Industrial Alcohol Market by Source, Purity, Functionality, Process Technology, Type, Application

Description

List of Tables

[182 Pages Report] The Industrial Alcohol Market size was estimated at USD 100.01 billion in 2023 and expected to reach USD 106.78 billion in 2024, at a CAGR 6.86% to reach USD 159.16 billion by 2030.

Industrial alcohol refers to ethanol that has been produced and utilized for a variety of non-beverage applications, ranging from pharmaceuticals to fuels and solvents. Industrial alcohol is denatured, which means it has been rendered undrinkable by adding certain chemicals, and it is distinguished from the beverage-grade alcohol found in consumable products. The demand for industrial alcohol is growing, driven by factors including the increasing adoption of biofuels due to environmental concerns, the expansion of the pharmaceutical and personal care industries, and the growing need for solvents in the manufacturing of chemicals and paints. However, environmental concerns regarding the sustainability of crop-based ethanol production and the competition with food supply are significant issues impeding their utility. Additionally, the handling and storage of industrial alcohols can be hazardous, given their flammability and potential health risks on exposure. Advances in biotechnology could lead to more cost-effective and environmentally sustainable production processes. Moreover, the increasing drive towards renewable sources for chemical manufacturing and the development of alternative fuels, such as next-generation bioethanol, may also propel the use industrial alcohol.

KEY MARKET STATISTICS
Base Year [2023]	USD 100.01 billion
Estimated Year [2024]	USD 106.78 billion
Forecast Year [2030]	USD 159.16 billion
CAGR (%)	6.86%

Source: Increased preference for corn and sugarcane-based industrial alcohol for its renewable nature

Corn is a primary source for the manufacture of ethanol, constituting a significant segment of the industrial alcohol market. Ethanol produced from corn is used extensively as a biofuel additive for gasoline, as well as in chemical feedstocks. The need for corn-based ethanol is heightened by the renewable fuel standards and emissions reduction policies globally. Industrial alcohols derived from fossil fuels, particularly synthetic ethanol, are created through chemical reactions involving ethylene. Grains such as wheat and barley are fermented to produce grain alcohol, which similarly finds its way into biofuels and as a solvent in various industries. The type of grain used can depend on the regional availability and cost, with wheat being highly preferred in Europe. Molasses is used to produce industrial alcohols like rum and ethanol. Its application ranges from alcoholic beverages to biochemical outlets and pharmaceuticals. Sugarcane serves as a key raw material for ethanol production, particularly in Brazil, where it is the dominant feedstock due to the crop's abundance. Bagasse, the fibrous by-product after juice extraction from sugarcane, is further used for bioenergy and bioethanol production, giving a sustainable alternative to fossil fuels.

Application: Shift to adoption of biofuel in automotive and industrial use cases

Industrial alcohol serves as a principal ingredient in the production of chemical intermediates and solvents. Chemical intermediates are compounds that are the precursors for other chemicals. Alcohols are often used to manufacture acetic acid, ethyl acetate, and other important esters or chemicals. Industrial alcohol is used in the food industry as a preservative and flavoring agent. Ethanol is commonly used to help extract flavors or to create tinctures and extracts because of its ability to dissolve a variety of substances. This industry values alcohol that is pure and safe for consumption, often requiring 'food grade' quality and alcohol use in food follows stringent regulations set by food safety authorities. Industrial alcohol, particularly ethanol, is widely used as a fuel additive to gasoline, contributing to biofuel production. The alcohol acts as an oxygenate, enhancing combustion efficiency and reducing exhaust emissions. Within this segment, ethanol derived from corn or sugarcane is preferred due to its renewable nature and relative ease of integration with current fuel supply chains. In the realm of personal care products, industrial alcohol is widely utilized for its antiseptic and astringent properties. It finds use in perfumes, lotions, and cosmetics. Isopropyl alcohol and ethanol are sought after in this industry for their volatility, which quickly evaporates, leaving the active ingredients on the skin without a residue. Industrial alcohols are crucial in pharmaceuticals for the creation of medications, sterilization, and as a solvent in the formulation process. The preference is for pharmaceutical grade alcohol, which must meet strict purity and regulatory standards.

Regional Insights

In the Americas, particularly the United States, the industrial alcohol market is robust, with significant consumption in the pharmaceuticals, fuel, and personal care industries. Advanced production technologies, corn as a primary feedstock, and large-scale facilities contribute to the high output. In APAC, the market is thriving, primarily driven by the increasing demand in countries, particularly China and India, where industrial alcohol is heavily used in the chemicals, pharmaceuticals, and food industries. With diverse feedstocks such as molasses, cane, and grains, the region boasts a wide-ranging production base. The adoption of industrial alcohol for biofuels has also gained momentum in Thailand and India, expanding the market. EMEA presents a mixed scenario, with mature markets in Europe exhibiting steady demand across various sectors, including chemicals and pharmaceuticals. Biofuel legislation in the European Union has had a significant impact on the industry. In the Middle East and Africa, the market is relatively nascent but growing, with applications spanning from personal care to fuel additives. European companies are major players in this market, with a strong focus on sustainability and regulatory compliance influencing production practices and market engagement.

FPNV Positioning Matrix

The FPNV Positioning Matrix is pivotal in evaluating the Industrial Alcohol Market. It offers a comprehensive assessment of vendors, examining key metrics related to Business Strategy and Product Satisfaction. This in-depth analysis empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success: Forefront (F), Pathfinder (P), Niche (N), or Vital (V).

Market Share Analysis

The Market Share Analysis is a comprehensive tool that provides an insightful and in-depth examination of the current state of vendors in the Industrial Alcohol Market. By meticulously comparing and analyzing vendor contributions in terms of overall revenue, customer base, and other key metrics, we can offer companies a greater understanding of their performance and the challenges they face when competing for market share. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With this expanded level of detail, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.

Key Company Profiles

The report delves into recent significant developments in the Industrial Alcohol Market, highlighting leading vendors and their innovative profiles. These include Archer-Daniels-Midland Company, Barentz BV, BASF SE, Birla Sugar Ltd., Brenntag SE, Bunge North America Inc., Cargill, Inc., Cristalco SAS, Distillerie Mazzari S.p.A., Eastman Chemical Company, Ecolab Inc., Exxon Mobil Corporation, Grain Processing Corporation, Green Plains Inc., Greenfield Global, Inc., Ineos Group Ltd., LG Chem Ltd., Linde PLC, LyondellBasell Industries N.V., Merck KGaA, MGP Ingredients, Inc., Recochem Corporation, Shell PLC, The Andersons, Inc., The Dow Chemical Company, Univar Solutions Inc., and Wilmar International Limited.

Market Segmentation & Coverage

This research report categorizes the Industrial Alcohol Market to forecast the revenues and analyze trends in each of the following sub-markets:

Source
- Corn
- Fossil Fuels
- Grains
- Molasses
- Sugarcane & Bagasse

Purity
- Denatured Alcohol
- Undenatured Alcohol
  - Grade 1
  - Grade 2
  - Special Grade
Functionality
- Antifreeze
- Antimicrobial Activity
- Flammability & Volatility
- Fragrant/Flavoring Agents
- Solubility

Process Technology
- Fermentation Method
- Synthetic Method

Type
- Primary Alcohols
- Secondary Alcohols
- Tertiary Alcohol

Application
- Chemical Intermediates & Solvents
- Food
- Fuel
- Personal Care Products
- Pharmaceuticals

Region
- Americas
  - Argentina
  - Brazil
  - Canada
  - Mexico
  - United States
    - California
    - Florida
    - Illinois
    - New York
    - Ohio
    - Pennsylvania
    - Texas
- Asia-Pacific
  - Australia
  - China
  - India
  - Indonesia
  - Japan
  - Malaysia
  - Philippines
  - Singapore
  - South Korea
  - Taiwan
  - Thailand
  - Vietnam

Europe, Middle East & Africa
- Denmark
- Egypt
- Finland
- France
- Germany
- Israel
- Italy
- Netherlands
- Nigeria
- Norway
- Poland
- Qatar
- Russia
- Saudi Arabia
- South Africa
- Spain
- Sweden
- Switzerland
- Turkey
- United Arab Emirates
- United Kingdom

The report offers valuable insights on the following aspects:

1. Market Penetration: It presents comprehensive information on the market provided by key players.

2. Market Development: It delves deep into lucrative emerging markets and analyzes the penetration across mature market segments.

3. Market Diversification: It provides detailed information on new product launches, untapped geographic regions, recent developments, and investments.

4. Competitive Assessment & Intelligence: It conducts an exhaustive assessment of market shares, strategies, products, certifications, regulatory approvals, patent landscape, and manufacturing capabilities of the leading players.

5. Product Development & Innovation: It offers intelligent insights on future technologies, R&D activities, and breakthrough product developments.

The report addresses key questions such as:

1. What is the market size and forecast of the Industrial Alcohol Market?

2. Which products, segments, applications, and areas should one consider investing in over the forecast period in the Industrial Alcohol Market?

3. What are the technology trends and regulatory frameworks in the Industrial Alcohol Market?

4. What is the market share of the leading vendors in the Industrial Alcohol Market?

5. Which modes and strategic moves are suitable for entering the Industrial Alcohol Market?

Product Code: MRR-C573DF3206B4

1. Preface

1.1. Objectives of the Study
1.2. Market Segmentation & Coverage
1.3. Years Considered for the Study
1.4. Currency & Pricing
1.5. Language
1.6. Stakeholders

2. Research Methodology

2.1. Define: Research Objective
2.2. Determine: Research Design
2.3. Prepare: Research Instrument
2.4. Collect: Data Source
2.5. Analyze: Data Interpretation
2.6. Formulate: Data Verification
2.7. Publish: Research Report
2.8. Repeat: Report Update

3. Executive Summary

4. Market Overview

5. Market Insights

5.1. Market Dynamics
- 5.1.1. Drivers
  - 5.1.1.1. Rising Demand as an Organic Solvent
  - 5.1.1.2. Rising Environmental Concern and Strict Government Guideline for Natural Fuel Consumption
  - 5.1.1.3. Multifunctional Properties of Ethanol Applicable in Various Industrial Fields
- 5.1.2. Restraints
  - 5.1.2.1. Fluctuating Raw Material Pricing
- 5.1.3. Opportunities
  - 5.1.3.1. Development of Ethanol from Algae and Agricultural Waste
  - 5.1.3.2. Demand and Advancements in Technologies for Green Chemicals
- 5.1.4. Challenges
  - 5.1.4.1. Environmental Impact of Bioethanol Production
5.2. Market Segmentation Analysis
- 5.2.1. Source: Increased preference for corn and sugarcane-based industrial alcohol for its renewable nature
- 5.2.2. Application: Shift to adoption of biofuel in automotive and industrial use cases
5.3. Market Trend Analysis
5.4. Cumulative Impact of Russia-Ukraine Conflict
5.5. Cumulative Impact of High Inflation
5.6. Porter's Five Forces Analysis
- 5.6.1. Threat of New Entrants
- 5.6.2. Threat of Substitutes
- 5.6.3. Bargaining Power of Customers
- 5.6.4. Bargaining Power of Suppliers
- 5.6.5. Industry Rivalry
5.7. Value Chain & Critical Path Analysis
5.8. Regulatory Framework Analysis
5.9. Client Customization

6. Industrial Alcohol Market, by Source

6.1. Introduction
6.2. Corn
6.3. Fossil Fuels
6.4. Grains
6.5. Molasses
6.6. Sugarcane & Bagasse

7. Industrial Alcohol Market, by Purity

7.1. Introduction
7.2. Denatured Alcohol
7.3. Undenatured Alcohol

8. Industrial Alcohol Market, by Functionality

8.1. Introduction
8.2. Antifreeze
8.3. Antimicrobial Activity
8.4. Flammability & Volatility
8.5. Fragrant/Flavoring Agents
8.6. Solubility

9. Industrial Alcohol Market, by Process Technology

9.1. Introduction
9.2. Fermentation Method
9.3. Synthetic Method

10. Industrial Alcohol Market, by Type

10.1. Introduction
10.2. Primary Alcohols
10.3. Secondary Alcohols
10.4. Tertiary Alcohol

11. Industrial Alcohol Market, by Application

11.1. Introduction
11.2. Chemical Intermediates & Solvents
11.3. Food
11.4. Fuel
11.5. Personal Care Products
11.6. Pharmaceuticals

12. Americas Industrial Alcohol Market

12.1. Introduction
12.2. Argentina
12.3. Brazil
12.4. Canada
12.5. Mexico
12.6. United States

13. Asia-Pacific Industrial Alcohol Market

13.1. Introduction
13.2. Australia
13.3. China
13.4. India
13.5. Indonesia
13.6. Japan
13.7. Malaysia
13.8. Philippines
13.9. Singapore
13.10. South Korea
13.11. Taiwan
13.12. Thailand
13.13. Vietnam

14. Europe, Middle East & Africa Industrial Alcohol Market

14.1. Introduction
14.2. Denmark
14.3. Egypt
14.4. Finland
14.5. France
14.6. Germany
14.7. Israel
14.8. Italy
14.9. Netherlands
14.10. Nigeria
14.11. Norway
14.12. Poland
14.13. Qatar
14.14. Russia
14.15. Saudi Arabia
14.16. South Africa
14.17. Spain
14.18. Sweden
14.19. Switzerland
14.20. Turkey
14.21. United Arab Emirates
14.22. United Kingdom

15. Competitive Landscape

15.1. Market Share Analysis, 2023
15.2. FPNV Positioning Matrix, 2023
15.3. Competitive Scenario Analysis
- 15.3.1. USDA Invests USD 2.2 Million To Expand Renewable Fuels at Ethanol Plant in Mason City
- 15.3.2. South Bend Ethanol Acquired; USD 230 Million Expansion Planned
- 15.3.3. United, Tallgrass, and Green Plains Form Joint Venture to Develop New Sustainable Aviation Fuel Technology Using Ethanol

16. Competitive Portfolio

16.1. Key Company Profiles
16.2. Key Product Portfolio