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Industrial Alcohol Market

Industrial Alcohol Market

Global Industry Analysis (2018 - 2021), Growth Trends, and Market Forecast (2022 - 2029)

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Industry: Chemicals & Materials | Author Name: Harshad


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Industrial Alcohol Market: Overview

The market size of Industrial Alcohol Market was USD 141.2 Billion in 2021, and it is projected to grow at a CAGR of 10.2 percent during the forecast period. Alcohol has been utilized in beverage and scientific packages for decades. However, as generations developed, alcohol has been used in various packages. Among the numerous alcohols to be had commercially, ethyl alcohol is the most widely used and extensively popular business alcohol. Currently, most ethyl alcohol produced goes into the gas zone for use as biofuel. Though ethyl alcohol is a commercialized biofuel used worldwide, research on the improvement of bio-butanol has additionally received significance and is progressively paving the manner towards commercialization.

Alcohols are used in various industries besides biofuel, including food, medicine, home and personal care, the chemical industry, research labs, paints, inks, adhesives & coatings, and insecticides. Although ethyl alcohol predominates in these industries, applications for methyl alcohol, sorbitol, maltitol, benzyl alcohol, and isopropyl alcohol also exist. Ethyl alcohol, due to its features of solubility, insect repellency, antibacterial nature, preservation, and anti-freezing capabilities, finds applications in all the above fields. The usage of ethanol at the worldwide level is driven by the fall in gasoline use and the ethanol mandates in various regions, which stand at 27% in Brazil, 5% in Canada, 10% within the U.S., and 6% in European Union, 3% in Australia, 10% in China and 5% in India.

The price and demand elasticity of industrial alcohol is zero. This implies that a product's limited supply drives up prices significantly and vice versa. Wheat, corn, and sugar are some of the primary raw materials used by the alcohol industry. The cost of raw materials is influenced by several variables, including crop quality, climatic conditions, and cultivation yield. Furthermore, the main crops used to produce ethyl alcohol—wheat, corn, and sugarcane—are vulnerable to unfavorable conditions. Environmental deterioration has a direct effect on cultivation. The costs of various raw materials fluctuate due to all these factors. In July 2020, Green Plains expanded its facility at its subsidiary, Green Plain Wood River LLC, to produce FCC-grade and USP-grade alcohol, meeting FDA specifications. This plan would enable the business to meet the demand for alcohol and provide services to a wider customer base.

Industrial Alcohol Market: COVID-19 Impact

With the breakout of COVID-19 across areas, the industrial alcohol market suffered a fall in 2020, owing to the lockdowns, closing of the international borders, and delays in cross-border transit, which disrupted the supply chain. Despite an increase in food demand, COVID-19 has substantially influenced supply. The lockdowns and increasing infected cases have resulted in workforce shortages and restricted supply of raw supplies. The disruption of delivery channels has caused further delays in the food supply. However, the pharmaceutical industry's need for industrial alcohol grew in 2021. This is because hand hygiene and sanitizer use are important steps among the preventive measures taken against COVID-19. Additionally, using an alcohol-based hand sanitizer with at least 60% ethanol or ethyl alcohol is advised by the Centers for Disease Control and Prevention (CDC).

Industrial Alcohol Market: Drivers

An Increase in Alcohol use in Variety of Contexts is Fuelling Market Growth

Alcohol has long been utilized in food, drink, and medical procedures. Alcohol, however, has found usage in various applications as technology advanced. Of all the commercially available alcohols, ethanol is the most well-liked and respected industrial alcohol on the planet. Currently, most ethyl alcohol is used as biofuel in the petroleum industry. Even though ethyl alcohol is a widely used and commercialized biofuel, research into bio-butanol production has gained significance and is laying the foundation for its future use.

Use of Alcohol for Making Anti-Septic and Hand Sanitizers is Fuelling Market Growth

Through 2027, the isopropyl alcohol market is anticipated to expand significantly. The chemical is commonly used as a rubbing-alcohol antiseptic when combined with water. Along with other cosmetic and personal care items, it is used in hand lotions, aftershave lotions, hand sanitizers, and other goods. The demand, manufacturing, and consumption of isopropyl alcohol have increased due to the coronavirus pandemic. When the global COVID-19 epidemic struck in 2020, the market for hand sanitizers experienced a significant increase. The only two alcohols used as active components in alcohol-based sanitizers are isopropyl alcohol (isopropanol) and ethyl alcohol (ethanol). Additionally, for routine sterilization, intermediate disinfection, and low-level disinfection of frequently handled smooth, hard surfaces, the CDC had advised using isopropyl alcohol with a concentration of 70–90%.

Industrial Alcohol Market: Restraints

Fluctuating Raw Material Costs is Hindering Market Growth

The price and demand elasticity of industrial alcohol is zero. In other words, a product's scarcity significantly drives its price and vice versa. Wheat, corn, and sugar are some of the primary raw materials used by the alcohol industry. The cost of raw materials is influenced by several variables, including crop quality, meteorological circumstances, and agricultural yield. Furthermore, the key crops used to produce ethyl alcohol—wheat, corn, and sugarcane—are vulnerable to unfavorable climatic circumstances. Deterioration of the environment has a direct impact on agriculture. The costs of various raw materials fluctuate due to all these factors.

Industrial Alcohol Market: Segment Overview

Ethyl Alcohol is Dominating Market Due to Clean Fuel Substitute

Ethyl alcohol production applications led the market in terms of volume in 2019, holding a share of more than 50%. Even though it may be easily obtained from several sources, such as biomass, corn, wheat, and barley, this can be linked to the product's high demand. As a result of its high octane level, it is a renewable fuel combined with gasoline. Regardless of the source, ethanol is manufactured and comes in various forms with the same chemical characteristics. Worldwide acceptance of ethanol as a clean, alternative fuel has led to ethanol and gasoline blend requirements. The main ethanol consumers from Brazil and the United States are Japan and various European nations, especially the United Kingdom.

Corn has Dominated Market Since Demand for the Product as Energy Source that is Renewable has Increased

Corn source was the market leader, with a market share of more than 30% in terms of volume in 2019. This may be because there is a significant demand for the product as a renewable energy source. Globally, the ethanol industry's expansion has caused a boom in corn distiller oil, which is utilized as a fuel for biodiesel or animal feed. About 85% of the companies that make ethanol from corn have created corn distillers oil. Production of corn-based ethanol is also expanding in the byproducts industry.

Industrial Alcohol Market: Regional Landscape

Ongoing development has Helped North America to Dominate Market

The market for industrial alcohol in North America, which the U.S. controls more than 75.7%. According to FMI, the U.S. owned the largest share of the North American industrial alcohol market in 2021. Ethanol plants can capture 3 to 3.5 million tonnes of CO2 annually or around 40% of the total supply. The continued development of novel ethanol-producing technology is anticipated to fuel growth in the United States. The U.S., the world's largest ethanol market, led North America in ethanol production and export. Ethyl alcohol exports from the United States and production in that country are driving the industry's expansion in income and volume. The U.S.'s export-focused ethanol production to meet the demands of the worldwide market area is driving the growth in the production levels of industrial alcohol in North America.

China presently holds a share of more than 32.5% of the industrial alcohol market in East Asia, which is the largest. On the other hand, India’s alcohol market is expected to continue to lead South Asia through 2032. Rising crude oil prices are expected to create fresh growth prospects for biofuel producers in both nations. The Indian government intends to dramatically increase ethanol output in the coming ten years n order to support new distillery capacity projects for producing 5.2 million tonnes of ethanol yearly; the government has also increased its federal interest aid program. With consumption goals set by the governments of China and India, methyl alcohol and ethyl alcohol predominated throughout the Asia Pacific region. In this region, ethanol is not widely used, and as gasoline consumption rises quickly, concerns over air quality—particularly in China and India—are mounting. By 2030, the amount of fuel required for transportation is expected to increase significantly due to an increase in GDP and population, necessitating greater use of biofuels. India has the best circumstances for bioethanol demand, whereas China is the world's fourth-largest biofuel producer.

Industrial Alcohol Market: Competitive Landscape

Green Plains' plant at its subsidiary, Green Plain Wood River LLC, was expanded in July 2020 to allow for the production of alcohol that satisfies FDA standards and is FCC- and USP-grade. This plan would enable the business to meet the demand for alcohol and provide services to a wider customer base. MGP Ingredients purchased New Columbia Distilleries LLC in March 2020. (US). Through this acquisition, the business strengthened its position in the US and expanded its customer base.

A few players in the Industrial Alcohol Market include Cargill Inc., MGP Ingredients Inc., Cristalco SAS, The Andersons Inc and Grain Millers Inc.

Industrial Alcohol Market is Segmented as Below:

By Product Outlook

  • Ethyl Alcohol
  • Methyl Alcohol
  • Isopropyl Alcohol
  • Isobutyl Alcohol
  • Others

By Source Outlook

  • Grains
  • Sugar & Molasses
  • Corn
  • Fossil Fuels
  • Others

By Application Outlook

  • Food Ingredient
  • Transportation Fuel & Fuel Additives
  • Chemical Intermediates
  • Pharmaceutica
  • Personal Care
  • Detergent & Cleaning Chemicals
  • Others

By Region

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • UK
    • France
    • Germany
    • Russia
    • Rest of Europe
  • Asia Pacific
    • Japan
    • South Korea
    • India
    • China
    • Rest of Asia-Pacific
  • LAMEA
    • Latin America
    • Middle East
    • Africa

Key Elements Included In The Study: Global Industrial Alcohol Market

  • Industrial Alcohol Market by Product/Technology/Grade, Application/End-user, and Region
  • Executive Summary (Opportunity Analysis and Key Trends)
  • Historical Market Size and Estimates, Value and Volume, 2018 - 2021
  • Volume Consumption at Regional and Country Level, 2022 - 2029
  • Market Dynamics and Economic Overview
  • Market Size in Value and Volume, Growth Rates, and Forecast Figures, 2022 - 2029
  • Competitive Intelligence with Financials, Key Developments, and Portfolio of Leading Companies 
  • Regional and Product/Grade/Application/End-user Price Trends Analysis
  • Production Output Analysis (Major Producing Regions)
  • Key Trade Statistics (Import and Export)
  • Value Chain and Five Force’s Analysis
  • Regional/Sub-region/Country Market Size and Trend Analysis
  • Company Market Share Analysis and Key Player Profiles

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