Americas & Europe Potable Alcohol Market Research Report: Information By Source (Grains and Sugarcane and Molasses), By Application (Food & Beverages, Alcoholic Beverages, Flavors and Fragrances, Pharmaceuticals, Cosmetics & Personal Care and Others), By Purity (Less Than 96% Purity, 96% Purity and Above 96% Purity), By Distribution Channel (Store-Based and Non-Store Based), and By Region (North America, Europe, and Latin America) - Forecast Till 2032

Americas & Europe Potable Alcohol Market Overview

Americas & Europe Potable Alcohol Market Size was valued at USD 13,661.84 million in 2023. The Potable Alcohol market industry is projected to grow from 2024 to USD 22,542.04 million by 2032, exhibiting a compound annual growth rate (CAGR) of 5.72% during the forecast period (2024 - 2032).  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.

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

Potable Alcohol Market Trends

• GROWING CONSUMPTION OF ALCOHOL

The growing consumption of alcohol across various regions of Europe and the Americas is likely to increase the demand for potable alcohol which in turn is likely to boost its market growth in the upcoming years. As a part of this, according to the European Union, in 2019, 8.4% of the adult population in the EU drank alcohol every day, 28.8% drank it once a week, 22.8% drank it once a month, and 26.2% never drank alcohol or hadn't in the previous 12 months. It has been discovered that daily alcohol consumption rises with age. The age group of 15 to 24 recorded the lowest proportion of daily alcohol use (1.0%) and the age group of 75 or over had the largest share (16.0%). The biggest percentage of people (40.3%) who had never drunk alcohol or had not in the previous 12 months belonged to the latter age group. Between the ages of 25 and 64, weekly alcohol consumption was comparatively consistent across all age groups, with the biggest percentage being observed in those between the ages of 45 and 54 (33.5%). With age, usage of monthly and less often fell a little. The highest monthly alcohol consumption rate was found among those between the ages of 25 and 34 (28.5%). Men were more likely than women to drink on a daily and weekly basis (13.0% of men vs. 4.1% of women and 36.4% of men vs. 21.7% of women, respectively). The growing consumption of alcohol across various regions of Europe and the Americas is likely to increase the demand for potable alcohol which in turn is likely to boost its market growth in the upcoming years. As a part of this, according to the European Union, in 2019, 8.4% of the adult population in the EU drank alcohol every day, 28.8% drank it once a week, 22.8% drank it once a month, and 26.2% never drank alcohol or hadn't in the previous 12 months. It has been discovered that daily alcohol consumption rises with age. The age group of 15 to 24 recorded the lowest proportion of daily alcohol use (1.0%) and the age group of 75 or over had the largest share (16.0%). The biggest percentage of people (40.3%) who had never drunk alcohol or had not in the previous 12 months belonged to the latter age group. Between the ages of 25 and 64, weekly alcohol consumption was comparatively consistent across all age groups, with the biggest percentage being observed in those between the ages of 45 and 54 (33.5%). With age, usage of monthly and less often fell a little. The highest monthly alcohol consumption rate was found among those between the ages of 25 and 34 (28.5%). Men were more likely than women to drink on a daily and weekly basis (13.0% of men vs. 4.1% of women and 36.4% of men vs. 21.7% of women, respectively). Moreover, according to the UK Government, in England, 21% of adults and 24% of adults in Scotland routinely consume alcohol at amounts that raise their risk of illness (growing risk and higher risk drinkers). According to the most recent health survey conducted in England in 2018, more men than women were found to use alcohol at riskier levels weekly (25% of men and 11% of women, respectively), and a similar proportion consumed alcohol at greater risk levels (5% of men consumed alcohol over 50 units and 3% of women consumed alcohol over 35 units]. Those in the least poor areas were more likely than those in the most deprived areas to consume more than 14 units of alcohol in a typical week (27% versus 18%). Hence, the growing consumption of alcohol across various regions is likely to increase the demand for potable alcohol in the upcoming years

Potable Alcohol Market Segment Insights:

Potable Alcohol Source Insights

The Americas & Europe Potable Alcohol market segmentation, based on the source, the American & Europe potable alcohol market has been bifurcated into grains, sugarcane, molasses. The grains segment accounted for the largest market share of 54.93% in 2022 and is likely to register a CAGR of 4.84% during the projected period. The sugarcane segment will likely register the highest CAGR of 6.09% during the projected period. potable alcohol made with grains encompasses a wide range of spirits enjoyed by many around the world. Whether sipped neatly or used as a base for cocktails, these beverages offer a diverse array of flavors and experiences for those who appreciate them responsibly. 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.

Figure 1: Americas & Europe Potable Alcohol Market, by Source, 2023 & 2032 (USD Million)

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

Potable Alcohol Application Insights

The Americas & Europe Potable Alcohol market segmentation, Based on the application, the American & Europe potable alcohol market has been bifurcated into Food & Beverages, Alcoholic Beverages, Flavors and Fragrances, Pharmaceuticals, Cosmetics & Personal Care, and Others. The food & beverage segment accounted for the largest market share of 40.78% in 2022 and is likely to register a CAGR of 5.09% during the projected period. The alcoholic beverages segment will likely register the highest CAGR of 6.05% during the projected period. The rising importance of potable alcohol in food and beverage applications can be attributed to its ability to enhance flavors, provide unique sensory experiences, act as a preservative agent, and serve as an essential component in various alcoholic beverages. As consumer tastes continue to evolve and culinary creativity expands further into new territories, we can expect this demand for potable alcohol to continue on an upward curve.

Figure 2: Americas & Europe Potable Alcohol Market, by Application, 2023 & 2032 (USD Million)

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

Potable Alcohol Purity Insights

The Americas & Europe Potable Alcohol market segmentation, based on the purity, the American & Europe potable alcohol market has been bifurcated into less than 96%, 96% and above 96% purity. The 96% purity segment accounted for the largest market share of 65.80% in 2022 and is likely to register a CAGR of 5.12% during the projected period. The less than 96% segment will likely register the highest CAGR of 5.64% during the projected period. In the food industry, 96% purity potable alcohol can be used as a solvent or extraction agent in flavorings and extracts. Its high level of purity ensures that no unwanted impurities affect the taste or quality of these products. Overall, the rising utilization of 96% purity potable alcohol across various applications can be attributed to its exceptional quality standards and versatility. Its effectiveness as a disinfectant/sanitizer combined with its suitability for use in pharmaceuticals, cosmetics/personal care products, and food industry make it a valuable ingredient across different sectors.

Figure 3: Americas & Europe Potable Alcohol Market, by Purity, 2023 & 2032 (USD Million)

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

Potable Alcohol Distribution Channel Insights

The Americas & Europe Potable Alcohol market segmentation, Based on the distribution channel, the American & Europe potable alcohol market has been bifurcated into store-based and non-store-based. Store-based segment accounted for the largest market share of 87.2% in 2022 and is likely to register a CAGR of 5.56% during the projected period. The non-store-based segment will likely register a CAGR of 3.10% during the projected period. 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.

Figure 4: Americas & Europe Potable Alcohol Market, by distribution channel, 2023 & 2032 (USD Million)

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

Potable Alcohol Regional Insights

By Region, the study segments the market into North America, Europe, and Latin America. Europe region accounted for the largest market share of 53.87% in 2022, with a market value of USD 7,016.81 million; it is expected to register the highest CAGR of 5.83% during the forecast period. North America region was the second-largest market in 2022, valued at USD 5,644.90 million; it is projected to exhibit a CAGR of 4.53%.

Figure 5: AMERICAS & EUROPE POTABLE ALCOHOL MARKET SHARE BY REGION 2023 (%)

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

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

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. The region is poised to create an absolute dollar opportunity worth USD 3,970.28 million by 2030 over 2023. It is poised to be valued at 1.57 times its value by 2030 over its existing market value in 2022. The segment held a share of 53.87% in 2022 and is likely to observe significant growth of 5.83% by the end of the projected year.

Latin American region is poised to create an absolute dollar opportunity worth USD 183.43 million by 2030 over 2023. It is poised to be valued at 1.51 times its value by 2030 over its existing market value in 2022. The segment held a share of 2.78% in 2022 and is likely to observe significant growth of 5.39% by the end of the projected year. 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

Potable Alcohol Key Market Players & Competitive Insights

The Americas and Europe potable alcohol market is projected to register a CAGR of 5.27% during the review period. 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.

The potable alcohol market in the Americas and Europe has experienced remarkable growth in recent years. This market encompasses a wide range of alcoholic beverages that are not only enjoyed for their flavors but also for the cultural experiences they offer. From the diverse craft breweries of North America to the rich history of winemaking in Europe, this market reflects the unique tastes and preferences of consumers across continents. The popularity of craft spirits, innovative cocktail culture, and a growing interest in premium quality drinks have all contributed to the expansion of this market. As consumers increasingly seek distinct and authentic experiences, the potable alcohol market continues to evolve, making it an intriguing and dynamic space to explore. 

Key Companies in the Potable Alcohol market include

• 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)

Potable Alcohol Industry Developments

23-June-2023: Agave-based spirits are alcoholic beverages distilled from the fermented juice of the agave plant, a succulent native to the arid regions of Mexico. The agave family comprises about 200 species, offering diverse flavors and profiles to explore. Sasma, can supply bottle and ship, from 1000 litre IBC to 25,000 litre ISO tanks upon request. This has helped company to expand its sales and increase revenue.

30-Dec-2022: Gulshan Polyols Ltd collaborated with Amplus to purchase solar energy. This association facilitated supply of power for Muzaffarnagar plant, which is mainly focused on grain processing and mineral processing business. Due to this collaboration, company increased its production capacity.

25-July-2023: CropEnergies AG, invested more than EUR 100 million into various projects in the production site of its subsidiary Ensus UK Ltd. The investments enhanced the overall profitability of the site as well as its competitiveness and strengthen its position on the European ethanol and protein markets. This has helped company to increase its production capacity and grow business.

7-Sept-2022: CropEnergies AG, acquired a stake in the Dutch start-up for biobased chemicals Syclus BV. CropEnergies purchased 50 percent of the company's share capital. The investment volume amounts to EUR 1.8 million. Due to this acquisition, company will be able to produce renewable ethylene from renewable ethanol which will increase its revenue.

Potable Alcohol Market Segmentation:

Potable Alcohol Source Outlook

• Grains


• Sugarcane


• Molasses

Potable Alcohol Application Outlook

• Food & Beverages


• Alcoholic Beverages


• Flavors and Fragrances


• Pharmaceuticals


• Cosmetics & Personal Care


• Others

Potable Alcohol Purity Outlook

• Less Than 96% Purity


• 96% Purity


• Above 96% Purity

Potable Alcohol Distribution Channel Outlook

• Store-Based


• Non-Store Based

Potable Alcohol Regional Outlook

• North America


• US


• Canada


• Mexico


• Europe


• Germany


• UK


• Italy


• Spain


• France


• BENELUX


• Nordics


• Rest of Europe


• Latin America


• Brazil


• Peru


• Argentina


• Colombia

Rest of Latin America