The ethyl alcohol market consists of sales of ethyl alcohol and related services. Ethyl alcohol is used as a solvent in the synthesis of other organic chemicals, as an ingredient in alcoholic beverages like beer, wine, or brandy, and as a gasoline additive in the automotive industry. Ethyl alcohol is also known as ethanol or grain alcohol is a volatile, flammable, colorless liquid industrially used as a chemical intermediate to make pharmaceutical ingredients or as a solvent.
The main types of ethyl alcohol are synthetic and fermented. Ethyl alcohol fermentation is defined as the chemical process in which the yeast transforms glucose and fructose in a solution to ethanol, carn dioxide, and heat. The various applications of ethyl alcohol include industrial solvent, fuel/fuel additive, bacteriacide/disinfectant, beverages, personal care, and other applications. The major end-use industries of ethyl alcohol are automotive, food and beverages, pharmaceutical, personal care, and other end users.
The global ethyl alcohol market size is expected to grow from $486.53 billion in 2021 to $518.84 billion in 2022 at a compound annual growth rate (CAGR) of 6.6%. The global ethyl alcohol market size is expected to grow to $649.33 billion in 2026 at a CAGR of 5.8%.
Rising demand for ethanol in the food processing industry is contributing to the growth of the ethyl alcohol market. It is used as an intoxicating ingredient in manufacturing alcoholic and non-alcoholic beverages such as vodka and gin. Additionally, ethyl alcohol is also used as a natural product in non-alcoholic beverages. Due to increased ready-to-eat, frozen, and packaged foods, the food processing industry is growing significantly. As a result, the demand from the food processing industry has also increased due to the growing population through new births and migrations, which further increases the industry's production and demand for ethanol. The demand for ethanol in the food processing industry will lead to the expansion of the global market for ethyl alcohol. For example, in India, the ethanol market is expected to grow to $7.38 billion by 2024, at a CAGR of 14.50% due to ethanol use in applications such as food and beverages. Rising demand for ethanol in the food processing industry is expected to boost the demand for ethyl alcohol during the forecast period, driving the market.
The rise in awareness about the ill effects of alcohol consumption is expected to limit the growth of the ethyl alcohol market. According to a study by World Health Organization (WHO), alcohol consumption is responsible for more than 200 diseases and injury conditions. It possesses risks of health problems such as mental and behavioral disorders, diseases such as liver cirrhosis, cardiovascular diseases, and injuries from road accidents. With rising awareness of the effects of alcohol consumption on global health, the demand for information on consumption and its related harm and policies has risen significantly. For example, in 2020, according to the Journal of Studies, alcohol awareness in the Yukon increased to 42%, a 10% rise in awareness due to warning labels on alcohol bottles and drugs. This is bound to negatively impact the market.
Companies are increasingly producing ethanol from corn and sugar in the ethyl alcohol market. Ethanol is produced from corn by the dry milling process. In this process, corn kernel is prepared into flour or mash, which is then mixed with water. It is purified through distillation and dehydration to create ethanol. The rising demand for liquid fuels in the transportation industry, global rising demand for oil, and negative consequences of global warming have contributed to the increased use of corn-based sugar to produce ethanol, thereby reducing global warming gases. It can be used in many of today's passenger cars and trucks as a substitute for burning gasoline. The US Department of Agriculture (USDA) predicts that during the 2020-21 crop season, 5.2 billion hectares of corn will go to ethanol generation, up 250 million hectares compared to the approximate amount of corn that moved to ethanol processing during 2019-20 crop season. Additionally, the U.S and Brazil produce 85% of the global ethanol from corn. Production of ethanol from corn helps in reducing greenhouse gases by 18% and production of ethanol from sugar helps in reducing greenhouse gases by 90%. Production of ethanol from corn and sugar offers several advantages such as reduced greenhouse gases and decreases dependency on foreign oil.
In October 2019, The Andersons, Inc., a USA-based company specializing in agriculture, grain, rail, plant nutrients, and ethanol merged with Marathon Petroleum Corp. to form a new entity, The Andersons Marathon Holdings LLC. The merger is expected to enhance and broaden the ethyl alcohol facilities. The ethyl alcohol facilities in the merger include those in Albion, Mich, Clymers, Ind, and Greenville, Ohio. Marathon Petroleum Corp. is a USA-based petroleum refining company that specializes in refining, supplying, marketing, and transporting petroleum products.
Major players in the ethyl alcohol market are Advanced Bioenergy LLC, Andersons Ethanol Group, Archer Daniels Midland Company, Aventine Renewable Energy, Braskem, British Petroleum, Cargill Corporation, Green Plains Inc., Kirin Holding Company, and LyondellBasell Industries NV.
Asia Pacific was the largest region in the ethyl alcohol market in 2021. North America was the second largest market in the 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.
The countries covered in the ethyl alcohol market are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, the UK, and the USA.
The global ethyl alcohol market is segmented -
1) By Type: Synthetic, Fermented
2) By Application: Industrial Solvent, Fuel/Fuel Additive, Bacteriacide/Disinfectant, Beverages, Personal Care, Others
3) By End-User Industry: Automotive, Food and Beverages, Pharmaceutical, Personal Care, Others