Food Grade Alcohol Market, Overview, Growth, Demand and Forecast to 2024-2031

The Food-Grade Alcohol Market, valued at $3,264.02 million in 2022, is projected to expand at a Compound Annual Growth Rate (CAGR) of 3.6% over the forecast period. This growth is driven by increasing consumer preferences for natural and organic food and beverage products, highlighting the importance of food-grade alcohol derived from renewable and sustainable sources.

Consumers’ evolving preferences for natural and organic food and beverage items are fueling the growth of the food-grade alcohol market. Food-grade alcohol, especially when sourced from renewable and organic origins, aligns with clean label and sustainable food production practices, contributing to its increasing adoption in various industries.

Food-grade alcohol, notably ethanol, plays a crucial role in extracting and enhancing natural flavors, fragrances, and essential oils from botanical sources. The demand for authentic and natural flavors in processed foods and beverages is propelling the use of food-grade alcohol in flavor extraction processes. Moreover, ethanol is integral in baking and confectionery applications, regulating texture and moisture in dough and batters, and enhancing flavors in chocolates, candies, and icing.