Global Fusel Oil Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Global Fusel Oil Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Market Overview:

The latest research study on the global Fusel Oil market finds that the global Fusel Oil market reached a value of USD 138.68 million in 2022. It’s expected that the market will achieve USD 186.38 million by 2028, exhibiting a CAGR of 5.05% during the forecast period.

The global outbreak of COVID-19 has affected the supply chains and industrial chains of many industries to varying degrees, and the fusel oil industry is no exception. For the fusel oil industry, the main impacts of COVID-19 are as follows:

COVID-19 has affected the supply chain of fusel oil. Due to the COVID-19 outbreak, various countries and regions have adopted different levels of lockdown measures. Reduced or closed factory production capacity once became a trend. Strict blockade measures have also slowed down the logistics speed, and the upstream and downstream supply time of the fusel oil industry has become longer. At the same time, for processes that rely on fermentation methods, such as the production of ethanol by fermentation, the raw materials for these processes are mainly crops. COVID-19 has also caused a certain degree of impact on agriculture, and it will also affect the supply of raw materials for fermentation processes. In addition, due to changes in consumer consumption habits during the COVID-19 epidemic, the downstream demand for fusel oil, such as solvents, liquid fuels, and flavors and fragrances industries, is in a sluggish state. Weak downstream demand also makes manufacturers reduce production capacity or stop work to reduce losses.

COVID-19 has also affected production activities. Fusel oil is mainly a by-product of ethanol production, butadiene production, and some fermentation processes. Due to the impact of COVID-19 on various industries, the downstream demand of these production activities has experienced short-term weakness, which has led to a decrease in production activities. At the same time, due to the impact of COVID-19, many areas have adopted blockade measures. On the one hand, factories need to find skilled workers to ensure the normal operation of the factory, and on the other hand, they must also do a good job of protecting workers. During the COVID-19 epidemic, labor costs are undoubtedly higher. In general, COVID-19 will reduce production activities.

In the long run, as COVID-19 is gradually brought under control, market sentiment will return to stability. Consumption and investment demand suppressed by COVID-19 will begin to rebound, leading to a rebound in the economy. With the economic recovery, the fusel oil industry is expected to usher in new opportunities.

Drivers

Fusel oil is one of the by-products of ethanol production with starch or molasses as raw materials. It is the product of the decomposition of proteins in the fermentation raw materials and the secondary hydrolysis of bacterial proteins. It is a collective term for mixed liquids containing a variety of alcohols. The amount of fusel oil produced is related to fermentation raw materials and processes, and generally accounts for about 0.2% to 0.7% of ethanol production. The by-product fusel oil usually contains water and other impurities and cannot be used directly. Using fusel oil as a raw material can be further processed to develop dozens of high value-added fine chemical products. These products have a wide range of applications and good development prospects in plastics, coatings, feed, chemicals, food, medicine and other industries. Due to the variety of compounds contained in fusel oil, different treatments of fusel oil and the development of more applications will be the development trend of the industry and will continue to provide impetus for the development of the fusel oil industry.

Restraints

Although fusel oil currently has a wide range of applications and good development prospects, the fusel oil industry still faces some limitations.

First, the production of fusel oil comes from by-products, including ethanol production, butadiene production, and some other by-products of fermentation processes. There is currently no synthetic method to directly obtain fusel oil. Fusel oil, as a by-product in the production process, usually poses a major risk to the yield of the main product, such as ethanol. At the same time, if not managed properly, fusel oil may enter part of the process water and circulate in the factory. In the actual production process, appropriate operations are carried out to remove the fusel oil from the product. Due to the embarrassing situation in the production process of fusel oil, there are many technological improvements to reduce the production of fusel oil, such as the production of ethanol by fermentation. Many practices have studied the impact of raw materials and flora on the production of fusel oil, and tried to reduce the production of fusel oil. In the actual production process, the by-product fusel oil has an impact on the main production process, which limits the production and development of fusel oil, and will also limit the development of the fusel oil industry.

Region Overview:

USA had the highest growth rate of all regions.

Company Overview:

Green Plains is one of the major players operating in the Fusel Oil market, holding a share of 14.97% in 2022.

Green Plains

Green Plains is an ethanol producer. The Company is principally engaged in operating ethanol production facilities and corn processing, with focus on the production of high protein feed ingredients. The Company operates through four segments: Ethanol Production, Agribusiness and Energy Services, Food and Ingredients, and Partnership. The Ethanol Production segment includes production of ethanol, including alcohol, distillers grains, protein and corn oil at ethanol plants in Illinois, Indiana, Iowa, Minnesota, Nebraska and Tennessee. The Agribusiness and Energy Services segment include grain handling and storage. The Food and Ingredients segment include a food-grade corn oil operation.

Qianxi Coal Chemical Investment Co., Ltd

Qianxi Coal Chemical Investment Co., Ltd was established in 2008 and is a company specializing in coal chemical production and management. The company's main production lines include coal-to-ethylene glycol, dimethyl carbonate projects, and polyester melt direct spinning projects.

Segmentation Overview:

As for product types, the By-products of ethanol production segment held the largest market share in 2021.

By-products of ethanol production

The industrial production methods of ethanol are divided into two categories: fermentation and synthesis. The fermentation method can use various sugar, starch or cellulose-containing agricultural products, forest products, industrial by-products, agricultural by-products and wild plants as raw materials. The synthesis method uses petrochemicals such as ethylene as raw materials to produce ethanol. During the production of ethanol, fusel oil is produced as a by-product.

By-products of butadiene production

Ethanol method to prepare butadiene is a process in which ethanol is used as a raw material, and under the action of a suitable catalyst, a dehydrogenation and dehydration reaction occurs to obtain butadiene. In this process, in addition to butadiene, by-products such as fusel oil are also generated.

Application Overview:

By application, the Solvent segment occupied the biggest share from 2017 to 2022.

Key Companies in the global Fusel Oil market covered in Chapter 3:

COFCO Biotechnology Co Ltd
Incauca S.A.S.
Thai Agro Energy Public Company Limited
Qianxi Coal Chemical Investment Co., Ltd
Green Plains
Shaanxi Yanchang Petroleum Yushen Energy & Chemical Co., Ltd.

In Chapter 4 and Chapter 14.2, on the basis of types, the Fusel Oil market from 2018 to 2029 is primarily split into:

By-products of ethanol production
By-products of butadiene production

In Chapter 5 and Chapter 14.3, on the basis of Downstream Industry, the Fusel Oil market from 2018 to 2029 covers:

Solvent
Liquid fuel
Fragrances and flavors industries
Others

Geographically, the detailed analysis of consumption, revenue, market share and growth rate, historic and forecast (2018-2029) of the following regions are covered in Chapter 8 to Chapter 14:

North America (United States, Canada)
Europe (Germany, UK, France, Italy, Spain, Russia, Netherlands, Turkey, Switzerland, Sweden)
Asia Pacific (China, Japan, South Korea, Australia, India, Indonesia, Philippines, Malaysia)
Latin America (Brazil, Mexico, Argentina)
Middle East & Africa (Saudi Arabia, UAE, Egypt, South Africa)