INDUSTRIAL ALCOHOL MARKET ANALYSIS

Industrial Alcohol MarketSize and Trends

The global industrial alcohols market size was valued at US$ 180.75 Billion in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 10.2% from 2023 to 2030. The global industrial alcohols market is expanding globally owing to growing demand from transportation and aviation industries. The growth of the transportation sector is largely driven by the growing popularity of automobiles. This has led to a rise in the use of ethanol as fuel for vehicles. Ethanol is safer for the environment than gasoline and diesel fuels because it produces fewer hazardous chemicals. Moreover, it is less corrosive and increases the lifespan of vehicle engines.

Figure 1. Global Industrial Alcohol Market, By Region 2023

Global Industrial Alcohols Market Segmentation:

The global industrial alcohols market report is segmented into type, application, processing methods, source, and geography

Based on type, the market is segmented into Isopropyl alcohol, methyl alcohol, ethyl alcohol, isobutyl alcohol, benzyl alcohol, and others (pentanol and methyl-1-butanol). Out of which, ethyl alcohol is expected to dominate the global market over the forecast period. Ethyl alcohol (ethanol) is the most common type of industrial alcohol, which is produced from molasses and other agricultural products through a biological process called fermentation. The production of ethanol has grown rapidly due to its use as an alternative fuel for cars and trucks. Additionally, it is useful for the production of cellulose fibers and other biodegradable plastics.

Isopropyl alcohol segment is also expected to witness significant growth in the near future. It is very effective at killing germs, and is commonly found in hospitals. It works by breaking down the proteins and DNA that germs need to survive. It can also dissolve the fat and protein that make up a germ's protective outer layer.

Based on application, the market is segmented into Fuel, Chemical Intermediates & Solvent, Pharmaceuticals, Personal Care Products, Food Ingredients, and Other Applications (Adhesives and Coatings). Out of which, Chemical Intermediates & Solvent is expected to dominate the global market over the forecast period and this is attributed to the fact that alcohol is an important raw material in the production of various chemicals that are widely used as pharmaceuticals and personal care products

Fuel segment is also expected to witness significant growth in the near future and this is owing to the growing need for alternative fuels and government initiatives to reduce carbon emissions.

Based on processing methods, the market is segmented into Fermentation and Synthetic. Out of which, Fermentation is expected to dominate the global market over the forecast period. Ethanol can be produced from the fermentation of molasses, which is a waste product of sugarcane production, or by the hydration of ethylene.

Synthetic segment is also expected to witness significant growth in the near future.

Based on source, the market is segmented into Molasses, Sugar, Grains, Fossil Fuels, and Other Source (Whey and Grapes). Out of which, Grains is expected to dominate the global market over the forecast period. The main raw materials for industrial alcohol production are sugar crops such as cane or sugar beets and grain crops such as corn (maize).

Fossil Fuels is also expected to witness significant growth in the near future. Other major sources of alcohols are petroleum and ethylene from hydration.

Global Industrial Alcohols Market Trends:

Growing hygiene and wellness trend

In addition to its use as a solvent, industrial alcohol can be used in the production of hand sanitizers, detergents and other products. The global demand for disinfectant products soared during the outbreak of COVID-19, as they were important to protect against infection and clean hands. The growing need for such products is projected to augment market growth over the next few years as well. Industrial alcohols are also used in the production of preservation agents, insect repellents, antibacterial and disinfectant solutions, adhesives and coatings and paints.

Growing trend of western culture is creating demand for alcoholic beverages

Ethyl alcohol is a common ingredient in the manufacturing of alcoholic beverages. This process is performed by adding yeast and bacteria to the molasses. The fermentation process takes place inside the cells of these microorganisms, which produces ethyl alcohol or isopropyl alcohol. These alcohols are then distilled to produce the finished product.

Figure 2. Global Industrial Alcohol Market, By Type 2023