Americas & Europe Potable Alcohol Market is predicted to reach USD 19,569.73 million at a CAGR of 5.27% during the forecast period 2023-2030

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 13,024.32 million in 2022 and is projected to reach USD 19,569.73 million by 2030 at a CAGR of 5.27%.

The key factors driving the growth in the market are diverse consumer preferences and rising interest in premium and artisanal products. The Americas and Europe exhibit a broad spectrum of consumer preferences for alcoholic beverages, ranging from traditional choices like wine and beer to a growing demand for craft spirits and innovative cocktails. Moreover, Consumers' increasing willingness to pay for high-quality, unique, and artisanal alcoholic beverages is driving the market's growth, stimulating the production of premium offerings across both regions.

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. 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 supply chain as well as the whole value chain, from the sourcing of raw materials through production, packaging, and distribution, has been impacted by the COVID-19 pandemic. The pandemic has had a negative effect on the potable alcohol whole supply chain. Lockdown limitations have made it more difficult to move the raw ingredients needed to make potable alcohol, which has caused their delayed delivery. The prices of potable alcohol have been stable for the last few years. Although the outbreak has impacted potable alcohol prices, the prices are expected to spike post-lockdown owing to the disruptions in logistic activities. The manufacturers are expected to increase potable alcohol prices due to the increased operational and raw material costs and to make up for the losses caused due to the outbreak. With lockdown restrictions of many retail stores across various regions, many manufacturers of potable alcohol are expected to move into the online/e-commerce channels. E-commerce platforms are coming in handy during these difficult times. Individuals are also accepting this move as they feel safe instead of going out to stores to buy potable alcohol increasing the chances of getting infected from coronavirus. This is evident from the fact that many e-commerce channels have witnessed triple-digit growth rates in sales of various food products, which are made using potable alcohol.

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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 innovation in products and evolving technologies on a global scale 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), Midwest Renewable Energy, LLC (US), Tereos TTD (Dobrovice), Cristalco (France), Group UDM (France), India Glycols Limited (India), 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.


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.


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 to produce 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 with their characteristic flavors and intoxicating effects.


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.


3. Flavors and Fragrances: In the perfume industry, potable alcohol is commonly used as a diluent or carrier for essential oils and aroma chemicals. It helps to ensure that the fragrance is evenly distributed when applied to the skin and provides a longer-lasting scent.


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.


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.


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.

By Purity

1. Less Than 96%: 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.


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.


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.


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.

By Region

1. 
   

   North America: 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.

   
   


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.

   
   


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.