Id: CBI_ 1482 | Pages: 302 | Format : PDF | Published : | Author : Amit Sati
Industrial Alcohol Market size is estimated to reach over USD 287.89 Billion by 2031 from a value of USD 140.85 Billion in 2023 and is projected to grow by USD 151.51 Billion in 2024, growing at a CAGR of 9.3% from 2024 to 2031.
Industrial alcohol is a chemical compound majorly composed of ethanol, along with methanol and isopropanol. It is mostly produced by the fermentation of organic materials such as sugar cane, corn, etc. They are meant to be used topically, unlike the alcoholic beverages. They can function as a solvent, disinfectant, biofuel component, preservative, textiles, inks, and an intermediary product during the manufacturing process of chemicals. Some of the other industries where this compound can be utilized are the automotive, food & beverages, and manufacturing industries. The primary end-use users include the pharmaceutical, energy, and chemical industries.
Biofuels are a greener alternative to environmentally hazardous fossil fuels, as they are mostly composed of organic materials such as plants and animals. With the growing implementation of government policies and regulations, emphasizing the reduction of greenhouse gases, there is a major shift towards the usage of biofuels.
Moreover, ethanol, as a major component in biofuel production, also serves as an important feedstock for renewable energy resources.
Hence, the shift towards greener alternatives is driving the industrial alcohol market growth.
In the pharmaceutical sector, alcohol is widely used as an important solvent, excipient, and also for the synthesis of API's. With increasing needs in the medical sector along with the invention of new drugs, the requirement for various industrial alcohols is skyrocketing. The increasing focus on personalized medicine and innovative drug delivery systems is pushing the need for specific types of alcohol. Biologics and complex pharmaceutical development require high-quality alcohol, vital for efficacy and safety.
Thus, the advancements in the pharmaceutical industries drive the industrial alcohol market growth.
Fossil fuels are the driving factor when it comes to energy markets because the infrastructure is relatively cheap and has low operating costs. There's always a price difference between industrial alcohols and fossil fuels.
Moreover, these fuels are readily available, making them more accessible and an inexpensive and easier choice. The production and processing cost of fossil fuels such as petroleum, natural gas, and coal, is also much lower which accelerates their usage.
Therefore, the low operational cost of fossil fuels restrains the industrial alcohol market demand.
New developments that are leading to the production of bio-based alcohols help the future of the existing alcohol market. As time goes on, new technologies come in that further help tune down development processes, which in turn helps companies make industrial alcohol for a competitive price and also from renewable sources. A few examples of recent developments are advanced fermentation technology, enhanced catalytic processes, and the use of engineered microorganisms for better production efficiency and cost.
Hence, the growth in the industrial alcohol market opportunities appears very promising due to the advancements in the production of biobased alcohol.
Based on type, the industrial alcohol market is segmented into ethanol, methanol, isopropanol, butanol, benzyl alcohol, and others.
Trends in the Type:
The ethanol segment accounted for the largest revenue of 43.23% of the industrial alcohol market share in 2023.
The isopropanol sector is expected to make a mark on the fastest CAGR during the forecast period.
The segments within the industrial alcohol market include corn, grains, sugar & molasses, fossil fuels, and others.
Trends in the Source:
The corn sector accounted for the largest revenue of the overall industrial alcohol market share in 2023.
The segment of sugar & molasses is expected to show the fastest CAGR during the forecast period.
Based on application, the market segmentation includes fuel, chemical intermediates, pharmaceuticals, personal care products, food & beverage, and others.
Trends in the Application:
The fuel sector dominated the market share with the highest revenue in 2023.
The pharmaceutical segment is expected to show the fastest CAGR during the forecast period.
Based on the end-use industry, the global industrial alcohol market is segmented into transportation, pharmaceuticals, personal care & cosmetics, food & beverage, chemical manufacturing, and others.
Trends in the End-Use Industry:
The transportation sector accounted for the largest revenue share in 2023.
The pharmaceuticals segment is expected to record the highest CAGR during the forecast period.
The regions covered are North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America.
Asia Pacific region was valued at USD 46.72 Billion in 2023. Moreover, it is projected to grow by USD 50.45 Billion in 2024 and reach over USD 99.98 Billion by 2031. Out of this, China accounted for the maximum revenue share of 35.4%.
As per the industrial alcohol market analysis, this is due to the increasing usage of these alcohols in sectors such as pharmaceutical and personal care. They are majorly used in the production of sanitizers, disinfectants, and solvents in this region. Due to the advancements in the manufacturing sector and healthcare, countries such as India and China remain at the forefront of this industrial development.
North America is estimated to reach over USD 108.79 Billion by 2031 from a value of USD 52.27 Billion in 2023 and is projected to grow by USD 56.31Billion in 2024. This growth is due to the surge in the demand for biofuels, which lowers carbon emissions, eventually reducing the dependence on fossil fuels. The usage of ethanol as biofuel is mandated by government policies, especially the RFS mandate. The consumption of these alcohols is also growing in the transportation sector of this region.
The strict environmental laws, focused on reducing carbon emissions are one of the driving factors leading to the industrial alcohol market expansion in Europe. They are used in industries such as biofuels, pharmaceuticals, and personal care products, mostly due to the growing demand for bio-based chemicals.
The industrial alcohol market analysis shows that in the Middle East and Africa region, there is a growing demand for these alcohols in the food and beverages sector. The requirement for alcohol-based preservatives and flavoring agents is also increasing due to population increase and rapid urbanization in this region.
The regional trends analysis depicts that in Latin America, ethanol is majorly produced in the agricultural sector, especially in countries like Brazil. The ethanol produced from sugarcane is utilized as a biofuel and other industrial applications in this region.
The industrial alcohol market is highly competitive with major players providing industrial alcohol to the national and international markets. Key players are adopting several strategies in research and development (R&D), product innovation, and end-user launches to hold a strong position in the industrial alcohol market. Key players in the industrial alcohol industry include -
Product Launches:
Business Expansions & Announcements:
Partnerships & Collaborations:
Report Attributes | Report Details |
Study Timeline | 2018-2031 |
Market Size in 2031 | USD 287.89 Billion |
CAGR (2024-2031) | 9.3% |
By Application |
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By Source |
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By Application |
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By End Use Industry |
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By Region |
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Key Players |
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North America | U.S. Canada Mexico |
Europe | U.K. Germany France Spain Italy Russia Benelux Rest of Europe |
APAC | China South Korea Japan India Australia ASEAN Rest of Asia-Pacific |
Middle East and Africa | GCC Turkey South Africa Rest of MEA |
LATAM | Brazil Argentina Chile Rest of LATAM |
Report Coverage |
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Industrial Alcohol Market size is estimated to reach over USD 287.89 Billion by 2031 from a value of USD 140.85 Billion in 2023 and is projected to grow by USD 151.51 Billion in 2024, growing at a CAGR of 9.3% from 2024 to 2031.
The industrial alcohol report includes specific segmentation details for type, application, source, end-use industry, and region.
In the type segment, Isopropanol is the fastest-growing segment during the forecast period due to its application in products related to hygiene and the manufacturing of electronics.
The key participants in the Industrial Alcohol market are Mitsubishi Chemical Group Corporation (Japan), DuPont (U.S), Westlake Vinnolit GmbH & Co. KG (Germany), ADM (U.S), Sasol Limited (Africa), INEOS (UK), Dow (U.S), Cargill, Incorporated (U.S), Yara (Norway), Unilever (Netherland), China Petroleum & Chemical Corporation (China), BASF (Germany), LyondellBasell Industries Holdings B.V. (UK), TAIYO HOLDINGS CO., LTD. (Japan), TotalEnergies (France).