Industrial Alcohol Market: Overview

The global industrial alcohol market size was valued at USD 132.5 billion in 2022 and is expected to grow at a CAGR of 8.5% over the forecast period. Products likes butanol, denatured ethanol, heptanol, and others find use in a variety of industries, including food and beverage, clothing, chemical research, building paints, cosmetics, and many more. Applications from such a wide range of sectors make the market inclusive and enable it to branch out into specific niches. Vendor businesses do this to make their product applications particular. For instance, industrial alcohol introduced by manufacturers for a chemical research program would be thoroughly proofed and concentrated to provide good reactions and precise outcomes.

Report Scope

Along with increased petrochemical demand and the emergence of alternative fuels, the market for industrial alcohol has grown. Because of their adaptability, industrial alcohols are used in a variety of industries, including paints & coatings, pharmaceuticals, and cosmetics. Examples of alcohols used in the production of foods, flavourings, cosmetics, and adhesives include methanol, benzyl alcohol, and isopropyl alcohol. The unique characteristics of these alcohols, also including their high-octane number and higher flammability features, increase the demand for organic solvents, which propels the market growth. Another influential component in the market is the demand for energy. In addition, the growing industrialization and worldwide population are the causes of the increased energy consumption. This has caused the price of natural gas and crude oil to rise during the past few years. The development of bioethanol is a result of both the increased usage of renewable resources and the increasing concern over climate change. Biofuels and other renewable energy sources have aided in supplying the market's demand for fuel that reduces global pollution levels. Alcohol has been used for a long time in both medicine and food. As technology developed, however, alcohol began to be used in a wide range of applications. Of all the commercially available alcohols, ethanol is the most well-liked and respected industrial alcohol on the planet. The petroleum sector currently uses the vast majority of the ethyl alcohol produced as biofuel. While research into the production of bio-butanol has gained importance and is preparing the way for its potential commercialization, ethyl alcohol is a commonly used biofuel that has been commercialized.

Industrial Alcohol Market – Market Trends

• Rising consumer demand for this product as an octane enhancer is anticipated to continue to be the main factor fueling market expansion. The individual contributions of several applications in end-use industries, including the pharmaceutical, care products, transportation, food & beverage, and other sectors, are what fuel the total expansion.

• The main commodity utilized as a fuel in transportation applications, ethanol, is in high demand due to ethanol requirements put forth by several nations throughout the world. While personal care is anticipated to have the quickest CAGR, the transportation sector is predicted to be the largest segment of applications.

• The global market for industrial alcohols is being driven by the increased demand for biofuels amongst end users for energy supplies and the expanding requirement for reasonably priced feedstock in the chemical industry. In order to reduce greenhouse gas emissions, bioethanol is commonly used as a biofuel in transportation.

• Due to shifting lifestyles, growing economies, and a tendency toward the utilization of renewable resources in developing economies, there is an increase in the demand for alcohol in fuel and other applications. The demand for alcoholic beverages like ethyl alcohol as well as isobutyl alcohol is expected to rise dramatically in the next years in developing countries like China, India, the Middle East, and Africa

Industrial Alcohol Market –Regional Analysis

Asia-Pacific is the fastest-growing area in the globe and has the biggest consumption of ethanol, which is related to the product's increasing use in the food and energy industries. The region's economies are rapidly growing as a result of several government initiatives and increasing international investment in the industrial sector. China, a significant ethanol producer, helps the monitoring the fuel and additive demands of the food business. The population increase has raised food consumption, which has also boosted alcohol demand, which is thought to be what is propelling the market's growth.

The industrial alcohol market in China is driven by various factors, including the growing demand from end-use industries such as pharmaceuticals, automotive, and food and beverages, as well as government support for the production of biofuels.

One trend in the industrial alcohol market in China is the increasing demand for biofuels. China is one of the world's largest consumers of energy, and the government has been promoting the use of biofuels to reduce dependence on fossil fuels and reduce greenhouse gas emissions. Industrial alcohol, specifically ethanol, is a key feedstock for biofuel production, and this trend is expected to drive the demand for industrial alcohol in China.

Another trend in the market is the growing use of industrial alcohol in the pharmaceutical industry. Ethanol is used as a solvent and a preservative in the manufacturing of pharmaceuticals, and with the growing demand for pharmaceuticals in China, the demand for industrial alcohol in this sector is expected to rise.

In addition, the food and beverage industry is a significant consumer of industrial alcohol in China, driven by the growing demand for alcoholic beverages, especially beer. Industrial alcohol is also used as a food additive and a solvent in the food industry, and this trend is expected to continue in the coming years.

Overall, the industrial alcohol market in China is expected to grow in the coming years, driven by the increasing demand from various end-use industries, government support for biofuel production, and the growing awareness of the benefits of using renewable energy sources.

Why to buy this Report?

The report provides quantitative and qualitative aspect for the market in terms of value and volume, along with supporting market trends, challenges, restraints.

The report provides an in depth analysis from both production and consumption point of view at the regional and country level. Key Factors considered within the report scope are Production capacity by countries/regions, average price, consumption ratio, revenue earned and gross margin.

The report provides competitive analysis of around 30-50 companies operated in the market, these companies are bifurcated into niche players, the leaders and major contenders. The companies are analyzed in terms of following factors such as:

§  Business Model

§  Production Capacity, Revenue, Sales, Gross Margin

§  Key Business Strategy

§  SWOT Analysis

In terms of competitive landscape, the report provides distinctive factors that would help the end user in taking a key decision within the business:

§  Company Share Analysis from 2018-2022

§  Company Analysis by Revenue and Sales

§  Company Production Capacity, Gross Margin

Industrial Alcohol Market – Segmentation

By Product

• Ethyl Alcohol

• Methyl Alcohol

• Isopropyl Alcohol

• Isobutyl Alcohol

• Others

By Source

• Grains

• Sugar & Molasses

• Corn

• Fossil Fuels

• Others

By Application:

• Food Ingredient

• Transportation Fuel & Fuel Additives

• Chemical Intermediates

• Pharmaceutical

• Personal Care

• Detergent & Cleaning Chemicals

• Others

Industrial Alcohol Market – Key Market players

The major players in the market are

CARGILL

MGP INGREDIENTS

GREEN PLAINS INC.

BIRLA SUGAR

CRISTALCO

GREENFIELD SPECIALTY ALCOHOLS

FLINT HILLS RESOURCES

SIGMA ALDRICH

THE ANDERSONS INC

BASF

By Region

·         North America

o   U.S.

o   Canada

o   Mexico

·         Europe

o   Germany

o   France

o   UK

o   Italy

o   Spain

o   Russia

o   Rest of Europe

·         Asia Pacific

o   China

o   Japan

o   India

o   Australia

o   South Korea

o   ASEAN

o   Rest of APAC

·         South America

o   Brazil

o   Argentina

o   Chile

o   Rest of South America

·         Middle East and Africa

o   Saudi Arabia

o   UAE

o   South  Africa

o   Rest of MEA