The global grain alcohol market is estimated to reach USD 18.81 billion with a CAGR of 4.3% during the forecast period 2022-2030. It was valued at USD 11.85 billion in 2022. The increasing use in the pharmaceutical and healthcare industries to sterilize medical devices, ethanol in the food and beverage industry to extend the inherent lifespan of the product are the major factors restoring the growth of the global grain alcohols market. Furthermore, the product’s widespread use as an active component in the manufacturing process of chemical intermediates, blood fractionation/plasma, vaccines, pills and tablets, antibiotics, vitamins, and a variety of other medicines among the key factors expected over the forecast period to drive the global market’s growth for Grain Alcohols.

What Is Grain Alcohol?

Grain alcohol is pure alcohol with no taste, color, or smell produced by distilling and fermenting grain. Grain alcohol is also known as ethanol or ethyl alcohol. Furthermore, to produce alcoholic beverages, grain alcohol is also used as a solvent and in several other industrial applications. Sugars in grains are first fermented with yeast to make ethanol and grain alcohol. This ethanol is then continuously distilled to obtain alcohol. It can make the grain alcohol from sugarcane, wheat, rye, corn, grapes, beets, and tubers grain; the increase in the global population is expected to fuel the growth of the grain alcohol market.

Growth Driver

Beer production is growing around the world.

Beer production has increased significantly over the last decade. Beer is a widely used alcoholic beverage. The growing global demand for beer production has led breweries to obtain grain alcohol from barley. The use of alcohol, which is rarely produced in the beer industry, is expected to grow to a large market share. Furthermore, the rapidly increasing production and consumption of a wide range of alcoholic beverages around the world, growing demand from the food processing industry, the rising production and consumption of food and beverage goods and the increasing demand for pharmaceuticals and disinfectants are factors mainly driving the growth of the global grain alcohol market.

Opportunities

The Grain Alcohol market opportunity has increased.

Due to lifestyle changes and an increase in the middle-class population and disposable income, the grain alcohol market has grown significantly in emerging markets of Asian, African, and South American countries. These untapped markets are rich in cheap labor, advanced technology, and relatively relaxed regulations on the use of food-grade alcohol. Natural resources of cereal alcohol, such as sugar cane, cereals, corn, and other fruits and vegetables, are abundant in Asian, African, and South American countries.

Pre Covid-19 impact on the global Grain Alcohol market

In the pre covid era, the grain alcohol market was growing due to the increasing middle-class population and the rising disposable income created in individual life. Healthcare spending is increasing globally, particularly in low- and middle-income nations. The changing drinking habits of the population and an increasing number of craft distilleries have boosted the growth of the alcoholic beverages business. Additionally, the application of grain alcohol as preservatives, coatings, and food color, in the end, industries across several end-user manufacturing, including food & beverages and health & personal care, is increasing extremely across the globe.

Covid-19 impact on the global Grain Alcohol market

The COVID 19 pandemic is affecting business operations worldwide and is projected to continue to harm the grain alcohol market. Due to the unpredicted disruption of the supply chain and movement of goods during the COVID-19 pandemic in the grain alcohol market, manufacturers, suppliers, and retailers struggled to ensure a continuous supply of raw materials and ingredients. The co1mpanies were trying to find new sources to satisfy consumer wants. The demand for grain alcohol is unaffected, but the COVID-19 pandemic heavily influences the supply. The global lockdown in 2020 and ongoing regulation in 2021 disrupt supply chains and pose challenges for manufacturers affected by social distance rules and sick labor shortages.

Post Covid-19 impact on the global Grain Alcohol market

In the COVID-19 pandemic period, the healthcare and pharmaceutical businesses sustain demand for grain alcohol. Due to increasing awareness of healthcare needs, Hand sanitizers and disinfectants have grown exponentially, with consumers hoarding large disinfectant bags and bottles. Sanitizers and disinfectants are mainly formulated using ethanol and other alternates of alcohol. Since the coronavirus epidemic in 2019, the demand and usage of these hand disinfectants and sanitizers have soared at new stages all across the globe, which has established beneficial and assisted in the fueling of the growth of the global grain alcohol market. The pharmaceutical and healthcare industries are growing the demand for ethanol and other alternates of alcohol. In addition, food-grade alcohol sterilizes the skin before injection. The product is also used in the pharmaceutical and healthcare industries to sterilize medical devices. Which are the factors to the growth of the grain alcohol market is expected to experience higher growth during the forecast period.

Type Segmental Analysis

Based on the Type, the global grain alcohols market is segmented into Ethanol and Polyols. The Ethanol segment captured the largest market share in 2021 and is likely to grow critically during the forecast period, 2022-2030. This growth is due to the adoption of ethanol in the food and beverage industry to extend the inherent lifespan of the product. Ethanol is widely used in the end-use industry in food and beverages, pharmaceuticals, and personal care. Ethanol is primarily used in the personal care industry as an antifoaming agent, astringent, and preservative in various skincare, haircare, or oral care products.

Application Segmental Analysis

The global Grain Alcohols market is categorized into Food, Beverages, and Pharmaceutical & Healthcare on the Application. The food segment holds the largest market share in 2021 and is expected to grow significantly during the forecast period, 2022-2030. The segment’s growth is attributed to the growing use of food-grade alcohol to sterilize the skin before injection. It is also used in the pharmaceutical and healthcare industries to sterilize medical devices. These sterilization applications are expected to boost pharmaceutical industry product demand.

Source Segmental Analysis

The global Grain Alcohols market is categorized into Sugarcane, Grains and Fruits based on the Source. The hardware segment accounted for the highest market percentage in 2022 is likely to generate a sizeable revenue during the forecast period, 2022-2030. The segment’s growth is attributed to sugarcane, one of the preferred sources for food-grade alcohol production. Due to extensive raw material availability, Brazil, India, China, and Thailand are major alcohol producers of sugarcane.

Functionality Segmental Analysis

Based on the Functionality, the global Grain Alcohols market is segregated into Preservative, Coloring & Flavoring Agent, Coatings. The coloring and flavoring agent segment captured the largest market share in 2021 and is likely to generate maximum profit during the forecast period, 2022-2030. In food applications, alcohol is used as an additive to help evenly disperse the color of foods and improve the taste of food extracts. Moreover, polyols such as sorbitol and isomalt are used as flavoring and coloring in numerous foods. Polyols such as mannitol and xylitol are used as hard coatings in pharmaceutical applications. This is a common method of coating tablets. It is mainly used to hide unpleasant odors and tastes and protect the active ingredient from light.

Region Segmental Analysis

The global grain alcohol market is characterized by North America, Europe, Asia-Pacific, South America, and the Middle East & Africa. Europe has the largest market share in 2021 and is estimated to grow significantly during the forecast period, 2022–2030. The European food and beverage sector offers many opportunities for the food alcohol market due to its large consumer base and innovative scope. Market participants in the food and beverage industries in the region are constantly striving to develop new products and adopt innovative strategies to meet demand and gain a competitive advantage in the market. Furthermore, the boom in the Asia-Pacific region is attributed to the rapid economic growth, which drives the demand for grain alcohol. This, in turn, extends the demand for more and higher beverage applications, especially in China, India, and Indonesia. With a population of greater than four billion, busy lifestyles, and growing disposable income, there is a rise in per capita alcohol consumption expenditure in this region. The alcoholic beverages segment in this region is presently undergoing a widespread transformation in response to rapid urbanization.

Competitor Analysis

Companies include Godavari Biorefineries Ltd. Grain Processing Corporation, Manildra Group, Bartow Ethanol of Florida, L.C, Greenfield Global Inc, Wilmar International Ltd., Roquette Frères, Pure Alcohol Solutions, Ethanolsa Pty Ltd., Illovo Sugar Africa (Pty) Ltd., MGP, Cargill, Ingredients are the key players in the global Grain Alcohol market. Key Stakeholders

• Market research and consulting firms
• Industry associations
• Global Grain Alcohol manufacturing firm
• Local Governments
• Regulatory bodies
• Suppliers
• Retailers

Recent Developments

In January 2021, MGP Ingredients signed a formal agreement to acquire Luxco and its affiliates. Luxco is a leading brand beverage and alcohol company in various categories. As a result of the acquisition of Luxco, MGP Ingredients hopes to increase its size and market position in spirits.

Scope of the Report

Report Attribute	Details
Market Size Value in 2020	USD 11.85 Billion
The revenue forecast in 2027	USD 15.81 Billion
Growth Rate	CAGR of 4.3% from 2020 to 2027.
Historical data	2017-2019
Forecast period	2021 – 2027
Region covered	North America, Europe, Asia-Pacific, South America, and Middle East & Africa
Key companies Profiled	Godavari Biorefineries Ltd. Grain Processing Corporation, Manildra Group, Bartow Ethanol of Florida, L.C, Greenfield Global Inc, Wilmar International Ltd., Roquette Frères, Pure Alcohol Solutions, Ethanolsa Pty Ltd., Illovo Sugar Africa (Pty) Ltd., MGP, Cargill, Ingredients.

Market Modelling

By Type

• Ethanol
• Polyols

By Application

• Food
• Beverages
• Pharmaceutical & Healthcare

By Source

• Sugarcane
• Grains
• Fruits

By Functionality

• Preservative
• Coloring/Flavoring Agent
• Coatings

By Region

• North America
• Europe
• Asia Pacific
• South America
• Middle East & Afric

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