Industrial Alcohol Global Market Report 2024

Industrial alcohol, primarily ethanol, serves as a type of alcohol utilized in various industrial applications. It finds applications in the production of adhesives, cosmetics, detergents, explosives, inks, hand creams, as well as in the manufacturing of vaccines, compound tonics, syrups, tinctures, liniments, and antiseptics.

The main types of industrial alcohol include isopropyl alcohol, methyl alcohol, ethyl alcohol, isobutyl alcohol, and benzyl alcohol. Isopropyl alcohol is commonly used as an ingredient in various cosmetics and medicinal preparations for external use. It is an isomer of propyl alcohol and a homologue of ethyl alcohol, possessing similar properties when used externally but exhibiting increased toxicity when consumed internally. Industrial alcohol is obtained through fermentation and synthetic methods, with sources including molasses, sugar, grains, and fossil fuels. Applications for industrial alcohol span fuel, chemical intermediates and solvents, pharmaceuticals, personal care products, and food ingredients.

The industrial alcohol market research report is one of a series of new reports that provides industrial alcohol market statistics, including industrial alcohol industry global market size, regional shares, competitors with an industrial alcohol market share, detailed industrial alcohol market segments, market trends and opportunities, and any further data you may need to thrive in the industrial alcohol industry. This industrial 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.

The industrial alcohol market size has grown rapidly in recent years. It will grow from $159.7 billion in 2023 to $178.72 billion in 2024 at a compound annual growth rate (CAGR) of 11.9%. The growth observed in the historical period can be attributed to factors such as increased ethanol fuel production, growth in the pharmaceuticals and healthcare sector, expansion of the beverage and food industry, a rise in chemical manufacturing, and increased utilization in cleaning and sanitization applications.

The industrial alcohol market size is expected to see rapid growth in the next few years. It will grow to $289.24 billion in 2028 at a compound annual growth rate (CAGR) of 12.8%. The anticipated growth in the forecast period can be attributed to factors such as the increasing focus on renewable energy, a rising demand for hand sanitizers and disinfectants, an increased demand for alcoholic beverages, growing demand from personal care products, and a heightened emphasis on sustainable chemicals. Key trends expected in the forecast period include the use of ethanol for hand sanitizers, the demand for ethanol as a fuel additive, advancements in distillation and purification technologies, the utilization of industrial alcohol as a solvent, and the production of food-grade alcohol.

The industrial alcohol market is experiencing significant growth, driven by the rising demand for biofuels, particularly ethanol. Biofuels, derived from microbial, plant, or animal waste, are renewable energy sources. Ethanol, an alcohol used in gasoline blending, enhances octane and reduces air pollutants, contributing to lower air pollution and energy costs. The US Department of Energy projects that 98% of US gasoline will contain ethanol by 2021. Additionally, biodiesel is the second most produced biofuel in the US, accounting for 11% and 12% of total production and consumption, respectively, in 2020.

The industrial alcohol market is benefiting from increased demand in the pharmaceutical industry. Industrial alcohol serves as a chemical intermediate and solvent in pharmaceutical production, aiding in the extraction of active ingredients. The pharmaceutical sector's growth is evident in the UK, where healthcare spending increased by 9.4% between 2020 and 2021. The demand for preventive care also doubled in 2021, reaching $45.72 billion.

A key trend in the industrial alcohol market is product advancements, with major companies focusing on developing technologically advanced products. For example, DuPont Nutrition & Biosciences introduced the SYNERXIA Gemstone Collection in January 2021, a high-performance yeast designed for ethanol producers. The collection includes SYNERXIA SAPPHIRE, which provides a significant ethanol yield boost compared to standard yeast and reduces the need for added glucoamylase during fermentation.

Companies in the industrial alcohol market are also expanding their project pipelines to maximize revenues. Axens SA launched Jetanol in February 2023, a brand for its alcohol-to-jet technology. This technology converts alcohol into jet fuel, utilizing industrial alcohol as a primary feedstock. The system is being employed in five industrial-scale projects with a combined capacity to produce over 1.4 million tons of sustainable aviation fuel annually.

In June 2021, POET, a US-based biofuel and bioproducts producer, acquired Flint Hills Resources to increase its annual ethanol production capacity by 40% to 3 billion gallons per year. This acquisition also boosts POET's production of dried distillers' grains and corn oil, contributing to its position in the industrial alcohol market.

Major companies operating in the industrial alcohol market include Cargill Incorporated, Cristalco SAS, Raizen Energia SA, MGP Ingredients Inc., Green plains Inc., Sigma-Aldrich, Grain Millers Inc., The Andersons Inc., BASF SE, Royal Dutch shell PLC, Exxon mobil corporation, Univar Solutions, BIRLA SUGAR, Valero Energy Corporation, Flint Hills Resources, Roquette Freres SA, Jiangsu Lianhai Biological Technology Co. Ltd., Shell Chemicals, Cosan S.A., Celanese Corporation, Novozymes A/S, Solvay S.A., IG Petrochemicals, The Andersons Inc., Raízen Energia S.A., Aemetis Inc., Vantage Oleochemicals, Pannonia Bio, ACI Alloys Inc.

North America was the largest region in the industrial alcohol market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the industrial alcohol market analysis report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

The countries covered in the industrial alcohol market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.

The industrial alcohol market consists of sales of tertiary butanol, haltanol and denatured ethanol. 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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