Americas & Europe Potable Alcohol Market is predicted to reach USD 22,542.04 million at a CAGR of 5.72% during the forecast period 2024-2032

Market Research Future (MRFR) has published on the “Global Americas & Europe Potable Alcohol Market ”.

Market Synopsis

According to the MRFR analysis, the Americas & Europe Potable Alcohol market was valued at USD 13,661.84 million in 2023 and is projected to reach USD 22,542.04 million by 2032 at a CAGR of 5.72%.

The demand for Americas and Europe potable alcohol has remained consistently strong due to its integral role in the production of alcoholic beverages, cultural and social traditions, and its applications in various industrial sectors. In the beverage industry, the demand for alcoholic drinks like beer, wine, and spirits continues to drive the potable alcohol market.

COVID-19 Impact on the Potable Alcohol Market

The onset of COVID-19 has resulted in a crisis. The pandemic, which is impacting numerous countries worldwide, has already influenced the Americas and Europe's economies and is expected to produce turmoil and catastrophe. The COVID-19 outbreak has completely upended people's lives because of the number of cases rising daily. COVID-19 has varying effects on various businesses. Following the pandemic, the economy expanded in every sector. This pandemic has had numerous effects on the commodity market. However, several measures were taken by government bodies across various regions to help the post-pandemic region recover. For instance, the US government provided a USD 2.2 trillion economic rescue plan in May 2020 for US companies that were most negatively impacted by the pandemic, including those in the automotive industry. A few impacts of the outbreak on the potable alcohol market have been discussed below. The COVID-19 outbreak has an impact on every stage of production, including raw material sourcing, manufacturing, packaging, and distribution. The whole production process for the potable alcohol sector has suffered because of the outbreak. Providing potable alcohol to various manufacturers has been delayed because of lockdown restrictions which make it more difficult to transfer the raw materials required to create them. Both domestic and international companies provide the basic materials used to make potable alcohol. Due to the necessity of sealing international borders, low quantities of these potable alcohol were being produced. Lockdown rules have made it more difficult for distributors to deliver manufacturing units to retailers. Even though there is a huge demand for potable alcohol across various regions, the sectors are all experiencing major shortages. The COVID-19 outbreak has an impact on every stage of production, including raw material sourcing, manufacturing, packaging, and distribution. The whole production process for the potable alcohol sector has suffered because of the outbreak. Providing potable alcohol to various manufacturers has been delayed because of lockdown restrictions which make it more difficult to transfer the raw materials required to create them. Both domestic and international companies provide the basic materials used to make potable alcohol. Due to the necessity of sealing international borders, low quantities of these potable alcohol were being produced. Lockdown rules have made it more difficult for distributors to deliver manufacturing units to retailers. Even though there is a huge demand for potable alcohol across various regions, the sectors are all experiencing major shortages.

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Competitive Landscape

The Americas & Europe Potable Alcohol market is driven and consists of several organized and unorganized industry players. The main companies in the Americas & Europe Potable Alcohol market are aiming at growth strategies such as development in high-quality products on a Americas & Europe level to gain a maximum share of the Americas & Europe market. The key players operating in the Americas & Europe Potable Alcohol market comprise Cargill Incorporated (U.S.), Sasma (Netherlands), USA Distillers (U.S.), Ethimex (U.K.), Gulshan Polyols Ltd. (India), Ryssen Alcools (France), IFB Agro Industries Ltd. (India), Euro-Alcohol GmbH (Germany), CropEnergies AG (Germany), Almagest (Bulgaria), and Midwest Renewable Energy, LLC, among others.

Segmentation

By Source

1. Grains: Potable alcohol, also known as drinkable alcohol or consumable alcohol, refers to any type of alcoholic beverage that is safe for human consumption. It is produced through the fermentation and distillation of various ingredients, including grains. When it comes to potable alcohol made with grains, it typically refers to spirits such as whiskey, vodka, gin, and rum. These types of alcoholic beverages are produced by fermenting grains like barley, corn, rye, or wheat and then distilling the resulting mixture. Grains provide the necessary sugars that yeast can convert into alcohol during the fermentation process. The specific type of grain used can greatly impact the flavor profile and characteristics of the final product.


2. Sugarcane: Potable alcohol made with a sugar cane base source has seen an increasing use in recent years. This type of alcohol, commonly known as rum, is derived from the fermentation and distillation of sugarcane juice or molasses. Rum has a rich history and is enjoyed by people all over the world. It is known for its distinct flavors and versatility in cocktails. The use of sugar cane as a base source for potable alcohol provides unique characteristics to the final product. One reason for the increasing use of potable alcohol made with a sugar cane base source is its association with tropical regions where sugar cane cultivation thrives. Countries like Cuba, Jamaica, and Barbados is renowned for their rum production.


3. Molasses: Potable alcohol made with molasses is a type of alcoholic beverage that is produced using molasses as a key ingredient. Molasses, which is a byproduct of sugar production, serves as the primary source of fermentable sugars for the production of this alcohol. The process begins with the fermentation of molasses, where yeast converts the sugars present in molasses into alcohol through a natural chemical reaction. This fermented mixture is then distilled to remove impurities and increase its alcohol content. The resulting product is a clear and potent alcoholic beverage. Potable alcohol made with molasses finds its application in various areas. It can be used as an ingredient in cocktails, spirits, liqueurs, and other alcoholic beverages.

By Application

1. Food & Beverages: Potable alcohol, also known as drinkable alcohol, is experiencing a significant increase in demand, particularly in the food and beverage industry. This surge in popularity can be attributed to its rising importance in various applications within this sector. One of the key reasons for the increasing demand for potable alcohol is its role as an essential ingredient in the production of alcoholic beverages. From spirits like vodka, whiskey, and rum to wines and beers, potable alcohol serves as the base component that provides these beverages.


2. Alcoholic Beverages: The primary and most common use of potable alcohol is for the production of alcoholic beverages. Ethanol is the active ingredient in these drinks, and it is produced through the fermentation of sugars or starches in various ingredients like grapes, barley, corn, or sugarcane. Examples of alcoholic beverages include beer, wine, whiskey, vodka, rum, and more. It is the primary ingredient responsible for the intoxicating effects and flavors found in various drinks such as beer, wine, spirits, and cocktails. The demand for potable alcohol in beverages has seen a significant increase over the years. Consumers are seeking unique and diverse flavor profiles, leading to a rise in craft breweries, wineries, and distilleries.


3. Flavors and Fragrances: Potable alcohol is used in fragrances and flavors because it is a good solvent and can help to disperse other ingredients evenly. It is also a good preservative and can help to prevent the growth of bacteria and mold. It helps to extend the shelf life of products by inhibiting the growth of microorganisms that can spoil or degrade the quality of the fragrances and flavors. The growing popularity of natural fragrances and flavors has further increased the product's demand. Potable alcohol, sometimes called ethanol, is used for extracting aromatic and flavor compounds from plant materials through methods like maceration and tincture preparation. This process allows manufacturers to capture the essence of botanicals and incorporate them into various products.


4. Pharmaceuticals: Potable alcohol is used in some pharmaceutical formulations as a solvent and preservative. It can help stabilize certain drugs and ensure their even distribution in liquid medications. Its applicational use in the pharmaceuticals includes as a common solvent for many pharmaceutical drugs and medications. It is used to dissolve active pharmaceutical ingredients (APIs) and other substances to create liquid formulations such as syrups, elixirs, and suspensions. Ethanol is particularly useful for drugs that are not very soluble in water. Along with it is a well-known disinfectant and antiseptic agent. It is used in the pharmaceutical industry to sterilize equipment, containers, and surfaces, ensuring that they are free from harmful microorganisms.


5. Cosmetics & Personal Care: Potable alcohol is a type of alcohol that is safe for human consumption in moderate amounts. In cosmetics and personal care products, it is typically used in formulations at safe concentrations suitable for topical use. Potable alcohol is used in cosmetics and personal care products, such as perfumes, colognes, lotions, and mouthwashes, to provide a pleasant scent and as a carrier for fragrance ingredients. It plays a significant role in the cosmetics and personal care products industry due to its versatile properties and safety for use on the skin and hair. Type of alcohol is a primary ingredient in hand sanitizers, serving as an effective disinfectant to kill bacteria and viruses when applied to the skin. It is particularly important for maintaining hand hygiene. It is used in some deodorants and antiperspirants to help dissolve and disperse active ingredients that control odor and sweat. It also helps in the application of these products.


6. Others: The other category of the market segment includes potable alcohol’s use be blended with gasoline to create ethanol-based fuels like E85. This ethanol-gasoline blend is used in some vehicles and is considered more environmentally friendly than pure gasoline because it can reduce greenhouse gas emissions and dependence on fossil fuels. The segment is poised to create an absolute dollar opportunity worth USD 174.66 million by 2030 over 2023. It is poised to be valued at 1.30 times its value by 2030 over its existing market value in 2022. The segment held a share of 4.49% in 2022 and is likely to observe significant growth of 3.35% by the end of the projected year.

By Purity

1. Less Than 96% Purity: Potable alcohol with less than 96% purity refers to alcohol that has been distilled to a lower concentration, making it suitable for consumption. This type of alcohol is commonly used in various applications, particularly in the beverage industry. The demand for potable alcohol with less than 96% purity has increased significantly in the beverage sector. It is used as a key ingredient in the production of alcoholic beverages such as spirits, liqueurs, and cocktails. The lower purity level allows for the incorporation of flavors and other ingredients while maintaining the desired alcoholic content. In addition to its use in alcoholic beverages, this type of alcohol also finds application in non-alcoholic beverages. It can be used as a solvent or flavor enhancer in the production of various soft drinks and flavored beverages.


2. 96% Purity: 96% purity potable alcohol has gained significant traction in various applications due to its high level of purity and suitability for consumption. This type of alcohol is specifically formulated to meet stringent quality standards, ensuring that it is safe for human consumption. One of the key reasons for the rising utilization of 96% purity potable alcohol is its effectiveness as a disinfectant and sanitizer. With its high alcohol content, it has proven to be highly effective in killing germs, bacteria, and viruses on surfaces and skin. This makes it an ideal choice for use in healthcare settings, laboratories, food processing facilities, and other industries where maintaining hygiene is crucial. Moreover, 96% purity potable alcohol also finds application in the production of various pharmaceutical products.


3. Above 96% Purity: Producing potable alcohol with a purity level above 96% involves a specialized process that distinguishes it from normal potable alcohol. This high purity level is achieved through a combination of distillation and purification techniques. In the production process, raw materials such as grains or fruits are fermented to convert the sugars into alcohol. This initial fermentation results in a liquid known as "wash" which contains a mixture of water, alcohol, and other impurities. To increase the alcohol concentration, the wash undergoes distillation. Distillation involves heating the wash to separate the alcohol from other components based on their boiling points. The vaporized alcohol is then condensed back into liquid form through cooling, resulting in a higher concentration of alcohol.

By Distribution Channel

1. Store-Based: Potable alcohol store-based distribution channel refers to the conventional method of distributing alcohol. The potable alcohol store-based distribution channel is a traditional and widely used method for distributing alcoholic beverages to consumers. It involves the production, distribution, and sale of alcoholic products through a network of specialized retail stores that comply with legal and regulatory requirements to ensure responsible and safe access to these products. These retail establishments have a huge consumer base and a broad selection of items. Supermarkets and hypermarkets are a combination of department stores that are considered a one-stop destination for shopping. These types of marts are generally situated near residential areas to make their consumers shopping easier and more comfortable. With competitive prices and promotions, they provide consumers with a simple one-stop shop, and they give manufacturers the chance to reach a big audience.


2. Non-Store Based: Non-store-based distribution channel, also known as "online distribution channel," refers to the process of distributing products and services to customers without relying on physical retail stores. Instead, this distribution channel leverages digital platforms, e-commerce websites, and other online methods to connect producers or manufacturers directly with consumers or through intermediaries. Here's an explanation of non-store-based distribution channels. Online retailing involves selling products and services directly to consumers through e-commerce websites. These websites provide a platform for producers to showcase and sell their goods online. Customers browse the products, make purchases, and have them shipped to their homes.

By Region

1. 
   

   North America: North America market value is expected to be USD 5,894.73 million in 2023 and growing at a CAGR of 4.50% during the forecast period. The North American region which includes countries like the US, Canada, and Mexico has a significant share contributed to the Americas and Europe potable alcohol market. Consumer preferences for alcoholic beverages are evolving in the region owing to the ever-changing consumer preferences over time. In the US, there has been a growing interest in alcoholic beverages. Consumers are often willing to pay more for high-quality, artisanal products, which has led to increased demand for specialty and craft alcoholic beverages. Economic conditions can influence the demand for alcohol. In periods of economic growth and stability, consumers may have more disposable income to spend on luxury items like premium spirits and wines. Economic recovery from the COVID-19 pandemic could also play a role in boosting demand in the region. Canada has witnessed a surge in the craft alcohol industry, including craft beer, craft spirits, and craft cider. Consumers are increasingly interested in locally produced, small-batch, and artisanal alcoholic beverages. Craft breweries, distilleries, and cideries have been flourishing, catering to this demand.

   
   


2. 
   

   Europe: The European region which consists of key countries like France, the UK, Germany, Italy, and Spain plays an important role in the development of the potable alcohol market. France is renowned for its wine culture, and wine consumption has historically been an integral part of French society. The country is one of the world's leading wine producers, and its reputation for quality wines has led to a consistent domestic and international demand for French wines. France is a major exporter of wine and spirits, wherein wines are highly regarded globally, and the export market has been a significant driver of growth for the French wine industry. Exports have contributed to the overall expansion of the potable alcohol market. Additionally, Germany attracts millions of tourists each year, and beverages like beer and wine are integral to the country's tourism industry. Brewery tours, wine regions, and beer festivals all contribute to beverage-related tourism. Producers in Germany have increasingly adopted direct-to-consumer sales models, allowing customers to purchase beverages directly from the source, often through online platforms or on-site sales at wineries and breweries.

   
   


3. 
   

   Latin America: Latin America region which consists of major countries like Argentina, Brazil, and Peru is witnessing the prominent growth of potable alcohol. The growth of the potable alcohol industry in Latin America is influenced by several factors, particularly the rising application areas for this versatile product. One key factor driving the growth is the increasing demand for potable alcohol in various industries across Latin America. Potable alcohol finds applications in sectors such as pharmaceuticals, cosmetics, food and beverage, and cleaning products. As these industries continue to expand and diversify, the need for potable alcohol as a raw material or ingredient increases accordingly. Another factor contributing to the growth is the growing consumer awareness and preference for natural and organic products. Potable alcohol, being derived from natural sources such as sugarcane or grains, aligns well with this trend. Consumers are increasingly seeking products that are free from synthetic chemicals or additives, making potable alcohol an attractive choice for manufacturers in Latin America.