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Grain Alcohol Market Analysis

Report ID: GMI6418
Published Date: Aug 2023
Report Format: PDF

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Grain Alcohol Market Analysis

The grain alcohol market from ethanol segment dominated around USD 5.8 billion revenue in 2022. Ethanol is a primary component in alcoholic beverages such as whiskey, vodka, rum, and other spirits. Consumer preferences for different alcoholic beverages drive the demand for ethanol in this segment. The trend of premium and craft spirits has led to increased demand for high-quality ethanol to produce premium alcoholic beverages.

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The food grade alcohol segment accounted for 40% of the grain alcohol market share in 2022. The demand for alcoholic beverages, including spirits, beer, and wine, is driven by social gatherings, celebrations, and cultural norms related to alcohol consumption. The overall growth of the alcohol industry, driven by increasing disposable income and urbanization, contributes to the demand for grain alcohol in this segment.

The grain alcohol market from beverage segment is anticipated to observe around 3.7% CAGR through 2032. Changing taste preferences and the popularity of craft and premium spirits can impact the demand for grain alcohol in the beverage alcohol segment.

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U.S. grain alcohol market size reached USD 2.8 billion in 2022. The beverage industry is a major driver of demand for grain alcohol in North America. Ethanol, derived from grain alcohol, is a primary ingredient in alcoholic beverages such as whiskey, vodka, rum, and various spirits. The high consumption of alcoholic beverages in the region fuels the demand for grain alcohol.

Authors: Kiran Pulidindi, Kunal Ahuja

Frequently Asked Questions (FAQ) :

The market size of grain alcohol recorded USD 12.6 billion in 2022 and is estimated to register USD 19.1 billion by the end of 2032, due to increasing consumption of alcoholic beverages worldwide.

Food grade grain alcohol industry held 40% revenue share in 2022, owing to the rising demand for alcoholic beverages, including spirits, beer, and wine driven by increasing social gatherings, celebrations, and cultural norms.

The beverage industry application segment is poised to observe 3.7% CAGR from 2023 to 2032, attributed to the rapidly changing consumer taste preferences and the rising popularity of craft and premium spirits.

U.S. market size dominated around USD 2.8 billion in 2022, on account of increasing consumption of alcoholic beverages such as, whiskey, vodka, rum, and various spirits in the region.