The Global Industrial Alcohols Market was estimated at USD 98.3 Bn in 2020 and is expected to grow with CAGR of 5.6% during the forecast period 2021-2027.
The global industrial alcohols market is majorly growing owing to the excellent properties offered by industrial alcohols. Properties including high octane number and enhanced flammability characteristics have immensely contributed to surging the demand for organic solvents like methyl alcohol, ethyl alcohol from the transportation sector. Additionally, the shortage of petroleum along with high oil prices has highlighted the energy scarcity crisis faced across the globe. This is contributing to proliferating the industrial alcohols product growth as a substitute to petrol owing to its low emissions and low intoxicating effects. Further, growing popularity and increasing consumer awareness regarding environmental benefits offered by biofuels are also pegged to garner significant industrial alcohols products demand over the forecast period.
Furthermore, an increasing number of sugar mills in many major economies have started preferring to manufacture ethanol over sugar and are majorly investing in new distilleries to increase their production. For instance, in 2021, Uttar Pradesh, India announced opening 16 new distilleries involving an investment of 1,250.44 crores. Companies such as DCM Shriram, Balrampur Chini, Dhampur Sugar, Rana group, and Dalmia Bharat are heavily investing in the distillery business. Among these, the DCM Shriram group has plans to expand production by opening three new distilleries with an investment of Rs. 178.14 crores. Similarly, Balrampur Chini, one of the leading integrated sugars producing companies announced its plan to install a new 320 KLPD distillery facility involving an investment of Rs 195.13 cr and is expected to start its operations in December 2022. Further, Dewan Sugars is also opening a new distillery with a capacity of 120 KLPD with an investment of Rs 107.1 crore. Such growing investments by key market players for increasing the production of industrial alcohols are expected to offer growth opportunities in the industrial alcohols market.
Based on region, the Asia-Pacific region is expected to grow at a high growth rate in the industrial alcohols market during the forecast period. This high share is attributed to the high production and consumption of industrial alcohols such as ethanol & methyl alcohol in major economies of the region including India and China. India has been experiencing high demand due to the initiatives taken by the Indian government on the use of ethanol as an automotive fuel. For instance, the country passed “The National Policy on Biofuels – 2018” that offers an indicative aim of blending 20% of ethanol under the Ethanol Blended Petrol Programme by 2030. However, the methyl alcohol industry is dominated by China due to the rising demand for methyl alcohol to produce olefins and blend in gasoline resulting in new economic, pricing, and market dynamics. Further, the easy availability of raw materials such as corn, millets, rice, and other crops for producing industrial alcohols in the region is also prominently boosting the industrial alcohol products demand in this region.
The key players operating in the industrial alcohols market are: