Global Industrial Alcohol Market By Type (Ethanol, Methanol, Isopropanol, Butanol, Propanol, Pentanol, Hexanol), By Source (Synthetic, Bio-Based), By Application (Pharmaceuticals, Food & Beverage, Chemicals, Automotive, Cosmetics & Personal Care, Paints & Coatings, Cleaning Products, Textile Processing, Printing, Renewable Energy), & By Geographic Scope And Forecast
Report ID: 22557|No. of Pages: 202
Global Industrial Alcohol Market By Type (Ethanol, Methanol, Isopropanol, Butanol, Propanol, Pentanol, Hexanol), By Source (Synthetic, Bio-Based), By Application (Pharmaceuticals, Food & Beverage, Chemicals, Automotive, Cosmetics & Personal Care, Paints & Coatings, Cleaning Products, Textile Processing, Printing, Renewable Energy), & By Geographic Scope And Forecast
Industrial Alcohol Market Size and Forecast
Industrial Alcohol Market size was estimated at USD 210.94 Billion in 2024 and is projected to reach USD 408.48 Billion by 2031, growing at a CAGR of 9.50% from 2024 to 2031.
- Industrial alcohols, a category distinct from beverage alcohols, are defined as a group of organic compounds.
- These industrial workhorses offer numerous benefits. They act as effective solvents, dissolving substances for use in paints, coatings, and cleaning solutions.
- They are typically colorless liquids with a variety of industrial applications. Their antimicrobial properties make them prime candidates for sterilization and disinfection.
- Some industrial alcohols serve as essential ingredients in producing chemicals, pharmaceuticals, and even biofuels. Industrial alcohols contribute significantly to various sectors through their diverse functionalities.
Global Industrial Alcohol Market Dynamics
The key market dynamics that are shaping the industrial alcohol market include:
Key Market Drivers
- Growing Demand for Biofuels: The growing emphasis on renewable energy sources is driving up demand for industrial alcohol, specifically ethanol, as a biofuel. According to the United States Energy Information Administration (EIA), global biofuel output climbed from 1.7 million barrels per day in 2010 to 2.7 million barrels per day in 2019, reflecting a roughly 59% rise over a decade. This trend is projected to continue, driving up the industrial alcohol market.
- Expanding Pharmaceutical Industry: Industrial alcohols play an important role in pharmaceutical production, serving as both solvents and components in numerous medicines. The worldwide pharmaceutical business is expanding rapidly, boosting demand for industrial alcohol. According to the IQVIA Institute for Human Data Science, the worldwide pharmaceutical business is expected to reach USD1.8 Trillion by 2026, expanding at a 3-6% compound annual growth rate (CAGR) from 2022. This expansion is expected to increase the demand for industrial alcohols in medicinal applications.
- Rising Use in Personal Care and Cosmetics: The personal care and cosmetics industry is a large consumer of industrial alcohols, which are used in goods ranging from perfumes to hand sanitizer. The worldwide cosmetics market has been gradually increasing. According to Verified Market Research, the global cosmetics market was valued at USD 312.43 Billion in 2023 and is expected to grow to USD 451.63Billion by 2031, with a CAGR of 5.2% between 2023 and 2031. This expansion is likely to boost demand for industrial alcohols in the personal care sector.
Key Challenges
- Fluctuating Raw Material Prices: The industrial alcohol market is susceptible to price volatility of key feedstocks like corn, sugarcane, and natural gas. These fluctuations are caused by crop yields, weather patterns, and global energy markets. Unpredictable raw material costs strain profit margins and disrupt production planning for manufacturers.
- Stringent Regulatory Requirements: Production and use of industrial alcohols are subject to a complex web of regulations governing safety, environmental impact, and product quality. Obtaining approvals and adhering to these regulations is a time-consuming and expensive process, hindering market entry for new players and impacting production efficiency.
- Environmental Concerns: Traditional production methods for industrial alcohols generate significant greenhouse gas emissions and contribute to air and water pollution. Growing environmental awareness is pressuring manufacturers to adopt more sustainable practices, such as utilizing bio-based feedstocks and implementing cleaner production technologies. This shift requires investment in research and development, potentially increasing production costs.
Key Trends
- Shift Towards Bio-Based Sources: Rising environmental concerns and volatile fossil fuel prices are driving a preference for bio-based alcohols derived from sustainable sources like sugarcane and grains. This trend is expected to benefit the Asia Pacific region due to its strong agricultural base.
- Growing Demand from Hygiene and Personal Care Sectors: Increasing awareness of hygiene and sanitation is leading to a surge in demand for disinfectants and personal care products that utilize industrial alcohols like ethanol and isopropanol. This trend is expected to be amplified by the growing population, particularly in regions like Asia Pacific.
- Diversification of Applications: Industrial alcohols are finding new applications beyond traditional sectors. For instance, the use of ethanol in biofuel production is projected to rise due to government mandates and initiatives promoting renewable energy sources. This trend is expected to create significant growth opportunities across the globe.
What's inside a VMR
industry report?
Our reports include actionable data and forward-looking analysis that help you craft pitches, create business plans, build presentations and write proposals.
>>> Ask For Discount @ – https://www.verifiedmarketresearch.com/ask-for-discount/?rid=22557
Global Industrial Alcohol Market Regional Analysis
Here is a more detailed regional analysis of the industrial alcohol market:
Asia Pacific
- The Asia Pacific region is estimated to dominate the market during the forecast period. The Asia Pacific region is experiencing a major increase in biofuel production and consumption, which is increasing demand for industrial alcohol, specifically ethanol. According to the International Energy Agency (IEA), biofuel output in the Asia-Pacific region increased from 12 billion liters in 2010 to 47 billion liters in 2019, an almost fourfold increase. Countries such as China and India are driving this increase, with China’s ethanol production capacity projected to reach 6.6 million tons by 2025, according to the USDA Foreign Agricultural Service.
- The chemical sector in the Asia Pacific is quickly expanding, increasing demand for industrial alcohols used as solvents and intermediates. According to the American Chemistry Council, chemical production in the Asia-Pacific region is expected to rise at an average annual rate of 4.4% through 2025, outperforming all other regions worldwide. This growth is particularly high in China, which accounts for approximately 40% of global chemical sales in 2020, driving large demand for industrial alcohols.
- Furthermore, the Asia Pacific region has emerged as a significant pharmaceutical manufacturing hub, driving up demand for industrial alcohols used in medication production. According to the IQVIA Institute for Human Data Science, the Asia Pacific pharmaceutical market is predicted to increase at a 7.5% compound annual growth rate (CAGR) between 2021 and 2026, reaching USD 557 Billion by 2026. This increase is particularly robust in nations such as India and China, with India’s pharmaceutical exports reaching USD 24.4 Billion in fiscal year 2021-22, according to the Indian Ministry of Commerce and Industry.
Europe
- Europe region is estimated to exhibit substantial growth within the market during the forecast period. Europe’s strong commitment to lowering greenhouse gas emissions is increasing demand for biofuels, which is benefiting the industrial alcohol market. The European Commission’s Renewable Energy Directive II (RED II) requires renewable energy to account for 14% of the transportation sector by 2030. As a result, the European Renewable Ethanol Association (ePURE) reports that ethanol output in the EU reached 5.6 billion liters in 2020, with a considerable amount used as fuel. This regulatory drive is projected to fuel further expansion in the industrial alcohol market.
- Europe has a thriving and increasing pharmaceutical industry, which is a major consumer of industrial alcohol. According to the European Federation of Pharmaceutical Industries and Associations (EFPIA), the European pharmaceutical market was valued at €236.2 billion in 2020, accounting for 22.5% of global pharmaceutical sales. The sector’s R&D investment reached €39.0 billion in 2020, indicating that growth and innovation will continue to fuel demand for industrial alcohols used in pharmaceutical applications.
- Furthermore, Europe is at the forefront of the move to sustainable chemicals and materials, resulting in increased demand for bio-based industrial alcohols. According to the European Chemical Industry Council (Cefic), the EU chemical industry’s production of bio-based products is predicted to increase from €23 billion in 2015 to €40 billion in 2025. This move to bio-based materials opens up new prospects for industrial alcohols derived from renewable sources.
Global Industrial Alcohol Market: Segmentation Analysis
The Global Industrial Alcohol Market is Segmented Based on Type, Source, Application, and Geography.
Industrial Alcohol Market, By Type
- Ethanol
- Methanol
- Isopropanol
- Butanol
- Propanol
- Pentanol
- Hexanol
Based on Type, the market is segmented into Ethanol, Methanol, Isopropanol, Butanol, Propanol, Pentanol, and Hexanol. The ethanol segment is estimated to hold the largest market share during the forecast period. This dominance is attributed to its extensive applications in biofuels, pharmaceuticals, and various industrial processes as a solvent and cleaning agent.
Industrial Alcohol Market, By Source
- Synthetic
- Bio-Based
Based on the Source, the market is classified into Synthetic and Bio-Based. The synthetic segment is estimated to dominate the market during the forecast period. This is due to its reliance on fossil fuels, which were historically a more economical option for production.
Industrial Alcohol Market, By Application
- Pharmaceuticals
- Food & Beverage
- Chemicals
- Automotive
- Cosmetics & Personal Care
- Paints & Coatings
- Cleaning Products
- Textile Processing
- Printing
- Renewable Energy
Based on Application, the market is bifurcated into Pharmaceuticals, Food & Beverage, Chemicals, Automotive, Cosmetics & Personal Care, Paints & Coatings, Cleaning Products, Textile Processing, Printing, and Renewable Energy. The chemical segment holds the highest market share, attributed to the widespread use of alcohols as solvents, intermediates in chemical reactions, and for various industrial processes.
Industrial Alcohol Market, By Geography
- North America
- Europe
- Asia Pacific
- Rest of the World
Based on Geography, the industrial alcohol market is classified into North America, Europe, Asia Pacific, and the Rest of the World. The Asia Pacific region holds the highest market share during the forecast period. This dominance is attributed to the substantial agricultural base present in this region, which facilitates raw material production, and the ongoing industrial growth that fuels demand for industrial alcohols.
Key Players
The “Industrial Alcohol Market” study report will provide valuable insight with an emphasis on the global market including some of the major players such as Cargill, Raizen Energia, Cristalco, Green Plains, Inc., The Andersons, Inc., MGP Ingredients, Greenfield Specialty Alcohols, Grain Processing Corporation, Sigma Aldrich, and Flint Hills Resources.
Our market analysis includes a section specifically devoted to such major players, where our analysts give an overview of each player’s financial statements, product benchmarking, and SWOT analysis. The competitive landscape section also includes key development strategies, market share analysis, and market positioning analysis of the players above globally.
Industrial Alcohol Market Recent Developments
- In July 2020, an expansion of its facility was undertaken by Green Plains at its subsidiary, Green Plain Wood River LLC, to produce FCC-grade and USP-grade alcohol meeting FDA specifications. With this strategy, the company aimed to cater to the demand for alcohol and serve a larger consumer base.
- In May 2020, a collaboration was entered into by Procter & Gamble and Cargill to bring nature-powered innovative technology to convert lactic acid into bio-based acrylic acid for manufacturing more sustainable products. An exclusive license was granted by P&G to Cargill, allowing further development and commercialization of this technology, ultimately to be incorporated in a range of applications from superabsorbent polymers in absorbent hygiene products to thickeners in household paints and more.
Report Scope
| REPORT ATTRIBUTES | DETAILS |
|---|---|
| STUDY PERIOD | 2021-2031 |
| BASE YEAR | 2024 |
| FORECAST PERIOD | 2024-2031 |
| HISTORICAL PERIOD | 2021-2023 |
| UNIT | Value (USD Billion) |
| KEY COMPANIES PROFILED | Cargill, Raizen Energia, Cristalco, Green Plains Inc., The Andersons Inc., MGP Ingredients, Greenfield Specialty Alcohols, Grain Processing Corporation, Sigma Aldrich, and Flint Hills Resources. |
| SEGMENTS COVERED | Type, Source, Application, and Geography. |
| CUSTOMIZATION SCOPE | Free report customization (equivalent up to 4 analyst’s working days) with purchase. Addition or alteration to country, regional & segment scope |
Research Methodology of Verified Market Research:
To know more about the Research Methodology and other aspects of the research study, kindly get in touch with our Sales Team at Verified Market Research.
Reasons to Purchase this Report
• Qualitative and quantitative analysis of the market based on segmentation involving both economic as well as non-economic factors
• Provision of market value (USD Billion) data for each segment and sub-segment
• Indicates the region and segment that is expected to witness the fastest growth as well as to dominate the market
• Analysis by geography highlighting the consumption of the product/service in the region as well as indicating the factors that are affecting the market within each region
• Competitive landscape which incorporates the market ranking of the major players, along with new service/product launches, partnerships, business expansions, and acquisitions in the past five years of companies profiled
• Extensive company profiles comprising of company overview, company insights, product benchmarking, and SWOT analysis for the major market players
• The current as well as the future market outlook of the industry with respect to recent developments (which involve growth opportunities and drivers as well as challenges and restraints of both emerging as well as developed regions
• Includes in-depth analysis of the market from various perspectives through Porter’s five forces analysis
• Provides insight into the market through Value Chain
• Market dynamics scenario, along with growth opportunities of the market in the years to come
• 6-month post-sales analyst support
Customization of the Report
• In case of any Queries or Customization Requirements please connect with our sales team, who will ensure that your requirements are met.
Frequently Asked Questions
1 INTRODUCTION OF GLOBAL INDUSTRIAL ALCOHOL MARKET
1.1 Overview of the Market
1.2 Scope of Report
1.3 Assumptions
2 EXECUTIVE SUMMARY
3 RESEARCH METHODOLOGY OF VERIFIED MARKET RESEARCH
3.1 Data Mining
3.2 Validation
3.3 Primary Interviews
3.4 List of Data Sources
4 GLOBAL INDUSTRIAL ALCOHOL MARKET OUTLOOK
4.1 Overview
4.2 Market Dynamics
4.2.1 Drivers
4.2.2 Restraints
4.2.3 Opportunities
4.3 Porters Five Force Model
4.4 Value Chain Analysis
4.5 Regulatory Framework
5 GLOBAL INDUSTRIAL ALCOHOL MARKET, BY TYPE
5.1 Overview
5.2 Methyl Alcohol
5.3 Benzyl Alcohol
5.4 Ethyl Alcohol
5.5 Isobutyl Alcohol
5.6 Isopropyl Alcohol
5.7 Others
6 GLOBAL INDUSTRIAL ALCOHOL MARKET, BY SOURCE
6.1 Overview
6.2 Sugarcane and Molasses
6.3 Grains
6.4 Corn
6.5 Fossil Fuels
6.6 Others
7 GLOBAL INDUSTRIAL ALCOHOL MARKET, BY APPLICATION
7.1 Overview
7.2 Food Ingredients
7.3 Chemical Intermediates
7.4 Fuel
7.5 Personal Care Products
7.6 Pharmaceuticals
7.7 Others
8 GLOBAL INDUSTRIAL ALCOHOL MARKET, BY GEOGRAPHY
8.1 Overview
8.2 North America
8.2.1 U.S.
8.2.2 Canada
8.2.3 Mexico
8.3 Europe
8.3.1 Germany
8.3.2 U.K.
8.3.3 France
8.3.4 Rest of Europe
8.4 Asia Pacific
8.4.1 China
8.4.2 Japan
8.4.3 India
8.4.4 Rest of Asia Pacific
8.5 Latin America
8.5.1 Brazil
8.5.2 Argentina
8.6 Rest of the World
9 GLOBAL INDUSTRIAL ALCOHOL MARKET COMPETITIVE LANDSCAPE
9.1 Overview
9.2 Company Market Share
9.3 Vendor Landscape
9.4 Key Development Strategies
10 COMPANY PROFILES
10.1 Cargill
10.1.1 Overview
10.1.2 Financial Performance
10.1.3 Product Outlook
10.1.4 Key Developments
10.2 Raizen Energia
10.2.1 Overview
10.2.2 Financial Performance
10.2.3 Product Outlook
10.2.4 Key Developments
10.3 Cristalco
10.3.1 Overview
10.3.2 Financial Performance
10.3.3 Product Outlook
10.3.4 Key Developments
10.4 Green Plains Inc.
10.4.1 Overview
10.4.2 Financial Performance
10.4.3 Product Outlook
10.4.4 Key Developments
10.5 The Andersons Inc.
10.5.1 Overview
10.5.2 Financial Performance
10.5.3 Product Outlook
10.5.4 Key Developments
10.6 MGP Ingredients
10.6.1 Overview
10.6.2 Financial Performance
10.6.3 Product Outlook
10.6.4 Key Developments
10.7 Greenfield Specialty Alcohols
10.7.1 Overview
10.7.2 Financial Performance
10.7.3 Product Outlook
10.7.4 Key Developments
10.8 Grain Processing Corporation
10.8.1 Overview
10.8.2 Financial Performance
10.8.3 Product Outlook
10.8.4 Key Developments
10.9 Sigma Aldrich
10.9.1 Overview
10.9.2 Financial Performance
10.9.3 Product Outlook
10.9.4 Key Developments
10.10 Flint Hills Resources
10.10.1 Overview
10.10.2 Financial Performance
10.10.3 Product Outlook
10.10.4 Key Developments
11 Appendix
11.1 Related Reports
Report Research Methodology
Verified Market Research uses the latest researching tools to offer accurate data insights. Our experts deliver the best research reports that have revenue generating recommendations. Analysts carry out extensive research using both top-down and bottom up methods. This helps in exploring the market from different dimensions.
This additionally supports the market researchers in segmenting different segments of the market for analysing them individually.
We appoint data triangulation strategies to explore different areas of the market. This way, we ensure that all our clients get reliable insights associated with the market. Different elements of research methodology appointed by our experts include:
Exploratory data mining
Market is filled with data. All the data is collected in raw format that undergoes a strict filtering system to ensure that only the required data is left behind. The leftover data is properly validated and its authenticity (of source) is checked before using it further. We also collect and mix the data from our previous market research reports.
All the previous reports are stored in our large in-house data repository. Also, the experts gather reliable information from the paid databases.
For understanding the entire market landscape, we need to get details about the past and ongoing trends also. To achieve this, we collect data from different members of the market (distributors and suppliers) along with government websites.
Last piece of the ‘market research’ puzzle is done by going through the data collected from questionnaires, journals and surveys. VMR analysts also give emphasis to different industry dynamics such as market drivers, restraints and monetary trends. As a result, the final set of collected data is a combination of different forms of raw statistics. All of this data is carved into usable information by putting it through authentication procedures and by using best in-class cross-validation techniques.
Data Collection Matrix
| Perspective | Primary Research | Secondary Research |
|---|---|---|
| Supplier side |
|
|
| Demand side |
|
|
Econometrics and data visualization model
Our analysts offer market evaluations and forecasts using the industry-first simulation models. They utilize the BI-enabled dashboard to deliver real-time market statistics. With the help of embedded analytics, the clients can get details associated with brand analysis. They can also use the online reporting software to understand the different key performance indicators.
All the research models are customized to the prerequisites shared by the global clients.
The collected data includes market dynamics, technology landscape, application development and pricing trends. All of this is fed to the research model which then churns out the relevant data for market study.
Our market research experts offer both short-term (econometric models) and long-term analysis (technology market model) of the market in the same report. This way, the clients can achieve all their goals along with jumping on the emerging opportunities. Technological advancements, new product launches and money flow of the market is compared in different cases to showcase their impacts over the forecasted period.
Analysts use correlation, regression and time series analysis to deliver reliable business insights. Our experienced team of professionals diffuse the technology landscape, regulatory frameworks, economic outlook and business principles to share the details of external factors on the market under investigation.
Different demographics are analyzed individually to give appropriate details about the market. After this, all the region-wise data is joined together to serve the clients with glo-cal perspective. We ensure that all the data is accurate and all the actionable recommendations can be achieved in record time. We work with our clients in every step of the work, from exploring the market to implementing business plans. We largely focus on the following parameters for forecasting about the market under lens:
- Market drivers and restraints, along with their current and expected impact
- Raw material scenario and supply v/s price trends
- Regulatory scenario and expected developments
- Current capacity and expected capacity additions up to 2027
We assign different weights to the above parameters. This way, we are empowered to quantify their impact on the market’s momentum. Further, it helps us in delivering the evidence related to market growth rates.
Primary validation
The last step of the report making revolves around forecasting of the market. Exhaustive interviews of the industry experts and decision makers of the esteemed organizations are taken to validate the findings of our experts.
The assumptions that are made to obtain the statistics and data elements are cross-checked by interviewing managers over F2F discussions as well as over phone calls.
Different members of the market’s value chain such as suppliers, distributors, vendors and end consumers are also approached to deliver an unbiased market picture. All the interviews are conducted across the globe. There is no language barrier due to our experienced and multi-lingual team of professionals. Interviews have the capability to offer critical insights about the market. Current business scenarios and future market expectations escalate the quality of our five-star rated market research reports. Our highly trained team use the primary research with Key Industry Participants (KIPs) for validating the market forecasts:
- Established market players
- Raw data suppliers
- Network participants such as distributors
- End consumers
The aims of doing primary research are:
- Verifying the collected data in terms of accuracy and reliability.
- To understand the ongoing market trends and to foresee the future market growth patterns.
Industry Analysis Matrix
| Qualitative analysis | Quantitative analysis |
|---|---|
|
|
