Industrial Alcohol Market Latest Trends, Growth, Opportunities And Forecast 2025

Wine & Alcoholic drink

Increase in demand for ethanol in the fuel industry is driving the market for industrial alcohol across the globe

The industrial alcohol market is estimated to reach USD 93.3 billion in 2020 and is projected to account for USD 112.0billion by 2025, recording a CAGR of 3.7% during the forecast period. There is a rising demand for fuel grade ethyl alcohol which is used as a blend in transportation fuels. The North American region dominates in grain and corn production used for ethyl alcohol manufacturing.

The industry has been criticised in the 1990s for deflecting attention away from the problems associated with alcohol use. The alcohol industry has also been criticised for being unhelpful in reducing the harm of alcohol.

The World Bank works with and invests in alcohol industry projects when positive effects with regard to public health concerns and social policy are demonstrated. Alcohol industry-sponsored education to reduce the harm of alcohol, actually results in an increase in the harm of alcohol. As a result, it has been recommended that the alcohol industry does not become involved in alcohol policy or educational programs.

In the United Kingdom, the New Labour government took the view that working with the alcohol industry to reduce harm was the most effective strategy. However, alcohol-related harm and alcohol abuse increased. The alcohol industry has been accused of exaggerating the health benefits of alcohol which is regarded as a potentially dangerous recreational drug with potentially serious adverse effects on health.

Since ethanol was classified as a Class I carcinogen, and there is no safe dose of alcohol; the alcohol industry is considered one of the main contributors to the formation of civilization or lifestyle diseases. The alcohol industry has tried to actively mislead the public about the risk of cancer due to alcohol consumption, in addition to campaigning to remove laws that require alcoholic beverages to have cancer warning labels.


The Asia pacific region is projected to grow at the highest growth rate.

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By type, the ethyl alcohol segment is projected to dominate the industrial alcohol market during the forecast period.

Based on type, the cereals & grains segment is estimated to account for the largest share in the industrial alcohol market in 2019. Ethyl alcohol is used in a wide variety of industries due to which it is used in food grade as well as fuel grades.Pure ethyl alcohol is used for its sanitizing, cleaning, and solvent properties. Many medicines, food products, flavorings, and cosmetics could not be produced without it. It is used to process vaccines, compound tonics, syrups, tinctures, liniments, and antiseptics as well as being vital in the manufacture of pharmaceuticals such as chloroform, atabrine, and barbiturates. It is used in the production of adhesives, cosmetics, detergents, explosives, inks, hand cream, plastics, and textiles.

The fossil fuel segment in the industrial alcohol market is estimated to account for the largest share in 2019.

Based on source, fossil fuel segment is estimated to account for the largest share in the industrial alcohol market in 2019. The need to reduce dependence on fossil oil as a direct source of fuel is the major driving force for the methanol market. Methanol is used for spreading gasoline supplies in many gasoline markets around the world. Industrial alcohols extracted from the petroleum or synthetic ethyl alcohol can be manufactured easily through the hydrolysis of ethylene, which is a major petrochemical. Alcohol is synthesized from petroleum by creating ethylene, and then hydrating to form ethanol. Both synthetic and fermented alcohol meant to be used for non-drinking purposes are purposely denatured to avoid liquor tax.

The Chemical intermediates & solvents industrial alcohol segment in the industrial alcohol market is estimated to account for the largest share in 2019.

Based on application, chemical intermediates & solvents segment is estimated to account for the largest share in the industrial alcohol market in 2019. This application of industrial alcohol segment accounts for the largest share in the industrial alcohol market. Benzyl alcohol and isopropyl alcohol are majorly used as solvents. Approximately 46% of isopropyl alcohol produced is used in industrial solvent applications, whereas around 28% of benzyl alcohol is used as solvents. Apart from use as an industrial solvent, alcohol is also used in the manufacturing of chemical intermediaries and fertilizers.

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Research Coverage

This report segmentstheindustrial alcoholmarketbased ontype, source, application, and region. In terms of insights, this research report focuses on various levels of analyses—competitive landscape, end-use analysis, and company profiles—which together comprise and discuss the basic views on the emerging & high-growth segments of the industrial alcoholindustry,the high-growth regions, countries, government initiatives, market disruption, drivers, restraints, opportunities, and challenges.

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