The extra neutral alcohol (ENA) market in India size reached INR 101.8 Billion in 2023. Looking forward, the market is projected to reach INR 141.0 Billion by 2032, exhibiting a growth rate (CAGR) of 3.69% during 2023-2032. The increasing number distilleries and microbreweries, rising collaboration of various alcoholic beverage brands, and the growing need for prescription drugs are among the key factors driving the market growth.
Extra neutral alcohol (ENA), also known as rectified spirit or neutral spirit, is a high-grade, neutral-tasting alcohol primarily produced from fermented molasses or grains. It has a high alcohol content, usually above 95% by volume. It is made using different raw materials, such as sugarcane molasses and grains like rye, wheat, corn, rice, and barley. Its production involves several stages, including fermentation, distillation, and rectification. ENA is extensively used in the manufacturing of alcoholic beverages, such as vodka, gin, and liqueurs, where it serves as a base spirit.
The increasing number of commercial spaces, such as distilleries, microbreweries, cafes, restaurants, bars, and hotels, which offer a variety of experimental cocktails, is catalyzing the demand for ENA in India. Moreover, the rising collaboration of alcoholic beverage brands with these establishments to launch numerous endorsement programs is favoring the growth of the market in the country. In addition, the thriving food tourism industry and expanding culinary services in the country are resulting in the growing adoption of ENA in luxury hotels and restaurants for gourmet cooking.
Apart from this, ENA is used as a solvent in the pharmaceutical industry for the extraction of active pharmaceutical ingredients (APIs) and the production of various medicines, syrups, and tinctures. This, coupled with the increasing need for prescription drugs due to the surging prevalence of medical conditions, is strengthening the growth of the market in the country.
The report has provided a detailed breakup and analysis of the market based on the product type. This includes alcoholic beverages, flavors and fragrances, pharmaceuticals, cosmetics, and others. According to the report, alcoholic beverages represented the largest segment.
ENA serves as a key ingredient in the production of various alcoholic beverages. Its neutral taste and high alcohol content makes it an ideal base spirit for creating a wide range of drinks. It is commonly used in the production of vodka, gin, rum, and other distilled spirits. It provides a neutral foundation that allows the flavors of botanicals, fruits, or other ingredients to shine through. It is also utilized in the production of fortified wines, aperitifs, liqueurs, and cocktail bitters.
ENA serves as a solvent and carrier for natural and synthetic flavor compounds, essential oils, and fragrance ingredients. Its neutral character ensures that it doesn't interfere with the aromatic profiles of the flavors and fragrances being developed. ENA is commonly used in the extraction and dilution of plant essences and essential oils, and as a base for creating concentrated flavors and fragrances used in food products, beverages, perfumes, colognes, and personal care items.
ENA finds application in the pharmaceutical industry for various purposes. Its high purity and neutral properties make it suitable for pharmaceutical formulations. It is used as a solvent in the production of liquid medications, tinctures, and syrups. It helps in dissolving active pharmaceutical ingredients (APIs) and other components, which facilitates the formulation and delivery of medicines. It is also utilized in the extraction of medicinal compounds from plants and herbs for use in herbal medicines and traditional remedies.
ENA is widely employed in the cosmetic industry due to its purity and lack of flavor. It is used as a solvent and diluent in the production of cosmetics and personal care products. It is utilized in the formulation of perfumes, colognes, deodorants, and body sprays, wherein it helps in dissolving and blending fragrance oils and other cosmetic ingredients. It is also utilized in the manufacturing of skincare products such as toners, cleansers, and lotions, where it acts as a base for active ingredients and aids in ensuring product stability.
The report has also provided a comprehensive analysis of all the major regional markets, which include Punjab, Maharashtra, Madhya Pradesh, Uttar Pradesh, Karnataka, Andhra Pradesh and Telangana, Tamil Nadu, Haryana, Rajasthan, Chhattisgarh, West Bengal, Uttarakhand, Kerala, Bihar, Odisha, Goa, Assam, Delhi, Himachal Pradesh, Jammu and Kashmir, Arunachal Pradesh, Meghalaya, Jharkhand, Tripura, and Sikkim.
The increasing use of ethanol as a biofuel represents one of the major factors driving the production of ENA in Punjab. Moreover, the rising ENA usage as a solvent for flavoring and coloring agents is favoring the production in the state. Besides this, the growing sales of spirits like whisky, rum, and vodka are influencing the production in the market.
The consumption of ENA is growing in Andhra Pradesh and Telangana, owing to the increasing number of pubs and distilleries, emerging trend of socializing, favorable initiatives by state governing authorities, etc.
Moreover, key players are adopting various energy-efficient technologies to reduce energy consumption and environment impact. They use energy efficient distillation columns, heat recovery systems, and process optimization techniques. Besides this, leading players are integrating advanced technologies for quality control and automation throughout the ENA production process.
The report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided.
2. What is the expected growth rate of the extra neutral alcohol (ENA) market in India during 2024-2032?
3. What are the key factors driving the extra neutral alcohol (ENA) market in India?
4. What has been the impact of COVID-19 on the extra neutral alcohol (ENA) market in India?
5. What is the breakup of the extra neutral alcohol (ENA) market in India based on the application?
6. What are the key regions in the extra neutral alcohol (ENA) market in India based on the production?
7. What are the key regions in the extra neutral alcohol (ENA) market in India based on the consumption?
Extra neutral alcohol (ENA), also known as rectified spirit or neutral spirit, is a high-grade, neutral-tasting alcohol primarily produced from fermented molasses or grains. It has a high alcohol content, usually above 95% by volume. It is made using different raw materials, such as sugarcane molasses and grains like rye, wheat, corn, rice, and barley. Its production involves several stages, including fermentation, distillation, and rectification. ENA is extensively used in the manufacturing of alcoholic beverages, such as vodka, gin, and liqueurs, where it serves as a base spirit.
The increasing number of commercial spaces, such as distilleries, microbreweries, cafes, restaurants, bars, and hotels, which offer a variety of experimental cocktails, is catalyzing the demand for ENA in India. Moreover, the rising collaboration of alcoholic beverage brands with these establishments to launch numerous endorsement programs is favoring the growth of the market in the country. In addition, the thriving food tourism industry and expanding culinary services in the country are resulting in the growing adoption of ENA in luxury hotels and restaurants for gourmet cooking.
Apart from this, ENA is used as a solvent in the pharmaceutical industry for the extraction of active pharmaceutical ingredients (APIs) and the production of various medicines, syrups, and tinctures. This, coupled with the increasing need for prescription drugs due to the surging prevalence of medical conditions, is strengthening the growth of the market in the country.
Extra Neutral Alcohol (ENA) Market in India Trends/Drivers
Emerging trend of partying among millennials
On account of inflating income levels of individuals and changing consumer preferences, there is a rise in the demand for alcoholic beverages, including spirits like whiskey, vodka, and rum, across India. This represents one of the key factors impelling the growth of the market. As more Indians are embracing Western drinking culture and socializing in bars, restaurants, and clubs, the overall sales of high-quality spirits is increasing. ENA serves as a key ingredient in the production of these beverages, which makes it essential for meeting the growing consumer demand.Rising government policies and regulations
The Government of India (GoI) is implementing various policies and regulations to control the quality of spirits in the market. These policies often mandate the use of ENA of a specific standard in the production of alcoholic beverages. As a result, leading manufacturers are procuring ENA that meets the required specifications, which, in turn, is supporting the growth of the market. Additionally, continuous efforts of the governing agency to minimize the production and sales of illicit are also catalyzing the demand.Extra Neutral Alcohol (ENA) Market in India Industry Segmentation
This report provides an analysis of the key trends in each segment of the extra neutral alcohol (ENA) market in India report, along with forecasts at the country and state level from 2024-2032. from 2024-2032. The report has categorized the market based on application.Breakup by Application:
- Alcoholic Beverages
- Flavours and Fragrances
- Pharmaceuticals
- Cosmetics
- Others
The report has provided a detailed breakup and analysis of the market based on the product type. This includes alcoholic beverages, flavors and fragrances, pharmaceuticals, cosmetics, and others. According to the report, alcoholic beverages represented the largest segment.
ENA serves as a key ingredient in the production of various alcoholic beverages. Its neutral taste and high alcohol content makes it an ideal base spirit for creating a wide range of drinks. It is commonly used in the production of vodka, gin, rum, and other distilled spirits. It provides a neutral foundation that allows the flavors of botanicals, fruits, or other ingredients to shine through. It is also utilized in the production of fortified wines, aperitifs, liqueurs, and cocktail bitters.
ENA serves as a solvent and carrier for natural and synthetic flavor compounds, essential oils, and fragrance ingredients. Its neutral character ensures that it doesn't interfere with the aromatic profiles of the flavors and fragrances being developed. ENA is commonly used in the extraction and dilution of plant essences and essential oils, and as a base for creating concentrated flavors and fragrances used in food products, beverages, perfumes, colognes, and personal care items.
ENA finds application in the pharmaceutical industry for various purposes. Its high purity and neutral properties make it suitable for pharmaceutical formulations. It is used as a solvent in the production of liquid medications, tinctures, and syrups. It helps in dissolving active pharmaceutical ingredients (APIs) and other components, which facilitates the formulation and delivery of medicines. It is also utilized in the extraction of medicinal compounds from plants and herbs for use in herbal medicines and traditional remedies.
ENA is widely employed in the cosmetic industry due to its purity and lack of flavor. It is used as a solvent and diluent in the production of cosmetics and personal care products. It is utilized in the formulation of perfumes, colognes, deodorants, and body sprays, wherein it helps in dissolving and blending fragrance oils and other cosmetic ingredients. It is also utilized in the manufacturing of skincare products such as toners, cleansers, and lotions, where it acts as a base for active ingredients and aids in ensuring product stability.
Breakup by State:
- Punjab
- Maharashtra
- Madhya Pradesh
- Uttar Pradesh
- Karnataka
- Andhra Pradesh and Telangana
- Tamil Nadu
- Haryana
- Rajasthan
- Chhattisgarh
- West Bengal
- Uttarakhand
- Kerala
- Bihar
- Odisha
- Goa
- Assam
- Delhi
- Himachal Pradesh
- Jammu and Kashmir
- Arunachal Pradesh
- Meghalaya
- Jharkhand
- Tripura
- Sikkim
The report has also provided a comprehensive analysis of all the major regional markets, which include Punjab, Maharashtra, Madhya Pradesh, Uttar Pradesh, Karnataka, Andhra Pradesh and Telangana, Tamil Nadu, Haryana, Rajasthan, Chhattisgarh, West Bengal, Uttarakhand, Kerala, Bihar, Odisha, Goa, Assam, Delhi, Himachal Pradesh, Jammu and Kashmir, Arunachal Pradesh, Meghalaya, Jharkhand, Tripura, and Sikkim.
The increasing use of ethanol as a biofuel represents one of the major factors driving the production of ENA in Punjab. Moreover, the rising ENA usage as a solvent for flavoring and coloring agents is favoring the production in the state. Besides this, the growing sales of spirits like whisky, rum, and vodka are influencing the production in the market.
The consumption of ENA is growing in Andhra Pradesh and Telangana, owing to the increasing number of pubs and distilleries, emerging trend of socializing, favorable initiatives by state governing authorities, etc.
Competitive Landscape
The key players in the market are focusing on using membrane filtration techniques, such as reverse osmosis and nanofiltration, to separate and concentrate the alcohol during the distillation process. These techniques help remove impurities, water, and other undesirable components, which results in higher alcohol concentrations and improved quality of ENA.Moreover, key players are adopting various energy-efficient technologies to reduce energy consumption and environment impact. They use energy efficient distillation columns, heat recovery systems, and process optimization techniques. Besides this, leading players are integrating advanced technologies for quality control and automation throughout the ENA production process.
The report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided.
Key Questions Answered in This Report
1. What is the size of the extra neutral alcohol (ENA) market in India in 2023?2. What is the expected growth rate of the extra neutral alcohol (ENA) market in India during 2024-2032?
3. What are the key factors driving the extra neutral alcohol (ENA) market in India?
4. What has been the impact of COVID-19 on the extra neutral alcohol (ENA) market in India?
5. What is the breakup of the extra neutral alcohol (ENA) market in India based on the application?
6. What are the key regions in the extra neutral alcohol (ENA) market in India based on the production?
7. What are the key regions in the extra neutral alcohol (ENA) market in India based on the consumption?
Table of Contents
1 Preface3 Executive Summary
2 Scope and Methodology
4 Introduction
5 Indian ENA Industry
6 Market Performance by State
7 Market Performance by Application
8 Competitive Landscape
9 ENA Manufacturing Process
10 Key Player Profiles (Due to data confidentiality, the company names have not been disclosed in this table of contents)
List of Figures
List of Tables
Methodology
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 118 |
| Published | April 2024 |
| Forecast Period | 2023 - 2032 |
| Estimated Market Value ( INR | INR 101.8 Billion |
| Forecasted Market Value ( INR | INR 141 Billion |
| Compound Annual Growth Rate | 3.6% |
| Regions Covered | India |
