Food-grade Alcohol Market by Type (Ethanol, Polyols), Application (Food, Beverages, Healthcare & Pharmaceuticals), Source (Sugarcane & Molasses, Grains, Fruits), Functionality, and Region - Global Forecast to 2022

The food-grade alcohol market is estimated at USD 10.26 Billion in 2016, and is projected to grow at a CAGR of 3.9% from 2017 till 2022.

The years considered for the study are as follows:

• Base year: 2016
• Estimated year: 2017
• Projected year: 2022
• Forecast period: 2017–2022

2016 has been considered as the base year. Whenever information was unavailable for the base year, the prior year has been considered.

Objectives of the study are as follows:

• To define, segment, and measure the market with respect to functionality, type, application, source, and region
• To provide detailed information regarding the crucial factors influencing the growth of the market (drivers, restraints, opportunities, and industry-specific challenges)
• To strategically analyze the micromarkets1  with respect to individual growth trends, future prospects, and contribution to the total market
• To analyze the opportunities for stakeholders in the food-grade alcohol market and provide a competitive landscape of the market leaders
• To project the size of the market and its submarkets, in terms of value and volume, with respect to the four main regions (along with their respective key countries), namely, North America, Europe, Asia-Pacific, and the Rest of the World (RoW)
• To strategically profile the key players and comprehensively analyze their market share and core competencies2
• To track and analyze competitive developments such as investments & expansions, acquisitions, partnerships, and new product launches in the market

1. Micromarkets are defined as the further segments and subsegments of the market included in the report.
2. Core competencies of companies are captured in terms of their key developments, SWOT analyses, and key strategies adopted by them to sustain their position in the market.

Research Methodology

This report includes estimations of market size in terms of value (USD billion) and volume (tons). Both top-down and bottom-up approaches have been used to estimate and validate the size of the market and of various other dependent submarkets in the overall market. Key players in the market have been identified through secondary research, and their market share in respective regions has been determined through primary and secondary research. All percentage shares, splits, and breakdowns have been determined using secondary sources, such as Ethanol Producers Association of Southern Africa (EPASA), Food Additives and Ingredients Association (FAIA), Food and Agriculture Organization (FAO), European Food safety Authority (EFSA), and Food and Drug Administration (FDA) to identify and collect information useful for this technical, market-oriented, and commercial study of the food-grade alcohol market.

To know about the assumptions considered for the study, download the pdf brochure

Market Ecosystem

The market is dominated by key players such as Archer Daniels Midland Company (U.S.), Cargill (U.S.), MGP Ingredients (U.S.), Sigma-Aldrich (U.S.), and Roquette Freres S.A. (France). Other market players in this segment include Fonterra Co-operative Group (New Zealand), Cristalco SAS (France), Grain Processing Corporation (U.S.), Wilmar International Limited (Singapore), and Manildra Group (Australia).

The various contributors involved in the value chain of food-grade alcohol include raw material suppliers, manufacturers, wholesalers/distributors, retailers, and end users. Major manufacturing companies develop their in-house R&D centers for research and innovation activities to support their manufacturing unit and to successfully introduce new products in the market.

Target Audience:

• Raw material suppliers
• Regulatory bodies, which include the following:
  • Food safety agencies such as the FDA, EFSA, USDA, and FSANZ
  • Government agencies and NGOs
• Food safety agencies
• End users, which include the following:
  • Food & beverage manufacturers/suppliers
  • Pharmaceutical manufacturers/suppliers
  • Retailers
• Commercial research & development (R&D) institutions and financial institutions
• Importers and exporters of food-grade alcohol
• Traders, distributors, and suppliers
• Government and research organizations
• Trade associations and industry bodies

Scope of the Report

Based on Type, the market has been segmented as follows:

• Ethanol
• Polyols

Based on Source, the market has been segmented as follows:

• Sugarcane & molasses
• Grains
• Fruits
• Others (rice and corn)

Based on Application, the market has been segmented as follows:

• Food
• Beverage
• Health care & pharmaceuticals

Based on Region, the market has been segmented as follows:

• North America
• Europe
• Asia-Pacific
• RoW

Available Customizations

With the given market data, MarketsandMarkets offers customizations according to the client-specific needs.

The following customization options are available for the report:

Product Analysis

• Product matrix, which gives a detailed comparison of the product portfolio of each company

Application Analysis

• Application analysis, which gives a detailed analysis of food and beverage applications in food-grade alcohol market

Regional Analysis

• Further breakdown of the Rest of Europe food-grade alcohol market into Spain, the Netherlands, Denmark, and Western European countries
• Further breakdown of the Rest of Asia-Pacific food-grade alcohol market into South Korea, Indonesia, Malaysia, Singapore, and Vietnam
• Further breakdown of the RoW food-grade alcohol market into the Middle East and Sub-Saharan African countries

Company Information

• Detailed analysis and profiling of additional market players (up to five)

Table of Contents

1 Introduction (Page No. - 13)
    1.1 Objectives of the Study
    1.2 Market Definition
    1.3 Scope of the Study
           1.3.1 Markets Covered
    1.4 Periodization
    1.5 Currency
    1.6 Package Size
    1.7 Limitations of the Study
    1.8 Stakeholders

2 Research Methodology (Page No. - 17)
    2.1 Research Data
           2.1.1 Secondary Data
                    2.1.1.1 Key Data From Secondary Sources
           2.1.2 Primary Data
                    2.1.2.1 Key Data From Primary Sources
                    2.1.2.2 Key Industry Insights
                    2.1.2.3 Breakdown of Primaries, By Company Type, Designation & Region
    2.2 Factor Analysis
           2.2.1 Introduction
           2.2.2 Overview of the Parent Industry
           2.2.3 Demand-Side Analysis
                    2.2.3.1 Beverage Industry
                               2.2.3.1.1 Key Segments in the Beverage Sector
                    2.2.3.2 Increase in Global Population
                               2.2.3.2.1 Increase in Middle-Class Population, 2009–2030
           2.2.4 Supply-Side Analysis
                    2.2.4.1 Barley Production
                    2.2.4.2 Wheat Production
    2.3 Market Size Estimation
    2.4 Market Breakdown & Data Triangulation
    2.5 Research Assumptions & Limitations

3 Executive Summary (Page No. - 32)

4 Premium Insights (Page No. - 35)
    4.1 Attractive Marketing Opportunities in this Market
    4.2 Food-Grade Alcohol Market Size, By Source
    4.3 Europe: Food-Grade Alcohol Market, By Type
    4.4 Fruits Segment to Have the Highest CAGR in Food-Grade Alcohol Market
    4.5 Food-Grade Alcohol Market Life Cycle Analysis, By Region

5 Market Overview (Page No. - 40)
    5.1 Introduction
    5.2 Market Segmentation
           5.2.1 By Type
           5.2.2 By Application
           5.2.3 By Source
    5.3 Market Dynamics
           5.3.1 Market Drivers
                    5.3.1.1 Increasing Global Beer Production and Popularity of Craft Beer
                    5.3.1.2 Increasing Global Trade in Alcohol
           5.3.2 Restraints
                    5.3.2.1 Awareness About Harmful Effects of Alcohol Consumption
           5.3.3 Opportunities
                    5.3.3.1 Emerging Markets Such as Asia-Pacific, Latin America, and Middle East & Africa
                    5.3.3.2 Contribution of Co-Products of Ethanol Production in the Feed Industry
           5.3.4 Challenges
                    5.3.4.1 Fluctuating Prices of Raw Materials
                    5.3.4.2 Stringent Regulations on the Use of Alcohol in Food & Beverages and Health & Personal Care Products

6 Industry Trends (Page No. - 47)
    6.1 Introduction
    6.2 Value Chain Analysis
    6.3 Supply Chain Analysis
    6.4 Government Regulations
           6.4.1 Introduction
           6.4.2 Regulatory Compliances for Alcoholic Beverage Manufacturers in Different Countries
           6.4.3 Regulatory Parameters for Alcohol Consumption
                    6.4.3.1 Labeling
                               6.4.3.1.1 USP (United States Pharmacopeia)

7 Food-Grade Alcohol Market, By Type (Page No. - 52)
    7.1 Introduction
    7.2 Ethanol
    7.3 Polyols

8 Food-Grade Alcohol Market, By Source (Page No. - 57)
    8.1 Introduction
    8.2 Sugarcane & Molasses
    8.3 Grains
    8.4 Fruits
    8.5 Other Sources

9 Food-Grade Alcohol Market, By Application (Page No. - 63)
    9.1 Introduction
    9.2 Food
    9.3 Health Care & Pharmaceutical
    9.4 Beverages
           9.4.1 Beer
           9.4.2 Wine
           9.4.3 Spirits
           9.4.4 Others

10 Food Grade Alcohol, By Functionality (Page No. - 71)
     10.1 Preservative
     10.2 Coloring/Flavoring Agent
     10.3 Coatings
     10.4 Others

11 Food-Grade Alcohol Market, By Region (Page No. - 72)
     11.1 Introduction
     11.2 North America
     11.3 Europe
     11.4 Asia-Pacific
     11.5 Rest of the World (RoW)

12 Competitive Landscape (Page No. - 89)
     12.1 Overview
     12.2 Competitive Situations & Trends
             12.2.1 Expansions & Investments
             12.2.2 New Product Launches
             12.2.3 Agreements & Joint Ventures

13 Company Profiles (Page No. - 94)
(Company at A Glance, Recent Financials, Products & Services, Strategies & Insights, & Recent Developments)*
     13.1 Introduction
     13.2 Archer Daniels Midland Company
     13.3 Cargill 
     13.4 Sigma-Aldrich
     13.5 Roquette Frères
     13.6 MGP Ingredients
     13.7 Cristalco S.A.S
     13.8 Grain Processing Corporation
     13.9 Wilmar International Limited
     13.10 Fonterra Co-Operative Group
     13.11 Manildra Group

*Details on Company at A Glance, Recent Financials, Products & Services, Strategies & Insights, & Recent Developments Might Not Be Captured in Case of Unlisted Companies.

14 Appendix (Page No. - 116)
     14.1 Discussion Guide
     14.2 Knowledge Store: Marketsandmarkets’ Subscription Portal
     14.3 Introducing RT: Real-Time Market Intelligence
     14.4 Available Customizations
     14.5 Related Reports
     14.6 Author Details

List of Tables (48 Tables)

Table 1 Impact of Key Factors Influencing the Parent Industry
Table 2 Regulatory Bodies
Table 3 Food Grade Alcohol Market Size, By Type, 2015-2022 (USD Million)
Table 4 Market Size, By Type, 2015-2022 (KT)
Table 5 Ethanol: Market Size, By Region, 2015-2022 (KT)
Table 6 Polyols: Market Size, By Region, 2015-2022 (KT)
Table 7 Food-Grade Alcohol Market Size, By Source, 2015–2022 (USD Million)
Table 8 Market Size, By Source, 2015–2022 (KT)
Table 9 Food-Grade Alcohol Market Size From Sugarcane & Molasses, By Region, 2015–2022 (KT)
Table 10 Food-Grade Alcohol Market Size From Grains, By Region, 2015–2022 (KT)
Table 11 Market Size From Fruits, By Region, 2015–2022 (KT)
Table 12 Food-Grade Alcohol Market Size From Other Sources, By Region, 2015–2022 (KT)
Table 13 Food-Grade Alcohol Market Size, By Application, 2015-2022 (USD Million)
Table 14 Market Size, By Application, 2015-2022 (KT)
Table 15 Food: Market Size, By Region, 2015-2022 (KT)
Table 16 Healthcare & Pharmaceutical: Market Size, By Region, 2015-2022 (KT)
Table 17 Beverage: Market Size, By Region, 2015-2022 (KT)
Table 18 Beverage: Market Size, By Subapplication, 2015-2022 (KT)
Table 19 Beer: Market Size, By Region, 2015-2022 (KT)
Table 20 Wine: Market Size, By Region, 2015-2022 (KT)
Table 21 Spirits: Market Size, By Region, 2015-2022 (KT)
Table 22 Others: Market Size, By Region, 2015-2022 (KT)
Table 23 Food-Grade Alcohol Market Size, By Region, 2015–2022 (USD Million)
Table 24 Market Size, By Region, 2015–2022 (KT)
Table 25 North America: Food-Grade Alcohol Market Size, By Country, 2015–2022 (KT)
Table 26 North America: Market Size, By Type, 2015–2022 (KT)
Table 27 North America: Market Size, By Application, 2015–2022 (KT)
Table 28 North America: Market Size, By Beverage, 2015–2022 (KT)
Table 29 North America: Market Size, By Source, 2015–2022 (KT)
Table 30 Europe: Food-Grade Alcohol Market Size, By Country, 2015–2022 (KT)
Table 31 Europe: Market Size, By Type, 2015–2022 (KT)
Table 32 Europe: Market Size, By Application, 2015–2022 (KT)
Table 33 Europe: Market Size, By Beverage, 2015-2022 (KT)
Table 34 Europe: Market Size, By Source, 2015-2022 (KT)
Table 35 Asia-Pacific: Food-Grade Alcohol Market Size, By Country, 2015–2022 (KT)
Table 36 Asia-Pacific: Market Size, By Type, 2015–2022 (KT)
Table 37 Asia-Pacific: Market Size, By Application, 2015–2022 (KT)
Table 38 Asia-Pacific: Market Size, By Beverage, 2015–2022 (KT)
Table 39 Asia-Pacific: Market Size, By Source, 2015–2022 (KT)
Table 40 RoW: Food-Grade Alcohol Market Size, By Country, 2015-2022 (KT)
Table 41 RoW: Market Size, By Type, 2015-2022 (KT)
Table 42 RoW: Market Size, By Application, 2015-2022 (KT)
Table 43 RoW: Market Size, By Beverage, 2015-2022 (KT)
Table 44 RoW: Market Size, By Source, 2015-2022 (KT)
Table 45 Food-Grade Alcohol Company Rankings, 2016
Table 46 Expansions & Investments, 2011-2016
Table 47 New Product Development, 2011-2016
Table 48 Agreements & Joint Ventures, 2011-2016

List of Figures (56 Figures)

Figure 1 Market Segmentation
Figure 2 Food-Grade Alcohol Market: Research Design
Figure 3 Global Population is Projected to Reach ~9,550.9 Million By 2050
Figure 4 Middle-Class Population in Asia-Pacific is Projected to Grow & Account for the Largest Share in the Global Market By 2030
Figure 5 Unfavorable Climatic Conditions Affect the Supply of Barley
Figure 6 Aggregate Wheat Production, 2009-2013 (Million Tons)
Figure 7 Market Size Estimation Methodology: Bottom-Up Approach
Figure 8 Market Size Estimation Methodology: Top-Down Approach
Figure 9 Data Triangulation Methodology
Figure 10 Assumptions of the Research Study
Figure 11 Limitations of the Research Study
Figure 12 Food-Grade Alcohol Market Snapshot, By Region, 2017 & 2022 (KT)
Figure 13 Market Size, By Type, 2017 & 2022 (KT)
Figure 14 Beverages: Most Attractive Application of Food-Grade Alcohol for Investment in the Next Five Years
Figure 15 Asia-Pacific Projected to Register High Growth Rate, 2017–2022
Figure 16 Food-Grade Alcohol Market Size, By Region, 2017–2022 (KT)
Figure 17 Market Size, By Source, 2015–2022
Figure 18 Ethanol Accounted for the Largest Share in Europe Food-Grade Alcohol Market in 2015
Figure 19 Market Size, By Application, 2017 (KT)
Figure 20 Market Growth Rate, By Source, 2017-2022
Figure 21 Market in Asia-Pacific is Experiencing High Growth
Figure 22 By Type
Figure 23 By Application
Figure 24 By Source
Figure 25 Increase in Global Trade and Production of Beer is Driving the Market
Figure 26 Beer Production, 1998–2015 (Billion Hectoliters)
Figure 27 Product Development & Production of Food-Grade Alcohol Contribute the Most to the Overall Value Chain
Figure 28 Manufacturers Play A Vital Role in the Supply Chain for Food-Grade Alcohol
Figure 29 Food-Grade Alcohol (Ethanol) Production
Figure 30 Market Size for Ethanol, By Region, 2017 vs 2022 (KT)
Figure 31 Market Size for Polyols, By Region, 2017 vs 2022 (KT)
Figure 32 Sugarcane & Molasses Segment to Dominate the Market Through 2022 (KT)
Figure 33 Sugarcane & Molasses Segment Market Size, By Region, 2017 vs 2022 (KT)
Figure 34 Market Size, By Application, 2017 & 2022 (KT)
Figure 35 Market Size for Food Application, By Region, 2017 & 2022 (KT)
Figure 36 Market Size for Healthcare & Pharmaceuticals, By Region, 2017 & 2022 (KT)
Figure 37 Food-Grade Alcohol Market Size for Beverages, By Region, 2017 & 2022 (KT)
Figure 38 Geographic Snapshot: the Markets in Asia-Pacific are Emerging as New Hot Spots
Figure 39 North America: Market Snapshot, 2017–2022
Figure 40 Europe: Market Snapshot, 2017–2022
Figure 41 Asia-Pacific: Market Snapshot, 2017–2022
Figure 42 Key Companies Preferred New Product Developments, Acquisitions & Expansion Strategies From 2010 to 2016
Figure 43 New Product Launches: the Key Strategy, 2011–2016
Figure 44 Geographical Revenue Mix of Top Market Players
Figure 45 Archer Daniel Midland Company: Company Snapshot
Figure 46 Archer Daniel Midland Company: SWOT Analysis
Figure 47 Cargill: Company Snapshot
Figure 48 Cargill Inc. : SWOT Analysis
Figure 49 Sigma-Aldrich: Company Snapshot
Figure 50 Sigma-Aldrich: SWOT Analysis
Figure 51 Roquette Frères: Company Snapshot
Figure 52 Roquette Freres S.A.: SWOT Analysis
Figure 53 MGP Ingredients: Company Snapshot
Figure 54 MGP Ingredients: SWOT Analysis
Figure 55 Wilmar International Limited: Company Snapshot
Figure 56 Fonterra Co-Operative Group: Company Snapshot

The food-grade alcohol market is projected to grow at a CAGR of 3.9%, in terms of value, from 2017 to reach a projected value of USD 12.86 Billion by 2022. The market is largely driven by the demand from the Asia-Pacific region. Increase in demand for food-grade alcohols from various industries such as food & beverages and health care & pharmaceuticals is driving the market globally. Increase in global trade of alcohol and increased demand for ethanol to increase the production of alcoholic beverages is also fueling growth of the market, especially for ethanol.

The global market has been segmented by type, source, application, functionality, and region. Based on type, the market is segmented into ethanol and polyols. The ethanol segment dominated the market as it is used as a main ingredient in the manufacturing of a wide range of alcoholic beverages as well as various food and pharmaceutical applications.

Based on source, the sugarcane & molasses segment is estimated to account for the largest market share in 2017. The global demand for food-grade alcohol from sugarcane & molasses is higher than other sources. Sugar cane and sugar beet plants are the most abundant sources of sucrose, which is fermented to produce alcohol. Molasses is the by-product in the sugarcane industry and contains 50% to 55% concentration of sugar in the form of sucrose. The continuously low production price of raw sugar in the global market has led to the increase in the production of ethanol from sugarcane and molasses.

The food-grade alcohol market has been segmented on the basis of application into food, beverages, health care & pharmaceutical. Food-grade alcohol has been gaining importance in the beverages segment for the increasing consumption of alcoholic beverages. New developments and wide applications provide a platform for the development of food-grade alcohol. Polyols or sugar alcohols are largely used in a wide range of food and health care & pharmaceutical applications due to its low calorie content as compared to sugars.

The North American region is estimated to account for the largest share, in terms of value, in the global food-grade alcohol market, in 2017. Factors such as a large population and the consequent increase in demand for food, beverages, and the rapid adoption rate of advanced technologies are driving the growth of the market in this region.

Rising awareness among the consumers about the harmful effects of alcohol consumption restrains the total market for food-grade alcohol.

The leading players that dominated the food-grade alcohol market include Archer Daniels Midland Company (U.S.), Cargill (U.S.), MGP Ingredients (U.S.), Sigma-Aldrich (U.S.), and Roquette Freres S.A. (France).

The key players have been exploring the market in new regions by adopting acquisitions, expansions, joint ventures, new product launches, and agreements & joint ventures as their preferred strategies. Key players have been increasing their technical expertise through intensive R&D investments enabling them to enhance their product offerings and capture a larger market share, thus increasing the demand for food-grade alcohol.

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