Industrial Alcohol Market By Type (Ethyl Alcohol, Isopropyl Alcohol, Isobutyl Alcohol, Methyl Alcohol, Benzyl Alcohol, Others), By Source (Sugar and Molasses, Grains (excluding Corn), Fossil Fuels, Corn, Others), By Application (Personal Care Products, Food Ingredients (excluding Beverages)

Industrial Alcohol Market Size and Forecast

According to the new report titled " Industrial Alcohol Market By Type (Ethyl Alcohol, Isopropyl Alcohol, Isobutyl Alcohol, Methyl Alcohol, Benzyl Alcohol, Others), By Source (Sugar and Molasses, Grains (excluding Corn), Fossil Fuels, Corn, Others), By Application (Personal Care Products, Food Ingredients (excluding Beverages), Chemical Intermediates & Solvent, Pharmaceuticals, Fuel, Others), Global Analysis to 2023",

The valuation of the Industrial Alcohol market was $107.9 Billion in 2023 and is projected to reach $ 155.28 Billion by 2032, at a CAGR of 4.12% from 2021 to 2032.

The Industrial Alcohol Market was valued at $107.9 Billion by 2023 and expected to grow at CAGR of 4.12% over forecast period. Industrial alcohol, also known as denatured alcohol or technical-grade alcohol, refers to ethyl alcohol (ethanol) that has been rendered unfit for human consumption through the addition of denaturing agents. Denaturing agents are substances added to alcohol to make it unsuitable for drinking, typically for tax purposes or to avoid alcohol beverage regulations. Industrial alcohol is commonly used as a solvent in various industries, including paints, coatings, inks, and cleaning products.

It serves as a carrier for active ingredients and helps dissolve other substances. Industrial alcohol is used in the production of flavorings, extracts, and food additives. It serves as a solvent for extracting flavors and aromas from natural ingredients such as fruits, herbs, and spices. Economic factors such as GDP growth, consumer spending, and industrial investment affect the demand for industrial alcohol. During periods of economic growth, there tends to be higher demand for industrial products, leading to increased demand for industrial alcohol as a solvent, cleaner, and chemical feedstock. Advances in industrial processes and technologies may create new applications for industrial alcohol or improve existing processes, leading to increased demand. For example, the development of new biofuel production methods or green chemistry processes can drive demand for ethanol and other renewable industrial alcohols.

Ethyl Alcohol held the largest share in the Industrial Alcohol market

By Type (Ethyl Alcohol, Isopropyl Alcohol, Isobutyl Alcohol, Methyl Alcohol, Benzyl Alcohol, Others) where Sugarcane plays a crucial role in the Industrial Alcohol market. Ethanol is widely used as a solvent in industrial processes for dissolving and extracting various substances. It's utilized in industries such as pharmaceuticals, cosmetics, paints, coatings, and printing inks. The demand for ethanol in these applications depends on the level of industrial activity and production within these sectors. Ethanol serves as a precursor for the production of various chemicals and chemical intermediates. It's used in the synthesis of compounds such as ethyl acetate, acetaldehyde, and ethylene, which have applications in plastics, resins, pharmaceuticals, and other chemical industries. Therefore, demand for ethanol as a chemical feedstock is closely tied to the demand for these downstream products.

Ethanol is commonly used as a fuel additive, particularly in gasoline, as a means to reduce emissions and increase octane ratings. The demand for ethanol in the fuel sector depends on government regulations mandating ethanol blending, consumer preferences for cleaner fuels, and fluctuations in gasoline consumption. Ethanol is utilized in the biotechnology and pharmaceutical industries for various purposes, including the extraction of bioactive compounds from plants and as a solvent in pharmaceutical formulations. The demand for ethanol in these sectors is influenced by research and development activities, as well as the production of pharmaceuticals and biotechnological products.

Asia Pacific headed the Industrial Alcohol market in 2023

The Asia Pacific region is home to some of the world's largest and fastest-growing industrial economies, including China, India, Japan, South Korea, and Southeast Asian countries. The demand for industrial alcohol in sectors such as manufacturing, chemicals, pharmaceuticals, and textiles is closely tied to industrial production levels and economic growth rates in these countries. The Asia Pacific region is a major hub for chemical manufacturing and processing industries. Industrial alcohol, particularly ethanol, serves as a key feedstock in the production of various chemicals and chemical intermediates used in plastics, resins, coatings, and pharmaceuticals. Therefore, the demand for industrial alcohol is driven by the demand for these downstream chemical products. Ethanol is used as a biofuel additive in gasoline in several countries in the Asia Pacific region.

Government mandates, incentives for renewable energy, and concerns about air pollution and carbon emissions drive the demand for ethanol in the fuel sector. The implementation of biofuel blending requirements and the expansion of ethanol production capacity contribute to the demand for industrial alcohol. The Asia Pacific region has a growing biotechnology and pharmaceutical industry, with increasing investments in research and development, drug manufacturing, and healthcare infrastructure. Ethanol is used in biotechnological processes, pharmaceutical formulations, and laboratory applications, driving demand in these sectors.

Key market players operating in the market that are profiled in the report are-

Cristalco SAS, Grain Millers Inc., Grain processing Corporation, The Andersons Inc., MGP Ingredients Incorporated, Cargill Inc., Raizen Energia, Green Plains Inc, Exxon Mobil Corporation,  Lyondell Basell Industries, Eastman Chemical Company, Dow Chemical Company, Wilmar International, Royal Dutch Shell Plc. etc.

Report Scope

Key Players

• Cristalco SAS
• Grain Millers Inc.
• Grain processing Corporation
• The Andersons Inc.
• MGP Ingredients Incorporated
• Cargill Inc.
• Raizen Energia
• Green Plains Inc
• Exxon Mobil Corporation
•   Lyondell Basell Industries
• Eastman Chemical Company
• Dow Chemical Company
• Wilmar International
• Royal Dutch Shell Plc. etc.

Global Industrial Alcohol MarketSegmentation Analysis

The Global Industrial Alcohol Market is Segmented Based on Type, Source, Application, and Geography.

Industrial Alcohol Market, By Type

• Ethanol
• Methanol
• Isopropanol
• Butanol
• Propanol
• Pentanol
• Hexanol

Based on Type, the market is segmented into Ethanol, Methanol, Isopropanol, Butanol, Propanol, Pentanol, and Hexanol. The largest market share in the industrial alcohol market is claimed by ethanol. This dominance is attributed to its extensive applications in biofuels, pharmaceuticals, and various industrial processes as a solvent and cleaning agent.

Industrial Alcohol Market, By Source

• Synthetic
• Bio-Based

Based on the Source, the market is classified into Synthetic and Bio-Based. The largest market share for industrial alcohol was held by the synthetic source. This is due to its reliance on fossil fuels, which were historically a more economical option for production.

Industrial Alcohol Market, By Application

• Pharmaceuticals
• Food & Beverage
• Chemicals
• Automotive
• Cosmetics & Personal Care
• Paints & Coatings
• Cleaning Products
• Textile Processing
• Printing
• Renewable Energy

Based on Application, the market is bifurcated into Pharmaceuticals, Food & Beverage, Chemicals, Automotive, Cosmetics & Personal Care, Paints & Coatings, Cleaning Products, Textile Processing, Printing, and Renewable Energy. The chemicals segment holds the highest market share, attributed to the widespread use of alcohols as solvents, intermediates in chemical reactions, and for various industrial processes.

Industrial Alcohol Market, By Geography

• North America
• Europe
• Asia Pacific
• Rest of the World

Based on Geography, the Industrial Alcohol Market is classified into North America, Europe, Asia Pacific, and the Rest of the world. The Asia Pacific region holds the highest market share. This dominance is attributed to the substantial agricultural base present in this region, which facilitates raw material production, and the ongoing industrial growth that fuels demand for industrial alcohols

Reasons to Purchase this Report

• Qualitative and quantitative analysis of the market based on segmentation involving both economic as well as non-economic factors
• Provision of market value (USD Billion) data for each segment and sub-segment
• Indicates the region and segment that is expected to witness the fastest growth as well as to dominate the market
• Analysis by geography highlighting the consumption of the product/service in the region as well as indicating the factors that are affecting the market within each region
• Competitive landscape which incorporates the market ranking of the major players, along with new service/product launches, partnerships, business expansions, and acquisitions in the past five years of companies profiled
• Extensive company profiles comprising of company overview, company insights, product benchmarking, and SWOT analysis for the major market players
• The current as well as the future market outlook of the industry with respect to recent developments (which involve growth opportunities and drivers as well as challenges and restraints of both emerging as well as developed regions
• Includes in-depth analysis of the market from various perspectives through Porter’s five forces analysis
• Provides insight into the market through Value Chain
• Market dynamics scenario, along with growth opportunities of the market in the years to come
• 6-month post-sales analyst support