What Has Been the Progress and Growth of the Ethyl Alcohol Market in Recent Years?
The ethyl alcohol market has seen considerable growth due to a variety of factors.
• In the past few years, the ethyl alcohol market has shown robust growth. It is predicted to escalate from $600.06 billion in 2024 to a value of $647.92 billion in 2025, with a compound annual growth rate (CAGR) of 8.0%.
Factors driving this growth in the previous period include alcoholic drinks, pharmaceuticals and healthcare, industrial and chemical production, as well as personal care and beauty products.
What Can Be Expected from the Ethyl Alcohol Market Size?
The ethyl alcohol market is expected to maintain its strong growth trajectory in upcoming years.
• The market size of ethyl alcohol is projected to witness a robust increase in the upcoming years. The market value is predicted to reach $840.34 billion in 2029, with a compound annual growth rate (CAGR) of 6.7%.
This growth in the forecast period is due to the proliferation of renewable energy and biofuels, expansion in pharmaceutical and healthcare sector, innovative chemical manufacturing, and the advent of sustainable packaging. The key trends for the forecast period include bio-based ethyl alcohol, novel pharmaceutical formulations, circular economy strategies, and digital revolution in the production of ethyl alcohol.
What Are the Critical Driver Fuelling The Ethyl Alcohol Market's Growth?
The escalation in the use of ethanol in the food processing sector is stimulating the ethyl alcohol market's growth. Ethyl alcohol plays a crucial role as an intoxicating component in the creation of both alcoholic and non-alcoholic drinks like vodka and gin. Also, it is utilized as a natural element in non-alcoholic drinks as a supplement. The food processing industry is witnessing considerable growth, owing to the burgeoning demand for prepared, frozen, and packaged food items. Thus, the need for it from the food processing industry has escalated in line with the burgeoning population resulting from new births and migration, subsequently amplifying the sector's productivity and the need for ethanol. The amplified ethanol demand in the food processing sector will catalyze the global ethyl alcohol market's expansion. For example, the U.S. Energy Information Administration (EIA), a US-based subset of the US Federal Statistical System, reported in November 2024 that U.S. fuel ethanol exports averaged 121,000 barrels each day during the first eight months of 2024, registering the peak export levels for this timeframe in any year, uninterruptedly surpassing 100,000 barrels each day every month. Consequently, the escalating ethanol demand in the food processing sector is propelling the ethyl alcohol market's growth.
How Is The Ethyl Alcohol Market segmented?
The ethyl alcohol market covered in this report is segmented –
1) By Type: Synthetic, Fermented
2) By Application: Industrial Solvent, Fuel Or Fuel Additive, Bacteriacide Or Disinfectant, Beverages, Personal Care, Other Applications
3) By End User Industry: Automotive, Food And Beverages, Pharmaceutical, Personal Care, Other End Use Industries
Subsegments:
1) By Synthetic: Petroleum-Based Ethyl Alcohol, Coal-Based Ethyl Alcohol
2) By Fermented: Grain-Based Ethyl Alcohol, Sugarcane-Based Ethyl Alcohol, Fruit-Based Ethyl Alcohol, Corn-Based Ethyl Alcohol
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What Emerging Trends Are Influencing The Growth Of The Ethyl Alcohol Market?
The ethyl alcohol sector is seeing a surge in the production of ethanol from corn and sugar by companies. Corn-produced ethanol is the output of a dry milling process whereby corn kernels are converted into flour or mash by grinding, followed by mixing with water. The purified ethanol is the result of distillation and dehydration. The rising international demand for liquid fuels and oil, primarily in the transporation industry, coupled with the adverse effects of global warming, have spurred the use of corn-based sugar for ethanol production. This has helped lower greenhouse gases. The fuel can replace gasoline in a majority of existing cars and trucks. The USDA estimates that ethanol production will consume 5.2 billion hectares of corn in the 2020-21 crop season, a 250 million increase from before. Also, the U.S. and Brazil together produce 85% of the world's corn-made ethanol. This ethanol from corn lowers greenhouse gases by 18%, and from sugar by 90%. Among the several benefits of ethanol production from corn and sugar are a decrease in greenhouse gases and lesser reliance on foreign oil.
Who Are the Key Players In The Ethyl Alcohol Market?
Major companies operating in the ethyl alcohol market include:
• Advanced Bioenergy LLC
• Andersons Ethanol Group
• Archer Daniels Midland Company
• Braskem SA
• BP plc
• Cargill Corporation
• Green Plains Inc.
• Kirin Holding Company Limited
• LyondellBasell Industries NV
• Mitsubishi Chemical Corporation
• Alto Ingredients Inc.
• Saudi Arabia's Basic Industries Corporation
• Sasol Limited
• Solvay Group
• Valero Energy Corporation
• INEOS Group Holdings SA
• Merck Millipore
• Midwest Renewable Energy LLC
• ChemCeed LLC
• Vigon International
• an Azelis Company
• CJ Chemicals LLC
• Maxill Inc.
• Barentz BV
• SAE International
• Exxon Mobil Corporation
• Vinmar International Ltd.
• Ethanol US LLC
• Aemetis Inc.
• Greenfield Global Inc.
• ECSA Chemicals SA
• Penta Manufacturing Company
• Sigma-Aldrich Co. LLC
• Spectrum Chemical Manufacturing Corp.
• Alfa Aesar
• Fisher Scientific International Inc.
What Is The Most Dominant Region In The Ethyl Alcohol Market?
Asia-Pacific was the largest region in the ethyl alcohol market in 2023. North America was the second-largest region in the global ethyl alcohol market. The regions covered in the ethyl alcohol market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa.
