by The Industrial Alcohol Market is estimated to be valued at US$ 199.19 Bn in 2023 and is expected to exhibit a CAGR of 10. % over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Industrial alcohol refers to alcohol that is produced and distributed for use in industry and science applications rather than ingestion or medical applications. Some key uses of industrial alcohol include solvents, fuels, antifreeze products, cleaning solutions, explosives, pharmaceuticals, and personal care items. Ethanol is the most common type of industrial alcohol and is primarily used as a fuel additive or substitute for gasoline.
Market Dynamics:
Two of the primary drivers projected to boost growth of the industrial alcohol market include rising demand for fuel ethanol and increasing use in personal care and cosmetics industry. Fuel ethanol demand is growing significantly owing to various initiatives by governments worldwide to reduce vehicular carbon emissions and dependence on fossil fuels. Ethanol is regularly blended with gasoline to produce cleaner burning fuel. Additionally, manufacturers are increasingly utilizing alcohol-based ingredients and formulations in personal care products such as fragrances, makeup, sanitizers, and creams due to their solvent properties and ability to carry active ingredients into the skin. However, price volatility of sugarcane and corn impacting raw material costs for ethanol production is a key challenge in the market. Fluctuations in agricultural commodity pricing can undermine the feasibility of ethanol production.
Segment Analysis
The global industrial alcohol market is dominated by the ethyl alcohol segment. Ethyl alcohol finds wide application in the production of chemicals, solvents, pharmaceuticals, and personal care products. It is the major raw material used in the production of surface coatings, adhesives, polyethylene terephthalate (PET), and plasticizers. The segment accounts for over 50% of the total industrial alcohol market share owing to its widespread application scope and mass production.
PEST Analysis
Political: Regulations around ethanol blending are expected to drive the industrial alcohol market growth. Most countries have mandated the blending of gasoline with ethanol to reduce vehicular emissions.
Economic: Growth of end-use industries such as chemical, pharmaceutical, and personal care will augment the demand for industrial alcohol. These industries are growing at a rapid pace in developing nations.
Social: Increasing health awareness is prompting consumers to shift to personal care and home care products containing natural and bio-based ingredients like industrial alcohol.
Technological: Development of advanced distillation and fermentation technologies have enabled large-scale and cost-effective production of industrial alcohol from various feedstock. This is encouraging established players to expand their production capabilities.
Key Takeaways
The Global Industrial Alcohol Market Growth is expected to witness high, exhibiting CAGR of 10% over the forecast period, due to increasing demand from chemical industry. The global chemical industry consumes a massive amount of industrial alcohol for manufacturing products like PET resins, glycols, solvents, and plasticizers.
Regionally, Asia Pacific is expected to dominate the global industrial alcohol market owing to large production bases of chemical and pharmaceutical industries in the region. Countries like China, India, Japan, and South Korea are major export and manufacturing hubs for chemicals, pharmaceuticals, and personal care products.
Key players operating in the industrial alcohol market are BASF SE, BIRLA SUGAR, CARGILL INCORPORATED., CRISTALCO, FLINT HILLS RESOURCES, GREEN PLAINS INC., GREENFIELD SPECIALTY, MGP INGREDIENTS INC., SIGMA ALDRICH, and THE ANDERSONS INC. Players are focusing on expanding their production capacities and developing new grades of industrial alcohol to cater to the increasing demand from end-use sectors.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
