Industrial Alcohol Market Analysis - Global Industry Size, Share, Trends and Forecast 2022 - 2030

The Global Industrial Alcohol Market size accounted for USD 124 Billion in 2021 and is estimated to reach the market value of USD 301 Billion by 2030.

According to our industrial alcohol industry analysis, the leading aspect that is fueling the market growth includes the surging demand for methanol from numerous end-use industries. One of the trends in industrial alcohol includes the increasing preference for bioethanol. The worldwide industrial alcohol market forecast that the industry is expected to register a CAGR of 10.6% throughout the forecast timeframe from 2022 to 2030.

Industrial alcohol is a type of alcohol that is used in industrial applications. This includes mineralized methylated spirits and denatured spirits, as well as any other spirits with which any substance is mixed, but excludes liquor. Industrial alcohols are classified as either pure or denatured. Because pure form contains few impurities, it is useful in certain industrial applications that require a pure form free of contaminants. Denatured alcohol is a type of alcohol that contains additives.

Industrial Alcohol Market Dynamics

Industrial Alcohol Market Growth Drivers:

• Increasing demand for biofuels among end users
• Increase in the use of alcohol in a wide spectrum of applications
• Growing shortage of petroleum and its rising prices
• The rise in global trade in alcohol

Industrial Alcohol Market Restraints:

• Rise in raw material prices
• Strict approval policies from various regulatory bodies

Industrial Alcohol Market Opportunities:

• Advent of greener ethyl alcohol sources
• Increasing usage of ethanol in developing economies

Report Coverage

Growing demand for biofuels among end-user is one of the primary factors expanding the industrial alcohol market revenue. According to the International Energy Association (IEA), worldwide demand for biofuels is expected to augment by 41 billion liters, or 28%, from 2021 to 2026. Furthermore, the Environmental Protection Agency (EPA) states that substituting fossil fuels with biofuels has the opportunity to generate several benefits. Unlike fossil fuels, which are finite resources, biofuels are made from renewable feedstocks. As a result, their production and use could theoretically be sustained indefinitely.

Additionally, the growing consumption of industrial alcohol in a wide spectrum of applications as well as the growing shortage of petroleum is some of the aspects that are propelling the industrial alcohol market growth. Drugs & pharmaceuticals, organic chemicals, solvent and extraction medium, dyes and synthetic rubber, cosmetics, and beverages are some of the leading applications where industrial alcohol is consumed.

However, the rise in raw material prices and strict approval policies from various regulatory bodies are acting as a roadblock to lucrative market growth. Furthermore, the advent of greener ethyl alcohol sources and rising demand for ethanol in emerging countries are positively supporting the market, thereby creating numerous growth prospects in the coming future.

Industrial Alcohol Market Segmentation

The global industrial alcohol market segmentation is based on product, source, application, and region.

Industrial Alcohol Market By Product

• Ethyl Alcohol
• Methyl Alcohol
• Isobutyl Alcohol
• Isopropyl Alcohol
• Others

Based on products, the ethyl alcohol (ethanol) subsegment accounted for the majority of the industrial alcohol market share in 2021. One of the major market drivers is the use of ethanol as a biofuel. Increased ethanol blending with gasoline around the world, as well as rising demand for ethanol produced from corn and sugar, are likely to offer opportunities for market expansion studied during the forecast timeframe. Due to low demand, ethanol as a fuel is reportedly experiencing difficulties. Beverage, disinfectant, and personal care consumption are at an all-time high, and this trend is likely to continue for the next two to three years.

Industrial Alcohol Market By Source

• Grains
• Sugar & Molasses
• Fossil Fuels
• Corn
• Others

According to our analysis, the corn segment currently dominates the market and is anticipated to remain dominant throughout the projected timeline. Corn is the most promising raw material; others are grain and grain products, molasses, whey, etc. Corn grain is an excellent biofuel feedstock due to its high starch content and ease of conversion to ethanol. Corn ethanol is currently primarily used in gasoline blends to create blends such as E10, E15, and E85. To reduce air pollution, ethanol is blended into more than 98% of gasoline sold in the United States. However, the fossil fuels sub-segment is expected to grow the fastest, as fossil fuels gain popularity as a source for the production of industrial alcohol, primarily ethyl alcohol and methyl alcohol.

Industrial Alcohol Market By Application

• Transportation Fuel & Fuel Additives
• Food Ingredient
• Pharmaceutical
• Chemical Intermediates
• Personal Care
• Detergent & Cleaning Chemicals
• Other Applications

The transportation fuel and fuel additives application generated a significant industrial alcohol market share in 2021 because of the increasing demand for fuel in the automotive industry. Alcohols, such as ethanol, have a significant application as a transportation fuel. Several automobile manufacturers in the United States are producing ethanol, which allows vehicles to run on a type of fuel that is 85 percent ethanol and 15 percent gasoline. On the other hand, the pharmaceutical application is expected to gain significant traction in the coming years. Industrial alcohols are used in the pharmaceutical industry because of the properties that allow them to act as a carrier for a broad range of medicines, decongestants, iodine solutions, and other products.

Industrial Alcohol Market Regional Outlook

North America

• U.S.
• Canada

Europe

• U.K.
• Germany
• France
• Spain
• Rest of Europe

Latin America

• Mexico
• Brazil
• Rest of Latin America

Asia-Pacific

• India
• Japan
• China
• Australia
• South Korea
• Rest of Asia-Pacific

The Middle East & Africa (MEA)

• Gulf Cooperation Council (GCC)
• South Africa
• Rest of the Middle East & Africa