Global Food Grade Alcohol Market - Growth, Trends and Forecasts (2018 - 2023)
The global food-grade alcohol market is expected to record a CAGR of 5.7% during the forecast period, (2018-2023). Food-grade alcohol is defined as a type of alcohol used in a wide range of applications in the food & beverage and healthcare & pharmaceutical sectors. The food-grade alcohol market, based on type, has been segmented into ethanol and polyols. Ethanol contributes to a larger market share as it is largely used in the production of alcoholic beverages. Ethanol is also popularly used as a preservative in the food industry to increase the shelf life of end products and in manufacturing colors and flavors for food applications. Due to its volatility, ethanol is widely used in the food industry as a main ingredient base to manufacture a wide range of alcoholic beverages. Ethanol also has a range of diverse functions as a preservative, coloring/flavoring agent, and a coating, thus boosting the demand for food-grade alcohol.
Increasing Demand and Consumption of Alcoholic Beverage Driving the Global Market
Rising interest among individuals for craft beer and other alcoholic beverage is the major driving force for the market. In addition, the export markets are growing in the developing countries due to better trade regulations, demographic pattern, and economic growth.
Innovative Product Development- the Upcoming Opportunity
The beverage sector holds a great potential for the food-grade alcohol manufacturers to develop innovative products, due to the availability of raw materials, especially, in Asia-Pacific. Companies, such as Cargill, are manufacturing neutral grain and potable alcohol, which are used as the major ingredients in the production of vodka, gin, jenever, liquor, pasti, and cream liquor by several European spirits producers. Food grade alcohol is also used as a processing aid in the production of chocolate and confectionery, and as a solvent for colorings, fragrances, and flavours.
Beverage Segment Anticipated to be the Fastest Growing Market, Globally
Based on type, the food-grade alcohol market can be categorized into ethanol and polyols. Ethanol holds the major market share as it is used in the production of alcoholic beverages. Moreover, ethanol is used as a preservative in the food industry, for shelf-life enhancement of end products, and for manufacture of colors & flavors for food applications. The low cost of sugar and molasses has led to increased ethanol production.
Asia-Pacific is expected to be Fastest Growing Market for Food-grade Alcohol Market
The market for food-grade alcohol is anticipated to grow in Asia-Pacific, owing to the increasing population and rising per capita income, especially in developing economies like India. Moreover, geographies, like Europe, have approved the use of food-grade alcohol in food & beverages, and pharma applications, which ultimately is expected to accelerate the market for food-grade alcohol.Major PLAYERS: ARCHER DANIELS MIDLAND, CARGILL, MGP INGREDIENTS, JIANGSU HUATING BIOTECHNOLOGY, ROQUETTEFRERES, FONTERRA CO-OPERATIVE, CRISTALCO, GRAIN PROCESSING, WILMAR INTERNATIONAL, MANILDRA and SIGMA-ALDRICH, amongst others.