Product Code: 2263
The Global Food-grade Alcohol Market, valued at USD 4.34 Billion in 2024, is projected to grow at a CAGR of 4.22% to reach USD 5.56 Billion by 2030. Food-grade alcohol-primarily high-purity ethanol derived from fermented agricultural feedstocks such as corn, sugarcane, or grains-meets strict quality and safety standards for use in beverages, food processing, pharmaceuticals, and personal care applications. Market growth is strongly supported by the steady expansion of the global alcoholic beverage industry, along with the rising use of ethanol as a solvent, preservative, and extraction medium in processed foods. Increasing consumer preference for natural and clean-label ingredients also reinforces demand, as ethanol produced through natural fermentation aligns with these expectations.
| Market Overview |
| Forecast Period | 2026-2030 |
| Market Size 2024 | USD 4.34 Billion |
| Market Size 2030 | USD 5.56 Billion |
| CAGR 2025-2030 | 4.22% |
| Fastest Growing Segment | Grains |
| Largest Market | Europe |
Key Market Drivers
The food-grade alcohol market is primarily driven by strong demand from the food and beverage industry and rising consumer preference for natural, clean-label formulations. Food-grade ethanol plays a vital role across product categories, from alcoholic spirits to flavor extracts and natural preservatives. Its importance is highlighted by the continued growth of the global spirits sector; according to Vinetur's report "Analysis of the Global Distilled Beverages and Spirits Market 2024," published May 7, 2025, global spirits production for 2024/2025 is valued at USD 128.9 billion-an industry highly dependent on food-grade ethanol.
Key Market Challenges
Volatile raw material prices remain a central challenge for the global food-grade alcohol market, as fluctuations in key feedstocks such as corn and sugarcane directly influence production costs and profitability. This volatility complicates budgeting, limits investment in production capacity, and increases financial risk for producers throughout the value chain. According to the Renewable Fuels Association, returns over operating costs for the ethanol industry averaged just $0.26 per gallon in 2024-a 40% decline from 2023. Such reduced margins demonstrate how price instability significantly constrains the industry's ability to maintain profitability and invest in innovation or expansion. This operational uncertainty ultimately slows market growth and limits producers' ability to meet rising global demand.
Key Market Trends
A major trend shaping the food-grade alcohol market is the strong rise in demand for low-alcohol and alcohol-free beverages. Driven by health consciousness and moderation, consumers are embracing beverages that deliver sophisticated flavors with reduced alcohol content. According to Drinks Ireland, non-alcoholic beer sales in Ireland increased 18% in the past year. Beverage companies are responding aggressively; Diageo, for example, announced an additional €30 million investment in October 2024 to double production capacity of Guinness 0.0 to 176 million pints per year.
Key Market Players
- Cargill Incorporated
- Archer Daniels Midland Company
- Fonterra Co-Operative Group Limited
- Manildra Group
- Cristalco S.A.S
- Grain Processing Corporation
- Glacial Grain Spirits
- MGP Ingredients
- Roquette Freres
- Wilmar International Limited
Report Scope:
In this report, the Global Food-grade Alcohol Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:
Food-grade Alcohol Market, By Type:
Food-grade Alcohol Market, By Source:
- Sugarcane & Molasses
- Fruits
- Grains
- Others
Food-grade Alcohol Market, By Application:
- Food
- Beverages
- Health Care & Pharmaceutical
Food-grade Alcohol Market, By Functionality:
- Colouring/Flavouring Agent
- Coatings
- Others
Food-grade Alcohol Market, By Region:
- North America
- United States
- Canada
- Mexico
- Europe
- France
- United Kingdom
- Italy
- Germany
- Spain
- Asia Pacific
- China
- India
- Japan
- Australia
- South Korea
- South America
- Brazil
- Argentina
- Colombia
- Middle East & Africa
- South Africa
- Saudi Arabia
- UAE
Competitive Landscape
Company Profiles: Detailed analysis of the major companies presents in the Global Food-grade Alcohol Market.
Available Customizations:
Global Food-grade Alcohol Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:
Company Information
- Detailed analysis and profiling of additional market players (up to five).
Table of Contents
1. Product Overview
- 1.1. Market Definition
- 1.2. Scope of the Market
- 1.2.1. Markets Covered
- 1.2.2. Years Considered for Study
- 1.2.3. Key Market Segmentations
2. Research Methodology
- 2.1. Objective of the Study
- 2.2. Baseline Methodology
- 2.3. Key Industry Partners
- 2.4. Major Association and Secondary Sources
- 2.5. Forecasting Methodology
- 2.6. Data Triangulation & Validation
- 2.7. Assumptions and Limitations
3. Executive Summary
- 3.1. Overview of the Market
- 3.2. Overview of Key Market Segmentations
- 3.3. Overview of Key Market Players
- 3.4. Overview of Key Regions/Countries
- 3.5. Overview of Market Drivers, Challenges, Trends
4. Voice of Customer
5. Global Food-grade Alcohol Market Outlook
- 5.1. Market Size & Forecast
- 5.2. Market Share & Forecast
- 5.2.1. By Type (Ethanol, Polyols)
- 5.2.2. By Source (Sugarcane & Molasses, Fruits, Grains, Others)
- 5.2.3. By Application (Food, Beverages, Health Care & Pharmaceutical)
- 5.2.4. By Functionality (Colouring/Flavouring Agent, Coatings, Others)
- 5.2.5. By Region
- 5.2.6. By Company (2024)
- 5.3. Market Map
6. North America Food-grade Alcohol Market Outlook
- 6.1. Market Size & Forecast
- 6.2. Market Share & Forecast
- 6.2.1. By Type
- 6.2.2. By Source
- 6.2.3. By Application
- 6.2.4. By Functionality
- 6.2.5. By Country
- 6.3. North America: Country Analysis
- 6.3.1. United States Food-grade Alcohol Market Outlook
- 6.3.1.1. Market Size & Forecast
- 6.3.1.2. Market Share & Forecast
- 6.3.1.2.1. By Type
- 6.3.1.2.2. By Source
- 6.3.1.2.3. By Application
- 6.3.1.2.4. By Functionality
- 6.3.2. Canada Food-grade Alcohol Market Outlook
- 6.3.2.1. Market Size & Forecast
- 6.3.2.2. Market Share & Forecast
- 6.3.2.2.1. By Type
- 6.3.2.2.2. By Source
- 6.3.2.2.3. By Application
- 6.3.2.2.4. By Functionality
- 6.3.3. Mexico Food-grade Alcohol Market Outlook
- 6.3.3.1. Market Size & Forecast
- 6.3.3.2. Market Share & Forecast
- 6.3.3.2.1. By Type
- 6.3.3.2.2. By Source
- 6.3.3.2.3. By Application
- 6.3.3.2.4. By Functionality
7. Europe Food-grade Alcohol Market Outlook
- 7.1. Market Size & Forecast
- 7.2. Market Share & Forecast
- 7.2.1. By Type
- 7.2.2. By Source
- 7.2.3. By Application
- 7.2.4. By Functionality
- 7.2.5. By Country
- 7.3. Europe: Country Analysis
- 7.3.1. Germany Food-grade Alcohol Market Outlook
- 7.3.1.1. Market Size & Forecast
- 7.3.1.2. Market Share & Forecast
- 7.3.1.2.1. By Type
- 7.3.1.2.2. By Source
- 7.3.1.2.3. By Application
- 7.3.1.2.4. By Functionality
- 7.3.2. France Food-grade Alcohol Market Outlook
- 7.3.2.1. Market Size & Forecast
- 7.3.2.2. Market Share & Forecast
- 7.3.2.2.1. By Type
- 7.3.2.2.2. By Source
- 7.3.2.2.3. By Application
- 7.3.2.2.4. By Functionality
- 7.3.3. United Kingdom Food-grade Alcohol Market Outlook
- 7.3.3.1. Market Size & Forecast
- 7.3.3.2. Market Share & Forecast
- 7.3.3.2.1. By Type
- 7.3.3.2.2. By Source
- 7.3.3.2.3. By Application
- 7.3.3.2.4. By Functionality
- 7.3.4. Italy Food-grade Alcohol Market Outlook
- 7.3.4.1. Market Size & Forecast
- 7.3.4.2. Market Share & Forecast
- 7.3.4.2.1. By Type
- 7.3.4.2.2. By Source
- 7.3.4.2.3. By Application
- 7.3.4.2.4. By Functionality
- 7.3.5. Spain Food-grade Alcohol Market Outlook
- 7.3.5.1. Market Size & Forecast
- 7.3.5.2. Market Share & Forecast
- 7.3.5.2.1. By Type
- 7.3.5.2.2. By Source
- 7.3.5.2.3. By Application
- 7.3.5.2.4. By Functionality
8. Asia Pacific Food-grade Alcohol Market Outlook
- 8.1. Market Size & Forecast
- 8.2. Market Share & Forecast
- 8.2.1. By Type
- 8.2.2. By Source
- 8.2.3. By Application
- 8.2.4. By Functionality
- 8.2.5. By Country
- 8.3. Asia Pacific: Country Analysis
- 8.3.1. China Food-grade Alcohol Market Outlook
- 8.3.1.1. Market Size & Forecast
- 8.3.1.2. Market Share & Forecast
- 8.3.1.2.1. By Type
- 8.3.1.2.2. By Source
- 8.3.1.2.3. By Application
- 8.3.1.2.4. By Functionality
- 8.3.2. India Food-grade Alcohol Market Outlook
- 8.3.2.1. Market Size & Forecast
- 8.3.2.2. Market Share & Forecast
- 8.3.2.2.1. By Type
- 8.3.2.2.2. By Source
- 8.3.2.2.3. By Application
- 8.3.2.2.4. By Functionality
- 8.3.3. Japan Food-grade Alcohol Market Outlook
- 8.3.3.1. Market Size & Forecast
- 8.3.3.2. Market Share & Forecast
- 8.3.3.2.1. By Type
- 8.3.3.2.2. By Source
- 8.3.3.2.3. By Application
- 8.3.3.2.4. By Functionality
- 8.3.4. South Korea Food-grade Alcohol Market Outlook
- 8.3.4.1. Market Size & Forecast
- 8.3.4.2. Market Share & Forecast
- 8.3.4.2.1. By Type
- 8.3.4.2.2. By Source
- 8.3.4.2.3. By Application
- 8.3.4.2.4. By Functionality
- 8.3.5. Australia Food-grade Alcohol Market Outlook
- 8.3.5.1. Market Size & Forecast
- 8.3.5.2. Market Share & Forecast
- 8.3.5.2.1. By Type
- 8.3.5.2.2. By Source
- 8.3.5.2.3. By Application
- 8.3.5.2.4. By Functionality
9. Middle East & Africa Food-grade Alcohol Market Outlook
- 9.1. Market Size & Forecast
- 9.2. Market Share & Forecast
- 9.2.1. By Type
- 9.2.2. By Source
- 9.2.3. By Application
- 9.2.4. By Functionality
- 9.2.5. By Country
- 9.3. Middle East & Africa: Country Analysis
- 9.3.1. Saudi Arabia Food-grade Alcohol Market Outlook
- 9.3.1.1. Market Size & Forecast
- 9.3.1.2. Market Share & Forecast
- 9.3.1.2.1. By Type
- 9.3.1.2.2. By Source
- 9.3.1.2.3. By Application
- 9.3.1.2.4. By Functionality
- 9.3.2. UAE Food-grade Alcohol Market Outlook
- 9.3.2.1. Market Size & Forecast
- 9.3.2.2. Market Share & Forecast
- 9.3.2.2.1. By Type
- 9.3.2.2.2. By Source
- 9.3.2.2.3. By Application
- 9.3.2.2.4. By Functionality
- 9.3.3. South Africa Food-grade Alcohol Market Outlook
- 9.3.3.1. Market Size & Forecast
- 9.3.3.2. Market Share & Forecast
- 9.3.3.2.1. By Type
- 9.3.3.2.2. By Source
- 9.3.3.2.3. By Application
- 9.3.3.2.4. By Functionality
10. South America Food-grade Alcohol Market Outlook
- 10.1. Market Size & Forecast
- 10.2. Market Share & Forecast
- 10.2.1. By Type
- 10.2.2. By Source
- 10.2.3. By Application
- 10.2.4. By Functionality
- 10.2.5. By Country
- 10.3. South America: Country Analysis
- 10.3.1. Brazil Food-grade Alcohol Market Outlook
- 10.3.1.1. Market Size & Forecast
- 10.3.1.2. Market Share & Forecast
- 10.3.1.2.1. By Type
- 10.3.1.2.2. By Source
- 10.3.1.2.3. By Application
- 10.3.1.2.4. By Functionality
- 10.3.2. Colombia Food-grade Alcohol Market Outlook
- 10.3.2.1. Market Size & Forecast
- 10.3.2.2. Market Share & Forecast
- 10.3.2.2.1. By Type
- 10.3.2.2.2. By Source
- 10.3.2.2.3. By Application
- 10.3.2.2.4. By Functionality
- 10.3.3. Argentina Food-grade Alcohol Market Outlook
- 10.3.3.1. Market Size & Forecast
- 10.3.3.2. Market Share & Forecast
- 10.3.3.2.1. By Type
- 10.3.3.2.2. By Source
- 10.3.3.2.3. By Application
- 10.3.3.2.4. By Functionality
11. Market Dynamics
- 11.1. Drivers
- 11.2. Challenges
12. Market Trends & Developments
- 12.1. Merger & Acquisition (If Any)
- 12.2. Product Launches (If Any)
- 12.3. Recent Developments
13. Global Food-grade Alcohol Market: SWOT Analysis
14. Porter's Five Forces Analysis
- 14.1. Competition in the Industry
- 14.2. Potential of New Entrants
- 14.3. Power of Suppliers
- 14.4. Power of Customers
- 14.5. Threat of Substitute Products
15. Competitive Landscape
- 15.1. Cargill Incorporated
- 15.1.1. Business Overview
- 15.1.2. Products & Services
- 15.1.3. Recent Developments
- 15.1.4. Key Personnel
- 15.1.5. SWOT Analysis
- 15.2. Archer Daniels Midland Company
- 15.3. Fonterra Co-Operative Group Limited
- 15.4. Manildra Group
- 15.5. Cristalco S.A.S
- 15.6. Grain Processing Corporation
- 15.7. Glacial Grain Spirits
- 15.8. MGP Ingredients
- 15.9. Roquette Freres
- 15.10. Wilmar International Limited
16. Strategic Recommendations
17. About Us & Disclaimer