Global Industrial Alcohol Market by Product (Ethyl Alcohol, Methyl), by Source (Corn, Sugar & Molasses) and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa), Forecast To 2028

Summary of the Report

Global industrial alcohol market was worth USD 131.8 billion in 2019. It is projected to grow at an 8.3% compound annual growth rate (CAGR), between 2020 and 2027. The market's main driver will be the rising demand for the product as an oxygen enhancer. Individual contributions to the market are what drive overall growth. These include pharmaceutical, personal care and food & beverage. Many countries around the world have enacted ethanol mandates that drive the demand for fuel. This is the biggest product used in transportation. According to estimates, the transportation sector will be the largest segment. However, the personal care segment will see the fastest CAGR between 2020 and 2207.

Ethanol, also known as ethyl, is the main ingredient in industrial alcohol. It is a volatile, colorless and flammable liquid that is widely used worldwide as a biofuel. It can be derived from many sources such as corn, molasses and grains. The fermentation of sugarcane is one of the oldest methods for producing ethanol. The fermentation process can take anywhere from 42 hours to 74 hours. It can be blended with gasoline in gasoline-powered vehicles due to its low emissions. It can be mixed with gasoline at any percent. It can also be used as a fuel, solvent, reagent alcohol, or as a food supplement.

The Clean Air Act also has resulted in lower exhaust gas emissions than conventional gasoline. The U.S. Environmental Protection Agency cites ethanol as a key additive to reduce fuel emissions and sub-engine knocking. Refined gasoline has a high octane value, which is required by the U.S. gasoline industry. Because ethanol has an octane value of 113, gasoline formulators are increasingly using it to improve engine performance.

The market is also characterized by a large number regional and global players that serve different markets as well as having a presence on the industrial alcohol market, all of which are competing for the huge potential of the global market. This is the primary reason for new players to enter the market in the wide range of alcohol applications and ethanol mandates from governments across different geographies.

Brazil and the United States are the two largest producers and exporters of ethanol. The global production of ethanol will increase over the forecast period 2017-2025. Globally, the decrease in gasoline consumption and the ethanol mandates in different regions (26 % in Brazil, 5% Canada, 10% U.S. and 6% in European Union), 3% in Australia and 10% in China, are driving ethanol usage.

Product Insights

Ethyl alcohol manufacturing applications held a dominant share of the market in terms of volume with more than half of it in 2019. This is due to high demand for the product which can be easily obtained from corn, wheat, barley and other sources. Because of its high octane, ethanol can be blended with gasoline to make it a renewable fuel. No matter where it comes from, ethanol can be produced in a variety of forms.

The United States is the largest producer of corn-based alcohol. 97% of gasoline consumed in the United States contains at least 10% ethanol. Ethanol as a clean, alternative fuel has been accepted worldwide and has led to gasoline blend mandates. Japan and other European countries, especially the U.K. are the largest importers of ethanol from Brazil.

Methanol, also known as wood alcohol, is a byproduct of the destructive distillation. Methanol is usually produced from natural gas. Methanol can be used to make other chemicals. These are then further transformed into thousands of products such as resins and plastics, building materials paints foams, foams, polyester and many other pharmaceutical and healthcare products.

Methanol is an organic chemical that can also be biodegradable. Methanol is more affordable than other fossil fuels, and it has a positive effect on the environment. Methanol has a number of advantages, including its economic and environmental benefits. It is being used more frequently as an alternative fuel for food production, motor vehicles, and ships.

Source Insights

Corn source dominated the market in terms of volume with a more than 30% share in 2019. The large demand for corn source as a renewable energy source is responsible for this market share. Globally, corn distiller oil has seen a surge in demand due to the growth of ethanol. It is used for biodiesel feedstock and as animal feed. About 85% of corn-based ethanol producers produce corn distillers oil. The byproducts sector is also seeing a boom in ethanol production from corn.

Sugar is also largely produced in Brazil, as well as in many countries in the Asia Pacific region, including India and Indonesia. Sugar molasses can be used as a source of biomass, which is then converted to energy in many countries around the world. Sugar molasses is suitable for ethanol production due to their fermentation ability. Globally, sugarcane (and its derivatives) are the second-largest source of feedstock for the production ethanol. Over the forecast period, Brazil will be the largest producer sugarcane-based alcohol.

Colombia is one of the 10 largest sugarcane producers in South & Central America. Colombia has established a bioethanol program to produce ethanol. The largest biofuel feedstock is corn, not just in the United States but globally. Corn is responsible for approximately 97% of the U.S. ethanol production. Corn can also be used to produce energy from renewable sources.

Application Insights

Transportation fuels & additives application dominated the market in terms of volume with a 41.2% share in 2019. Due to the rapid growth of the global automotive industry, it is expected to maintain its dominant position in the future. In Europe and Asia Pacific, the demand for gasoline-operated cars has increased significantly. Bioethanol is a cleaner fuel than other fossil fuels like diesel or gasoline. Bioethanol can also increase the engine's lifespan. Due to the growing sales of flexible fuel vehicles, bioethanol producers are able to enter the regional market.

The industrial alcohol that is used in chemical manufacturing has many benefits. It comes from natural sources, i.e. The demand is expected to rise due to the rapid growth of the region's manufacturing sector. Demand is expected to rise due to the rapid growth in the regional manufacturing sector. A lot of manufacturers are working to replace crude chemicals with bio-derived products. This will increase the demand for industrial in these application industries over the forecast period.

Because of their ability to transport a variety of medicines and iodine solutions as well as decongestants, industrial alcohols are often used in the pharmaceutical sector. Ethanol is used in the pharmaceutical industry as a solvent. It is used to process vaccines, vitamins and antibiotics, pills and tablets, and other medicines.

As the demand for different products increases, a lot of pharmaceutical companies have teamed up with industrial alcohol suppliers to obtain technical expertise needed in the production of pharmaceutical drugs. Manufacturers are increasing their production capacity to meet rising demand. This provides attractive market growth opportunities. The product can be used in a variety of pharmaceutical applications, including tableting, powders and plasma fractionation.

Regional Insights

Asia Pacific dominated the market, accounting for more than 35% of global revenue in 2019. This is due to India's high methyl alcohol consumption and India's ethanol production. India's government has taken steps to increase ethanol use as an automotive fuel. This is due to the fact that India has a high demand for ethanol. China dominates the global methanol market. This is due to its demand for methanol in gasoline blending and for the production of olefins. This has resulted in new pricing and economic dynamics.

The Asia Pacific was dominated by methyl alcohol and ether alcohol, with India and China setting consumption targets. The region's ethanol consumption is low and fuel consumption is increasing rapidly. This is accompanied by growing concerns about air quality, especially in India and China. Due to an increase in GDP and a rising population, transportation fuel will need to grow significantly by 2030. This will require more biofuels. China is the fourth largest producer of biofuels in the world, while India has the best conditions for bioethanol production.

The U.S. is the largest market for Ethanol, and its ethanol production and export led North America. The U.S. ethanol production and exports are the main drivers of industry growth in terms of volume and revenue. Export-oriented production in the U.S. of ethanol is driving North America's growth in industrial alcohol production. This is to meet the demand for global market space.

The European Commission (EC), announced a 7% limit on food-based biofuels in order to restrict the production of conventional or first-generation biofuels to the most efficient. This will discourage new producers from entering this market. The region's consumption was greater than the amount produced, and surplus demand was met by imports exceeding 10% of the produced quantity. Germany is the country with the largest share of feedstock production. Low interest rates on raw materials are expected to drive growth in the region's overall market over the forecast period.

Market Share Insights & Key Companies

Due to the large number of international players entering the market, there is fierce competition among key companies. The government's mandate to mix ethanol with gasoline is driving up demand for fuel-grade alcohol. This will provide lucrative opportunities to biofuel producers. This internal competition can be attributed the increasing demand for ethanol in gasoline and ethanol blend mandates. These requirements vary across regions. The North American market is dominated by Cargill Inc., the dominant market player. They compete with other market players by blending ethanol with different chemicals that can be used in various industrial, food and beverage, and personal care applications. The following are some of the major players in the market for industrial alcohol:

• Cargill Inc.

• Cristalco SAS

• MGP Ingredients Incorporated

• Grain Millers Inc.

• Andersons Inc.

Up Market Research published a new report titled “Industrial Alcohol Market research report which is segmented by Product (Ethyl Alcohol, Methyl), by Source (Corn, Sugar & Molasses), By Players/Companies Cargill Inc, Grain Millers Inc, The Andersons Inc, Cristalco SAS, MGP Ingredients Incorporated”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.

Report Scope

The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.

Global Industrial Alcohol Market Report Segments:

The market is segmented by Product (Ethyl Alcohol, Methyl), by Source (Corn, Sugar & Molasses).

Industrial Alcohol Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.

Key Benefits for Industry Participants & Stakeholders:

• Industry drivers, restraints, and opportunities covered in the study
• Neutral perspective on the market performance
• Recent industry trends and developments
• Competitive landscape & strategies of key players
• Potential & niche segments and regions exhibiting promising growth covered
• Historical, current, and projected market size, in terms of value
• In-depth analysis of the Industrial Alcohol Market

Overview of the regional outlook of the Industrial Alcohol Market:

Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.

Highlights of The Industrial Alcohol Market Report:

1. The market structure and projections for the coming years.
2. Drivers, restraints, opportunities, and current trends of Industrial Alcohol Market.
3. Historical data and forecast.
4. Estimations for the forecast period 2028.
5. Developments and trends in the market.

                1. Ethyl Alcohol

                2. Methyl

                1. Corn

                2. Sugar & Molasses

8. Market scenario by region, sub-region, and country.
9. Market share of the market players, company profiles, product specifications, SWOT analysis, and competitive landscape.
10. Analysis regarding upstream raw materials, downstream demand, and current market dynamics.
11. Government Policies, Macro & Micro economic factors are also included in the report.

We have studied the Industrial Alcohol Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.

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• Correctly Positioning New Products
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Reasons to Purchase the Industrial Alcohol Market Report:

• The report includes a plethora of information such as market dynamics scenario and opportunities during the forecast period
• Segments and sub-segments include quantitative, qualitative, value (USD Million,) and volume (Units Million) data.
• Regional, sub-regional, and country level data includes the demand and supply forces along with their influence on the market.
• The competitive landscape comprises share of key players, new developments, and strategies in the last three years.
• Comprehensive companies offering products, relevant financial information, recent developments, SWOT analysis, and strategies by these players.