Extra Neutral Alcohol Market by Raw Material (Grain-Based, Sugarcane-Based, and Others), by Type (Type I and Type II), and by Application (Potable Alcohol, Distilled Alcoholic Beverages, Compound Alcoholic Beverages, Flavors and Fragrances, Pharmaceutical

Extra Neutral Alcohol Market by Raw Material (Grain-Based, Sugarcane-Based, and Others), by Type (Type I and Type II), and by Application (Potable Alcohol, Distilled Alcoholic Beverages, Compound Alcoholic Beverages, Flavors and Fragrances, Pharmaceuticals, Cosmetics and Personal Care, and Others) – Global Opportunity Analysis and Industry Forecast, 2024–2030

Meta Title: Extra Neutral Alcohol Market Size and Share | Statistics – 2030
Meta Des: Extra neutral alcohol market was valued at USD 9.38 billion in 2023, and is slated to reach USD 14.62 billion by 2030, due to advancements in distillation and production technologies.

Extra Neutral Alcohol Market
Domain –Materials & Chemicals
Sub-Domain – Chemicals

The extra neutral alcohol market size was valued at USD 9.38 billion in 2023, and is predicted to reach USD 14.62 billion by 2030, with a CAGR of 6.4% from 2024 to 2030.

Advancements in distillation and production technologies are driving the growth of the extra neutral alcohol (ENA) industry. These innovations make the process of extracting ENA more efficient, cost-effective, and adaptable than before. Essentially, they streamlined the production of high-quality ENA, which is a fundamental ingredient in various products, especially alcoholic beverages. By reducing production costs and ensuring consistent quality, these advancements meet the growing demand for ENA across industries, spurring its market growth.

Moreover, the growing use of ENA in the pharmaceutical industry, especially for making antiseptics, drugs, and vaccines, is expected to drive the ENA market expansion. ENA's exceptional purity and neutrality make it the preferred choice for blending with active pharmaceutical ingredients (APIs), ensuring consistent quality and safety in pharmaceutical products. Additionally, ENA's crucial role in vaccine production and its support for regulatory compliance in the pharmaceutical sector contributes to its significance in boosting the ENA market.

On the contrary, the neutral alcohol market faces challenges due to increased alcohol abuse globally and stringent government regulations. As more people suffer from the negative effects of excessive alcohol consumption, governments are implementing tough measures, such as higher taxes on alcohol and restrictions on the production and distribution of extra neutral alcohol.

However, the increasing use of ENA in the petroleum industry to create cleaner and eco-friendly fuels presents a significant opportunity for the ENA market. ENA's exceptional purity and neutrality make it a valuable ingredient in fuel production, resulting in reduced emissions of greenhouse gases and harmful pollutants when these fuels are burned. This offers substantial growth prospects for ENA producers and solidifies their role in the transition toward more sustainable energy solutions.

Segment Overview
The global extra neutral alcohol market is segmented on the basis of raw material, type, application, and region.

• By raw material, the market is bifurcated into grain-based and sugarcane-based.
• By type, the market is divided into Type I and Type II.
• By application, the market is classified into potable alcohol, distilled alcoholic beverages, compound alcoholic beverages, flavors & fragrances, pharmaceuticals, cosmetics & personal care, and others.
• Region-wise, the market is segmented into North America, Europe, Asia-Pacific, and the rest of the world (RoW).

Asia-Pacific is projected to hold the dominant share by 2030.
The Asia-Pacific region is experiencing a substantial surge in alcoholic beverage consumption, such as spirits and liquors. This growth is driven by the rapidly expanding populations in countries such as China and India, where rising disposable incomes and evolving consumption patterns play a pivotal role. The Asia-Pacific alcohol market presents lucrative opportunities for the growth of the ENA market in the coming years.

For instance, in November 2021, Diageo Plc invested USD 75 million in establishing a distillery for its inaugural Chinese single-malt whisky. This factor reflects the growing popularity of alcoholic beverages in this region. This trend has led to an increased demand for ENA, contributing to significant growth in the Asia-Pacific ENA market and benefiting Diageo and the broader spirits industry.

Furthermore, the Asia-Pacific region is witnessing a remarkable uptick in ENA demand, particularly in the petrochemical industry for cleaner fuel production. The ENA market is anticipated to grow as governments and industries in the Asia-Pacific emphasize sustainability and eco-friendly practices. For instance, in February 2023, the Government of India introduced 20% ethanol-blended petrol nationwide, a significant step toward reducing greenhouse gas emissions and decreasing reliance on fossil fuels. This initiative aligns with India's commitment to a greener and more sustainable energy future.

Key Market Players
The key players in the ENA market include:
• Illovo Sugar
• NCP Alcohols
• USA Distillers
• Agro Chemical and Food Company
• Sasol Solvents
• Mumias Sugar Company
• Tag Solvent Products
• Swift Chemicals
• Enterprise Ethanol
• BCL Industries
• Radico Khaitan
• Nedstar
• Sasma BV
• Godavari Biorefineries Ltd.
• Greenpoint Alcohols

Recent Developments
September 2023
Radico Khaitan announced its plans to commence the production of ENA at its spirits distillery in India. This expansion is intended to facilitate the supply of ENA to local manufacturers and contract bottlers, thereby meeting the increasing demand in the region.

October 2022
BCL Industries announced an increase in distillery production capacity to 850 kiloliters daily. This expansion is in response to the surging demand for ethanol, focusing on serving various industries, such as manufacturing and pharmaceuticals, with requirements for industrial ethanol. Furthermore, it acts as an additive in fuel production.

KEY BENEFITS
• The extra neutral alcohol (ENA) market report provides a quantitative analysis of the current market and estimations from 2024 to 2030. This analysis assists in identifying the prevailing market opportunities.
• The study comprises a comprehensive analysis of the extra neutral alcohol market trends, including current and future trends for depicting prevalent investment pockets in the market.
• The information related to key drivers, restraints, and opportunities and their impact on the extra neutral alcohol market is provided in the report.
• The competitive analysis of the market players along with their market share in the extra neutral alcohol market is provided in the report.
• The SWOT analysis and Porter’s Five Forces model are elaborated in the study.
• The value chain analysis in the market study provides a clear picture of the role of stakeholders.