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Industrial Alcohol Market Trends

ID: MRFR//4331-HCR | 100 Pages | Author: Anshula Mandaokar| July 2024

Global Industrial Alcohol Market Overview

Industrial Alcohol Market Size was valued at USD 114.30 Billion in 2023. The Industrial Alcohol Market industry is projected to grow from USD 125.96 Billion in 2024 to USD 248.70 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 8.88% during the forecast period (2024 - 2032). Industrial alcohol is being influenced by rising pharmaceutical industry demand as well as government emission control requirements are the key market drivers enhancing market growth.

                          Industrial Alcohol Market Overview

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

Industrial Alcohol Market Trends

  • Growing Bioethanol Adoption Will Drive Market Growth

Market CAGR for industrial alcohol is being driven by the growing bioethanol adoption. To lessen the effects of greenhouse gases (GHG), bioethanol is extensively employed as a biofuel for transportation. The growing population and increased industrialization are driving up energy demand. As a result, the price of crude oil and natural gas has been rising for several years. The growing awareness of climate change and the increasing use of renewable resources has resulted in the creation of bioethanol. Biofuels are renewable energy sources that have increased market demand for fuel while also helping to reduce pollution levels around the world. Alternative fuels are favored due to uncertainty in energy security, rising fuel prices, and the ongoing growth in CO2 emissions levels. The adoption of wastes such as molasses and sugar beet pulp is motivated by the desire to reduce GHG emissions. They have significant benefits, such as lower waste disposal costs.

Furthermore, the product's affordability lowers the cost of ethanol production. Thailand (cassava), India (using sugar cane), China (corn), France (sugar beet), Canada (wheat), and other countries have increased ethanol production. Fermentation processes result from the conversion of cellulosic material to ethanol. Additionally, this technique turns energy crops into bioethanol, resulting in increased ethanol yields. The technological innovation aimed at developing effective agricultural and forestry conversion for the manufacture of bioethanol is positively promoting market expansion.

Alcoholic beverages, as well as medicines, have used alcoholic ingredients since the beginning of recorded history. Alcohol, on the other hand, has found its way into a wide range of other applications as a result of technological improvements. Ethyl alcohol, one of several forms of commercially available alcohol, is the most often consumed industrial alcohol and is widely recognized around the world. Currently, the majority of ethyl alcohol produced is supplied to the fuel industry for use as biofuel. Studies on bio-butanol development have also gained importance and are paving the way for commercialization. Despite the fact that ethyl alcohol is a commercially available biofuel utilized worldwide, the development of bio-butanol has gained importance.

Because of their qualities, industrial alcohols are utilized in the pharmaceutical industry as a carrier for a range of iodine solutions, decongestants, medicines, and other goods. In the pharmaceutical sector, ethanol is used as a solvent to make vaccines, antibiotics, pills, Vitamins and tablets, and a variety of other drugs. Demand for diverse products is increasing as a large number of pharmaceutical businesses partner with industrial alcohol suppliers to source vital technological skills in the production of medicinal products. Manufacturers are focusing on increasing production capacity to satisfy demand, which gives appealing potential for market growth.

Industrial Alcohol Market Segment Insights

Industrial Alcohol Source Insights

The Industrial Alcohol Market segmentation, based on Source includes Sugar & Molasses, Corn, Grains, and Fossil Fuels. During the projection period, corn category dominated the industrial alcohol market. The dry-milling method is used to transform maize into flour, which is subsequently fermented with other byproducts to produce ethanol. Sweeteners and ethanol are often manufactured in wet-mill plants. Met mills extract protein, starch, and fiber from corn for the purpose of creating ethanol. Corn, which is a significant producer of ethanol, dominates the market for industrial alcohol.

Industrial Alcohol Type Insights

The Industrial Alcohol Market segmentation, based on Type, includes Ethyl Alcohol, Methyl Alcohol, and Isopropyl Alcohol. In 2022, the ethyl alcohol category dominated the market. This is due to the product's strong demand, which can be easily obtained from biomass, corn, wheat, barley, and other sources. Because of its high octane concentration, it is a renewable fuel that is combined with gasoline. Regardless of the source, the ethanol produced has the same chemical properties and is available in a variety of forms.

Figure1: Industrial Alcohol Market, by Type, 2022&2032(USD Billion)

                                 Industrial Alcohol Market, by Type, 2022&2032

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

Industrial Alcohol Application Insights

The Industrial Alcohol Market segmentation, based on application, includes Fuel, Pharmaceuticals, Personal Care Products, and Chemical Intermediates & Solvents. The fuel category is expected to be the largest in the industrial alcohol market during the forecast period. The fuel category is expected to dominate the market due to the increased demand for gasoline from the vehicle industry. Alcohols, especially ethanol, are commonly utilized as transportation fuel. Several US automakers are producing ethanol that allows automobiles to run on a specific type of gasoline with an advanced blend of 85% ethanol and 15% gasoline.

Industrial Alcohol Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. The North American Industrial Alcohol Market area will dominate this market, because of the increasing usage of ethanol as a transportation fuel. The Environmental Protection Agency has a variety of programs in place to aid in the production of ecologically friendly and sustainable items that use renewable energy sources. As more people acquire cars, the demand for ethanol fuel, which decreases total prices, is increasing considerably.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.



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

Europe's Industrial Alcohol Market accounts for the second-largest market share because of changing customer preferences, population growth, and rising disposable incomes, the food and beverage industry has increased demand for industrial alcohol as a solvent, preservative, and flavoring ingredient.  Further, the German Industrial Alcohol Market held the largest market share, and the UK Industrial Alcohol Market was the fastest-growing market in the European region

The Asia-Pacific Industrial Alcohol Market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to rapid industrialization, increased demand from a range of businesses, and favorable government policies for the manufacture and consumption of industrial alcohol. Moreover, China’s Industrial Alcohol Market held the largest market share, and the Indian Industrial Alcohol Market was the fastest-growing market in the Asia-Pacific region.

Industrial Alcohol Key Market Players& Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Industrial Alcohol Market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Industrial alcohol industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the  Industrial Alcohol industry to benefit clients and increase the market sector. In recent years, the Industrial Alcohol industry has offered some of the most significant advantages to medicine. Major players in the Industrial Alcohol Market, including Eastman Chemical Company (U.S.), Greenfield, Inc. (Canada), MGP (U.S.), Green Plains Inc. (U.S.), and Cristal (France), and others, are attempting to increase market demand by investing in research and development operations.

Cargill, Inc. is a privately held American multinational food conglomerate headquartered in Minnetonka, Minnesota, and incorporated in Wilmington, Delaware. It was founded in 1865 and is the largest privately held firm in the United States by revenue. Cargill has regularly faced criticism for its environmental, human rights, financial, and other ethical practices. In 2021, Cargill announced a $475 million investment in the expansion of its maize milling facility in Iowa, which generates ethanol and other goods. The facility's ethanol production capacity will be increased by 40% as a result of the expansion.

BASF SE is a European multinational corporation and the world's largest chemical producer. The company's headquarters are in Ludwigshafen, Germany. BASF has subsidiaries and joint ventures in over 80 countries and runs six integrated manufacturing sites as well as 390 other manufacturing locations throughout Europe, Asia, Australia, the Americas, and Africa. In 2020, BASF and Linde announced the completion of a pilot project to recover high-purity ethanol from a fermentation off-gas stream. BASF's adsorption technology and Linde's distillation technology were employed in the project to produce ethanol that may be used in a range of industrial applications.

Key Companies in the Industrial Alcohol market include

  • Cargill Inc

  • MGP Ingredients Inc

  • Green Plain Inc

  • Birla Sugar

  • Cristalo

  • Greenfield Specialty Alcohols

  • Flint Hills Resources

  • Sigma Aldrich

  • The Andersons Inc


Industrial Alcohol Industry Developments

March 2020, ADM announced the acquisition of Yerbalatina Phytoactives, a Brazilian producer of natural plant extracts and components. The acquisition aims to broaden ADM's inventory of natural ingredients, especially those used in industrial alcohol production.

July 2019, Roquette Freres announced a collaboration with BRAIN AG to develop a variety of bio-based solutions for industrial uses, including industrial alcohol production. The collaboration will capitalize on BRAIN's biotechnology knowledge and Roquette's plant-based ingredient expertise.

September 2021, GPC introduced Pure Ethanol 200 Proof, a new line of industrial alcohol products. These items are intended for use in a wide range of applications, such as pharmaceuticals, personal care, and cleaning. GPC's superior distillation technology is used to create the products.

Industrial Alcohol Market Segmentation

Industrial Alcohol Market By Source Outlook

  • Sugar & Molasses

  • Corn

  • Grains

  • Fossil Fuels

Industrial Alcohol Market By Type Outlook

  • Ethyl Alcohol

  • Methyl Alcohol

  • Isopropyl Alcohol

Industrial Alcohol Market By Application Outlook

  • Fuel

  • Pharmaceuticals

  • Personal Care Products

  • Chemical Intermediate & Solvent

Industrial Alcohol Regional Outlook

  • North America

    • US

    • Canada

  • Europe

    • Germany

    • France

    • UK

    • Italy

    • Spain

    • Rest of Europe

  • Asia-Pacific

    • China

    • Japan

    • India

    • Australia

    • South Korea

    • Australia

    • Rest of Asia-Pacific

  • Rest of the World

    • Middle East

    • Africa

    • Latin America

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