Industrial Alcohol Market Size

Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

The Industrial Alcohols Market is projected to have a significant growth by 2024, and by 2032 is expected to reach a market size of $248.7 billion. The market is growing at a CAGR of 8.88%. The main growth driver for the market is the increasing demand for industrial alcohols in various industries such as pharmaceuticals, food and beverages, and automobiles. The trend of using bio-based and sustainable alcohols is also driving the market. Also, technological advancements in fermentation processes and the development of new applications of industrial alcohol are driving the market growth. The major players in the market are BASF SE, The Dow Chemical Company, and Archer Daniels Midland Company. Strategic initiatives such as acquisitions, collaborations, and agreements are also driving the competition in the market. These factors will have a crucial role in shaping the future of the market.

Regional Market Size

Regional Deep Dive

The market for alcohols is characterized by a variety of applications in various industries, such as the pharmaceutical industry, food industry, and personal care products. In North America, the market is driven by the strong manufacturing industry and the increasing demand for bio-based solvents. Europe is characterized by a strong regulatory framework and sustainable practices, while in Asia-Pacific, rapid industrialization and urbanization lead to a higher demand. The Middle East and Africa are gradually becoming a significant market due to increasing investments in the chemical industry, while in Latin America, the focus is on increasing the production capacity to meet local and export demand.

Europe

• The European Union's Green Deal is pushing for a transition to renewable resources, leading to increased investments in bio-based industrial alcohols, particularly in countries like Germany and France.
• Innovations in production processes, such as the use of waste biomass for alcohol production, are being spearheaded by companies like BASF and Clariant, which are expected to reshape the market landscape.

Asia Pacific

• China's growing industrial sector is driving demand for industrial alcohol, with companies like Sinopec expanding their production capacities to meet this rising need.
• India is witnessing a surge in the use of industrial alcohol in the pharmaceutical sector, supported by government initiatives aimed at boosting local manufacturing and reducing imports.

Latin America

• Brazil is leading the way in the production of bioethanol, with government policies favoring renewable energy sources, which is expected to boost the industrial alcohol market significantly.
• The region is also seeing increased collaboration between local companies and international firms to enhance production technologies, particularly in Argentina and Chile.

North America

• The U.S. Environmental Protection Agency (EPA) has introduced new regulations aimed at reducing the environmental impact of industrial alcohol production, encouraging companies to adopt greener technologies.
• Major players like Archer Daniels Midland Company and Cargill are investing in advanced fermentation technologies to enhance the efficiency of bioethanol production, which is expected to increase supply and lower costs.

Middle East And Africa

• The UAE is investing heavily in diversifying its economy, with initiatives to develop its chemical manufacturing sector, including industrial alcohol production, supported by companies like Abu Dhabi National Oil Company (ADNOC).
• Regulatory changes in South Africa are encouraging the use of biofuels, which is expected to increase the demand for industrial alcohol as a key ingredient in biofuel production.

Did You Know?

“Did you know that industrial alcohol is often used as a key ingredient in the production of hand sanitizers, which saw a dramatic increase in demand during the COVID-19 pandemic?” — World Health Organization (WHO)

Segmental Market Size

The alcohol industry is an important part of the whole market and has a growing share. The main reason for this is the increasing need for biofuels and solvents in industries such as pharmaceuticals and cosmetics, as well as the increasingly stringent regulations for the use of renewable resources. In addition, technological improvements in the fermentation process have further improved production efficiency, thereby strengthening the stability of the market. At present, the use of alcohol in industry is in a mature phase, with companies like BASF and ADM leading the way in both production and innovation. Ethanol is used in hand sanitizers and isopropyl alcohol in cleaning products, which were especially in the spotlight during the COVID-19 pandemic. There is a tendency towards greater use of alcohol in a variety of products, but it is still a relatively small part of the market.

Future Outlook

Industrial alcohol is the most important alcohol used in the world. Industrial alcohol is used in pharmaceuticals, cosmetics, and food processing. The trend of sustainable development is expected to have a positive effect on the development of industrial alcohol. In 2032, the proportion of bio-based industrial alcohol in the world market is expected to exceed 30%, which is a major change in the production method and the preference of consumers. The key technology of fermentation and distillation will be further improved, and the cost of production will be reduced, which will greatly improve the availability of industrial alcohol. In addition, the reduction of carbon dioxide emissions and the promotion of green chemistry will also have a positive effect on the development of industrial alcohol. The trend of the use of industrial alcohol as a fuel in the automobile industry and the rising popularity of hand cleaners and disinfectants after the pandemic will also drive the market to rise. The industrial alcohol market will change with the times, and the interests of the whole industry will be reflected in the future.