Ethyl Alcohol Market Report 2025

This Ethyl Alcohol market report provides a comprehensive analysis of the market’s characteristics, size, and growth, including segmentation, regional and country-level breakdowns, competitive landscape, market shares, trends, and strategies. It also tracks historical and forecasted market growth across various geographies.

The ethyl alcohol market size has grown strongly in recent years. It will grow from $600.06 billion in 2024 to $647.92 billion in 2025 at a compound annual growth rate (CAGR) of 8%. The growth in the historic period can be attributed to alcoholic beverages, pharmaceuticals and healthcare, industrial and chemical manufacturing, personal care and cosmetics.

The ethyl alcohol market size is expected to see strong growth in the next few years. It will grow to $840.34 billion in 2029 at a compound annual growth rate (CAGR) of 6.7%. The growth in the forecast period can be attributed to renewable energy and biofuels, pharmaceutical and healthcare growth, chemical manufacturing innovation, sustainable packaging. Major trends in the forecast period include bio-based ethyl alcohol, advanced pharmaceutical formulations, circular economy initiatives, digital transformation in ethyl alcohol production.

The growing appetite for ethanol within the food processing sector is a significant driver of the ethyl alcohol market's expansion. Ethyl alcohol serves as a crucial component in the production of alcoholic and non-alcoholic beverages, including popular choices like vodka and gin. Furthermore, it finds application as a natural additive in non-alcoholic beverages. The food processing industry is experiencing substantial growth, primarily fueled by the increasing consumer demand for ready-to-eat, frozen, and packaged foods. This heightened demand is a result of population growth through both natural births and migrations, consequently leading to increased production and, in turn, a surge in the requirement for ethanol within the industry. Notably, this growing appetite for ethanol in the food processing sector is expected to drive the global ethyl alcohol market's expansion. For example, in November 2024, the U.S. Energy Information Administration (EIA), a US-based agency of the U.S. Federal Statistical System, reported that in the first eight months of 2024, U.S. fuel ethanol exports averaged 121,000 barrels per day, the highest export levels for this period in any year, consistently exceeding 100,000 barrels per day each month. As a result, the rising demand for ethanol in the food processing industry is driving the growth of the ethyl alcohol market.

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.

Major companies operating in the ethyl alcohol market are focusing on developing strategic partnerships to create sustainable ethanol by transforming CO2 emissions, reducing reliance on fossil fuels, and mitigating environmental impact. Strategic partnerships are collaborative relationships between two or more organizations that aim to leverage each other's strengths and resources to achieve shared goals and drive mutual growth. For instance, in March 2022, Twelve, a US-based carbon transformation company, and LanzaTech Global Inc., a US-based carbon recycling company, partnered to develop ethanol from CO2 emissions using a scalable process that eliminates reliance on fossil fuels and crop-based feedstocks. This innovative approach not only reduces greenhouse gas emissions but also provides a sustainable solution for producing ethanol used in fuels, personal care, and cleaning products, contributing to a fossil-free future.

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 October 2022, CIE, a prominent US-based global supplier of high-quality, specialty alcohols derived from grains, completed the acquisition of Elkhorn Valley Ethanol from Louis Dreyfus Company, a global leader in agricultural commodities. This acquisition significantly augments CIE's production capacity, widens its geographical presence, and broadens its customer portfolio through the integration of Elkhorn Valley Ethanol's assets. Elkhorn Valley Ethanol, an American ethanol producer, now becomes part of CIE, enhancing the company's position and capabilities in the industry.

Ethyl alcohol, also known as ethanol or grain alcohol, is a volatile, flammable, and clear liquid with significant industrial utility. It serves as a chemical precursor for pharmaceutical ingredient production and functions as a solvent in various industrial processes. Ethyl alcohol plays a pivotal role as a solvent in the synthesis of other organic compounds and is a key ingredient in alcoholic beverages. Additionally, it serves as an additive in the automotive sector, enhancing gasoline properties.

There are two primary types of ethyl alcohol such as synthetic and fermented. Ethyl alcohol fermentation is a chemical process in which yeast converts glucose and fructose in a solution into ethanol, carbon dioxide, and heat. The versatile applications of ethyl alcohol span across industrial solvents, fuel and fuel additives, disinfectants, beverages, personal care products, and various other uses. It finds its primary markets in automotive, food and beverages, pharmaceuticals, personal care, and other sectors.

The ethyl alcohol market research report is one of a series of new reports that provides ethyl alcohol market statistics, including ethyl alcohol industry global market size, regional shares, competitors with an ethyl alcohol market share, detailed ethyl alcohol market segments, market trends and opportunities, and any further data you may need to thrive in the ethyl alcohol industry. This ethyl alcohol market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Major companies operating in the ethyl alcohol market include Advanced Bioenergy LLC, Andersons Ethanol Group, Archer Daniels Midland Company, Braskem SA, BP plc, Cargill Corporation, Green Plains Inc., Kirin Holding Company Limited, LyondellBasell Industries NV, Mitsubishi Chemical Corporation, Alto Ingredients Inc., Saudi Arabia's Basic Industries Corporation, Sasol Limited, Solvay Group, Valero Energy Corporation, INEOS Group Holdings SA, Merck Millipore, Midwest Renewable Energy LLC, ChemCeed LLC, Vigon International, an Azelis Company, CJ Chemicals LLC, Maxill Inc., Barentz BV, SAE International, Exxon Mobil Corporation, Vinmar International Ltd., Ethanol US LLC, Aemetis Inc., Greenfield Global Inc., ECSA Chemicals SA, Penta Manufacturing Company, Sigma-Aldrich Co. LLC, Spectrum Chemical Manufacturing Corp., Alfa Aesar, Fisher Scientific International Inc.

Asia-Pacific was the largest region in the ethyl alcohol market in 2024. 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, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa. The countries covered in the ethyl alcohol market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

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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