Alcohol MarketSize and Trends

The global alcohol market size is projected to reach US$ 1.70 billion by 2027, and register a CAGR of 3.1% over the forecast period (2019 - 2027).

Market Overview

Alcohol is a volatile liquid which is prepared by fermenting certain types of carbohydrates. It is known by chemical names such as ethanol, ethyl alcohol, ethylene glycol, butanol, methanol, and sorbitol among others. It is a clear liquid that has a typical potent odor and strong taste. Alcohol has a variety of characteristic functions which include disinfectant, central nervous system depressant, a diuretic, antiseptic drug, and a human metabolite among others. Owing to its wide range of characteristics, alcohol has several industrial applications, and the most common is that of an active ingredient in beverages such as wine and hard liquor.

Market Dynamics

Demand for alcohol is increasing owing to changing lifestyle and increasing disposable income of the global population. Moreover, ethanol is widely used in the automotive industry as a fuel additive and a bio-fuel. Ethanol and methanol also find application as solvents in domestic appliances like stoves and burners for cooking and heating. However, ingestion of ethanol in combination with denatured alcohol can cause death, which can restrain the market growth. Furthermore, growing preference among the automobile industry for hybrid fuel engines is likely to affect demand for ethanol across the globe. However, factors such as low toxicity, low cost, high purity, and easy availability are projected to drive the market growth over the forecast period. The booming alcoholic beverages industry is also expected to facilitate demand for ethanol, which is typically consumed orally as a recreational substance through alcoholic beverages. Changing taste and preference of the populations, combined with changing lifestyle and increasing disposable income are likely to drive growth of the alcohol market. It is worth noting, however, that increasing number of electric cars, growing health awareness, and rising cost of raw materials is projected to hamper the market growth.

Methanol is a type of alcohol that finds application across a variety of industries, and is commonly used as an intermediate in industries such as pharmaceuticals, automotive, wood, resins, and in chemicals such as acetic acid, methyl chloride, and dimethyl terephthalate. These factors are projected to contribute to the growth of the global alcohol market in the near future.

Market Trends