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Global grain alcohol sector set for future growth
The grain alcohol category is set to grow internationally over the next few years due to the development of new flavours.
Grain alcohol, a neutral spirit that can be made from corn, rye, wheat, grapes, grains, sugarcane, tubers or beets is often used to make other alcoholic drinks such as wine, vodka, homemade liqueurs, and others.
New data from Marketwatch explained how sales of grain alcohol are expected to reach US$16.37 billion in 2026, climbing at a CAGR of 5.32%. According to the report, a focus for companies operating in the sector has been on “cultivating new flavours and varieties based on ethnic tastes”.
The sector, which has been impacted by the Russia-Ukraine war as well as the Covid-19 pandemic and led to economic sanctions on multiple countries resulting in a surge in commodity prices and supply chain disruptions, is now being revitalised by an increase in research and development.
The global grain alcohol market is segmented into North America, South America, Asia-Pacific, Eastern Europe, Western Europe, Middle East and Africa. Among these regions, however, Europe still holds the largest share of the category.