The Global Industrial Alcohols Market was valued at USD 98.3 Bn in 2020 and is expected to reach USD 143.5 Bn by 2027, with a growing CAGR of 5.6% during the forecast period.
Industrial alcohol is distilled ethyl alcohol that is obtained, extracted, and sold for several purposes, apart from beverages. These are flammable, colorless, and volatile liquids that are obtained from various sources such as grains, sugar & molasses, corn, and fossil fuels among others. These alcohols are manufactured by making use of fermentation processes & synthetic methods and are usually distributed in the pure ethyl alcohol form.
The industrial alcohols market is majorly experiencing traction owing to growing usage in petrochemical, paint, and art, cosmetic and medical industries. The rising use of industrial alcohol in the production of medicines, vaccines, antiseptics, syrups, and fuel is driving the demand in the industrial alcohol market. Alcohols such as isopropyl alcohol, methanol, and benzyl alcohol are used for producing cosmetics, adhesives, food products, and flavorings. Additionally, the global industrial alcohol market is also growing due to the increasing use of industrial alcohol as biofuel owing to the rising focus on environmental protection and carbon emissions. Other factors such as inclining biofuel production, cost-effective production of corn and sugarcane, and increasing consumption of industrial solvents are playing an important role in driving the global market.
Moreover, favorable government initiatives & support for promoting the use of industrial alcohol in the transportation sector is another prominent factor driving the demand in the industrial alcohols market. For instance, the Brazilian government has mandated the use to use of 22% ethanol blended petrol in Brazil for regular use in the car. Similarly, the U.S.A government has made it compulsory to blend 10% ethanol with petrol for routine usage in cars. Furthermore, the implementation of influential modern environmental laws to control and reduce air pollution by several major economies is also responsible for driving the growth in the market. For instance, Clean Air Act and Air Pollution Control Act implemented by the U.S. government are offering growth opportunities in the industrial alcohols market.
The unique insights provided by this report also include the following:
Based on product, the ethyl alcohol segment held a major share in the industrial alcohols market in terms of global revenue owing to the increasing product use in manufacturing hand sanitizers
Based on product, the industrial alcohols market is segmented as ethyl alcohol, isopropyl alcohol, methyl alcohol, benzyl alcohol, isobutyl alcohol, and others. Among these, ethyl alcohol which is also referred to as ethanol held a major share in the industrial alcohol’s products in terms of global revenue. This high share is mainly attributed to the increasing product use in manufacturing hand sanitizers. Due to the Covid-19 pandemic, many organizations such as WHO, CDC, and FDA among others recommended the use of alcohol-based hand sanitizers consisting of 60% ethanol. Owing to this burgeoning product demand, industrial alcohols products experienced a growth trend. Additionally, the easy availability of ethyl alcohol from wheat, corn, barley, and other sources is also influencing the industrial alcohols market growth.
Based on application, the transportation fuel & fuel additives application accounted for the largest share in the industrial alcohols market owing to the rising need to reduce the dependence on fossil fuel as a major source of fuel for vehicles
Based on application, the industrial alcohols market is fragmented into transportation fuel & fuel additives, food ingredients, chemical intermediates, personal care, pharmaceutical, detergent & cleaning chemicals, and others. Among these segments, the transportation fuel & fuel additives application accounted for the largest share in industrial alcohols products across the globe. This share is due to the growing automotive sector along with the rising need to reduce the dependence on fossil fuel as the major source of fuel for vehicles. Biofuel such as ethanol tends to be used as a fuel for vehicles when it is in pure form (E100) and is also usually used as a gasoline additive to improve octane and enhance vehicle emissions. They act as a cheap, eco-friendly, and efficient alternative to traditional fuels such as petrol and diesel. Therefore, the use of biofuel combined with the increasing commercialization of bioethanol, bio-butanol, and such other alternative fuels is helping the economies in reducing their dependence on the import of fossil fuels and contributing to environmental protection.
Based on region, the North America region led the industrial alcohols market across the globe due to the massive ethanol production and exports in the region
Based on region, the industrial alcohols market is divided into Asia-Pacific, North America, Latin America, Middle East and Africa, and Europe. Among these, the North America region led the industrial alcohols product across the globe and is anticipated to show a significant growth trend during the forecast period. This share is majorly attributed to the massive ethanol production and exports in the region. The U.S. is the leading corn-based ethanol producer across the globe. . Japan and European nations, particularly the U.K. and, are among the top importers of ethanol from the U.S and Brazil. Approximately 97% of the gasoline that is used in the U.S. consists of a minimum 10% of ethanol. Additionally, the improved production of industrial solvents from algae and agricultural wastes in countries including Brazil and the U.S. has also surged industrial alcohol market growth in the region.
Note: Challenges along with in-depth Industrial Alcohols market dynamics analysis are mentioned in the report.
The COVID-19 outbreak has shifted consumers’ focus on prioritizing safety, hygiene, and health across the globe. Several public health organizations strongly recommended frequent use of disinfectants and sanitizers that contains at least 60% of alcohol content. Owing to this, economies across the globe experienced an exponential increase in the demand for disinfectants, hand sanitizers, and sterilization products for use in healthcare facilities, homes, and public places. Therefore, this immense surge in the demand resulted in a shortage in the supply of these infections and sanitizers caused due to panic buying among the customers. Hence, to meet this unprecedented demand for disinfectants & sanitizers, key alcohol manufacturers were noticed ramping up production capacity, thereby positively driving the industrial alcohols product.
The report also provides an in-depth analysis of key trends in the Industrial Alcohols market
The report also provides an in-depth analysis of recent news developments and investments in the industrial alcohols market
The key players operating in the industrial alcohols market are:
Priyanka has been writing chemicals & material market research reports for the last 12 years. A post-graduate, her specialization is in the chemicals sector. Preparing end-to-end reports covering minute details for market insights, competitive intelligence and trend analysis in the CMFE sector.