The food-grade ethyl alcohol finds its application in various different industries like food & beverages, cosmetics, petroleum, etc. The primary use or the major share of revenue is generated by the beverage industry mainly. According to the research done by Transparency Market Insights, the study showed a decent increase in growth rate over the past few years and is expected to experience an almost lookalike CAGR in the forecasted period of 2021-2031.
Food grade ethyl alcohol is mainly formed from natural sources like corn, sugarcane, fruits, etc whose growth is quite high in countries like the US and India which itself are quite lucrative regions for this market. It has found its numerous use in the different sectors but the beverage sector is the most productive one.
There is a prime use of food-grade ethyl alcohol in the making of beer, wines, and other alcoholic products which have demanded all over the globe. The use of it in alcohol-based products is quite high as it’s a nice ingredient and quite economical to use for the manufacturers. This is the main sector of which is driving the growth of this market.
Apart from this, the use in the food additive market has also increased quite enough in recent past years. It is frequently being used in many food products. Also, it has found a strong application as a food preservative in the market. Consumers also favor it in different food products as it enhances the overall essence and appearance of the food. These all factors are driving the growth of this market.
In the current scenario, the food-grade ethyl alcohol market is at the growth stage, and with the product development and innovation, it is finding its use in various products. One of the appealing opportunities for the key players in this market is to come up with various innovative and enhanced food flavors. Nowadays almost every food manufacturing company and specially packaged food companies use this as a food flavoring ingredient.
The innovation in this as a beneficial food ingredient for health-conscious consumers or even an elite taste-changing ingredient really opens a bulk of opportunity in this field.
Also, looking at the current situation, the sanitizer market has captured exponential growth from last year. The use of food-grade ethyl alcohol in sanitizers also has a great opportunity. Since it readily available and economical too, the use of this in sanitizer also opens up a great opportunity in the future.
The covid-19 imparted a severe impact market. Due to global lockdown, most of the production units of this market were either minimized or closed for a while. Due to the crunch in the economy of the market, failure in supply chain management, most of the manufacturers faced losses. But this market garnered some positivity in the latter part of the lockdown.
The market has been showing a positive curve for the past few months as food-grade ethyl alcohol is now being used in the making of sanitizers and most of the manufacturers are supplying this to the essential industry. Hence, looking at all the factors of this market, it is expected to rise back quickly compared to other markets.
US and Canada Market Outlook
Most of the production of food-grade ethyl alcohol is done from sugarcane and corn and the US is among the highest producer of this. Also, the demand for beer, wine, or any other alcohol-based drinks is pretty high in both US and Canada. The North American region can be considered as a leader in the beverage sector.
A lot of major and minor adult-based drink companies are based in these countries. The youth lifestyle and culture are some of the main factors for the growth of it in this region. Looking at the current scenario of this market in North America, it is expected to grow at a substantial rate in the forecasted period.
The use of food-grade ethyl alcohol as an ingredient in various food products is quite profound in Europe. It is widely used and especially food as well as beverage sector. The use of it in alcohol-based drinks is quite common there and is the major driving force of this market.
Europe resides some of the major manufacturers of food-grade ethyl alcohol. They are a major key player in this market and it is expected to experience a decent CAGR in the forecasted period.
Some of the major key players of this market are Wilmar International, Manildra, Jiangsu Huating Biotechnology, RoquetteFreres, Fonterra Co-operative, Shree Renuka Sugars Limited, AppliChem GmbH, Balrampur Chini Mills Ltd. (Sugar Division), Archer Daniels Midland, Cargill, MGP Ingredients, Cristalco, Grain Processing, Shree Renuka Sugars Limited, AppliChem GmbH, and few others.
By End-Use Application