Industrial Alcohol Market Forecasts to 2028 – Global Analysis By Process Technology (Fermentation, Synthetic), Type (Benzyl, Ethyl, Isobutyl), Application (Chemical Intermediates & Solvents, Pharmaceuticals) and By Geography

Industrial Alcohol Market Forecasts to 2028 – Global Analysis By Process Technology (Fermentation, Synthetic), Type (Benzyl, Ethyl, Isobutyl), Application (Chemical Intermediates & Solvents, Pharmaceuticals) and By Geography

According to Stratistics MRC, the Global Industrial Alcohol Market is accounted for $96.75 billion in 2021 and is expected to reach $142.62 billion by 2028 growing at a CAGR of 5.7% during the forecast period. Industrial alcohols act as a reagent as well as a solvent in various industrial applications in the pharmaceuticals, personal care, energy sector, and chemical industries. These alcohols are used in applications other than beverages. These fuels are produced by the fermentation of sugars derived from wheat, corn, sugar beets, sugar cane, and molasses. Furthermore, it is used in petrol engines as an alternative to gasoline. In addition, alcohols such as methanol, benzyl alcohol, and isopropyl alcohol are also used in the production of food products, flavourings, cosmetics, and adhesives.

Market Dynamics:

Driver:

Increasing adoption of bioethanol

Bioethanol is commonly used as a biofuel for transportation to reduce the effects of greenhouse gases. The growing world population and the increasing industrialization are leading to high demand for energy. This has resulted in the increasing cost of crude oil and natural gas over years now. The rising awareness about climate change and the surging adoption of renewable resources has led to the development of bioethanol. Biofuels are renewable energy sources that have supported the market demand for fuel that aids in reducing pollution levels across the globe.

Restraint:

Fluctuating prices of raw material

Industrial alcohol is inelastic in terms of price demand. This means that the scarcity of the product causes a major increase in prices and vice versa. The alcohol industry is heavily dependent on raw materials such as sugar, corn, and wheat. The raw material prices depend on various factors such as cultivation yield, climatic conditions, and the quality of crops. The restraints for the global industrial alcohol market is mainly due to the pandemic COVID-19 which has made many companies shut down its production facilities in order to maintain safety and health.

Opportunity:

Emerging markets in growing economies

The changing lifestyles, growing economy, and shift toward renewable resource utilization in developing economies have led to an increasing demand for alcohol in fuel and other applications. Developing countries, namely China, India, and countries in the Middle East & Africa, in the coming years, are expected to experience a strong upsurge in demand for alcohol such as ethyl alcohol and isobutyl alcohol. This demand is expected to be driven by an increase in the consumption of alcohol in various sectors and the growing trend of greener technology in the energy sector.

Threat:

Approval of regulatory bodies

The compliance burden is also an influencing factor, in which a company has to cope with the changing regulations related to environment protection, pricing policy, immigration reform, and infrastructure improvements, among others. Firms that are not able to comply with these new and changing requirements may have to deal with the exit from the market. Moreover, production of methanol using any carbon-based source is a capital-intensive process. The players must first identify the raw material of which they can secure economic and uninterrupted supply over a long period of time.

The fossil fuels segment is expected to be the largest during the forecast period

The fossil fuels segment is projected to hold the largest share in the market. The need to reduce dependence on fossil oil as a direct source of fuel is the major factor driving the market growth. Industrial alcohols extracted from petroleum or synthetic ethyl alcohol can be manufactured easily through the hydrolysis of ethylene, which is a major petrochemical. Alcohol is synthesized from petroleum by creating ethylene, and then hydrating to form ethanol.

The transportation fuel & fuel additives segment is expected to have the highest CAGR during the forecast period

The transportation fuel & fuel additives segment is growing at the highest CAGR in the market due to the rapidly growing global automotive sector. The utilize of bioethanol in the existing gasoline vehicles has environmental benefits as it releases lesser toxic materials as compared to other fossil fuels, such as diesel and gasoline derived from fossil fuels. Moreover, bioethanol also increases the lifespan of the engines. Bioethanol producers have the opportunity to penetrate the product market in the regions due to the increasing sales of flexible fuel vehicles.

Region with highest share:

Asia Pacific is projected to hold the largest market share due to the rising adoption of the product in the fuel and food industry. Countries within the region are rapidly developing due to various government initiatives and the increasing foreign investments in the industrial sector. The increasing population has led to the growing food demand, which in turn propels the demand for alcohol and is considered to be the factor supporting the growth of the market.

Region with highest CAGR:

The Asia Pacific is projected to have the highest CAGR due to the high consumption and production of methyl alcohol in China and ethanol in India. The demand for ethanol is set to grow considerably in India due to the initiatives made by the government of India to use ethanol as an automotive fuel. The global methanol industry is dominated by China accounting for the demand for methanol for blending in gasoline and the production of olefins from methanol resulting in new pricing, economic, and market dynamics.

Key players in the market:

Some of the key players profiled in the Industrial Alcohol Market include Archer Daniels Midland, Cargill, Cristalco, Dow Chemical Company, Eastman Chemical Company, EcoLab, Exxon Mobil Corporation, Flint Hills Resources, Grain Processing Corporation, Green Plains Inc, Greenfield Global Inc., Lindeplc, LyondellBasell Industries, MGP Ingredients, Raizen Energia, Royal Dutch Shell Plc, Sigma-Aldrich, The Andersons Inc, Univar Solutions, and Wilmar International.

Key developments:

In July 2020: Green plains have expanded its facility at its subsidiary, Green plain wood river LLC, for the production of FCC-grade and USP-grade alcohol meeting FDA specifications. This strategy would allow the company to cater to the demand for alcohol and serve a larger consumer base.

In March 2020: MGP acquired New Columbia Distilleries LLC (US). This acquisition improved the company’s hold in the US and allowed it to serve a larger consumer base.

In March 2019: Raizen Energia invested its operating facility in Brazil. This investment will help the company fulfill the consumer demand for alcohol-based products across the globe.

In March 2018: The Andersons, Inc. and ICM (US) entered collaboration on a bio-refinery. This strategic partnership would build and operate a technologically advanced ethanol production facility featuring ICM's advanced equipment and process technologies.

Sources Covered:
• Corn
• Grains (Excluding Corn)
• Molasses
• Sugarcane & Bagasse
• Fossil Fuels
• Other Sources

Types Covered:
• Benzyl Alcohol
• Ethyl Alcohol
• Isobutyl Alcohol
• Isopropyl Alcohol
• Methyl Alcohol
• Other Types

Purities Covered:
• Denatured Alcohol
• Undenatured Alcohol

Process Technologies Covered:
• Fermentation Method
• Synthetic Method

Functionalities Covered:
• Antifreeze
• Antimicrobial Activity
• Flammability & Volatility
• Fragrant/Flavoring Agents
• Solubility

Applications Covered:
• Food Ingredients (Excluding Beverages)
• Transportation Fuel & Fuel Additives
• Chemical Intermediates & Solvents
• Pharmaceuticals
• Personal Care Products
• Detergent & Cleaning Chemicals
• Other Applications

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
Comprehensive profiling of additional market players (up to 3)
SWOT Analysis of key players (up to 3)
• Regional Segmentation
Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances