Impact of COVID-19 on Global Industrial Alcohol Market Size & Share Analysis Report, 2021-2026
According to the report published by Facts and Factors, the global industrial alcohol market was valued at around USD 93,300 Million in 2020 and is predicted to create revenue of approximately USD 116,025 Million by the end of 2026, with a CAGR of roughly 3.7% between 2021 and 2026.
Industrial alcohol is mainly ethanol, commonly known as ethyl alcohol, a volatile, colorless, flammable liquid that is an extensively utilized biofuel worldwide. It comes from a variety of sources, including maize, molasses, and cereals. The fermentation of sugarcane is one of the earliest methods for producing ethanol. Fermentation times can range from 42 to 74 hours. It can be used as a mix with gasoline in gasoline-operated vehicles because of its low emissions and less intoxicating effects. It may be mixed in any proportion with gasoline. It’s also utilized as a dietary supplement, solvent, fuel, and reagent alcohol.
In emerging nations, changing lifestyles, a rising economy, and a trend toward renewable resource usage have resulted in increased demand for alcohol in fuel and other applications. In the next years, developing nations, such as China, India, and countries in the Middle East and Africa, are projected to see a significant increase in demand for ethyl alcohol and isobutyl alcohol. Growth in the use of alcohol in different industries, as well as the rising trend of greener technologies in the energy industry, are likely to fuel this need. Furthermore, these locations offer a cost advantage in terms of manufacturing, labor, and processing. A significant aspect that is likely to help alcohol providers is high demand combined with affordable manufacturing costs.
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Corn source dominated the market in terms of volume in 2019, with a share of over 30%. This can be due to the product’s broad demand as a renewable source of energy generation. The ethanol industry’s expansion has resulted in a spike in corn distiller oil, which is utilized as a biodiesel feedstock or animal feed across the world. Corn distillers oil is generated by around 85% of corn-based ethanol plants. In the byproducts industry, ethanol production from corn is also prospering and generates huge demand in the forecasted period.
Top Market Players
Major players operative in the global industrial alcohol market are Cargill, Wilmar International, RaizenEnergia, Archer Daniels Midland, Green Plains Inc, Univar Solutions, Cristalco, EcoLab, Royal Dutch Shell Plc, MGP Ingredients, Lindeplc, The Andersons Inc, LyondellBasell Industries, Sigma-Aldrich, Dow Chemical Company, Grain Processing Corporation, Eastman Chemical Company, Greenfield Global Inc., Exxon Mobil Corporation, and Flint Hills Resources, amongst others.
Bioethanol is commonly utilized as a biofuel for transportation to reduce greenhouse gas emissions (GHG). The world’s population is expanding along with industrialization activities, resulting in a strong need for energy. As a result, the price of petroleum and gas has been steadily rising for several years. The emergence of bioethanol is due to a growing awareness of global climate change and, as a result, a surge in the use of renewable resources. Biofuels are renewable energy sources that have aided in the reduction of pollution levels throughout the world by supporting market demand for fuel. Furthermore, advances in biotechnology have resulted in the use of biomass from bacteria to produce environmentally friendly ethanol.
Plant sugar is converted to ethanol by genetically modified E. coli bacteria. This improvement in technology is expected to increase the use of ethanol, which would compete with fossil fuels in the near future. Due to the lower cost of bioethanol compared to fossil fuels, the government no longer needs to provide ethanol fuel subsidies. This rising trend is also anticipated to increase demand for ethanol, which will help propel the global industrial alcohols market forward. There are a number of barriers and regulations that will hamper market expansion. Market development is being hampered by reasons such as growing environmental concerns and a lack of standards and processes. Commercial alcohol production utilizing fossil fuels has a major environmental impact, resulting in water depletion and pollution.
Consumers and organizations have made health, safety, and cleanliness a top concern as a result of the COVID-19 pandemic. Regular use of sanitizers and disinfectants with at least 60% alcohol concentration has been advised by public health agencies such as the US FDA, WHO, and CDC. Industrial alcohol producers have benefited from an exponential increase in demand for hand sanitizers, disinfectants, and sterilizing solutions for use in households, healthcare institutions, and public areas. Hand sanitizer was in low supply in many countries owing to the enormous increase in demand, especially during the first several months of the pandemic. The scarcity was mostly driven by panic buying by customers as word of the coronavirus circulated quickly. As a result, large alcohol producers have been observed increasing production capacity in order to satisfy the extraordinary demand for sanitizers as a result of COVID-19.
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Asia Pacific is projected to Dominate Global Industrial Alcohol Market Growth
Rice, corn, millets, and other agricultural raw material sources are commonly utilized to produce industrial alcohol. The market in the APAC area will be boosted by the need for farm livestock for industrial alcohol, as well as strong government efforts and existing projects.
Deepak Nitrite Limited, a wholly-owned subsidiary of Deepak Phenotics Limited, increased its capacity of Isopropyl Alcohol (IPA) production at its Dahej, Gujarat manufacturing facility from 30,000 TPA to 60,000 TPA in July 2021. The increased capacity will also assist to reduce IPA import dependency and aid in the achievement of ‘Atmanirbhar Bharat’.
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