The global grain alcohol market size is projected to grow at a CAGR of 4.1% to reach USD 14.9 billion by 2026. The global industry is estimated to be valued at USD 12.2 billion in 2021. The grain alcohol market has experienced significant growth in recent years, driven by increasing demand for alcoholic beverages, industrial applications, and disinfectants. Grain alcohol, also known as ethanol, is a colorless and flammable liquid that is produced from grains such as corn, wheat, and barley.
One of the major factors contributing to the growth of the grain alcohol market is the increasing demand for alcoholic beverages, especially in emerging economies such as China and India. Grain alcohol is a key ingredient in many types of alcoholic beverages, including beer, wine, and spirits. As the global population grows and becomes more affluent, the demand for these beverages is expected to continue to rise.
Another key driver of the grain alcohol market is the industrial applications of ethanol. Ethanol is used as a fuel additive to increase octane levels in gasoline, as well as in the production of pharmaceuticals, personal care products, and solvents. The growth of these industries is expected to drive demand for grain alcohol in the coming years.
In addition to its use in alcoholic beverages and industrial applications, grain alcohol is also used as a disinfectant. The COVID-19 pandemic has led to a surge in demand for disinfectants, including grain alcohol-based hand sanitizers. This has further boosted the demand for grain alcohol.
However, the grain alcohol market also faces challenges such as regulatory restrictions, especially in terms of taxes and tariffs, and competition from alternative sources of ethanol such as sugarcane and cellulosic feedstocks.
Europe is projected to account for the largest market during the forecast period.
The European grain alcohol market is the largest in the world, and despite very high per capita consumption levels, market growth has remained attractive and stable. The presence of a large food & beverage industry offers the European grain alcohol market a prominent consumer base with opportunistic growth prospects. The market in this region is estimated to be driven by development in the Eastern & Southeastern European countries. Europe is the one of the largest markets for sugar polyols. As consumers’ demand for low-calorie food is high, the food industry prefers the use of sugar polyols, which are similar to sugar but with low-calorie value. These sugar polyols act as bulking agents, which provide the mass required and sweeten the product without adding any additional calories.
Grain Alcohol Market Key Players:
ADM (US), Cargill (US), Merck Group (Germany), Roquette Frères (France), MGP Ingredients (US), Cristalco (France), Grain Processing Corporation (US), Wilmar Group (Singapore), Manildra Group (Australia), Glacial Grain Spirits (US)
