by The global Industrial Alcohol Market is primarily driven by its wide application in various industrial products and processes. Industrial alcohol, also known as denatured alcohol, is ethanol specially produced and treated so that it is undrinkable and unfit for consumption. It is widely used as an ingredient and solvent in products like paints, cleaners, pharmaceuticals, cosmetics, food additives, and more. Due to its volatile nature and low viscosity, it is suitable for use in various extraction, distillation, and dilution processes across industries. The rising demand from end-use industries like food and beverages, pharmaceuticals, specialty chemicals, personal care, etc. is expected to boost the demand for industrial alcohol over the forecast period.
The global industrial alcohol market is estimated to be valued at US$ 180.75 Bn in 2023 and is expected to exhibit a CAGR of 10% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
One of the key drivers for the industrial alcohol market is increasing application in various industrial products and processes. As mentioned earlier, industrial alcohol finds wide usage as a solvent, extraction agent, and diluent across industries. Its volatile and hygienic properties make it suitable for applications like extraction of fragrance and essential oils from plants, production of food additives and emulsifiers, manufacturing of pharmaceutical formulations, and more. The ever-growing industries that rely on these applications are thus driving more demand for industrial alcohol. Another major driver is the increasing emphasis on biofuel production. Ethanol is a major component in biofuels like ethanol fuel (E85). With rising environmental concerns, many countries are supporting biofuel production through subsidy programs and mandates. This is positively impacting the industrial alcohol market.
Segment Analysis
The global industrial alcohol market is dominated by the fuel alcohol segment which accounts for over 50% of the total market share. Fuel alcohol finds wide applications as biofuel in automotive and other industries. With rising mandates and policies promoting the use of biofuels globally, the demand for fuel alcohol is expected to significantly grow during the forecast period. Emerging applications in industrial solvents and chemicals segment are also gaining traction and projected to witness steady growth.
PEST Analysis
- Political: Certain government policies promoting the use of biofuels and green chemicals are positively impacting the market. Subsidies and tax incentives given by regions like Europe and North America for production and use of industrial alcohols are encouraging investments.
- Economic: With growing industrial and automotive sectors globally, the consumption of industrial alcohols as fuel, solvent and chemicals is rising. Volatile feedstock prices can affect the overall production cost of industrial alcohols.
- Social: Rising awareness about use of renewable fuels and green chemicals is favorable for the market growth. However, safety issues related to the toxicity of certain types of alcohols may hinder widespread adoption.
- Technological: New technologies focusing on advanced production processes, improved yeast strains are helping market players to enhance productivity and reduce production costs. Continuous process innovations are also supporting the development of niche application segments.
Key Takeaways
The global industrial alcohol market is expected to witness high growth over the forecast period supported by favorable regulatory framework and technological advancements. The global industrial alcohol market is estimated to be valued at US$ 180.75 Bn in 2023 and is expected to exhibit a CAGR of 10% over the forecast period 2023 to 2030.
Regional analysis
The Asia Pacific region dominates the global industrial alcohol market with more than 40% share. Rapidly growing economies like China and India offer significant growth opportunities due to strong demand from industries and for renewable fuels in the transportation sector. This growth can be attributed to government policies and initiatives promoting the production and consumption of industrial alcohols in these countries. North America and Europe are other major markets driven by policy impetus for biofuels and green products. Latin America is also emerging as an attractive market with increasing emphasis on advanced biofuel production.
Key players operating in the industrial alcohol market are BASF SE, BIRLA SUGAR, CARGILL INCORPORATED., CRISTALCO, FLINT HILLS RESOURCES, GREEN PLAINS INC., GREENFIELD SPECIALTY, MGP INGREDIENTS INC., SIGMA ALDRICH, and THE ANDERSONS INC. These players are focusing on capacity expansion plans and investing in R&D to strengthen their market position.
