How Has the Grain Alcohol Market Evolved Historically and What is its Current Size?
The grain alcohol market has seen considerable growth due to a variety of factors.
• The size of the grain alcohol market has seen robust growth in recent years. From 2024, it is projected to expand from a value of $14.58 billion to $15.31 billion in 2025, with a compound annual growth rate (CAGR) of 5.0%.
Factors contributing to the growth during the historical period include the common use of grain alcohol in the manufacture of beverages and spirits, the global surge in demand for alcoholic drinks and spirits, the cultural importance and increasing consumption of spirits in multiple regions, the growth of craft distilleries and the artisanal spirits sector, as well as regulatory policies and licensing related to the production and distribution of alcohol.
What is the Forecasted Market Size and CAGR for the Grain AlcoholMarket?
The grain alcohol market is expected to maintain its strong growth trajectory in upcoming years.
• In the upcoming years, the grain alcohol market is set to witness robust growth, reaching a valuation of $19.8 billion by 2029, expanding at a compound annual growth rate (CAGR) of 6.6%.
Factors contributing to the substantial growth during the forecast period are: the preference of consumers for upscale and superior alcoholic drinks, the advent of innovation in flavored and infused grain alcohol products, the industrial and pharmaceutical requirement for ethanol, the preference for sustainable and organic grain sourcing in alcohol production, emerging markets, and the growing wealth of the middle class. Major trends to emerge during the forecast period include spirits flavored and infused with grain, specialty and aged-in-barrel releases, the culture of mixology and cocktails, ready-to-drink (rtd) cocktails, and spirits influenced by locality and terroir.
What Are The Primary Growth Drivers In The Grain Alcohol Market?
The grain alcohol market is experiencing growth due to rising intake of alcoholic beverages. Things like higher disposable income and a growing urban populace are among the many factors fueling an uptrend in beverage consumption. As per the data from the National Drugs Library, an organization in Ireland that collects data, it was seen in 2023 that the average alcohol intake for people aged 15 and older touched 10.2 liters of undiluted alcohol per person in 2022, indicating a rise of 7.6% from 2021. Hence, the surge in consumption of alcoholic drinks serves as a propelling factor for the grain alcohol market.
What Is The Segmentation Of The Global Grain Alcohol Market?
The grain alcohol market covered in this report is segmented –
1) By Type: Ethanol, Polyols
2) By Source: Sugarcane, Grains, Fruits, Other Sources
3) By Functionality: Preservative, Coloring Or Flavoring Agent, Coatings, Other Functionalities
4) By Application: Beverages, Food, Pharmaceutical And Health Care, Other Applications
Subsegments:
1) By Ethanol: Fuel Ethanol, Beverage Ethanol, Industrial Ethanol
2) By Polyols: Glycerol (Glycerin), Sorbitol, Mannitol, Xylitol
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What Emerging Trends Are Shaping The Grain Alcohol Market Landscape?
Key players in the grain alcohol market are concentrating their efforts on creating innovative products like whiskies to cater to the increasing propensity for superior quality alcoholic drinks. Whiskies, distilled spirits conceived from fermented grain mash that includes barley, corn, rye, or wheat, undergo aging process in oak barrels that gives them their unique tastes, from being sweet and silk-like to having a smoky and rich flavor. An exemplary instance of this is the launch of Royal Stag Double Dark Peaty Whisky and Blender's Pride Four Elements Premium Whisky by Pernod Ricard India, a renowned alcohol-beverage company based in India, in August 2023. The former offers a tantalizing smoky concoction, consisting of double-distilled Scotch malts matured in charred American and European oak barrels, meticulously blended with select peated malts and neutral grain spirits. Meanwhile, Blender's Pride Four Elements boasts of an innovative mix of four Scotch malts and Indian grain spirits, promising a lively and complex flavor palette.
Who Are the Key Players in the Grain Alcohol Market?
Major companies operating in the grain alcohol market include:
• Archer-Daniels-Midland Company
• Cargill Inc.
• Kweichow Moutai Co. Ltd.
• Roquette Frères SA
• MGP Ingredients Inc.
• Cristalco SAS
• Wilmar International Limited
• Manildra USA
• Glacial Grain Spirits LLC
• Wuliangye Yibin Co.
• Diageo plc
• Pernod Ricard SA
• ChemCeed LLC
• Ethanol US
• Pinal Energy LLC
• Pacific Distillery LLC
• Teichene SA
• Duplais Verte
• La Fée Absinthe
• Kübler Absinthe Superieure
• Hill's Liquere North America
• La Clandestine
• Doubs Mystique
• Butterfly Absinthe
• Lucid Inc.
• Metelka AS
• C.F. Berger Ltd.
• Jade Nouvelle Orleans
What are the Regional Insights into the Grain Alcohol Market?
Europe was the largest region in the grain alcohol market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the grain alcohol market report include Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
