The global industrial alcohol market size is set to be valued at USD 110.3 Billion in 2022 and it is expected to grow at a CAGR of 7.6% from 2022 to 2032. The global market is projected to reach USD 194.7 Billion by 2032.
Products like butanol-denatured ethanol, heptanol, etc. have applications all around the industries such as food and beverages, fashion products, chemical research, construction paints, beautification, and many more.
| Attributes | Key Statistics |
|---|---|
| Global Industrial Alcohol Market Estimated Size (2022E) | USD 110.3 Billion |
| Projected Market Valuation (2032F) | USD 194.7 Billion |
| Value-based CAGR (2022 to 2032) | 7.6% |
| Collective Value Share: Top 3 Countries | 55.7% |
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China and India Market to Benefit from Rising Industrial Alcohol Prices by Government Agencies. India has even launched its policies for alternative alcohol fuel, such as ethanol. China is dominating the East Asia industrial alcohol market and currently holds a share of more than 32.5%. This has pushed the sales of industrial alcohol in Asian markets.
The US holds more than 75.7% of the North American industrial alcohol market share, which is predicted to increase at a CAGR of around 4.2% over the forecast period. In 2021, the US held the highest share of the industrial alcohol market in North America, finds FMI.
To expand the market space of a certain company, brands focus on building a bridge between multiple industries so that the supply chain can be enhanced and developed. In large applications, few end users are worth mentioning as they fuel the higher sale of industrial alcohol.
In medical applications in multiple medicine wings, alcohol cannot be set apart from the medical industry. From its application in the pharmaceutical sector to its benefits against anxiety and depression, industrial alcohol has become an important part of the sector. Its use in homeopathy is remarkable and the world has known it.
Beverage & Industrial Use
Apart from being an important part of the food and beverage industry, it keeps on getting used in industries such as hardware, fashion, and chemistry projects. It gives special shine and life to fashion products while it works like a catalyst and main compound In multiple chemical reactions.
Renewable Ethanol in Beverages and Industries
The new renewable ethanol experiment has been successful with multi-industries tests. Mainly formed through sugarcane, alcohol is renewable and has environmental benefits. It has been used in some industries as an alternative and has shown impressive results. Governments around the world now focus on promoting alternative fuels that involve ethanol.
Principal Consultant
Denatured alcohol is used in alcohol burners and camping stoves as a solvent and fuel. A variety of denaturing and additive methods are used in the manufacturing of denatured alcohol, which is further utilized in a wide range of applications, particularly in the industrial sector.
The most commonly used conventional additive is 10% methanol and methyl alcohol and hence it is called methylated spirits. Some of the other important additives include isopropyl alcohol, methyl ethyl ketone, acetone, and methyl isobutyl ketone.
In the USA, denatured alcohol mixtures with a higher percentage of methanol are sold. In contrast to the biochemistry denaturation method, ethanol molecules remain intact and are not chemically altered during the denaturation process.
The rapid expansion of the E15 and flex-fuel infrastructure is expected to be largely pushed by the USA Department of Agriculture’s (USDA) Higher Blends Infrastructure Incentive Program (HBIIP), which provides fuel retailers with various resources to enable true fuel choice.
Spurred by the aforementioned factors, the global industrial alcohol market is expected to showcase a CAGR of 7.6% from 2022 to 2032, as compared to the 6.2% CAGR exhibited from 2017 to 2021.
Denatured Ethanol Manufacturers to Use Industrial Alcohol
The US holds more than 75.7% of the share in the North American industrial alcohol market, which is predicted to increase at a CAGR of around 4.2% over the forecast period. In 2021, the USA held the highest share of the industrial alcohol market in North America, finds FMI.
Biogenic carbon dioxide, which is one of the industry's essential co-products that typically go unnoticed, received a lot of attention in 2020. A quarter of the USA ethanol plants capture CO2 and use it for various applications, right from beverage carbonation and wastewater treatment to meat processing and dry ice production.
With full potential, ethanol plants capture 3 to 3.5 million tons of CO2 per year, accounting for roughly 40% of the national supply. Ongoing development of innovative technologies for the production of ethanol is expected to push growth in the USA
Leather Companies in the UK are Using Industrial Denatured Alcohol, Fueling Sales
According to FMI, the UK is estimated to hold more than 17.2% of the share in the Europe industrial alcohol market in 2022. It is expected to grow at a CAGR of around 5.3% in the forecast period.
Denatured alcohol serves a variety of functions for both small-scale applications and industrial applications in a wide range of end-use industries. As long as it has not been dyed, denatured alcohol is considered to be an ideal choice for use on leather products to kill mildew.
To avoid surface damage, it must be mixed equally with water for leather applications. Denatured alcohol as a cleaning agent can be used to remove dirt, paint, and debris from surface coatings. It also works well as a solvent for removing adhesives, oils, lubricants, and grime from a wide range of surfaces.
Excess adhesive or existing wax coatings on finished products such as furniture can be easily removed with a rag containing denatured alcohol. The rapid expansion of the industrial cleaners market in the UK is expected to create new growth opportunities for industrial alcohol manufacturers.
China and India Market to Benefit from Rising Industrial Alcohol Prices by Government Agencies
China is dominating the East Asia industrial alcohol market and is currently holding a share of more than 32.5%. It is expected to grow at a CAGR of around 6.3% in the forecast period. In South Asia, on the other hand, the Indian alcohol market is anticipated to remain at the forefront through 2032.
Rising crude oil prices are set to open new growth opportunities for biofuel manufacturers in both countries. The Indian government is planning to surge ethanol production in the next decade.
The government has also increased its federal interest assistance scheme to facilitate new distillery capacity projects for manufacturing 5.2 million tons of ethanol annually. It has raised the prices of ethanol from December 2020 to November 2021.
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Industrial Alcohol Manufacturers to Utilize Corn as a Source
Based on the source, the corn segment is set to dominate the global industrial alcohol market by holding more than 30.2% of its share in 2022. It is expected to grow at a CAGR of around 4.2% over the forecast period, says FMI.
Ongoing development of the ethanol industry worldwide is expected to boost the production of distillers' grains and corn gluten meal. These are likely to be utilized as feedstock for biodiesel production or animal feed.
For instance, according to the Renewable Fuels Association (RFA), in 2020, ethanol producers in the US generated 33.1 million metric tons (MMT) of distillers grains, and gluten meal.
These bio-products are valuable protein-rich substitutes for corn, soybean meal, and other ingredients used to feed dairy cows, chickens, pigs, fish, turkeys, and other animals around the globe. These factors are likely to bolster the corn segment in the upcoming decade.
Preference for Ethyl Alcohol among Denatured Ethanol Manufacturers to Drive Growth
By product type, the ethyl alcohol segment is expected to dominate the global industrial alcohol market and hold more than 31.2% of the share in 2022, finds FMI. It is expected to grow at a CAGR of around 3.9% over the forecast period.
Ethyl alcohol is a renewable fuel that can be blended with gasoline and has high octane content. Ethanol produced from various sources, including corn, potatoes, wheat, barley, sugar crops, and grain sorghum has the same chemical properties and is available in numerous forms.
The US is considered to be a global leader in terms of corn-based ethanol production. Furthermore, increasing the production of sugar in Brazil and several countries in the Asia Pacific, including India and Indonesia is likely to drive the segment.
Besides, the fermentation ability of sugar molasses makes them suitable for ethanol production. Sugarcane and its derivatives are the world's second-largest feedstock for ethanol production, followed by corn. Over the forecast period, Brazil is expected to be the largest producer of sugarcane-based ethanol.
Transportation Fuel Producers to Adopt Industrial Denatured Alcohol
Based on application, the transportation fuel and fuel additives segment is expected to dominate the industrial alcohol market by holding more than 26.7% of the share in 2022. As per FMI, it is expected to grow at a CAGR of around 4.3% over the forecast period.
Growth is mainly attributed to the ongoing expansion of the automotive industry across the globe. Demand for gasoline-powered vehicles has increased significantly in Europe and the Asia Pacific, which would also drive the segment.
The use of bioethanol in existing gasoline vehicles would benefit the environment as it generates fewer toxic elements than other fossil fuels such as fossil fuel-based gasoline and diesel. Besides, bioethanol can extend an engine's lifespan. Owing to increasing sales of flexible fuel vehicles, bioethanol manufacturers are expected to surge their products worldwide.
The global industrial alcohol market is highly fragmented due to the presence of various mid-sized and small competitors. Mergers and acquisitions, product innovations, and capacity expansions are some of the key strategies adopted by major players.
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| Attribute | Details |
|---|---|
| Estimated Market Size (2022) | USD 110.3 Billion |
| Projected Market Valuation (2032) | USD 194.7 Billion |
| Value-based CAGR (2022 to 2032) | 7.6% |
| Forecast Period | 2022 to 2032 |
| Historical Data Available for | 2017 to 2021 |
| Market Analysis | Value (USD Billion) and Volume (MT) |
| Key Regions Covered | North America; Latin America; Europe; East Asia; South Asia; Oceania; and the Middle East & Africa |
| Key Countries Covered | United States of America, Canada, Brazil, Mexico, Chile, Peru, Argentina, Germany, Italy, France, United Kingdom, Spain, BENELUX, Nordic, Russia, Poland, China, Japan, South Korea, India, Thailand, Indonesia, Malaysia, Singapore, Australia, New Zealand, GCC Countries, Turkey, South Africa, North Africa, and Central Africa |
| Key Segments Covered | Source, Product Type, Application, Processing Method, and Region |
| Key Companies Profiled | Cargill Inc.; Archer-Daniels-Midland Company; Green Plains Inc.; Grain Millers Inc.; Willmar Group; MGP Ingredients, Inc.; Cristalco; Royal Dutch Shell Plc; Raizen Energia; GREENFIELD SPECIALTY ALCOHOLS |
| Report Coverage | Market forecast, company share analysis, competition intelligence, Drivers, Restraints, Opportunities and Threats analysis, market dynamics and challenges, and strategic growth initiatives |
The global industrial alcohol market is expected to be valued at nearly USD 110.3 Billion in 2022.
The North American industrial alcohol market is set to be valued at USD 40.04 Billion in 2022 and is expected to grow at a CAGR of 4.3% over the forecast period.
Key manufacturers of industrial alcohol are Archer-Daniels-Midland Company, Cargill, Incorporated, MGP Ingredients, Inc., and Grain Processing Corporation.
The China industrial alcohol market is expected to grow at 6.3% CAGR between 2022 and 2032.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2017 to 2021 and Forecast, 2022 to 2032 5. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Source 5.1. Bagasse & Sugarcane 5.2. Molasses 5.3. Grains 5.4. Corn 5.5. Fossil Fuels 5.6. Others 6. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Product Type 6.1. Ethyl Alcohol 6.2. Isopropyl Alcohol 6.3. Isobutyl Alcohol 6.4. Methyl Alcohol 6.5. Others 7. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Application 7.1. Pharmaceutical 7.2. Transportation Fuel & Fuel Additives 7.3. Chemical Intermediates 7.4. Food Ingredient 7.5. Personal Care 7.6. Detergent & Cleaning Chemicals 7.7. Others 8. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Processing Method 8.1. Fermentation 8.2. Synthetic 9. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Region 9.1. North America 9.2. Latin America 9.3. Europe 9.4. East Asia 9.5. South Asia 9.6. Oceania 9.7. Middle East and Africa (MEA) 10. North America Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 11. Latin America Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 12. Europe Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 13. East Asia Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 14. South Asia Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 15. Oceania Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 16. MEA Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 17. Key Countries Market Analysis 18. Market Structure Analysis 19. Competition Analysis 19.1. Cargill Inc. 19.2. Archer-Daniels-Midland Company 19.3. Green Plains Inc. 19.4. Grain Millers Inc. 19.5. Willmar Group 19.6. MGP Ingredients, Inc. 19.7. Cristalco 19.8. Royal Dutch Shell Plc 19.9. Raizen Energia 19.10. GREENFIELD SPECIALTY ALCOHOLS 19.11. Flint Hill Resources 19.12. Sigma Aldrich 19.13. Univar Solutions 19.14. Linde Plc 19.15. Dow Chemical Company 19.16. Other (on additional request) 20. Assumptions & Acronyms Used 21. Research Methodology
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Industrial Alcohol Market
