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Report Overview
2024
Base Year
2018-2024
Historical Year
2025-2034
Forecast Year
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.
Industrial Ethanol Market Report Snapshots
Industrial Ethanol Market Size
Industrial Ethanol Market Growth
*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*
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Key Questions Answered in the Report
In 2024, the global industrial ethanol market attained a volume of almost 125.89 billion litres.
The market is projected to grow at a CAGR of 2.5% between 2025 and 2034.
The major drivers of the market are rising disposable incomes, increasing population, increasing hygiene awareness, rising demand from the developing regions, and growing technological advancements.
The key trends guiding the growth of the market include the growing consumer awareness about the usage of antibacterial products and increasing demand from the paints, inks, and coatings sector.
The major regions in the market are North America, Latin America, the Middle East and Africa, Europe, and the Asia Pacific, with Asia Pacific accounting for the largest share in the market.
Paints, inks, and coatings, personal care, cleaning products, food and beverage, pharmaceuticals, acetic acid, and acrylate, among others, are the major applications of industrial ethanol in the market.
The major players in the market are Archer Daniels Midland Company, Cargill, Incorporated, Tereos Participations, Unicol Limited, CropEnergies AG, Alcool Ferreira SA, COFCO, and INEOS Group Holdings S.A, among others.
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