Food-grade beverage alcohol comprises principally of grain neutral spirits and gin. Grain neutral spirits are sold in mass amounts at different proof concentrations to bottlers and rectifiers, which additionally process the alcohol available to be purchased to buyers under various labels. Gin is made by re-distilling grain neutral spirits together with exclusive customer formulations of botanicals or botanical oils.
Liquor is a standout amongst the most adaptable items known. Applications vary from use in FMCG and pharmaceutical products to industrial solvents and so on.
Alcohols can be used in a hundred of different ways in the field of proprietary solvents. One of the major uses of alcohol is in the food industry.Food Grade Alcohol Market Size was around USD 10.28 billion in 2016.
It is expected to grow at a CAGR of 4.1% to reach USD 12.57 billion by 2021
Fermented distilled liquor popularly known as food-grade alcohol is made using potato, cereals, sugar after cooking as raw material, scarification, fermentation and processing for food industry using aqueous alcohol. Food grade alcohol flavor is usually determined by the level of content of distilled liquor in the aldehyde, acid, ester.
Further, impurities may lead to alteration in flavor.
The global market is driven by expanding global beer generation and likeness towards craft beer. Likewise, the expanding usage of alcoholic drinks in the developing regions bolstered with the extension of potential export markets because of demographic and economic reasons, have built up a developing platform for expanded liquor trade which is thus driving the food-grade liquor market.
The recent ban by the supreme court of India for the sale of liquor in the shops on state and national highways and other proactive measures taken by the union as well as various state governments are the major restraints of this market. Further, lobbying by various NGOs to increase the tax rate on alcoholic beverages is another dampening factor of the market.
Similar trends are observable globally.
The global food grade alcohol market segmentation by type, by source and by the application. On the basis of type, food-grade alcohol market is classified into ethanol and polyols.
Ethanol commands a greater market share as it is widely used in the manufacture of alcoholic beverages. It is also used as a preservative to enhance the shelf life of end products along with manufacturing colors and flavors for food applications.
It is highly volatile and so is used as a base in producing a diverse range of alcoholic beverages in the food industry.
If we go by source, the food-grade market is segmented into sugar cane & molasses, grains, fruits, and others which include rice and corn. Among these, the sugar cane & molasses market segment dominates the market because of the increase in the manufacture of ethanol from sugarcane and molasses.
This can be further attributed to the continuously degrading price of raw sugar in global markets. Sugar cane and sugar beet plants are the most widespread and readily available sources of sucrose, which is fermented to deliver alcohol.
As far as volume, the beverages section is anticipated to develop at the most elevated rate in the vicinity of 2017 and 2022, because of the expansion in the worldwide utilization of alcoholic beverages.On the basis of geography, the global food-grade alcohol market has been segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. Food-grade alcohol is utilized for producing alcoholic beverages as well as for food and healthcare and pharmaceutical products.
Subsequently, as the interest for these consumables increments from end users, makers utilize food-grade alcohol for making creative food items. Europe has adopted the use of food-grade alcohol in food, beverages, and pharma applications.
The Asia-Pacific region is assessed to drive the market with the expansion in demand for food-grade alcohol. The increased utilization of alcoholic beverages and convenience food products are essentially affecting the development of the market in this region, with the growing food-processing industry.
The Asia-Pacific region is expected to be the fastest-growing market, in terms of both value and volume, in the global food-grade alcohol market, in 2017. This region encompasses developing economies such as China, Japan, and India, which are the largest consumers of food-grade alcohol in the world.
The augmenting population and per capita income in India and China coupled with widespread availability of raw materials is expected to drive the food-grade alcohol market. India's food-grade alcohol market is expected to grow at the highest rate among the Asia-Pacific countries.
Some of the Food Grade Alcohol Market Leaders are Archer Daniels Midland Company (U.S.), Cargill Inc. (U.S.), MGP Ingredients (U.S.) Sigma-Aldrich (U.S.) and Roquette Freres S.A.
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