by The global Industrial Alcohol market is estimated to be valued at US$ 199.19 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 Overview:
Industrial alcohol refers to alcohol produced through fermentation process and used for various applications across industries like pharmaceutical, automotive and personal care. It is used as a raw material or solvent for production of various chemicals, cleaners and disinfectants owing to its volatile and flammable properties.
Market key trends:
One of the key driver contributing to the growth of industrial market is increasing demand from end use industries like pharmaceutical, automotive and food & beverages. Industrial alcohol finds wide application in production of chemicals, healthcare products, sanitizers and cleaners. Growing automotive industry in countries like China, India and Mexico is further fueling the demand for industrial alcohol used in manufacturing paints, adhesives and coatings. Rising health concerns due to COVID-19 pandemic has significantly boosted the sales of sanitizers and disinfectants requiring industrial alcohol as a key raw material. Implementation of stringent regulations regarding use of industrial alcohol may however hamper the market growth.
SWOT Analysis
Strength: Industrial alcohol is widely used in various end-use industries such as pharmaceuticals, automotive, biofuel, chemicals, and personal care. It has high solubility and miscibility properties.
Weakness: Fluctuations in raw material prices can increase the cost of production. Strict government regulations regarding the production and use of industrial alcohol.
Opportunity: Growing demand for biofuel is expected to boost the demand for industrial alcohol. Increasing use of industrial alcohol as a chemical intermediate and solvent in various industries offers lucrative growth opportunities.
Threats: Availability of alternatives such as petrochemical-based solvents can hamper the market growth. Fluctuations in crude oil prices indirectly impact the industrial alcohol market.
Key Takeaways
The Global Industrial Alcohol Market Size is expected to witness high growth, exhibiting CAGR of 10% over the forecast period, due to increasing demand for biofuel. The biofuel industry utilizes industrial alcohol as a major feedstock and growing need to reduce dependency on fossil fuels is driving the market.
Regional analysis
North America dominated the global industrial alcohol market in 2023 and is expected to maintain its leading position during the forecast period. This is attributed to presence of key players and growing production of industrial alcohol for various end-use industries in the region. Asia Pacific is expected to exhibit the fastest growth owing to rising industrial activity, increasing per capita income, and investment in end-use industries in emerging economies such as China and India.
Key players
Key players operating in the industrial alcohol market are BASF SE, BIRLA SUGAR, CARGILL INCORPORATED., CRISTALCO, FLINT HILLS RESOURCES, GREEN PLAINS INC., GREENFIELD SPECIALTY, MGP INGREDIENTS INC., SIGMA ALDRICH, and THE ANDERSONS INC. The market is fragmented in nature, with presence of numerous global and regional players. Companies are focusing on expansion of production facilities and new product launches to strengthen their market position
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
