Industrial Alcohol Market Outlook 2031
The global industrial alcohol market size was USD 173 Billion in 2022 and is likely to reach USD 333.1 Billion by 2031, expanding at a CAGR of 8.27% during 2023–2031. The market is propelled by the extensive applications of industrial alcohol in various industries across the globe.
Increasing demand for industrial alcohol in the pharmaceutical as well as cosmetics industries is anticipated to boost the market during the assessment period. The pharmaceutical industry uses various types of alcohol as a solvent in the drug manufacturing process. Moreover, the use of ethanol as a biofuel feedstock is another factor causing a surge in the demand for industrial alcohol.
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In January 2022, ExxonMobil, one of the global leaders in the market, acquired a stake of 49.9% shares in Biojet AS, a biofuel company based in Norway. The latter is planning to convert wood-based construction waste and forestry into lower-emissions biofuels
In the chemical industry, industrial alcohol is used in several chemical processes as a raw material for the production of chemicals. Other areas that make extensive use of industrial alcohol in their manufacturing process include the textile and paint industry. Alcohol is used in textile processing, dyeing, and producing coating paint. In the cosmetics and personal care industry, alcohol is a common ingredient in numerous cosmetics, perfumes, and personal care products, thereby fuelling the market.
The COVID-19 pandemic hindered the market, due to the lockdown levied by various regulatory bodies across the globe. The supply chains were completely interrupted, which led to a scarcity in supply and demand. The manufacturing activities were halted, leading to the slowdown of the market. However, the market is anticipated to have significant growth in the post pandemic period.
Impact of Artificial Intelligence (AI) on the Industrial Alcohol Market
The use of artificial intelligence is likely to provide substantial propulsion to the industrial alcohol market. State-of-the-art AI networks are employed to forecast the quality of the final product in the industrial alcohol production process. The systems gather real-time data during the entire brewing process, including the duration of each stage until completion and the quantity of CO2 used, which is then analyzed by the network.
Industrial Alcohol Market Dynamics
Major Drivers
Increasing adoption of bioethanol as an alternative fuel source is expected to drive the market during the projection period. It provides a renewable and environmentally friendly alternative to industrial alcohol that is based on fossil fuels. Bioethanol is produced from bioethanol sources such as sugarcane, corn, and other cellulosic materials. This reduces carbon emissions, which makes it suitable to use, due to the increasing imposition of environmental regulations across the globe. This is projected to impel the market during the projection period.
Existing Restraints
Growing environmental concerns are likely to hamper the market during the forecast period. The production of industrial alcohol often involves large energy consumption and heavy use of fossil fuels, which contribute to the increase of greenhouse emissions. In addition, the disposal of industrial alcohol waste causes harm to the environment. The rise in stringent environmental regulations and consumer demand for sustainable products are projected to cause a market slowdown in the coming years.
Emerging Opportunities
Research and development of eco-friendly ethanol are anticipated to provide substantial propulsion opportunities for the market. Eco-friendly ethanol is developed using renewable feedstocks such as sugarcane and corn. It is a cleaner alternative to traditional fossil fuels and aligns with the growing environmental concern of various governments as well as consumers.
Biotechnology has now made it possible to produce eco-friendly ethanol using biomass from bacteria. Genetically modified E. coli bacteria have been utilized to convert plant sugar into ethanol, which is projected to gain widespread use and compete with fossil fuels. These factors are expected to contribute to the market growth of Industrial alcohol in the coming years.
Scope of the Industrial Alcohol Market Report
The market report includes an assessment of the market trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Industrial Alcohol Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Type (Ethyl Alcohol, Isopropyl, Methyl Alcohol, Isobutyl Alcohol, and Others), Source (Grains, Corn, Sugar & Molasses, Fossil Fuels, and Others), Application (Personal Care, Pharmaceutical, Fuels, Chemical Intermediates, Food Industry, and Others)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, Market Trends, and Revenue Forecast
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Key Players Covered in the Report
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The Andersons, Inc.; Raizen Energia; MGP; Deepak Nitrite; Merck KGaA, Darmstadt, Germany and/or its affiliates; GREENFIELD GLOBAL INC.; Green Plains Inc.; Grain Processing Corporation; Flint Hills Resources; Cristalco; and Cargill, Incorporated.
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Industrial Alcohol Market Segment Insights
Type Segment Analysis
Based on type, the industrial alcohol market is divided into ethyl alcohol, isopropyl, methyl alcohol, isobutyl alcohol, and others. The ethyl alcohol segment is projected to hold the major share of the market during the projection period, as it is used as an effective solvent for a wide range of substances in the pharmaceutical, cosmetics, and chemical industries. Ethanol also finds application as an eco-friendly fuel source, especially in the production of ethanol-blended gasoline, which works effectively in reducing greenhouse gas emissions.
The methyl alcohol segment is projected to register a considerable CAGR during the forecast period, due to its cost-effective production process. Methanol is useful in the manufacturing of products such as paints, coatings, and pharmaceuticals. Its dissolving properties make methyl alcohol suitable for the production of various chemicals such as acetic acid and formaldehyde. Therefore, methyl alcohol is projected to have a considerable adoption during the forecast period.
Source Segment Analysis
On the basis of source, the global market is segregated into grains, corn, sugar & molasses, fossil fuels, and others. The sugar & molasses segment is projected to register a high CAGR during the forecast period, as they are extensively used in the production of ethanol. The fermented sugar contained in them is converted to alcohol that is used in the production of biofuel and industrial alcohol. In addition, sugarcane is inexpensive as a raw material and friendly to the environment. This segment is anticipated to register substantial growth in the coming years, due to the implementation of strict environmental regulations.
Application Segment Analysis
On the basis of application, the industrial alcohol market is segmented into personal care, pharmaceutical, fuels, chemical intermediates, food industry, and others. The fuels segment is anticipated to register a robust growth rate during the forecast period, owing to the surging fuel requirement in the automotive industry. Ethanol has substantial applications in transportation as a fuel. Numerous automobile manufacturers in the US are producing ethanol that aids automotive vehicles to run on a specific kind of gasoline that contains a mixture of 15% gasoline and 85% ethanol. This segment is likely to witness major propulsion in the coming years with the expansion of the transportation industry.
Regional Outlook
In terms of region, the global industrial alcohol market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to dominate the market during the projection period, due to the high usage of industrial alcohol in transportation and production. The expansion of the automobile industry is significantly increasing the demand for ethanol-based fuel, as it helps in total cost reduction. Furthermore, various arrangement programs by the Environmental Protection Agency (EPA) support sustainable and eco-friendly products manufactured from renewable energy sources.
The market in Asia Pacific is likely to experience high adoption of industrial alcohol in the fuel industry in the coming years. This region has economies that are rapidly developing, owing to numerous government initiatives and growing foreign investments within the industrial sector. Countries such as India and China are producers of ethanol and major consumers as well, due to the rapid expansion of the automotive industry. This is likely to provide significant propulsion to the market during the forecast period.
Segments
The industrial alcohol market has been segmented on the basis of
Type
- Ethyl Alcohol
- Isopropyl
- Methyl Alcohol
- Isobutyl Alcohol
- Others
Source
- Grains
- Corn
- Sugar & Molasses
- Fossil Fuels
- Others
Application
- Personal Care
- Pharmaceutical
- Fuels
- Chemical Intermediates
- Food Industry
- Others
Region
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- The Andersons, Inc.
- Raizen Energia
- MGP
- Deepak Nitrite
- Merck KGaA, Darmstadt, Germany and/or its affiliates
- GREENFIELD GLOBAL INC.
- Green Plains Inc.
- Grain Processing Corporation
- Flint Hills Resources
- Cristalco
- Cargill, Incorporated
Competitive Landscape
Key players competing in the global industrial alcohol market are The Andersons, Inc.; Raizen Energia; MGP; Deepak Nitrite; Merck KGaA, Darmstadt, Germany and/or its affiliates; GREENFIELD GLOBAL INC.; Green Plains Inc.; Grain Processing Corporation; Flint Hills Resources; Cristalco; and Cargill, Incorporated.
These companies incorporate development strategies such as partnerships, collaboration, mergers, acquisitions, product launches, and production expansion to tap into the untapped regions. These key players have to overcome obstacles such as raw material fluctuating prices and competition from emerging local brands. For instance,
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In July 2021, Deepak Nitrite, a subsidiary of Deepak Phenolics, doubled its Isopropyl Alcohol production capacity at its Dahej facility in Gujarat, India from 30,000 to 60,000 tonnes p.a. This move is expected to reduce IPA import dependency of India and aid in accomplishing Atmanirbhar Bharat campaign.
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