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The Global Industrial Alcohol Market across the globe is witnessing growth at a CAGR of 9.5% in the forecast period 2023-2031. Increasing applications of industrial alcohol are observed due to the solvent, anti-bacterial, and other inflammatory properties of alcohol attributing positively to the market growth. Industrial alcohol has various applications in the pharmaceutical, beauty and personal care, food & beverage, and chemical industry among others. Shipping and handling of industrial alcohol are precautionary and required to follow industry standards due to its purest and distilled form.
The pharmaceutical industry has grown to more than a trillion-dollar industry by 2020 and is expected to rise significantly in the coming years. Owing to its solvent properties, Industrial alcohol is widely used in solubilizing many drugs and to manufacture pharma and personal care products. Ethyl alcohol and isopropyl alcohol are used as antiseptics in medical care products like medical wipes, hand sanitizer.
The personal care sector is growing remarkably over the past few years and have grown to more than US$ 600 Billion. Personal care products like skin creams, hand creams, deodorants, and perfumes use alcohol as an active ingredient. Isopropyl alcohol is a key product in the industrial alcohol market. More than 45% of total isopropyl alcohol produced is used as a solvent in various industries like chemical and pharma industries. Hence, the growth of the pharmaceutical and personal care sector has strengthened the demand for industrial alcohol and is expected to propel the market in near future.
Ethyl alcohol is most commonly used as a biofuel additive in gasoline and diesel. Fossil fuels are depleting, resulting in increased prices of energy generation which in turn leads to the utilization of ethanol as renewable biofuel for producing energy. Owing to a higher octane number than gasoline, ethanol is easily blended with gasoline. Gasoline blended with ethanol is used in motor vehicles for better performance and efficiency. The growing economy and rising awareness towards the depletion of fossil fuels have increased the utilization of ethyl alcohol as a fuel additive. Thus, the usage of industrial alcohol in fuel generation is projected to escalate the industrial alcohol market towards growth trajectories.
Like other industries, the industrial alcohol industry is also affected by the COVID-19 outbreak up to some extent. The disrupted supply chain due to pandemic has impacted the manufacturing process of industrial alcohol. However, owing to its antiseptic usage, industrial alcohol is highly demanded by the pharma and medical sector and is expected to rise in the forecast period.
Agriculture raw materials like sugarcane, grains, corns, and others are used to produce industrial alcohol. Prices of raw materials are highly dependent on climatic conditions, cultivation cost, and many other factors. Hence, price fluctuation of raw material act as a major hindrance in the growth of the industrial alcohol market.
The Asia Pacific recorded high production of agricultural raw materialss such as sugarcane, grains, corn, and others as compared to other regions. As per IBEF, India is the second-largest producer of sugarcane and grains in the world. The agriculture production policy in India has set a target to produce 298 MT of agriculture production in 2020-2021. Owing to the high availability of raw materials, countries like China, India, Thailand have become some of the largest producers of ethyl alcohol which is driving the Industrial alcohol market in the Asia Pacific.
The North American market has huge potential to grow owing to the active participation of the government in the development of renewable energy sources. More than 98% of gasoline in the US is blended with 10% ethanol, supporting the increasing demand for ethanol in the US region. Also, North America is one of the largest producers of isopropyl alcohol propelling the industrial alcohol market substantially. The industrial alcohol market is expected to grow significantly in Europe and the rest of the World.
Some of the key players are Cargill Inc., Raizen Energia, Cristalco SAS, MGP Ingredients Incorporated, Grain Millers Inc., Grain processing Corporation, The Andersons Inc., Green Plains Inc, Royal Dutch Shell Plc, Exxon Mobil Corporation, Eastman Chemical Company, Dow Chemical Company, LyondellBasell Industries, Wilmar International and others. There is a huge competence in the industrial alcohol market due to the presence of a large number of leading players. Companies are constantly making innovations that involve higher use of industrial alcohol, thus, driving the market in the forecast period.
The market segmented into the following segments:
By Process Method: