Industrial Alcohol Market Report 2025

This Industrial Alcohol market report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The industrial alcohol market size has grown rapidly in recent years. It will grow from $177.6 billion in 2024 to $198.18 billion in 2025 at a compound annual growth rate (CAGR) of 11.6%. The growth in the historic period can be attributed to increased ethanol fuel production, growth in pharmaceuticals and healthcare, growth beverage and food industry, rise in chemical manufacturing, increased use in cleaning and sanitization.

The industrial alcohol market size is expected to see rapid growth in the next few years. It will grow to $334.18 billion in 2029 at a compound annual growth rate (CAGR) of 14%. The growth in the forecast period can be attributed to increasing renewable energy, rising demand hand sanitizers and disinfectants, rising demand for alcoholic beverages, increasing demand from personal care products, emphasis on sustainable chemicals. Major trends in the forecast period include ethanol for hand sanitizers, demand for ethanol as a fuel additive, distillation and purification technologies, industrial alcohol as solvent, food-grade alcohol production.

The rising demand for biofuels among end-users is significantly driving the growth of the industrial alcohol market in the future. Biofuels, such as ethanol, are renewable energy sources derived from microbial, plant, or animal waste. Ethanol is an alcohol that is also blended into gasoline to enhance octane levels and reduce carbon monoxide and other pollutants that contribute to smog, thereby minimizing air pollution. To decrease air pollution and energy costs, alternative fuels like biodiesel and alcohol are increasingly utilized in engine technology. For example, in 2022, the U.S. Energy Information Administration reported that the ethanol blend rate in U.S. gasoline reached a record high of 10.39%. This increase indicates a continued recovery in ethanol volumes following the lower levels experienced during the pandemic. U.S. ethanol production rose by 2%, reaching 15.36 billion gallons, while domestic consumption also saw a slight increase to 13.98 billion gallons. These figures underscore the ongoing commitment to incorporating ethanol into gasoline to help mitigate air pollution and promote sustainable fuel practices. Consequently, the growing demand for biofuels among end-users is fueling the expansion of the industrial alcohol market.

The rising demand from the pharmaceutical industry is anticipated to drive the growth of the industrial alcohol market in the future. The pharmaceutical industry encompasses the discovery, development, production, and distribution of medications. Industrial alcohol serves as a chemical intermediate in the manufacture of various pharmaceutical products. Additionally, it is utilized as a solvent in the pharmaceutical sector to dissolve and extract active ingredients from plant materials and other sources. For example, in June 2023, the European Federation of Pharmaceutical Industries and Associations (EFPIA), a European trade association representing the pharmaceutical industry, reported that the total pharmaceutical production in Europe reached $384.2 billion (€340,000 million) in 2022, reflecting an increase of approximately 4.95% from $366.26 billion (€323,950 million) in 2021. Thus, the growing demand from the pharmaceutical industry is propelling the expansion of the industrial alcohol market.

Major companies in the industrial alcohol market are concentrating on innovating products, such as Australian Absinthe, to deliver reliable services to their customers. Australian Absinthe features a complex flavor profile that is both bitter and sweet, with hints of anise, fennel, and various herbs. For example, in May 2022, Never Never Distilling Co., an Australia-based alcohol manufacturer, introduced Australian Absinthe. This type of absinthe is crafted using a distinctive blend of traditional botanicals, which are steeped in high-proof alcohol, such as vodka or grain alcohol, for several days or weeks. The result is a smooth, velvety texture with a long, lingering finish.

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 January 2022, Alto Ingredients, Inc., a US-based chemicals company, acquired Eagle Alcohol Company LLC for an undisclosed amount. This acquisition enables Alto Ingredients, Inc. to enhance its bulk distribution of specialty alcohols, further cementing its status as the largest producer of specialty alcohols in the United States. Eagle Alcohol Company LLC is a US-based provider of specialty alcohol to a range of industries.

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, Aemetis Inc., Vantage Oleochemicals, Pannonia Bio, ACI Alloys Inc.

North America was the largest region in the industrial alcohol market in 2024. 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.

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 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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