FOOD GRADE ALCOHOL MARKET Size and trends

Food Grade Alcohol Market Size and Trends

The food grade alcohol market is estimated to be valued at USD 2.51 Bn in 2025 and is expected to reach USD 3.39 Bn by 2032, growing at a compound annual growth rate (CAGR) of 4.4% from 2025 to 2032.

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The market is expected to witness positive growth over the forecast period. Rising demand for brewed beverages, such as beer, and increasing application of food grade alcohol in the food & beverages industry as a food additive and preservative are some of the major factors expected to drive the market growth. Furthermore, changing consumer preference towards low-calorie beverages owing to rising health consciousness is also projected to support the demand for food grade alcohol in the coming years. The wide application of food grade alcohol as a solvent for the extraction and purification of pharmaceutical and food products will further provide growth opportunities for players operating in this market.

Growing Demand from End-use Industries

The food grade alcohol market is driven by the growing demand from various end-use industries such as food & beverages, pharmaceuticals, personal care products, etc. Alcohol is widely used in the food and beverage industry due to its various applications such as it acts as a flavoring agent, preservative, solvent for the extraction and distillation of natural food ingredients. It is also used during the production of wine, beer, and spirits. The booming food processing industry globally has significantly contributed to the growth of this market. The demand from the pharmaceutical industry is also driving the market as alcohol finds applications in medications, hand sanitizers, and disinfectants. The recent COVID-19 pandemic has immensely boosted the production and sales of hand sanitizers which use alcohol as the main ingredient. This has positively impacted the food grade alcohol market. The personal care industry also utilizes alcohol in products like fragrances, cosmetics and skin care items. Its penetrating and emollient properties makes it suitable for use in beauty products. Rising health consciousness among people has increased the demand for herbal extracts in dietary supplements and Ayurvedic medicines which uses alcohol as solvent for the extraction of active medicinal compounds from plants. Changing lifestyles and busy schedules have led to the growing preference for packaged and ready-to-eat food items which contain alcohol as preservative. Thus, the expansion of the food processing and personal care industries along with the increased consumption of packaged foods is expected to drive the demand for food grade alcohol in the coming years.