COVID-19 Impact on Grain Alcohol Market

  • On January 30, 2020, the International Health Regulations Emergency Committee of the World Health Organization (WHO) declared the Coronavirus disease (COVID-19) outbreak a public health emergency of international concern. Originating in China, the virus has spread to at least 214 countries and territories around the world.
  • Several governments and private sector businesses are operating at a limited capacity or have ceased operations completely due to recent events surrounding the COVID-19 pandemic
  • Manufacture of various consumer goods and other products across the globe came to a halt due to the unavailability of raw materials, shortage of labor, etc. This is expected to hamper the grain alcohol market.

Key Drivers and Restraints of Grain Alcohol Market

  • Grain alcohol is primarily used in the food & beverages industry. Beer consumption has increased exponentially of late. Therefore, major market players and local manufacturers are sourcing grain alcohol from barley. Additionally, rise in popularity of craft beer and locally manufactured beer among youngsters is expected to propel the demand for alcoholic beverages. Changing lifestyle, rapid urbanization, increase in consumption rate of alcoholic drinks, high disposable income, and rise in popularity of beer among the millennial population are some of the factors driving the global grain alcohol market. Furthermore, introduction of innovative flavors and new ingredients, such as fruity tart and salty flavors, in craft beers is propelling the grain alcohol market.
  • Alcohol manufactured from barely is projected to account for large share of the market in the near future. Rise in popularity of craft beer and local beer is likely to further boost the demand for domestic malt over the next few years.

Grain Alcohol: Type Segment

  • In terms of type, the global grain alcohol market can be divided ethanol and polyols
  • The ethanol segment is projected to hold major share of the global grain alcohol market during the forecast period. Ethanol is widely used in the food industry as a flavoring and coloring agent and in candy glazing. It finds applications in the bakery & confectionery industry apart from beverages. Owing to properties such as solubility, high octane number, and antimicrobial activity, ethanol plays an important role in the food industry. It is used to manufacture flavors & extracts, food dyes, and candy glaze, among others
  • The polyols segment is projected to follow the ethanol segment during the forecast period. Polyols are sugar alcohols, such as sorbitol, lactitol, and xylitol, which are found in sugar-free products. High demand for sugar-free products is driving the global grain alcohol market.

Grain Alcohol: Application Segment

  • Based on application, the global grain alcohol market can be segmented into food & beverages, pharmaceutical, and others
  • The food & beverages segment is projected to gain higher share of the global market during the forecast period. Grain alcohol is also used to make other alcoholic drinks such as liqueurs. Growth in the number of breweries in the last few years has been a prominent factor of the market growth.
  • The pharmaceutical segment is projected to hold key share of the global grain alcohol market in the near future. Alcohol is used in the pharmaceutical industry in a variety of manufacturing processes. It has bactericidal activity and is often used as a topical disinfectant, especially in alcohol gels. It is also widely used as a solvent and preservative in pharmaceutical preparations. Rise in usage of grain alcohol in the pharmaceutical industry is likely to boost the market during the forecast period.

Europe to Hold Leading Share of Grain Alcohol Market

  • In terms of region, the grain alcohol market can be divided into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa
  • Europe is expected to hold major share of the global grain alcohol market, followed by Asia Pacific and North America, during the forecast period. The grain alcohol market Europe is the largest in the world, and despite very high per capita consumption levels, market growth has remained attractive and stable. Presence of a large food & beverage industry offers the grain alcohol market in Europe a prominent consumer base with opportunistic growth prospects. Europe is the one of the largest markets for sugar polyols. Consumer demand for low-calorie food is high. The food industry prefers 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.
  • The grain alcohol market in Asia Pacific and North America is projected to expand at a rapid pace in the near future. Growth of the market in Asia Pacific can be ascribed to the rapid economic development in the region. This, in turn, is booting the demand for better quality beverage applications, especially in China, India, Malaysia, Indonesia, Singapore, and South Korea. The alcoholic beverages market in this region is currently undergoing significant transformation in response to rapid urbanization. This is expected to boost the consumption of grain alcohol.

Key Manufacturers Operating in Grain Alcohol Market

The grain alcohol market was consolidated in 2020. Major players have prominent presence in developed and developing countries. Key manufacturers operating in the grain alcohol market include:

  • ADM
  • Cargill
  • Roquette Frères
  • MGP Ingredients
  • Cristalco
  • Grain Processing Corporation
  • Wilmar Group
  • Manildra Group
  • Glacial Grain Spirits
  • Hardenberg-Wilthen AG

Grain Alcohol: Research Scope

Grain Alcohol Market, by Type

  • Ethanol
  • Polyols

Grain Alcohol Market, by Application

  • Food & Beverages
  • Pharmaceutical
  • Others

Global Grain Alcohol Market, by Region

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • U.K.
    • France
    • Italy
    • Spain
    • Russia & CIS
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • ASEAN
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East & Africa
    • GCC
    • South Africa
    • Rest of Middle East & Africa

Grain Alcohol: Introduction

  • Grain alcohol is a distilled neutral spirit made from fermenting grains. It is the purified form of ethyl alcohol, which is also called ethanol, neutral grain spirit, or rectified spirit. It is sold under different brand names, including Everclear, Alcohol-95, and Golden Grain.
  • Grain alcohol is a clear liquid, with no color, no smell, and no taste. It has a very harsh, burning aftertaste that makes most people cough.
  • Grain alcohol and ethanol is used in various industrial applications through refining processes. Ethanol can be used as an antiseptic, fuel, and solvent. Industrial ethanol may not always be safe to drink, since it often contains additives. Other industrial alcohols such as isopropyl alcohol have different chemical structures. This makes them unsafe for human consumption.

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Grain Alcohol Market