The Industrial Alcohols Market is expected to reach USD 143.5 Bn by 2027, with a growing CAGR of 5.6%

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.

Global Industrial Alcohols Market by Region Outlook (Revenue, USD Million, 2021-2027)

  • Europe
  • North America
  • Asia Pacific
  • Middle East & Africa
  • Latin America

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 Global Industrial Alcohols Industry Segmentation:

Global Industrial Alcohols Market by Application Outlook (Revenue, USD Million, 2021-2027)

  • Sugar & Molasses
  • Corn
  • Grains
  • Fossil Fuels
  • Others

Global Industrial Alcohols Market by Product Outlook (Revenue, USD Million, 2021-2027)

  • Ethyl Alcohol
  • Methyl Alcohol
  • Isopropyl Alcohol
  • Isobutyl Alcohol
  • Benzyl Alcohol
  • Others

Global Industrial Alcohols Market by Source Outlook (Revenue, USD Million, 2021-2027)

  • Sugar & Molasses
  • Grains
  • Corn
  • Fossil Fuels
  • Others

Key Findings:

  • Based on product, the ethyl alcohol segment held the dominant share in the industrial alcohols products and is expected to show similar trends in the forecast period.
  • Based on application, the transportation fuel & fuel additives application witnessed significant growth in the industrial alcohol’s products.
  • Based on region, the North America region accounted for the largest share in the industrial alcohol’s products across the globe.
  • Based on region, the Asia-Pacific region is expected to grow with a high growth rate during the forecast period.

Company Profiles and Competitive Intelligence

The key players operating in the industrial alcohols market are:

  • Cargill
  • RaizenEnergia
  • Wilmar International
  • Archer Daniels Midland
  • Univar Solutions
  • Green Plains Inc
  • Cristalco
  • Royal Dutch Shell Plc
  • EcoLab
  • MGP Ingredients
  • Lindeplc
  • LyondellBasell Industries
  • The Andersons Inc
  • Sigma-Aldrich
  • Grain Processing Corporation
  • Dow Chemical Company
  • Eastman Chemical Company
  • Greenfield Global Inc.
  • Flint Hills Resources
  • Exxon Mobil Corporation
  • Birla Sugar
  • Greenfield Specialty Alcohols
  • BASF
  • Other Notable Players

Recent News:

  • In April 2021, Praj Industries, a project & process engineering company, headquartered in India, has bagged an order for setting up the largest capacity syrup-based ethanol plant in India for Godavari Biorefineries Ltd (GBL). In addition, as a part of this project, the company plans on expanding the capacity of its existing ethanol manufacturing plant from 400 to 600 kilolitres every day by making use of sugarcane syrup.
  • In June 2020, Archer Daniels Midland (ADM) announced its plan to increase its industrial ethanol production at the US plant. Additionally, the company has already increased its production at Peoria, Illinois, facility for helping in addressing the growing need for industrial alcohol along with adding additional capacity at the company’s Clinton facility.

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