Ethyl Alcohol Market Report 2026

The ethyl alcohol market size has grown strongly in recent years. It will grow from $552.77 billion in 2025 to $591.57 billion in 2026 at a compound annual growth rate (CAGR) of 7%. The growth in the historic period can be attributed to growth of alcoholic beverage consumption, use of ethanol as industrial solvent, adoption of ethanol in pharmaceuticals, expansion of chemical synthesis applications, availability of fermented feedstocks.

The ethyl alcohol market size is expected to see strong growth in the next few years. It will grow to $801.56 billion in 2030 at a compound annual growth rate (CAGR) of 7.9%. The growth in the forecast period can be attributed to increasing biofuel blending mandates, rising healthcare disinfectant demand, growth of personal care industry, expansion of green chemical manufacturing, investments in ethanol capacity expansion. Major trends in the forecast period include rising use of ethanol as biofuel additive, growing demand for pharmaceutical grade ethanol, expansion of ethanol based disinfectants, increased adoption in personal care formulations, focus on high purity industrial solvents.

The ethyl alcohol market is poised for substantial growth, primarily driven by the increasing demand for personal care products. Personal care products encompass a wide array of items used for personal hygiene, cleaning, and grooming, including shampoos, conditioners, toothpaste, creams, cosmetics, and various household products. Ethyl alcohol, also known as ethanol, serves as a versatile ingredient in these products, offering several advantageous properties that enhance their effectiveness and overall performance. For instance, in February 2023, L'Oréal S.A., a France-based personal care company, reported that consumer product sales rose from 11.8% to 14.6%, and active cosmetics sales increased from 28% to 30.6% between the third and fourth quarters of 2022. Additionally, in July 2024, according to a report titled THE VALUE OF BEAUTY published by the British Beauty Council, a UK-based beauty industry organization, the personal care industry contributed £27.2 billion to GDP in 2023, marking an 11% increase over 2022. In 2024, this contribution is expected to reach £28.1 billion, reflecting a 3% rise from 2023 and a 15% increase since 2022. Therefore, the rising demand for personal care products is driving the growth of the ethyl alcohol market.

Prominent companies within the ethyl alcohol market are placing a strong emphasis on technological innovation, particularly in the realm of sustainable aviation fuel (SAF) technology, as a strategic move to maintain a competitive edge in the market. Sustainable Aviation Fuel technology involves the development and production of aviation fuels that are more environmentally friendly and possess a lower carbon footprint when compared to conventional aviation fuels derived from fossil sources. For example, in September 2023, Lummus Technology LLC, a leading US-based producer of both conventional and renewable transportation fuels, introduced a groundbreaking Sustainable Aviation Fuel Technology rooted in ethanol. This technology plays a pivotal role in reducing greenhouse gas emissions within the aviation sector, providing a reliable and sustainable alternative to traditional aviation fuels. The process seamlessly incorporates ethanol into ethylene (EtE), utilizes olefin oligomerization, and employs various refining techniques to produce sustainable aviation fuel (SAF). This innovation underscores the commitment of major industry players to advancements that enhance the environmental sustainability of aviation fuels, offering a significant competitive advantage in the market.

In August 2024, Dairy Distillery Alliance LLC, a Canada-based producer of innovative dairy products, began constructing a plant to produce ethyl alcohol (ethanol) from milk permeate, a byproduct of dairy processing, in partnership with the Michigan Milk Producers Association (MMPA). The collaboration aims to convert milk permeate into ethanol at a new facility in Constantine, Michigan. The plant is expected to produce approximately 2.2 million gallons of ethanol annually, providing a sustainable, low-carbon fuel source and enhancing the production of ethyl alcohol. This initiative expands both the technological capabilities and sustainable output of the partners within the biofuel sector. The Michigan Milk Producers Association (MMPA) is a US-based cooperative of dairy farmers.

Major companies operating in the ethyl alcohol market are Advanced Bioenergy LLC, The Andersons Ethanol Group (The Andersons, Inc.), Archer Daniels Midland Company, Braskem S.A., BP p.l.c., Cargill, Incorporated, Green Plains Inc., Kirin Holdings Company, Limited, LyondellBasell Industries N.V., Mitsubishi Chemical Corporation, Alto Ingredients, Inc., Saudi Basic Industries Corporation (SABIC), Sasol Limited, Solvay S.A., Valero Energy Corporation, INEOS Group Holdings S.A., Midwest Renewable Energy, LLC, CJ Chemicals, LLC, Aemetis, Inc., Greenfield Global Inc., ECSA Chemicals S.A., Ethanol US LLC.

Asia-Pacific was the largest region in the ethyl alcohol market in 2025. North America was the second-largest region in the global ethyl alcohol market. The regions covered in the ethyl alcohol market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the ethyl alcohol market report are China, India, Japan, Australia, Indonesia, South Korea, Bangladesh, Thailand, Vietnam, Malaysia, Singapore, Philippines, Hong Kong, Taiwan, New Zealand, UK, Germany, France, Italy, Spain, Austria, Belgium, Denmark, Finland, Ireland, Netherlands, Norway, Portugal, Sweden, Switzerland, Russia, Czech Republic, Poland, Romania, Ukraine, USA, Canada, Mexico, Brazil, Chile, Argentina, Colombia, Peru, Saudi Arabia, Israel, Iran, Turkey, UAE, Egypt, Nigeria, South Africa.

The ethyl alcohol market consists of the sales of ethyl alcohol used in products such as perfumes, aftershaves, beverages, liniments, colognes, medicinal liquids, mouthwashes, and rubbing alcohols. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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