The Global Industrial Alcohol Market- Growth, COVID-19 impact and Forecast (2021-2025)
The Industrial Alcohol market is segmented by Product type (Ethyl Alcohol, Methyl Alcohol, Isobutyl Alcohol and Others); Application (Fuels, Chemical Intermediates, Food Industry, Personal Care, Pharmaceutical and Others); Geography (APAC, North America, Europe and ROW).
Introduction
Industrial alcohols act as a reagent also as a solvent in various industrial applications within the pharmaceuticals, healthcare, energy sector, and chemical industries. These alcohols are utilized in applications aside from beverages.
Also, multi-functionality increases the adoption of various end-use applications. Moreover, ethanol is majorly produced and consumed alcohol, is extensively utilized as a biofuel universally. These fuels are produced by the fermentation of sugars derived from wheat, corn, sugar beets, sugar cane, and molasses.
Despite the current pandemic situation, the end-users of this market is recovering to operate in full capacities from 2021 beginning. Along with this, the recovering manufacturing activities across the globe are expected to mitigate to numerous potential negative impacts caused during COVID-19 and maximize their opportunities in future.
Table of Contents
Market Overview
The Global industrial alcohol market is expected to have incremental growth of $85.3 billion during 2020-2025.
Growth momentum is expected to accelerate during the forecast period with 10.73% CAGR.
Growing demand for bioethanol and its demand from various industrial application are driving the growth of the market.
North America is dominating the market due to factors such as high level of R&D in the region and presence of large manufacturing companies for biofuels
Key Trends
Advancement in biotechnology has led to the event of using biomass from bacteria to supply eco-friendly ethanol.
Proactive government initiatives and increasing use of methanol in chemical industries coupled with spiraling growth in production facilities are expected to drive the market growth.
Emerging markets in growing economies is expected to drive the market demand in future
Key Market Players
Some of the key players in the market are Cargill, Cristalco, MGP Ingredients Incorporated, The Andersons, Grain Millers, Raizen Energia.
Players within the global industrial alcohol market are conducting extensive research and contributing to the growth of the market. They are also exploring other regions through acquisitions and various forms of partnerships as their market strategy for geographical expansion.
Major players focus on mergers & acquisitions, expansion of their manufacturing facilities, infrastructural development, investments in R&D facilities, and are seeking opportunities to vertically integrate across the value chain.
Growth Drivers and Challenges
With growing environmental concerns for non-renewable fossil fuel alternative, these industrial alcohol are also used in the production of bio-fuel. Thus, increasing demand for bioethanol is driving the market.
Rising demand of organic solvents due to efficient properties including high octane number and flammability characteristics will lead to increase in demand of the industrial alcohol.
The factors such as rising environmental concerns and the absence of standards and protocols are limiting the market growth.
Fluctuating prices of raw material is restraining the market growth.
In the circumstance of China-US trade war and high global economic volatility and uncertainty, it will have a significant influence on this market and act as a considerable restraint over the forecast years.