Industrial Alcohol Market

Industrial Alcohol Market Size (2023-2028):

Industrial Alcohol Market is estimated at USD 95.6 billion in 2022. This value is forecasted to grow at a CAGR of 11.8% to reach USD 141.61 billion by 2028

Industrial alcohol is a form of pure alcohol, and it is also known as grain alcohol. It is derived from the fermentation process of corn, malt, wheat, sugarcane, etc. This type of alcohol is used in industrial products such as paints, inks, fragrances, flavors, cosmeceutical purposes, and others. Other uses of industrial alcohol are in petroleum industries. It is mixed with gasoline for the efficient working and functioning of the engine. Increasing consumption of bioethanol, an alternative solution to fuels such as diesel and petrol, increases the market for the industrial alcohol market. It is due to an increased preference for renewable resources like energy sources.

MARKET DRIVERS:

Factors such as increased research activities and technological advancements increased the adoption of new technologies, and a rise in demand for renewable resources level up the market's growth. Technology and its developments due to raised demand for innovations also drive this market growth. Manufacturers and retailers are utilizing E-commerce websites and social websites for selling industrial alcohol and making business. Other factors such as a significant rise in industries related to food, cosmetics, petroleum, chemicals, and biotechnology industries, etc., increased renewable sources, energy resources, and increased production of raw materials for the preparation of alcohol such as sugarcane waste, wheat, malt, corn, potatoes, and other fruit waste. Increased demand for fermentation procedures and a large amount of alcohol production drive market growth. Developing countries encourage new industries such as petroleum, biotechnology, pharmaceuticals, cosmetics, raw materials, chemicals, etc. It also causes market growth. The government’s initiatives and spending of its expenditure on companies create market value for the industrial alcohol market. The presence of key market players and investors in this market contributes to growth and value. 

Industrial alcohol is also used in other industries such as pharmaceuticals, biotechnologies, hospitals, clinics, laboratories, food, personal care, chemical industries, etc. Hence the increased demand for industrial alcohol in various industries drives market growth for this market, such as a significant rise in sectors related to food, cosmetics, petroleum, chemicals, and biotechnology industries, etc., increased renewable sources, energy resources, increased production of raw materials for the preparation of alcohol such as sugarcane waste, wheat, malt, corn, potatoes, and other fruit waste. The rise in the adoption of fermentation technology and other technologies is also expected to increase market size. 

MARKET RESTRAINTS:

Significant issues for this market are associated with prices and a hike for industrial alcohol. It is due to the lack of availability of raw materials on time. The majority of small-hold shopkeepers, and retailers are not willing to stock up on industrial alcohol and its products due to spillage, spoilage, and other issues. Unawareness and high literacy rate amongst farmers worldwide for industrial alcohol and its uses are hindering the market growth. The raw materials for alcohol production are potatoes, wheat, sugarcane, and other fruits and their waste. Due to harsh climatic conditions, crop production may get affected, and the crude extracts from the plant are not available at the correct time. 

INDUSTRIAL ALCOHOL MARKET REPORT COVERAGE:

Market Segmentation:

Industrial Alcohol Market - By Type:

• Ethyl

• Methyl

• Isopropyl

• Isobutyl

• Benzyl Alcohol

Based on type, Ethyl alcohol is the most extensively used industrial alcohol among all these and is used in more applications than any other type of industrial alcohol.

Industrial Alcohol Market - By Source:

• Sugar & Molasses

• Corn

• Grains

• Fossil Fuels

Industrial Alcohol Market - By Application:

• Personal Care
• Pharmaceutical
• Fuel
• Food
• Chemical

Industrial Alcohol Market - By Purity:

• Denatured Alcohol

• Undenatured Alcohol

Industrial Alcohol Market - By Processing Method:

• Fermentation Method

• Synthetic Method

Industrial Alcohol Market - By Functionality:

• Antimicrobial Activity

• Fragrant/Flavoring Agents

• Solubility

• Antifreeze

• Flammability & Volatility

Industrial Alcohol Market - By Region:

• North America

• Europe

• Asia Pacific

• Latin America

• The Middle East and Africa

Geographically, North America is estimated to constitute the largest share in the global industrial alcohol market. Simultaneously, the Asia Pacific region is expected to witness the fastest growth and overtake North America, being the second-largest shareholder in the market during the forecast period.

The Asia Pacific holds the largest shares and revenue for the industrial alcohol market. High consumption and production of methyl alcohol in china and ethanol in India are seen, which drives the market growth in the Asia Pacific region. The increased demand for methanol for mixing it in gasoline in particular ratios to better function; drives market growth for industrial alcohol. Additionally, the usage of renewable resources for various industrial purposes also increases market size. The majority of market value and shares from the Asia Pacific region are due to ethyl alcohol and methyl alcohol.

The North American industrial alcohol market is also driven by the consumption and utilization of industrial alcohol. The production, exports, and imports of Ethanol from the United States expect to drive market value in the North American region.

The European nation also holds the largest shares in this market due to crop-based extracts and their derivatives. The largest market for raw materials and the least prices for raw materials across this region also increase market size and industrial alcohol growth across this region. 

NOTABLE COMPANIES IN THIS MARKET:

Key market companies leading the global industrial alcohol market profiled in the report are

1. MGP Ingredients (U.S.)

2. The Andersons Inc. (U.S.)

3. Sigma Aldrich (U.S.)

4. Grain Processing Corporation (U.S.)

5. Cargill (U.S.)

6. Raizen Energia (Brazil)

7. Green Plains Inc. (U.S.)

8. Cristalco (France)

9. Greenfield Specialty Alcohols (Canada)

10. Flint Hills Resources (U.S.)