Industrial Alcohol Market Share, Growth & Forecast [2031]
Industrial Alcohol Market Share, Growth & Forecast [2031]
Segments - Industrial Alcohol Market by 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), and Region (Asia Pacific, North America, Latin America, Europe, and Middle East & Africa) - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast 2023 – 2031
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Report Description
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.
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According to the data released by the International Energy Agency in 2021, the global requirement for biofuels is estimated to increase by approximately 41 billion liters. This assessment is for the period of 2021-2026 and is equivalent to a growth of 28%.
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 |
Details |
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Report Title |
Industrial Alcohol Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast |
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Base Year |
2022 |
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Historic Data |
2016–2021 |
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Forecast Period |
2023–2031 |
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Segmentation |
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 |
Asia Pacific, North America, Latin America, Europe, and Middle East & Africa |
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Report Coverage |
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 |
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. |
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.
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According to a survey report published in August 2023, the total consumption of ethyl alcohol as a fuel in the US in 2022 was approximately 14 billion gallons. This was a significant increase from the consumption in 2021.
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.
Table Of Content
1. Executive Summary2. Assumptions and Acronyms Used
3. Research Methodology
4. Industrial Alcohol Market Overview
4.1. Introduction
4.1.1. Market Taxonomy
4.1.2. Market Definition
4.2. Macro-Economic Factors
4.2.1. Industry Outlook
4.3. Industrial Alcohol Market Dynamics
4.3.1. Market Drivers
4.3.2. Market Restraints
4.3.3. Opportunity
4.3.4. Market Trends
4.4. Industrial Alcohol Market - Supply Chain
4.5. Global Industrial Alcohol Market Forecast
4.5.1. Industrial Alcohol Market Size (US$ Mn) and Y-o-Y Growth
4.5.2. Industrial Alcohol Market Size (000’ Units) and Y-o-Y Growth
4.5.3. Industrial Alcohol Market Absolute $ Opportunity
5. Global Industrial Alcohol Market Analysis and Forecast by Types
5.1. Market Trends
5.2. Introduction
5.2.1. Basis Point Share (BPS) Analysis by Types
5.2.2. Y-o-Y Growth Projections by Types
5.3. Industrial Alcohol Market Size and Volume Forecast by Types
5.3.1. Ethyl Alcohol
5.3.2. Isopropyl
5.3.3. Methyl Alcohol
5.3.4. Isobutyl Alcohol
5.3.5. Others
5.4. Absolute $ Opportunity Assessment by Types
5.5. Market Attractiveness/Growth Potential Analysis by Types
6. Global Industrial Alcohol Market Analysis and Forecast by Applications
6.1. Market Trends
6.2. Introduction
6.2.1. Basis Point Share (BPS) Analysis by Applications
6.2.2. Y-o-Y Growth Projections by Applications
6.3. Industrial Alcohol Market Size and Volume Forecast by Applications
6.3.1. Personal Care
6.3.2. Pharmaceutical
6.3.3. Fuels
6.3.4. Chemical Intermediates
6.3.5. Food Industry
6.3.6. Others
6.4. Absolute $ Opportunity Assessment by Applications
6.5. Market Attractiveness/Growth Potential Analysis by Applications
7. Global Industrial Alcohol Market Analysis and Forecast by Region
7.1. Market Trends
7.2. Introduction
7.2.1. Basis Point Share (BPS) Analysis by Region
7.2.2. Y-o-Y Growth Projections by Region
7.3. Industrial Alcohol Market Size and Volume Forecast by Region
7.3.1. North America
7.3.2. Latin America
7.3.3. Europe
7.3.4. Asia Pacific
7.3.5. Middle East and Africa (MEA)
7.4. Absolute $ Opportunity Assessment by Region
7.5. Market Attractiveness/Growth Potential Analysis by Region
7.6. Global Industrial Alcohol Demand Share Forecast, 2019-2026
8. North America Industrial Alcohol Market Analysis and Forecast
8.1. Introduction
8.1.1. Basis Point Share (BPS) Analysis by Country
8.1.2. Y-o-Y Growth Projections by Country
8.2. North America Industrial Alcohol Market Size and Volume Forecast by Country
8.2.1. U.S.
8.2.2. Canada
8.3. Absolute $ Opportunity Assessment by Country
8.4. North America Industrial Alcohol Market Size and Volume Forecast by Types
8.4.1. Ethyl Alcohol
8.4.2. Isopropyl
8.4.3. Methyl Alcohol
8.4.4. Isobutyl Alcohol
8.4.5. Others
8.5. Basis Point Share (BPS) Analysis by Types
8.6. Y-o-Y Growth Projections by Types
8.7. North America Industrial Alcohol Market Size and Volume Forecast by Applications
8.7.1. Personal Care
8.7.2. Pharmaceutical
8.7.3. Fuels
8.7.4. Chemical Intermediates
8.7.5. Food Industry
8.7.6. Others
8.8. Basis Point Share (BPS) Analysis by Applications
8.9. Y-o-Y Growth Projections by Applications
8.10. Market Attractiveness/Growth Potential Analysis
8.10.1. By Country
8.10.2. By Product Type
8.10.3. By Application
8.11. North America Industrial Alcohol Demand Share Forecast, 2019-2026
9. Latin America Industrial Alcohol Market Analysis and Forecast
9.1. Introduction
9.1.1. Basis Point Share (BPS) Analysis by Country
9.1.2. Y-o-Y Growth Projections by Country
9.1.3. Latin America Average Pricing Analysis
9.2. Latin America Industrial Alcohol Market Size and Volume Forecast by Country
9.2.1. Brazil
9.2.2. Mexico
9.2.3. Rest of Latin America
9.3. Absolute $ Opportunity Assessment by Country
9.4. Latin America Industrial Alcohol Market Size and Volume Forecast by Types
9.4.1. Ethyl Alcohol
9.4.2. Isopropyl
9.4.3. Methyl Alcohol
9.4.4. Isobutyl Alcohol
9.4.5. Others
9.5. Basis Point Share (BPS) Analysis by Types
9.6. Y-o-Y Growth Projections by Types
9.7. Latin America Industrial Alcohol Market Size and Volume Forecast by Applications
9.7.1. Personal Care
9.7.2. Pharmaceutical
9.7.3. Fuels
9.7.4. Chemical Intermediates
9.7.5. Food Industry
9.7.6. Others
9.8. Basis Point Share (BPS) Analysis by Applications
9.9. Y-o-Y Growth Projections by Applications
9.10. Market Attractiveness/Growth Potential Analysis
9.10.1. By Country
9.10.2. By Product Type
9.10.3. By Application
9.11. Latin America Industrial Alcohol Demand Share Forecast, 2019-2026
10. Europe Industrial Alcohol Market Analysis and Forecast
10.1. Introduction
10.1.1. Basis Point Share (BPS) Analysis by Country
10.1.2. Y-o-Y Growth Projections by Country
10.1.3. Europe Average Pricing Analysis
10.2. Europe Industrial Alcohol Market Size and Volume Forecast by Country
10.2.1. Germany
10.2.2. France
10.2.3. Italy
10.2.4. U.K.
10.2.5. Spain
10.2.6. Russia
10.2.7. Rest of Europe
10.3. Absolute $ Opportunity Assessment by Country
10.4. Europe Industrial Alcohol Market Size and Volume Forecast by Types
10.4.1. Ethyl Alcohol
10.4.2. Isopropyl
10.4.3. Methyl Alcohol
10.4.4. Isobutyl Alcohol
10.4.5. Others
10.5. Basis Point Share (BPS) Analysis by Types
10.6. Y-o-Y Growth Projections by Types
10.7. Europe Industrial Alcohol Market Size and Volume Forecast by Applications
10.7.1. Personal Care
10.7.2. Pharmaceutical
10.7.3. Fuels
10.7.4. Chemical Intermediates
10.7.5. Food Industry
10.7.6. Others
10.8. Basis Point Share (BPS) Analysis by Applications
10.9. Y-o-Y Growth Projections by Applications
10.10. Market Attractiveness/Growth Potential Analysis
10.10.1. By Country
10.10.2. By Product Type
10.10.3. By Application
10.11. Europe Industrial Alcohol Demand Share Forecast, 2019-2026
11. Asia Pacific Industrial Alcohol Market Analysis and Forecast
11.1. Introduction
11.1.1. Basis Point Share (BPS) Analysis by Country
11.1.2. Y-o-Y Growth Projections by Country
11.1.3. Asia Pacific Average Pricing Analysis
11.2. Asia Pacific Industrial Alcohol Market Size and Volume Forecast by Country
11.2.1. China
11.2.2. Japan
11.2.3. South Korea
11.2.4. India
11.2.5. Australia
11.2.6. Rest of Asia Pacific (APAC)
11.3. Absolute $ Opportunity Assessment by Country
11.4. Asia Pacific Industrial Alcohol Market Size and Volume Forecast by Types
11.4.1. Ethyl Alcohol
11.4.2. Isopropyl
11.4.3. Methyl Alcohol
11.4.4. Isobutyl Alcohol
11.4.5. Others
11.5. Basis Point Share (BPS) Analysis by Types
11.6. Y-o-Y Growth Projections by Types
11.7. Asia Pacific Industrial Alcohol Market Size and Volume Forecast by Applications
11.7.1. Personal Care
11.7.2. Pharmaceutical
11.7.3. Fuels
11.7.4. Chemical Intermediates
11.7.5. Food Industry
11.7.6. Others
11.8. Basis Point Share (BPS) Analysis by Applications
11.9. Y-o-Y Growth Projections by Applications
11.10. Market Attractiveness/Growth Potential Analysis
11.10.1. By Country
11.10.2. By Product Type
11.10.3. By Application
11.11. Asia Pacific Industrial Alcohol Demand Share Forecast, 2019-2026
12. Middle East & Africa Industrial Alcohol Market Analysis and Forecast
12.1. Introduction
12.1.1. Basis Point Share (BPS) Analysis by Country
12.1.2. Y-o-Y Growth Projections by Country
12.1.3. Middle East & Africa Average Pricing Analysis
12.2. Middle East & Africa Industrial Alcohol Market Size and Volume Forecast by Country
12.2.1. Saudi Arabia
12.2.2. South Africa
12.2.3. UAE
12.2.4. Rest of Middle East & Africa (MEA)
12.3. Absolute $ Opportunity Assessment by Country
12.4. Middle East & Africa Industrial Alcohol Market Size and Volume Forecast by Types
12.4.1. Ethyl Alcohol
12.4.2. Isopropyl
12.4.3. Methyl Alcohol
12.4.4. Isobutyl Alcohol
12.4.5. Others
12.5. Basis Point Share (BPS) Analysis by Types
12.6. Y-o-Y Growth Projections by Types
12.7. Middle East & Africa Industrial Alcohol Market Size and Volume Forecast by Applications
12.7.1. Personal Care
12.7.2. Pharmaceutical
12.7.3. Fuels
12.7.4. Chemical Intermediates
12.7.5. Food Industry
12.7.6. Others
12.8. Basis Point Share (BPS) Analysis by Applications
12.9. Y-o-Y Growth Projections by Applications
12.10. Market Attractiveness/Growth Potential Analysis
12.10.1. By Country
12.10.2. By Product Type
12.10.3. By Application
12.11. Middle East & Africa Industrial Alcohol Demand Share Forecast, 2019-2026
13. Competition Landscape
13.1. Global Industrial Alcohol Market: Market Share Analysis
13.2. Industrial Alcohol Distributors and Customers
13.3. Industrial Alcohol Market: Competitive Dashboard
13.4. Company Profiles (Details: Overview, Financials, Developments, Strategy)
13.4.1. The Andersons, Inc.
13.4.2. Raizen Energia
13.4.3. MGP
13.4.4. Deepak Nitrite
13.4.5. Merck KGaA, Darmstadt, Germany and/or its affiliates
13.4.6. GREENFIELD GLOBAL INC.
13.4.7. Green Plains Inc.
13.4.8. Grain Processing Corporation
13.4.9. Flint Hills Resources
13.4.10. Cristalco
13.4.11. Cargill, Incorporated
Methodology
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