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Grain Alcohol Global Market Report 2022

Grain Alcohol Global Market Report 2022

  • June 2022
  • 175 pages
  • ID: 6282673
  • Format: PDF
  • The Business Research Company


Table of Contents

Major players in the grain alcohol market are Archer-Daniels-Midland Company, Cargill, Inc., Kweichow Moutai, Roquette Frères, MGP Ingredients, Inc, Cristalco, Wilmar Group, Manildra Group, Glacial Grain Spirits, Wuliangye Yibin Co., Diageo Plc, Altria Group, Pernod Ricard, ChemCeed, Ethanol US, NuGenTeca and Pinal Energy LLC

The global grain alcohol market is expected to grow from $12.63 billion in 2021 to $13.31 billion in 2022 at a compound annual growth rate (CAGR) of 5.33%. The growth is mainly due to the companies rearranging their operations and recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach $16.37 billion in 2026 at a CAGR of 5.32%.

The grain alcohol market consists of sales of grain alcohol by entities (organizations, sole traders, and partnerships) that is a distilled neutral spirit made from fermenting grain.Grain alcohol is the purified form of ethyl alcohol, which is also known as ethanol, neutral grain spirit, or rectified spirit.

Grain alcohol, a neutral spirit, can be built from corn, rye, wheat, grapes, grains, sugarcane, tubers, and beets and is used to make other alcoholic drinks such as wine, vodka, homemade liqueurs and others.

The main grain alcohol sources include sugarcane, grains, fruits and other sources.Sugarcane grain alcohol is prepared by fermenting either sugar cane juice or molasses diluted with water including yeast-removing sugar.

The different types of grain alcohol are ethanol and polyols which are used in applications such as beverages, food, pharmaceutical and health care and other applications. The different functionalities of grain alcohol include preservative, coloring/flavoring agent, coatings and other functionalities.

Europe was the largest region in the grain alcohol market in 2021.Asia Pacific is expected to be the fastest-growing region in the forecast period.

The regions covered in this report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

The increasing consumption of alcoholic drinks is driving the growth of the grain alcohol market.An increase in consumption of these beverages can be attributed to multiple factors such as rising levels of disposable income and an increasingly urban population.

For instance, in 2020, according to the US government, there was a 60% increase in drinking, compared to pre-pandemic. The major reasons behind increased drinking include increased stress (45.7%), growing alcohol availability (34.4%), and boredom (30.1%). The alcohol consumption per capita is expected to grow from 5.9 liters of original alcohol per annum in 1990 to 7.6 liters in 2030. Therefore, the increasing consumption rate of alcoholic drives the grain alcohol market.

Increasing research and development is a key trend gaining popularity in the grain alcohol market.Companies in the grain alcohol market are focusing on developing new flavors and varieties based on ethnic tastes.

For instance, in 2020, Diageo, a UK based beverages company, announced the launch of a new research and development center in Shanghai to further its product innovation and development aim in China.The first of its kind in the beverage alcohol sector in Shanghai will help the China market and will strengthen Diageo’s ability to quickly create and develop premium products that cater to Chinese consumer tastes.

The research center is created with an aim to manufacture a strong portfolio of products developed in China based on local consumer insights and trends.

In April 2021, MGP Ingredients, Inc a US based distributor of premium distilled spirits and specialty wheat proteins and starches, acquired Luxco, Inc. for an undisclosed amount. The acquisition is in line with MGP’s long-term strategy focused on shifting to higher value-added products and diversification of business portfolio. Luxco is a US-based company that is a leading producer, distributor, importer, and bottler of beverage alcohol products.

The countries covered in the grain alcohol market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.

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