Industrial alcohol refers to alcohol which is primarily used for industrial purposes rather than beverages or pharmaceuticals. It is mainly used as fuel or feedstock for the production of various chemicals and materials. Key advantages include high energy content, low volatility, low toxicity and widespread availability.
The global Industrial Alcohol Market is estimated to be valued at US$ 180.75 Bn or Mn in 2023 and is expected to exhibit a CAGR of 10% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the major trends driving the growth of the industrial alcohol market is its increasing usage as a biofuel. Ethanol is the most commonly used biofuel worldwide due to its high octane rating and clean-burning properties. The rise in crude oil prices and stringent environmental regulations have further augmented the demand for ethanol as a gasoline additive or fuel extender. According to REN21, global ethanol fuel production increased from 115 billion liters in 2017 to around 133 billion liters in 2020. The market is expected to grow further during the forecast period due to the rapidly growing demand for eco-friendly transportation fuels.
SWOT Analysis
Strength: Industrial alcohol has wide applications in pharmaceuticals, personal care products and beverages which drives its consistent demand. It is a cost-effective and easily available raw material for various end-use industries.
Weakness: Stringent government regulations regarding the production and trade of industrial alcohol. Fluctuations in raw material prices directly impact the production cost of industrial alcohol.
Opportunity: Growing demand for bioethanol as an alternative fuel offers new opportunities. Increasing usage of industrial alcohol in chemical intermediates and solvents due to its solubility properties.
Threats: Availability of substitutes like synthetic polymers and bio-based chemicals pose threat to the market. Volatility in crude oil prices affect the demand-supply dynamics.
Key Takeaways
The global industrial alcohol market is expected to witness high growth, exhibiting CAGR of 10.% over the forecast period, due to increasing demand from personal care and cosmetic industries. Wide usage of industrial alcohol in sanitizers, hand washes and disinfectants during COVID-19 pandemic has boosted the market.
Regional analysis – North America dominates the global industrial alcohol market owing to strong demand from F&B and pharmaceutical sectors in the US and Canada. Asia Pacific exhibits highest growth led by China, India and Southeast Asian countries on account of rapid industrialization, rising disposable income and growing population.
Key players operating in the industrial alcohol market are BASF SE, BIRLA SUGAR, CARGILL INCORPORATED., CRISTALCO, FLINT HILLS RESOURCES, GREEN PLAINS INC., GREENFIELD SPECIALTY, MGP INGREDIENTS INC., SIGMA ALDRICH, and THE ANDERSONS INC. Focus on capacity expansion, forward and backward integration and new product launches are some key strategies adopted by these players.
