapeutic effects and is becoming increasingly popular. According to a study, the alcohol content in night-time cold remedies is 25%. Grain alcohol is utilized as a solvent, a germicide, and a disinfectant in the industrial sector.
Various starches from grain and residue of molasses from sugar refining are the main sources of sugars for fermentation. Corn is the most common source of starch in the USA In Europe, the availability of starch is usually from potatoes, whereas in Asia, starch is obtained from rice.
According to Future Market Insights (FMI), Brazil is considered to have the largest gasohol (mixture of gasoline and ethanol) consumption. The country gets the majority of its starch from cassava roots, however, sugar cane is responsible for a large portion of its grain alcohol.
Burgeoning Ethanol Production in the USA to Boost Grain Alcohol Market
According to FMI, the USA is considered to have the highest value share in the global grain alcohol market during the forecast period. Growth in the market is underpinned by the presence of leading key players in the country. The USA is expected to hold more than 75.6% market share in the North American grain alcohol industry, registering a CAGR of 1.8% over the forecast period.
North America is the top producer of the fuel ethanol which holds a significant share of 55% in global fuel ethanol production. The demand for alternate sources of fossil fuel owing to reducing dependency on them has surged the market demand for the production of fuel ethanol.
Germany Grain Alcohol Market to Benefit from Expansion of Food and Beverage Industry
According to FMI, Germany is estimated to hold more than 18.0% share of the Europe grain alcohol market in 2022 and is estimated to grow with a CAGR of around 3.1% in the forecast period.
Germany's grain alcohol market will gain traction on the back of the expansion of the food and beverage industry. One of the main markets for polyols sweeteners which are also known as sugar alcohol is gaining immense traction in Europe.
Hence, demand for low-calorie goods, polyols sweetener, which are similar to sugar but have a reduced calorie content is rising. These sugar polyols act as bulking agents, increasing the mass of the product while also sweetening it without adding calories. This is expected to boost the demand in the grain alcohol market.
Increasing Consumption of Alcohol to Push the Sales of Grain Alcohol
China is expected to dominate the East Asia grain alcohol market, holding a significant market share of more than 37.8% through 2032. As per FMI, sales in China are expected to grow at a CAGR of around 3.6% in the forecast period.
Alcohol consumption in China is booming at a faster rate than in other regions of the world. Increasing alcohol production and consumption, as well as rates of alcohol-related illnesses, have been steadily increasing over the past years.
On the back of this, the demand for grain alcohol in China is expected to increase over the forecast period.
2 Out of 5 Grain Alcohol Sales are to be Contributed by the Corn Segment
Based on the source, the corn segment is expected to dominate the grain alcohol market, holding more than 41% of the market share in 2022. It is expected to grow with a CAGR of around 2.1% over the forecast period.
Corn grain is a desirable ethanol feedstock because of its high starch content and ease of ethanol conversion. The segment is expected to benefit from infrastructure that allows it to cultivate, harvest, and store large amounts of corn.
Corn starch must be boiled with glucoamylase enzymes to convert the starch to simple sugars, unlike sugarcane, where the squeezed sugar water can be fermented directly.
Rising Alcohol Consumption Will Drive the Demand for Grain Alcohol in Beverage Industry
In terms of application, the beverages segment is expected to dominate the market, accounting for over 41.6% share in the year 2022 and it is expected to grow with a significant CAGR of around 2.6% over the forecast period.
Increased consumption of beverage products will drive the grain alcohol business. Also, the growing number of breweries in recent years has been a major driver of industry expansion. Alcohol consumption has risen at an exponential rate in recent years.
Major market participants and local producers are sourcing grain alcohol from grain to meet the needs of consumers. Furthermore, the rising popularity of craft beer and locally produced beer is predicted to boost global demand for alcoholic beverages.
Changing lifestyles, growing urbanization, rising alcoholic beverage consumption rates, high disposable incomes, and the popularity of alcoholic beverages among millennials are a few major reasons driving the global grain alcohol market.
Rising Sales of Hand-Sanitizers to Drive the Sales of Grain Alcohol for Disinfectants
In terms of functionality, the disinfectant segment is expected to dominate the market holding more than 31.2% share in the year 2022 and it is expected to grow with a significant CAGR of around 2.3% over the forecast period.
Increased demand for hand sanitizers and disinfectants is expected to boost the grain alcohol market as most of the disinfectants and hand sanitizers include ethanol.
The grain alcohol market is expected to be fragmented due to the presence of various mid-sized and small competitors. Mergers and acquisitions, product innovation, and production capacity expansion are all priorities for major players. In addition to this, the high competition in the market is promoting high product innovation in terms of types, rapid testing kits, marketing, etc.
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| Attribute | Details |
|---|---|
| Forecast Period | 2022 to 2032 |
| Historical Data Available for | 2017 to 2021 |
| Market Analysis | USD Billion for Value and MT for Volume |
| Key Regions Covered | North America; Latin America; Europe; East Asia; South Asia; Oceania; and the Middle East & Africa |
| Key Countries Covered | USA, Canada, Brazil, Mexico, Chile, Peru, Argentina, Germany, Italy, France, UK, Spain, BENELUX, Nordic, Russia, Poland, China, Japan, South Korea, India, Thailand, Indonesia, Malaysia, Singapore, Australia, New Zealand, GCC Countries, Turkey, South Africa, North Africa, and Central Africa |
| Key Segments Covered | Source, Application, Functionality, Type, and Region |
| Key Companies Profiled | Grain Processing Corporation; Manildra Group; Glacial Grain Spirits; Cristalco; Merck Group; Cargill; Archer-Daniels-Midland Company; Willmar Group; MGP Ingredients, Inc.; Roquette Frères |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, Drivers, Restraints, Opportunities and Threats Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
| Customization & Pricing | Available upon Request |
The global grain alcohol market is expected to be valued nearly USD 15.6 Billion in 2022.
North America grain alcohol market is valued at USD 8.3 Billion in 2022 and it is expected to grow with CAGR of 2.1% over the forecast period 2032.
Key manufacturers of global grain alcohol are Cargill, Archer-Daniels-Midland Company, MGP Ingredients, Inc., and Grain Processing Corporation
China grain alcohol market will grow at 3.6% CAGR between 2022 and 2032.
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