Grand View Research, Inc. – Market Research And Consulting
The global food grade alcohol market size was valued at USD 2.34 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 3.8% from 2020 to 2027.

As per the report by Grand View Research Inc., the global Food Grade Alcohol Market is estimated at USD 3.14 billion by 2027. It is expected to develop by a 3.8% CAGR from 2020 to 2027.

The alcohol is also called as ethanol. It is a multipurpose product stretching from the industrial solvents to the pharmaceuticals and food. The food manufacturing sector is the important consumer of the alcohol. It is utilized in the manufacturing of various food sprays, yeast, candy glazes, vinegar, feed supplements for animals, food dyes, and the extracts & flavors.

The major difference between the manufacturing of food grade ethanol and fuel grade ethanol include adding a little quantity of gasoline or solvent to the fuel grade ethanol with the purpose of making it undrinkable. The procedure of the manufacturing of alcohol non-essentially makes the use of food grade utensils. Generally, the residual procedure for the manufacturing of the alcohol is same.   

Consumer preference for flavors of food & beverages backed by the development of novel products by the present players in the market is estimated to push the market ahead for food grade alcohol.

Increasing number of population in the upper middle class followed by the rising population has added to the growing penetration of the product in the market. The influence of the western life style on the young generation in India has moreover thrusted to the augmented sales of  food grade alcohol from alcoholic beverage sector. The development of the market for food grade alcohol in Europe is mainly credited to the improvement of the product that has bought about the development of RTD alcoholic beverages and has performed a significant part in inspiring the demand for the food grade alcohol, in the regional markets.

On the other hand, the strict policies by the government about the quality of food grade alcohol are expected to restrict the market for some level during the nearby future. Similarly, the disturbances in the supply chain, caused by lockdown in China and India are expected to influence adversely the development of the market for food grade alcohol.

Effect of Covid-19:

Food grade alcohols are utilized in the manufacturing of domestic and industrialized cleaning chemicals. The latest eruption of Covid-19 has caused substantial growth in the demand for surface disinfectants and hand sanitizers, thus, affecting optimistically the demand for the product. Diverse manufacturing companies of beverages and chemicals have ongoing manufacture of the food grade alcohol centered surface disinfectants and hand sanitizers to encounter the increasing demand for these products.

U.S. food grade alcohol market size


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Further findings from the report suggest:

  • To boost the penetration of the product and the profit margins, intentional coalition with new companies is expected to be the major approach between the companies for the duration of the forecast.
  • Owing to increasing demand for the product, for the purpose of sanitization, the pharmaceutical and healthcare application sector is likely to observe profitable enlargement during Covid-19 pandemic.
  • By function the flavoring and coloring agent sector is projected to observe major sales provided by rising demand for the food additives, which is able to increase the taste of the food extracts.
  • Due to the considerably developed food & beverages and pharmaceutical processing industries, North America and Europe are the leading customers of the food grade alcohol.
  • On the basis of application, food & beverages are estimated to observe the greater demand due to the rising attractiveness of the crafted beers and alcoholic beverages. 
  • Increasing alertness regarding the constituents of the consumer products between the customers, together with growing demand for novel alcohol centered taste, is estimated to be the major driver of the market for food grade alcohol.

Global food grade alcohol market share



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Some of the companies for Food Grade Alcohol Market are:

  • Pure Alcohol Solutions
  • Extractohol
  • Willmar International Ltd
  • Grain Processing Corporation
  • Bartow Ethanol of Florida, L.C
  • Ethanolsa Pty Ltd.
  • Greenfield Global Inc.
  • Roquette Frères
  • Manildra Group
  • ADM
  • MGP
  • Cristal co
  • Cargill, Incorporated

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