The food grade alcohol market is estimated to be valued at USD 2.40 Bn in 2024 and is expected to reach USD 3.21 Bn by 2031, growing at a compound annual growth rate (CAGR) of 4.2% from 2024 to 2031.
The global food grade alcohol market has been growing steadily over the past few years. Food grade alcohol refers to ethanol or ethyl alcohol that is produced and processed in accordance with good manufacturing practices. It is used as an ingredient in food products, cosmetics, and pharmaceuticals where it acts as a solvent, antimicrobial agent, and preservative. Growing health consciousness among consumers and increasing demand for processed and packaged food & beverages have been driving the use of food grade alcohols. Moreover, alcohol’s ability to extract flavors and maintain the quality and freshness of food is also fueling its demand from the food industry. However, strict regulations regarding the production and use of food grade alcohol poses a challenge to market players.
Market Dynamics:
The key factors driving the food grade alcohol market include the growing demand for processed and packaged food & beverages, rising health consciousness leading to higher consumption of packaged food products, and widespread use of alcohol as a solvent, antimicrobial agent, and preservative in foods. Food grade alcohol helps enhance the shelf life of products and extracts natural flavors from many agricultural commodities like fruits, nuts, and spices. It also acts as a cleaning agent in the food processing industry. However, stringent regulations regarding the production, transport, storage, and use of food grade alcohol are expected to restrain the growth of this market. Moreover, availability of substitute ingredients and higher production costs pose challenges. Opportunities for market participants lie in developing countries with growing food processing industries. Investments in R&D to develop newer grades of alcohol for specialized applications also present an opportunity in the long run.
Key Features of the Study:
Detailed Segmentation-
Detailed Segmentation-
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