INDUSTRIAL ALCOHOL MARKET ANALYSIS

Market Challenges And Opportunities

Global Industrial Alcohols Market Drivers:

Growing demand for biofuel is anticipated to foster market growth

The industrial alcohols market is primarily driven by rising demand for ethanol as transportation fuel. This is attributed to the growing demand for eco-friendly products. Additionally, the demand for ethanol-based octane enhancers in gasoline is again driving the market growth. Moreover, shortage of petroleum along with the increasing prices is again driving demand for biofuel. The production of biofuel is projected to reduce the reliance on imported petroleum.

Wide application of industrial alcohols in various industries to propel market growth

Ethyl alcohol is the most popular product among all industrial alcohols and is used in a wide variety of applications such as cosmetics, food and beverages, pharmaceuticals, cleaning, and automotive. It is also used as an octane enhancer in gasoline, reducing emissions and improving engine performance. Isopropyl alcohol is another type of industrial alcohol that is used in a variety of applications. It is used in the production of perfumes and other chemicals such as solvents. It is also used as a disinfectant and sanitizer. Moreover, the paint industry also uses highly proofed isopropyl alcohol for making paints that stay bacteria-free and have a longer life than other types of paints.

Global Industrial Alcohols Market Opportunities:

Advent of new technologies owing to the ongoing research and development activities is expected to provide significant growth opportunities. The emergence of newer technologies is projected to drive the growth of the industrial alcohols industry. One such technology is the lactic acid conversion process in which bio-based acrylic acid is produce by using renewable feedstock. The acrylic acid produced by this process is a sustainable substitute for petroleum-based polymers. It is also useful as a substitute for methyl methacrylate, which is an important raw material used in the production of acrylates. Hence, the lactic acid conversion process is an environmentally friendly alternative to traditional methods.

Growing awareness regarding the benefits of industrial alcohols is expected to offer additional market growth opportunities. Ethanol is the most common and widely used of all industrial alcohols. The alcohol is produced by fermenting a mixture of carbohydrates such as sugar, corn or starch. It is a highly effective fuel for automobiles, and can also be used as an industrial solvent. However, it is highly flammable and toxic substance, and ingesting as little as 10 ml can cause permanent blindness. As such, the alcohol is regulated and requires authorization for its usage.

Fluctuating prices of raw materials are hindering growth of the industrial alcohols market. Most of the alcohols used for manufacturing are produced from biomass feedstocks, such as molasses, corn or fossil fuels. Any fluctuation or gap in production of these materials can leads to volatility in price of final product, thereby hampering market growth.

Environmental risk associated with the use of alcohol to restrict market growth

Both ethanol and isopropyl alcohol are flammable. This means they should be stored carefully and not be allowed to come into contact with any flammable materials. Moreover, if the alcohol is accidentally spilled, it can cause a fire hazard so it must be cleaned up immediately. In order to reduce the environmental impact, some manufacturers are experimenting with different production methods such as using renewable feedstocks, while others are looking for ways to increase energy efficiency and the sustainability of existing processes.