The global industrial alcohols market is estimated to be valued at US$ 180.75 billion in 2023 and is expected to exhibit a CAGR of 10.2% over the forecast period of 2023-2030, as highlighted in a new report published by Coherent Market Insights. Industrial alcohols are widely used in various industries such as pharmaceuticals, chemicals, and cosmetics due to their multiple benefits. These alcohols are used as solvents, intermediates, and raw materials in the production of various products. The increasing demand for bio-based fuels and renewable chemicals is driving the growth of the industrial alcohols market. The widespread use of industrial alcohols for manufacturing hand sanitizers and disinfectants during the COVID-19 pandemic has also contributed to the market growth.
Market Key Trends:
One key trend observed in the industrial alcohols market is the growing demand for bioethanol as a fuel additive. Bioethanol, a type of industrial alcohol, is derived from renewable sources such as corn, sugarcane, and wheat. It is used as an additive in gasoline to enhance its octane rating and reduce emissions. The increasing emphasis on reducing carbon emissions and promoting sustainable energy sources has led to a significant rise in the demand for bioethanol. Governments across the globe are implementing policies and regulations to promote the use of biofuels, which is driving the growth of the industrial alcohols market. This trend is expected to continue over the forecast period, as the shift towards renewable energy sources gains momentum.
One segment of the industrial alcohols market is the fuel segment, which is expected to dominate the market during the forecast period. The increasing demand for biofuels and the government initiatives to reduce carbon emissions are driving the growth of this segment. Industrial alcohols, such as ethanol, are widely used as fuel additives and as a substitute for gasoline. Ethanol is renewable, readily available, and contributes to reducing greenhouse gas emissions. It is also used as a blending agent in gasoline to increase its octane rating and reduce air pollution. As a result, the fuel segment is expected to witness high growth in the industrial alcohols market.
The Global Industrial Alcohols Market Demand is expected to witness high growth, exhibiting a CAGR of 10.2% over the forecast period of 2023-2030. The market is driven by several factors, including the increasing demand for biofuels, government initiatives to reduce carbon emissions, and the growing use of industrial alcohols in various industries such as pharmaceuticals, cosmetics, and chemicals.
In terms of regional analysis, North America is expected to be the fastest-growing and dominating region in the industrial alcohols market. The region has a well-established biofuel industry, with the United States being one of the largest ethanol producers in the world. The favorable government policies and subsidies for biofuel production in North America are contributing to the market growth in the region.
Key players operating in the industrial alcohols market include BASF SE, Birla Sugar, Cargill Incorporated, Cristalco, Flint Hills Resources, Green Plains Inc., Greenfield Specialty, MGP Ingredients Inc., Sigma Aldrich, and The Andersons Inc. These key players are focusing on research and development activities, strategic partnerships, and mergers and acquisitions to expand their product portfolio and strengthen their market presence in the industrial alcohols industry