Global Industrial Ethanol Market Report and Forecast 2024-2032

Global Industrial Ethanol Market Outlook

The global industrial ethanol market demand reached a volume of almost 125.89 billion litres in 2023. The market is further expected to grow at a CAGR of 2.5% in the forecast period of 2024-2032.

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Growing Demand for Industrial Ethanol from Various End-Use Sectors Augmenting the Market

From the total ethanol consumption, the non-fuel applications like chemicals, pharmaceutical, plastic, and beverage industries, which also include cosmetics, paints, cleaning products, and alcoholic drinks, contribute about 13-15% of the total applications. While fuel applications are the leading application segment for ethanol, industrial applications account for 7% of the total uses of the product. The Asia Pacific is the leading the industrial ethanol market, as it is the largest producer as well as the consumer of industrial-grade ethanol. The market is being driven by the rising demand for acetic acid from the paints, inks, and coatings sector, especially from countries like South Korea and China. The growing demand in the region is being satisfied by imports from the US, Pakistan, and Vietnam. It is followed by Europe, which has the second-largest consumption level for industrial-grade ethanol and has a broad base for personal care, pharmaceutical, and food and beverage industries.

In the industrial ethanol market, the solvents hold a significant share, i.e., 63%, which is expected to grow. Chemical intermediates are expected to grow at a slightly higher growth rate. Chemical intermediates such as acetic acid and acrylates are the key consumers of industrial-grade ethanol. Solvents includes the paints, inks, and coatings industry, which holds a significant share in the market, accounting for 17% of the total demand for industrial ethanol. The paints, inks, and coatings sector is followed by personal care and cleaning products segments.

The industrial ethanol market is being fuelled by the growing use of the chemical in the food and beverage sector. With the surging demand for alcoholic beverages, industrial ethanol finds extensive use in vodka, beer, and gin, among others, which is bolstering the market growth. Industrial ethanol is also used as a food additive to aid in evenly distributing food colouring. As various common extracts such as vanilla extract have alcohol and ethanol base, the utilisation of industrial ethanol is increasing. Moreover, the introduction of various initiatives by governments to boost the production of ethanol is anticipated to propel the market for industrial ethanol in the forecast period.

Market Segmentation

Ethanol, also known as ethyl alcohol, can be synthetically derived from petrochemical feedstock like coal and oil derivatives or can be naturally derived from starch and sugar sources like sugar cane, maize, sugar beet, wheat, rye, and potatoes.

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Ethanol finds its application in the following sectors:

• Fuel 
• Industrial
• Food and Beverage

Industrial ethanol further finds its applications in:

• Paints, Inks, and Coatings
• Personal Care
• Cleaning Products
• Food and Beverage
• Pharmaceuticals
• Acetic Acid
• Acrylate
• Others

The report also covers the regional markets of the product like North America, Europe, the Asia Pacific, Latin America, and the Middle East and Africa.

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Increasing Demand for Industrial Ethanol in the Solvents and Intermediate Sectors to Aid the Market

The market is expected to improve in Asia, Brazil and Europe owing to the demand from the solvents and chemical intermediates sector. Countries such as Pakistan and Vietnam are coming up with competitive volume, aided by the demand in the market and further enhancing the market growth. The industrial ethanol market is driven by the rise in the personal care, cleaning products, and food and beverage sectors as they impact the market significantly.

In North America, the market is being propelled by the treatment of industrial ethanol as a niche material. The growing consumer awareness about the usage of antibacterial products such as hand sanitizer and surface cleaners to prevent the spread and potential harm caused by bacteria and viruses is providing impetus to the industrial ethanol market growth. These products are made using industrial-grade ethanol and are witnessing a significant demand, especially from the new-age consumers. In Europe, the rise in the demand from the vinegar and screen wash segment, which mostly uses REN grade ethanol, is expected to drive the market. Pakistan is anticipated to be the most likely importer for the material used in technical or screen wash end-use, instead of the beverage market. The market in Brazil is expected to increase due to fuel mandates.

There has been a shift in the demand dynamics in the major industrial ethanol markets. In the United States, the export level has increased, whereas, in Brazil, a restriction has been imposed on exports in order to cater to the local demand. There is an increase in imports from China and now Pakistan. As a result, imports to Europe have decreased, which they usually buy from Pakistan. Pakistan prefers trading with China over Europe due to better logistics and lower export costs owing to the free trade agreements.

Key Players in the Global Market for Industrial Ethanol

The report gives a detailed analysis of the following key players in the global industrial ethanol market, covering their competitive landscape, capacity, and latest developments like mergers, acquisitions, and investments, expansions of capacity, and plant turnarounds:

• Archer Daniels Midland Company
• Cargill, Incorporated
• Tereos Participations
• Unicol Limited
• CropEnergies AG
• Alcool Ferreira SA
• COFCO
• INEOS Group Holdings S.A
• Others

The comprehensive EMR report provides an in-depth assessment of the market based on the Porter's five forces model along with giving a SWOT analysis.

Key Highlights of the Report

Industrial Ethanol Market Report Snapshots

Industrial Ethanol Market Size

Industrial Ethanol Market Growth

Industrial Ethanol Companies