Industrial Alcohols Market Size, Share Growth Report 2031

(MENAFN- Straits Research) Industrial alcohols are used in various industrial processes for reagents and solvents in the chemical, personal care, pharmaceutical, and energy industries. Other than beverages, some alcohols have other uses. Additionally, having multiple functions promotes adoption in a variety of end-use applications. Additionally, ethanol, the most manufactured and consumed alcohol, is used widely as a biofuel worldwide. The fermentation of sugars extracted from wheat, corn, sugar beets, sugar cane, and molasses produces these fuels. In addition, it serves as a gasoline substitute in petrol engines. Methanol, benzyl alcohol, and isopropyl alcohol are just a few alcohols employed in manufacturing food items, flavourings, cosmetics, and adhesives.
Market Dynamics

An increase in the usage of alcohol in a variety of applications

For many years, alcohol has been utilized in both food and medicine. Alcohol, however, has found usage in various applications as technology advanced. Ethyl alcohol is the most popular and widely regarded industrial alcohol on the planet among the several commercially accessible alcohols. Currently, most ethyl alcohol is used as biofuel in the petroleum industry. Even though ethyl alcohol is a widely utilized biofuel that has been commercialized, research into the creation of bio-butanol has gained relevance. It is paving the road for its eventual commercialization.
Alcohols are used in various industries besides biofuel, including food, medicine, home and personal care, the chemical industry, research labs, paints, inks, adhesives & coatings, and insecticides. In these industries, ethyl alcohol predominates, but methyl alcohol, sorbitol, maltitol, benzyl alcohol, and isopropyl alcohol are also employed in a few applications. Due to its solubility, insect repellency, antibacterial nature, preservation, and anti-freezing qualities, ethanol finds use in all of the industries mentioned above.

Bioethanol adoption will boost the market growth.

Bioethanol is a biofuel used to minimize greenhouse gas emissions (GHG). Growing population and industrialization increase energy demand. It has led to rising oil and gas prices for years. Bioethanol was developed as climate change awareness, and renewable resource acceptance grew. Biofuels are renewable energy sources that help reduce global pollution.
Due to energy insecurity, rising fuel prices, and rising CO2 emissions, alternative fuel techniques are desired. GHG emissions are minimized by using molasses and sugar beet pulp in the production process. They saved money on rubbish disposal-reduced production costs for ethanol due to lower prices.
Thailand (cassava), India (sugar cane), China (corn), France (sugar beet), and Canada (wheat) have increased ethanol output. Fermentation results from cellulosic-to-ethanol conversion. This technique also increases ethanol output by converting energy crops to bioethanol. The technological innovation to convert agricultural and forestry into bioethanol is fueling market expansion.
Growth opportunities for the global industrial alcohol market

Emerging markets in developing countries

The demand for alcohol in fuel and other applications is rising due to changing lifestyles, expanding economies, and a trend toward using renewable resources in developing economies. Alcoholic beverages like ethyl alcohol and isobutyl alcohol are expected to see a growth in demand in developing countries like China, India, the Middle East, and Africa in the future years. This demand is anticipated to be fueled by rising alcohol consumption across various industries and the expanding popularity of cleaner energy technology. These areas also offer a cost advantage in production, labour, and processing costs. High demand and low production costs are two critical factors anticipated to help alcohol providers.
Regional analysis of the global industrial alcohol market
The global market for industrial alcohol is broken down into North America, Europe, Asia-Pacific, Latin America and the Middle East & Africa based on the region.
Compared to other regions, the Asia-Pacific recorded high output of agricultural raw materials such as sugarcane, cereals, corn, and others. India is the world's second-largest producer of sugarcane and cereals, according to IBEF. India's agricultural production policy aims to produce 298 MT of agricultural output in 2020–2021. It's no surprise that China, India and Thailand are among of the world's leading ethyl alcohol producers because of their abundant supply of raw ingredients.
Due to the government's active involvement in developing renewable energy sources, the North American market has significant potential to expand. More than 98 per cent of gasoline in the country is blended with 10 per cent ethanol to satisfy the rising demand for ethanol in the US region. North America is one of the world's top manufacturers of isopropyl alcohol, which significantly expands the industrial alcohol industry. In Europe and the rest of the world, a significant expansion of the industrial alcohol market is anticipated.
Key Highlights

The global market for industrial alcohol was valued at USD 155 billion in 2021, and it is anticipated to reach USD 315.84 billion by 2030 at a CAGR of 8.23%.
The global industrial alcohol market is divided into product type, source, application and region. Further, the market is divided into Ethyl Alcohol, Isopropyl Alcohol, Isobutyl Alcohol, Methyl Alcohol, Benzyl Alcohol and Others, based on product type. The ethyl alcohol segment dominated the market.
Based on the source, the market is broken down into Sugar and Molasses, Grains (excluding Corn), Fossil Fuels, and Corn and Others. The fossil fuels segment dominated the market.
According to the application, the market is divided into Personal Care Products, Food Ingredients (excluding Beverages), Chemical Intermediates & Solvent, Pharmaceuticals Fuel and Others. The chemical intermediates & solvent segment dominated the market.
The market is broken down into Asia-Pacific, North America, Europe, Latin America and the Middle East & Africa based on the region. Asia-Pacific dominated the market.

Competitive analysis of the global industrial alcohol market
Some key players contributing majorly to the global industrial alcohol market are Cristalco SAS, Grain Millers Inc., Grain processing Corporation, The Andersons Inc., MGP Ingredients Incorporated, Cargill Inc., Raizen Energia, Green Plains Inc, Exxon Mobil Corporation, LyondellBasell Industries, Eastman Chemical Company, Dow Chemical Company, Wilmar International, and Royal Dutch Shell Plc.
Recent developments in some of the key players:

In July 2022, Grain Processing Corporation (GPC), a member of the Kent Corp. family of businesses, finished buying Natural Products, Inc. of Grinnell, Iowa, in the US (NPI).
In January 2022, Cargill, a large global food company, built its first innovation hub in India to create products for the food and beverage industry.
In January 2022, ExxonMobil acquired a 49.9% share in Biojet AS to further its investments in biofuels that potentially lower greenhouse gas emissions in the transportation industry.

Segmentation
By Product Type

Ethyl Alcohol
Isopropyl Alcohol
Isobutyl Alcohol
Methyl Alcohol
Benzyl Alcohol
Others

By Source

Sugar and Molasses
Grains (excluding Corn)
Fossil Fuels
Corn
Others

By Application

Personal Care Products
Food Ingredients (excluding Beverages)
Chemical Intermediates & Solvent
Pharmaceuticals
Fuel
Others

By Region

North America
Europe
Asia-Pacific
Latin America
The Middle East & Africa

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