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Grain Alcohol Market Size

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

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Grain Alcohol Market Size

Grain Alcohol Market size was valued at USD 12.6 billion in 2022 and is estimated to witness 4.2% CAGR from 2023 to 2032. The beverage industry is a significant driver of demand for grain alcohol. Ethanol is a primary ingredient in alcoholic beverages such as spirits (vodka, whiskey, rum, etc.), wines, and cocktails. The consumption of alcoholic beverages remains popular globally, driving the need for a steady supply of grain alcohol. Ethanol is widely used as a biofuel additive to gasoline. In many countries, there are regulations mandating the blending of ethanol with gasoline to reduce greenhouse gas emissions and promote cleaner burning fuels.

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Ethanol is used in the pharmaceutical industry as a solvent in the manufacturing of medications and drugs. It is also a key component in the production of antiseptics, disinfectants, and hand sanitizers, which saw increased demand during the COVID-19 pandemic.

Grain Alcohol Market Report Attributes
Report Attribute	Details
Base Year:	2022
Grain Alcohol Market Size in 2022:	USD 12.6 Billion
Forecast Period:	2023 to 2032
Forecast Period 2023 to 2032 CAGR:	4.2%
2032 Value Projection:	USD 19.1 Billion
Historical Data for:	2018 to 2022
No. of Pages:	150
Tables, Charts & Figures:	191
Segments covered:	Type, Product, Application, Region
Growth Drivers:	Expansion of the beverage industry Rapid urbanisation Growing adult age population
Pitfalls & Challenges:	Regulatory and Taxation Issues Fluctuating Raw Material Prices Competition with Other Fuel Alternatives

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The grain alcohol market is subject to various regulations and taxation policies that can significantly impact production, distribution, and consumption. The price of grain alcohol feedstocks, such as corn, wheat, and sugarcane, can be volatile due to factors like weather conditions, global demand, and geopolitical events. While ethanol is a renewable and cleaner-burning fuel, it faces competition from other alternative fuels, such as biodiesel and electric vehicles.

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.