Global Industrial Alcohol Market to Reach $147.1 Billion by 2024

Industrial alcohol, a distilled ethyl alcohol, is extracted, obtained, and sold for various purposes, other than as beverage. It is distributed usually in the pure ethyl alcohol form, and is available as completely denatured alcohol. The denatured alcohol is also termed as methylated spirits in some countries such as United Kingdom, South Africa, New Zealand, and Australia. Industrial alcohols are volatile, flammable and colorless liquids that are obtained from different sources including sugar, fossil fuels, molasses and corn among others. Industrial alcohols are manufactured using synthetic methods and through fermentation processes. Pure ethyl alcohol finds usage in laboratories as well as in various industries as it is available in solvent form, and exhibits cleaning, and sanitizing properties. It is used as main ingredient, during the production of cosmetics, flavorings, food products, and several medicines. For processing antiseptics, liniments, tinctures, syrups, compound tonics, and vaccines as well as for manufacturing various vaccines such as barbiturates, atabrine, and chloroform this is used. It is also used to produce textiles, plastics, hand cream, inks, explosives, detergents, cosmetics, and adhesives. There are different types of industrial alcohols, including ethyl alcohol or ethanol, methyl alcohol, isopropyl alcohol, isobutyl alcohol, benzyl alcohol, and others such as sorbitol and maltitol.

Denatured alcohol finds application as a solvent as well as fuel in camping stoves and alcohol burners. With denatured alcohol being used in myriad applications, especially in industrial segment, there are various number of denaturing and additives methods being used. The most common conventional additive is 10% methanol and methyl alcohol, giving the term "methylated spirits". Other important additives include methyl isobutyl ketone, methyl ethyl ketone, acetone and isopropyl alcohol. In the US, mixtures of denatured alcohol sold comprise higher methanol percentage, with ethanol comprising less than 50% of ethanol. During denaturing the alcohol, the ethanol molecules are intact and are not altered chemically, contrast to the denaturation method in biochemistry. In this process, ethanol is mixed with various chemicals to obtain a toxic and foul-tasting solution. For majority of these solutions, the components are difficult to separate.

Amid the COVID-19 crisis, the global market for Industrial Alcohol is projected to reach US$147.1 Billion by 2024, registering a compounded annual growth rate (CAGR) of 5.4% over the analysis period. The United States represents the largest regional market for Industrial Alcohol, accounting for an estimated 28.2% share of the global total. The market is projected to reach US$42.3 Billion by the close of the analysis period. China is expected to spearhead growth and emerge as the fastest growing regional market with a CAGR of 7.5% over the analysis period. The market is driven by confluence of various trends such as increasing focus on biofuels, strong demand for organic solvents and favorable regulations. Continuing developments related to biofuels on account of increasing concerns regarding energy security and air pollution are driving the market.

The market is also being propelled by their rising usage in paint and art, petrochemical, medical, and cosmetic industries and the increased commercialization of bio-butanol, bioethanol and such other alternative fuels. Demand for industrial alcohol is driven by its increasing use in the production of vaccines, medicines, antiseptics, fuel and syrups. Alcohols such as benzyl alcohol, isopropyl alcohol and methanol are used for the production of adhesives, cosmetics, flavorings and food products. Based on its low intoxicating effects and low emissions, industrial alcohol is increasingly used as a substitute to petrol. One of the prominent factors driving the global market is growing demand for industrial alcohol as biofuel due to increasing focus on carbon emissions and environmental protection. Factors such as increasing biofuel production, cost-effective production of sugarcane and corn, and rising consumption of industrial solvents are playing an important role in driving the global market. While volatile prices of raw materials remain a major issue, increasing focus on R&D and lower carbon footprint of industrial alcohol are bound to propel the global market.

Ethanol-based clean fuels present an affordable and effective option to curb rising carbon emissions. Ethanol accounts for 10% of gasoline supplies at pump stations, offering high octane number and gaining from its low prices. The use of biofuel allows countries to reduce their dependence on import of fossil fuels while contributing to environmental protection. In addition, cost-efficient production of ethanol owing to involvement of cheap feedstock has prompted various countries to shift their attention to ethanol. Countries such as the US and Canada are increasingly relying on agricultural waste and algae for producing ethanol. The emergence of bioethanol as an efficient and cheap and eco-friendly alternative to traditional fuels like diesel and petrol is expected to go a long way in propelling the industrial alcohol market. The growing shift towards bioethanol across emerging economies and increasing use of organic solvents and ethanol in manufacturing industries are bound to provide new revenue generating properties to participants, while enabling countries to reduce oil imports and enjoy high economic value.