Ethyl Alcohol and Other Basic Organic Chemical Market Report 2026

The ethyl alcohol and other basic organic chemical market size has grown strongly in recent years. It will grow from $1.51 trillion in 2025 to $1.62 trillion in 2026 at a compound annual growth rate (CAGR) of 7.2%. The growth in the historic period can be attributed to industrialization of chemical manufacturing, growth of organic chemical synthesis, expansion of food grade alcohol usage, demand for coating and printing chemicals, availability of petrochemical feedstocks.

The ethyl alcohol and other basic organic chemical market size is expected to see strong growth in the next few years. It will grow to $2.21 trillion in 2030 at a compound annual growth rate (CAGR) of 8.1%. The growth in the forecast period can be attributed to growth of specialty chemical demand, rising pharmaceutical manufacturing, expansion of electronics chemicals, shift toward bio based organic chemicals, investment in integrated chemical complexes. Major trends in the forecast period include growing demand for basic organic intermediates, rising use of ethyl alcohol in chemical synthesis, expansion of plasticizer and silicone production, increased consumption in food and pharma processing, focus on large scale chemical integration.

The rising consumption of alcoholic beverages is expected to drive the growth of the ethyl alcohol and other basic organic chemicals market in the coming years. Alcoholic beverages, defined as drinks suitable for human consumption with an alcohol content of 1% or higher, contain ethyl alcohol (ethanol) as the primary psychoactive ingredient. Other basic organic chemicals, including flavor compounds and sugars, contribute to the taste, aroma, and complexity of these beverages, enhancing their overall sensory experience. For example, in March 2025, the Finnish Government reported that recorded alcohol consumption in Finland reached 513 million litres in 2024. Therefore, the increasing consumption of alcoholic beverages is supporting the growth of the ethyl alcohol and other basic organic chemicals market.

Major companies in the ethyl alcohol and basic organic chemicals market are focusing on strategic partnerships to strengthen their competitive position. Strategic partnerships involve collaborative agreements between two or more organizations to achieve mutual objectives by combining resources, expertise, and capabilities while retaining organizational independence. For instance, in April 2023, Gevo Inc., a US-based renewable chemicals company, partnered with LG Chem, a South Korea-based chemical manufacturer, to develop bio-propylene as part of an ongoing joint development agreement. The companies combined their technological expertise to convert ethanol - a type of ethyl alcohol classified as a basic organic chemical - into propylene and other chemical products.

In August 2024, Dairy Distillery Alliance LLC, a Canada-based producer of innovative dairy products, partnered with the Michigan Milk Producers Association (MMPA) to establish a new ethanol production facility in Constantine, Michigan. This partnership focuses on converting milk permeate, a byproduct of dairy processing, into ethanol. The facility is expected to produce approximately 2.2 million gallons of ethanol annually, providing a sustainable, low-carbon fuel source and directly supporting ethyl alcohol production. The 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 and other basic organic chemical market are Archer-Daniels-Midland Company, Celanese Corporation, Valero Energy Corporation, LANXESS Aktiengesellschaft, Evonik Industries Aktiengesellschaft, Eastman Chemical Company, Atul Limited, Hindustan Petroleum Corporation Limited Biofuels Limited, Advanced BioEnergy LLC, Aventine Renewable Energy Holdings, Inc., The Andersons Ethanol Group, LLC, BP p.l.c. (British Petroleum), Braskem S.A., Cargill, Incorporated, Butamax Advanced Biofuels LLC, Green Plains Inc., Flint Hills Resources, LP, LyondellBasell Industries N.V., INEOS Group Limited, Mitsubishi Chemical Group Corporation, BASF SE, DowDuPont Inc., Solvay S.A., Huntsman Corporation, Ashland Global Holdings Inc.

Asia-Pacific was the largest region in the ethyl alcohol and other basic organic chemical market in 2025. North America was the second-largest region in the ethyl alcohol and other basic organic chemical market. The regions covered in the ethyl alcohol and other basic organic chemical 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 and other basic organic chemical 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 and other basic organic chemicals market consists of the sales of tall oil and wood distillates, distil coal tars, wood or gum chemicals, naval stores, natural tanning materials, charcoal briquettes, charcoal, cyclic crudes or cyclic intermediates, aromatic petrochemicals, industrial gases, and synthetic organic dyes and pigments. 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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