The global Industrial Alcohol Market, valued at USD 141.2 billion in 2021, is poised for substantial growth, with a projected Compound Annual Growth Rate (CAGR) of 10.2% during the forecast period. Industrial alcohol, primarily represented by ethyl alcohol, is experiencing a surge in demand across various industries, including biofuel, food, medicine, personal care, chemicals, research, and more.
Diverse Applications Drive Demand
Alcohol, particularly ethyl alcohol, has expanded its applications far beyond traditional uses in beverages and scientific settings. The versatility of industrial alcohol, driven by its solubility, insect repellent properties, antibacterial characteristics, preservation capabilities, and anti-freezing qualities, has found a foothold in industries ranging from biofuels to paints, inks, adhesives, coatings, and insecticides.
Biofuels and Beyond
While ethyl alcohol remains a dominant player in the biofuel sector, research into bio-butanol is gaining momentum, paving the way for its commercialization. Ethanol usage has seen a global upsurge due to the decrease in gasoline consumption and ethanol mandates in various regions, including Brazil (27%), Canada (5%), the U.S. (10%), the European Union (6%), Australia (3%), China (10%), and India (5%).
COVID-19 Impact and Resilience
The industrial alcohol market faced challenges in 2020 due to the COVID-19 pandemic, resulting in disruptions in supply chains, lockdowns, and border closures. However, the pharmaceutical industrys demand for industrial alcohol surged in 2021, driven by the essential role of alcohol-based sanitizers and antiseptics in preventing the spread of COVID-19.
Fluctuating Raw Material Costs
One of the markets challenges is the zero price and demand elasticity of industrial alcohol. Raw material costs, primarily sourced from crops like wheat, corn, and sugar, are influenced by factors such as crop quality, climate conditions, and yield. Environmental factors can directly impact agricultural production, causing fluctuations in raw material prices.
Segment Overview
- Ethyl Alcohol Dominates: Ethyl alcohol production applications lead the market, accounting for over 50% of the volume. Ethanols global acceptance as a clean alternative fuel has driven its demand, especially in the United States and Brazil.
- Corn as a Renewable Energy Source: Corn-based industrial alcohol holds a market share of over 30% in volume. Corn distiller oil, a byproduct, is used for biodiesel and animal feed, contributing to its popularity as a renewable energy source.
Regional Landscape
- North America Leads: North America, predominantly the United States, controls more than 75.7% of the industrial alcohol market. Ethanol production and exports from the U.S. drive the industrys growth in income and volume.
- Asia-Pacifics Growing Demand: China holds more than 32.5% of the industrial alcohol market in East Asia, while India leads South Asia. Rising crude oil prices are expected to boost biofuel production in both nations.
Competitive Landscape
Key players in the Industrial Alcohol Market include Cargill Inc., MGP Ingredients Inc., Cristalco SAS, The Andersons Inc., and Grain Millers Inc. Companies like Green Plains have expanded their facilities to meet the growing demand for alcohol, particularly in the pharmaceutical sector.
The global Industrial Alcohol Market is on a growth trajectory driven by its diverse applications, increasing demand for biofuels, and post-pandemic recovery in pharmaceutical and sanitization sectors. With continued innovation and investment, the market is poised for sustained expansion in the coming years.
Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2023-2030 By Product, Technology, Grade, Application, End-user, Region: (North America, Europe, Asia Pacific, Latin America and Middle East and Africa) https://www.fairfieldmarketresearch.com/report/industrial-alcohol-market
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COMTEX_444112129/2840/2023-11-27T23:35:23
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