PUBLISHER: The Business Research Company | PRODUCT CODE: 1926939
PUBLISHER: The Business Research Company | PRODUCT CODE: 1926939
Industrial alcohol, primarily ethanol, serves as a type of alcohol utilized in various industrial applications. It finds applications in the production of adhesives, cosmetics, detergents, explosives, inks, hand creams, as well as in the manufacturing of vaccines, compound tonics, syrups, tinctures, liniments, and antiseptics.
The main types of industrial alcohol include isopropyl alcohol, methyl alcohol, ethyl alcohol, isobutyl alcohol, and benzyl alcohol. Isopropyl alcohol is commonly used as an ingredient in various cosmetics and medicinal preparations for external use. It is an isomer of propyl alcohol and a homologue of ethyl alcohol, possessing similar properties when used externally but exhibiting increased toxicity when consumed internally. Industrial alcohol is obtained through fermentation and synthetic methods, with sources including molasses, sugar, grains, and fossil fuels. Applications for industrial alcohol span fuel, chemical intermediates and solvents, pharmaceuticals, personal care products, and food ingredients.
Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.
Tariffs are impacting the industrial alcohol market by increasing costs of imported feedstocks, processing equipment, storage tanks, and distillation components used in large-scale alcohol production. Chemical and pharmaceutical manufacturers in North America and Europe are most affected due to reliance on imported raw materials, while Asia-Pacific faces pricing pressure on export-oriented alcohol production. These tariffs are raising production costs and narrowing margins. However, they are also encouraging domestic sourcing of feedstocks, local capacity expansion, and investment in bio-based alcohol production facilities.
The industrial alcohol market research report is one of a series of new reports from The Business Research Company that provides industrial alcohol market statistics, including industrial alcohol industry global market size, regional shares, competitors with a industrial alcohol market share, detailed industrial alcohol market segments, market trends and opportunities, and any further data you may need to thrive in the industrial alcohol industry. This industrial alcohol market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The industrial alcohol market size has grown rapidly in recent years. It will grow from $195.78 billion in 2025 to $222.64 billion in 2026 at a compound annual growth rate (CAGR) of 13.7%. The growth in the historic period can be attributed to expansion of chemical manufacturing industries, increasing use of ethanol as industrial solvent, growth of pharmaceutical production capacities, rising demand from personal care manufacturing, availability of fermentation-based production.
The industrial alcohol market size is expected to see rapid growth in the next few years. It will grow to $369.01 billion in 2030 at a compound annual growth rate (CAGR) of 13.5%. The growth in the forecast period can be attributed to increasing adoption of renewable alcohol sources, rising demand for pharmaceutical-grade alcohols, expansion of biofuel blending programs, growing use in specialty chemical synthesis, increasing regulatory focus on sustainable chemicals. Major trends in the forecast period include increasing use of bio-based industrial alcohols, rising demand from pharmaceutical manufacturing, expansion of industrial solvent applications, growing adoption in sanitization and hygiene products, enhanced focus on purity and grade differentiation.
The growing demand from the pharmaceutical industry is expected to drive the growth of the industrial alcohol market in the coming years. The pharmaceutical sector involves the discovery, development, production, and distribution of medications. Industrial alcohol is used as a chemical intermediate in the manufacture of various pharmaceutical products and as a solvent to dissolve and extract active ingredients from plant materials and other sources. For example, in September 2024, according to the European Federation of Pharmaceutical Industries and Associations (EFPIA), a Belgium-based trade association, total pharmaceutical manufacturing output in Europe reached $452,182 million (€390,000 million), up from $421,225 million (€363,300 million) in 2022, reflecting growth of approximately 7.3%. Therefore, rising demand from the pharmaceutical industry is propelling the industrial alcohol market.
Key companies in the industrial alcohol market are focusing on expanding their project pipelines to maximize market revenues. Project pipeline expansion involves strategically increasing and diversifying the number of projects or initiatives an organization develops and manages over time. For instance, in February 2023, Axens SA, a US-based provider of solutions for converting oil and biomass into cleaner fuels, launched Jetanol, a new brand for its alcohol-to-jet technology. This process converts alcohol into jet fuel, with industrial alcohol serving as a primary feedstock. Five industrial-scale projects using this technology are currently in advanced engineering or early construction stages, with a combined capacity to produce over 1.4 million tons (460 million gallons) of sustainable aviation fuel (SAF) annually.
In September 2024, LanzaTech Global, Inc., a US-based carbon recycling company producing industrial alcohol, partnered with SEKISUI CHEMICAL CO., LTD to develop multiple commercial-scale facilities in Japan that convert municipal and industrial solid waste into ethanol. Through this collaboration, SEKISUI aims to deploy LanzaTech's technology, equipment packages, engineering services, and intellectual property to produce sustainable ethanol, further strengthening its position in the industrial alcohol market. SEKISUI CHEMICAL CO., LTD is a Japan-based chemical company.
Major companies operating in the industrial alcohol market are Cargill Incorporated, Cristalco SAS, Raizen Energia SA, MGP Ingredients Inc., Green Plains Inc., Grain Millers Inc., The Andersons Inc., BIRLA SUGAR, Valero Energy Corporation, Flint Hills Resources, Roquette Freres SA, Jiangsu Lianhai Biological Technology Co. Ltd., Cosan S.A., Celanese Corporation, IG Petrochemicals, Aemetis Inc., Vantage Oleochemicals, Pannonia Bio, Godrej Industries Ltd., Balrampur Chini Mills Ltd., Praj Industries Ltd.
North America was the largest region in the industrial alcohol market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the industrial alcohol market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
The countries covered in the industrial alcohol market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain
The industrial alcohol market consists of sales of tertiary butanol, haltanol and denatured ethanol. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Industrial Alcohol Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses industrial alcohol market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for industrial alcohol ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The industrial alcohol market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
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