Food grade alcohol finds wide applications as a food preservative in bakery, dairy, sweets and other confectionery products. The increasing use of packaged, preserved and ready-to-eat food items has propelled the demand for food grade alcohol over the years. Food grade alcohol acts as an effective antimicrobial agent, inhibiting the growth of bacteria, yeast and molds in various food products. It helps extend the shelf life of baked goods, desserts and other products. The effecitve preservation abilities along with versatility across various food verticals has made food grade alcohol indispensable in the food industry.

 The Global Food Grade Alcohol Market is estimated to be valued at US$ 2.56 Bn in 2024 and is expected to exhibit a CAGR of 5.5% over the forecast period from 2024 to 2031.

Key Takeaways

Key players operating in the food grade alcohol are MGP, Cargill Incorporated, ADM, Cristalco, Grain Processing Corporation, Wilmar International Ltd., Extractohol, Pure Alcohol Solutions, Nedstar, Sasma B.V., Roquette Frères , Essentica, AVANSCHEM, Fairly Traded Organics, and Ethimex Ltd. These players are focusing on capacity expansion plans to meet the rising demand from food industry.

Food grade alcohol offers several opportunities for use in novel food applications and product development. With widespread acceptance of packaged foods, the scope of using alcohol as a preservative has increased. Food and beverage producers are exploring innovative ways to utilize alcohol for development of new foods such as flavored alcohols and alcohol-infused edibles.

The global Food Grade Alcohol Market Size is projected to witness substantial growth in developing regions on account of rising disposable income, growing health awareness and changing lifestyles. The major international players are expanding their presence across Asia Pacific and Latin American countries to tap the untapped market potentials. Partnerships with local food manufacturers will help strengthen their global presence.

Market Drivers

Growing Demand for Processed and Packaged Foods: The robust demand for packaged, processed and ready-to-eat food items acts as a major driver for food grade alcohol market. Food processing industry extensively uses alcohol as an effective preservative to extent product life.

Stringent Food Safety Regulations: Stringency in food safety regulations regarding food preservation is prompting food producers to adopt advanced food grade alcohol-based preservation techniques to ensure microbiological safety of products during shelf life. This regulatory factor is boosting the market growth.

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