Non Fuel Grade Alcohol Market Size

Global Non-Fuel Grade Alcohol Market Overview

Non-Fuel Grade Alcohol Market Size was valued at USD 19747.03 million in 2023. The Non-Fuel Grade Alcohol industry is projected to grow from USD 20650.65 million in 2024 to USD 31114.17 million by 2032, exhibiting a compound annual growth rate (CAGR) of 5.50% during the forecast period (2024 - 2032). The rapidly expanding alcohol business will create a favorable market environment for the non-fuel grade alcohol market. Furthermore, with a better lifestyle, a greater emphasis on self-care and attractiveness, and rising disposable income levels, the personal care business is thriving. Several pharmaceutical items, including sanitizers, wipes, an aesthetics, medicines, liniments, and lotions, as well as cosmetics like scents, deodorants, and shampoos, employ non-fuel grade alcohol as a disinfectant. Anywhere in the home, ethanol is employed as a great solvent, including as a carrier for odorants like perfume, deodorant, and aroma spray. Moreover, ethanol is employed as a cleaning agent for a variety of surfaces, including glass (window cleaner), chrome, plastic, vehicle windscreen cleaning solutions, and stain removal. It acts as antifreeze when added to water.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Non-Fuel Grade Alcohol Market Trends

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  Increasing use of non-fuel grade alcohol in food & beverages industry will fuel the growth of Non-Fuel Grade Alcohol market.

  
  

Food additives frequently contain ethanol which is non-fuel grade alcohol as it can improve colour constancy, it is a component of various food colourings. Moreover, it is utilised to enhance flavour in several food extracts, including vanilla extract. For instance, ethanol is added to port, sherry, and other southern wines, a procedure known as fortification, to bring the fermentation process to a desirable conclusion at the appropriate time. With some exceptions, these liqueurs and wines have a high residual sugar content because the fermentation was stopped too soon, making them very sweet. As ethanol can be used to preserve other foods, it has been widely employed for both food preservation and hygiene control in food manufacturers.

Grain alcohol, also known as non-fuel grade alcohol, is produced from a variety of plants, including wheat, barley, sugarcane, and corn. It is frequently utilised as a foundation in the creation of artisanal drinks and beer. Because beer is less expensive than other alcoholic beverages and is more readily available in a variety of retail outlets, beer consumption has surged during the past several years. Moreover, beer has less ABV (alcohol by volume) than other alcoholic beverages. As a result, a growing number of sober-conscious people prefer beer to other alcoholic beverages including spirits. As a result, the market for grain alcohol is expanding due to the growing demand for beer.

Therefore, increasing use of non-fuel grade alcohol in food preservatives and beverages production is likely to drive the global market in the forecast period.

Non-Fuel Grade Alcohol Market Segment Insights

Non-Fuel Grade Alcohol by Type Insights

The Non-Fuel Grade Alcohol Market segmentation, based on Type has been segmented as Food Grade, Pharmaceutical Grade, Lab Grade, Industrial Grade and Others. Among these, the Food Grade type is projected to dominate the Non-Fuel Grade Alcohol Market revenue through the projected period.  Over the projection period, the Food Grade segment will contribute the biggest market share. Food-grade alcohol is the ultra-pure grade of ethyl alcohol having a purity of 99–100% (absolute ethanol) and is used for portable applications, such as alcoholic beverages, aromas, and flavors. Since food-grade ethyl alcohol is intended for human consumption, chemicals are permitted to be mixed with this alcohol to maintain the highest possible level of purity.

Non-Fuel Grade Alcohol by Application Insights

Based on Application, the Non-Fuel Grade Alcohol Market is segmented as Food & Beverages , Pharmaceuticals, Cosmetics & Personal Care, Chemical Solvent and Others. Out of which the Food & Beverages segment dominated the base year market and is also projected to be holding a dominating share in the forecasted period as well. The segment growth is anticipated to be boosted in the upcoming years as the food and beverage industry has traditionally been the largest consumer of non-fuel-grade alcohol market products. Alcohol of a non-fuel grade is utilised in portable applications such as alcoholic beverages, fragrances, and tastes. Because food-grade ethyl alcohol is designed for human consumption, chemicals may be blended with it to preserve the highest level of purity feasible. Several spirit drinks are prepared with alcohol (flavourless, odourless, and colourless) derived from cereals, grapes, molasses, potatoes, and other agricultural sources.

Based on Region, the Non-Fuel Grade Alcohol market is segmented into North America, Europe, Asia-Pacific, Middle East & Africa, and Latin America. The Europe Non-Fuel Grade Alcohol market held the maximum market share and is also expected to account for the significant revenue share during the forecast period. Rapidly growing pharmaceutical sector will positively impact the market of non-fuel grade alcohol owing to its exceptional medicinal qualities. It has numerous medical applications and can be found in medications, medical wipes, and as an antiseptic in most antibacterial hand sanitizer gels. It can be used as a solvent, preservative, or to improve cutaneous penetration. Moreover, the application of the product in perfumes, deodorants, and other cosmetics products will create growth opportunities for non-fuel-grade alcohol market

Non-Fuel Grade Alcohol Key Market Players & Competitive Insights

Key market players are emphasizing significantly on R&D for increasing their product offerings, which will further help the Non-Fuel Grade Alcohol Market to grow considerably. Market players are adopting several business development strategies such as acquisitions, mergers, collaborations, and partnerships to enhance their market presence and acquire larger customer base. To survive in the competitive market, industry players must provide cost effective products.

The Non-Fuel Grade Alcohol market is very competitive with market players trying to develop unique and innovative products and solutions, which could render the competitors’ offerings obsolete. The competitive environment is likely to grow further owing to rising technological advancements. Some of the key players operating in the Non-Fuel Grade Alcohol Market are Archer-Daniels-Midland Company, Cargill Incorporated, Sasol, Merck KGaA, CropEnergies AG, LyondellBasell Industries NV, Pannonia Bio, Wilmar Sugar Pty Ltd., Godavari Biorefineries Ltd, and Solvay.To increase their global reach and client base, key firms are concentrating on acquisitions and product innovation.

Archer-Daniels-Midland Company: also known as ADM, is a multinational American corporation that was established in 1902 and has its corporate headquarters in Chicago, Illinois. Cereal grains and oilseeds are processed at the company's more than 270 plants and 420 crop procurement sites across the world into goods that are used in the global food, beverage, nutraceutical, industrial, and animal feed sectors. The company Archer-Daniels-Midland purchases, transports, stores, and merchandises agricultural goods. The business refines oilseeds, corn, milo, oats, wheat, oat bran, and peanuts. In addition, Archer-Daniels-Midland processes and produces goods that are generally used as ingredients for food or animal feed. Ethanol is produced under the fuel segment. Ethanol produced from corn fibers produces a large amount of animal feed as a co-product. It is involved in a partnership with other leading companies and research firms to come up with innovative solutions and next-generation biofuels made from cellulose sources The goal of ADM is to turn natural resources such cereal grains and oilseeds into a variety of goods, including supplements, food and beverage components and flavourings, and nutritional goods for animals and pets. ADM has also been named by Fortune as one of the most admired food manufacturing corporations in the world, including in 2021.

Cargill Incorporated: is an agribusiness corporation that offers food, financial products, agricultural, industrial, and risk management services. It markets, processes, and distributes grains, oilseeds, sugar, meat, and other food goods, as well as cotton. Natural ingredients are also produced for the personal care business, pet food, animal feed, and bio-industrial products. Technical assistance, data asset solutions, transportation and logistics services, risk management services, and marketing services are all offered by the organisation. Furthermore, the company manufactures and distributes starch and starch sweeteners, as well as fuel ethanol and biodiesel. The company sells feed and pet food under several names, including Nutrena, Provimi, Cargill, EWOS, Diamond V, and Purina. The company operates across 70 countries in the Americas, Europe, the Middle East, and Africa, as well as Asia Pacific. Cargill's headquarters are in Minneapolis, Minnesota, in the United States.

Key Companies in the Non-Fuel Grade Alcohol Market includes.

• Archer-Daniels-Midland Company (US)


• Cargill Incorporated (US)


• Sasol (South Africa)


• Merck KGaA (Germany)


• CropEnergies AG (Germany)


• LyondellBasell Industries NV (Netherlands)


• Pannonia Bio (Hungary)


• Wilmar Sugar Pty Ltd.  (Singapore)


• Godavari Biorefineries Ltd (India)


• Solvay (Belgium)

Non-Fuel Grade Alcohol Industry Developments

January 2023: Cargill has been named the winner in the 2023 BIG Innovation Awards presented by the Business Intelligence Group.

September 2022: CropEnergies acquires stake in Dutch biobased chemicals start-up Syclus: CropEnergies AG, Mannheim, Germany, has acquired a stake in the Dutch. start-up for biobased chemicals Syclus BV, Maastricht. CropEnergies purchases 50 percent of the company's share capital. The investment volume amounts to EUR 1.8 million.

October 2021: Pannonia Bio Wins Icheme Global Energy Award 2021: team of Pannonia Bio engineers and experts were named winners of the IChemE Energy Award 2021 for their success with the project “Decarbonizing biorefineries to produce greener bioethanol”. These awards are organized by the Institution of Chemical Engineers, a group that exists to advance chemical engineering’s contribution for the benefit of society.

Non-Fuel Grade Alcohol Market Segmentation

Non-Fuel Grade Alcohol Type Outlook

• Food Grade


• Pharmaceutical Grade


• Lab Grade


• Industrial Grade


• Others

Non-Fuel Grade Alcohol Application Outlook

• Food & Beverages


• Pharmaceuticals


• Cosmetics & Personal Care


• Chemical Solvent


• Others

Non-Fuel Grade Alcohol Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • Italy
  
  
  • Spain and Poland
  
  
  • UK and Ireland
  
  
  • Austria and Switzerland
  
  
  • Benelux
  
  
  • Nordics (Sweden, Norway, Denmark)
  
  
  • Central and Eastern Europe
  
  
  • Southern Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • India
  
  
  • Japan
  
  
  • South Korea
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Latin America
  
  
  
  • Brazil
  
  
  • Mexico
  
  
  • Argentina
  
  
  • Rest of Latin America
  
  
  
  


• Middle East & Africa
  
  
  
  • GCC Countries
  
  
  • South Africa
  
  
  • Rest of Middle East & Africa