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Grain Alcohol Market: Trends, Growth, and Future Prospects

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MarketsandMarkets™
Grain Alcohol Market: Trends, Growth, and Future Prospects

The Grain Alcohol Market has witnessed significant growth over the past few years, driven by increasing demand for ethanol-based fuels and alcoholic beverages. Grain alcohol is a colorless, tasteless, and odorless liquid made by fermenting grains such as corn, wheat, and barley. It is used in various industries, including pharmaceuticals, personal care, and food and beverages. The Grain Alcohol Market size is projected to grow at a CAGR of 4.1% to reach USD 14.9 billion by 2026. The global industry is estimated to be valued at USD 12.2 billion in 2021. 

Grain Alcohol Market

Grain Alcohol Market


Grain Alcohol Market Trends:


  • Increasing Demand for Ethanol-based Fuels


Grain alcohol is commonly used as a fuel additive due to its high octane rating and low emissions. The demand for ethanol-based fuels is expected to rise as governments around the world impose regulations to reduce greenhouse gas emissions. This is expected to drive the growth of the Grain Alcohol Market.


  • Growing Consumption of Alcoholic Beverages


The consumption of alcoholic beverages is increasing globally, particularly in developing countries such as India and China. This is expected to drive the demand for grain alcohol as it is a key ingredient in the production of alcoholic beverages.


  • Rising Demand for Natural and Organic Personal Care Products


The demand for natural and organic personal care products is increasing due to rising health and environmental concerns. Grain alcohol is used as a solvent in the production of natural and organic personal care products such as perfumes, lotions, and hair sprays.


Future Prospects of the Grain Alcohol Market


  • Emerging Applications


Grain alcohol has several emerging applications, including the production of hand sanitizers, disinfectants, and cleaning agents. The COVID-19 pandemic has led to a surge in demand for hand sanitizers, which is expected to drive the growth of the Grain Alcohol Market in the coming years.


  • Technological Advancements


Technological advancements are expected to drive the growth of the Grain Alcohol Market in the future. For instance, new fermentation technologies are being developed to produce high-quality grain alcohol at lower costs.


North America is estimated to dominate the global grain alcohol market over the forecast period.


The rising consumption of and demand for alcohol has resulted in the use of grain alcohol for beverage applications. In North America, the US is one of the dominant grain alcohol markets. Beer, spirits, and wine are largely consumed alcoholic beverages in this country. The country has no specific law that forbids consumption of alcohol in public but enforces strict laws on age limit for its consumption and purchase. According to the Organisation for Economic Co-operation and Development (OECD), Canada has milder levels of taxation of alcohol at the federal level, but minimum prices and markups are enforced in several provinces, which contribute to raising prices. These trends account for the strong share of the region in global market.


Key Market Players:


The key players in this market include ADM (US, Cargill (US), Wilmar Group (Singapore), Merck Group (Germany), and Roquette Frères (France). These players in this market are focusing on increasing their presence through agreements and collaborations. These companies have a strong presence in North America, Asia Pacific and Europe. They also have manufacturing facilities along with strong distribution networks across these regions.

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