The global Industrial Alcohol Market Growth Accelerated by Rising Demand from End-use Industries

 

Industrial alcohol serves as an important raw material for various chemical processes and end-use applications. It finds usage as solvents in paints, pharmaceutical products, cosmetics, etc owing to its chemical properties. There is an elevated demand for alcoholic products from end-use industries like automotive, construction, personal care amongst others.

The global Industrial Alcohol Market is estimated to be valued at US$ 180.75 Bn in 2023 and is expected to exhibit a CAGR of 10% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

The rising demand from end-use industries is one of the key factors driving the growth of the industrial alcohol market. Various end-use industries like automotive, paints and coatings, pharmaceutical and personal care have witnessed significant growth in recent years. As industrial alcohol finds wide application as solvent in these industries, the demand from such application areas is expected to increase substantially over the forecast period. This rising demand from growing end-use industries is estimated to augment the market growth of industrial alcohol during the forecast years.

Segment Analysis

The global industrial alcohol market is dominated by fuel grade alcohol segment. This segment accounted for more than 50% share of the total market in 2023 owing to high usage of ethanol as fuel blend and as chemical intermediate. The fuel grade alcohol is widely used as biofuel in automotive industry and helps in reducing dependence on fossil fuels. This sub-segment is expected to witness significant growth during the forecast period due to stringent regulations regarding use of cleaner fuels and supportive government policies promoting ethanol blending.

Key Takeaways

The global Industrial Alcohol market is expected to witness high growth. The global Industrial Alcohol Market is estimated to be valued at US$ 180.75 Bn in 2023 and is expected to exhibit a CAGR of 10% over the forecast period 2023 to 2030.

The market in North America held the largest share in 2023 and is expected to maintain its dominance during the forecast period. Presence of major ethanol producers and growing fuel ethanol blending mandates drive the market growth in the region. Asia Pacific is expected to grow at the fastest rate during the forecast period. Rapid industrialization and economic growth in emerging economies such as China and India will drive the demand for industrial alcohol in various end-use industries. Countries in the region are formulating supportive policies to promote ethanol as biofuel and chemical intermediates, which is anticipated to boost the market in coming years.

Key players operating in the Industrial Alcohol are BASF SE, BIRLA SUGAR, CARGILL INCORPORATED., CRISTALCO, FLINT HILLS RESOURCES, GREEN PLAINS INC., GREENFIELD SPECIALTY, MGP INGREDIENTS INC. The North American region provides ample opportunities for ethanol producers owing to the supportive government policies and initiatives in the US and Canada promoting renewable fuels.

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