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The ethyl alcohol market size is forecast to increase by USD 16.94 billion at a CAGR of 5.28% between 2023 and 2028. The Ethyl Alcohol Market is experiencing significant growth due to several key factors. Firstly, the high availability of feedstocks, such as corn, sugarcane, and wheat, ensures a consistent supply for ethanol production. Secondly, the volatility of crude oil prices has led to an increased interest in renewable and cost-effective alternatives, making ethanol a favorable choice. Lastly, the food processing industry's growing demand for ethanol as a solvent and preservative further fuels market expansion. These factors collectively contribute to the Ethyl Alcohol Market's robust growth and stability.
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The market encompasses a wide range of applications, including alcoholic beverages, alcohol-based hand sanitizers, fuel and fuel additives, and industrial solvents. In the alcoholic beverages sector, ethanol is a key ingredient in beer production. The grain-based and denatured alcohol segments dominate this market. Ethyl alcohol also plays a crucial role in the aviation industry as a fuel component, reducing carbon emissions and replacing fossil fuels. In the fuel and fuel additives segment, ethyl alcohol is used as a biofuel, such as bioethanol, methyl t-butyl ether, and synthetic fuels. Bioethanol, derived from renewable feedstocks, is a popular alternative to fossil fuels and natural gas. The Renewable Fuels Association advocates for the use of these renewable fuels to reduce carbon emissions and combat the coronavirus disease by killing bacteria.
Moreover, ethyl alcohol is used as an industrial solvent and fuel in the transportation sector. Its versatility and biodegradability make it a preferred choice over synthetic alternatives. Overall, the market is poised for growth due to its diverse applications and the increasing demand for renewable and sustainable fuels. Our researchers analyzed the market research and growth data with 2023 as the base year, along with the key market growth analysis, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage.
The key market driver for the market is the high availability of feedstock. One of the key factors driving growth in the market is the high availability of feedstock. Globally, there is a growing interest in alternative fuels on account of uncertainty in global fuel prices, energy security, and continuous rise in emission levels. The demand for fuels that reduce carbon emission levels is rising and the gradual depletion of fossil fuel reserves is increasing the demand for ethyl alcohol. The demand for ethyl alcohol in various applications, such as automotive, food and beverages, pharmaceutical, and personal care, is high in countries such as India, China, and Brazil because of the large availability of feedstock.
The key market trend for the market is a reduction in arable land. Rapid industrialization and urbanization have reduced arable land across the world. Inappropriate agricultural practices and deforestation have diminished the fertility of arable land. With an increase in the global population, the demand for food is expected to rise exponentially during the forecast period. An additional 34 million square kilometres of new arable land will be required to cater to this demand for food. By 2030, developing nations, including China, Brazil, and India, will require an additional 120 million hectares of land to fulfil the demand for food grains. Shrinkage in global arable land is expected to reduce the production of corn or maize across the world. Corn is one of the raw materials required to produce ethyl alcohol. Ethyl alcohol is produced by the fermentation of corn by using enzymes such as yeast. Thus, a reduction in arable land will decrease the global production of corn during the forecast period. This is likely to reduce the growth of the global market during the forecast period.
The key market challenge for the market for health hazards due to the consumption of ethyl alcohol. Ethyl alcohol is produced by the fermentation of corn using enzymes such as yeast. Corn is the major raw material used in the production of ethanol. According to the Food and Agricultural Organization (FAO), the total corn or maize production in India was estimated at around 30.2 million tons in 2020. In the same year, the total corn or maize production in China was estimated at around 260.5 million tons. Therefore, the higher availability of feedstock for the production of ethyl alcohol will drive the demand for ethyl alcohol during the forecast period.
The market share growth by the automotive segment will be significant during the forecast period. Rising vehicle production across the world will drive the demand for ethyl alcohol during the forecast period. India, China, Germany, South Korea, and Japan are among the leading producers of automobiles across the world. These countries have large manufacturing hubs for automotive vehicle production. The rising production of vehicles will increase the demand during the forecast period.
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The automotive segment accounted for USD 28.27 billion in 2018. Ethyl alcohol, also known as ethanol, is a vital component in various industries, including alcoholic beverages and alcohol-based hand sanitizers. The alcoholic beverages sector is a significant consumer of ethyl alcohol, with beer production being a major contributor. In contrast, the personal care industry utilizes ethyl alcohol as a disinfectant and solvent. The grain-based segment and denatured alcohol segment dominate the ethyl alcohol market. Grain-based ethanol is sourced primarily from sugar and molasses-based raw materials, while denatured ethanol is used as an industrial solvent and fuel.
North America is estimated to contribute 44% to the growth of the global market during the projection period. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the projection period.
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Market growth in this region will be faster than the growth of the market in Europe, the Middle East, and African regions. The strong demand for ethyl alcohol as a fuel additive in automotive, the growing pharmaceutical market, and the increasing demand for food additives in the region will facilitate the market growth in North America over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.
Companies are implementing various market growth and forecasting strategies by analyzing factors such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product or service launches, to enhance their presence in the market.
ALTO INGREDIENTS INC. - The company is publicly held and headquartered in the US. It is a global company generating USD 1,207.8 million in revenues and has around 417 employees. Its revenue from the global market contributes to its overall revenues along with its other offerings, but it is not a key revenue stream for the company. The company offers ethyl alcohol produced by the natural fermentation of corn which is a solvent used as an active pharmaceutical ingredient as well as a pharmaceutical excipient non-active ingredient.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
ALTO INGREDIENTS Inc., Archer Daniels Midland Co., BP Plc, Cargill Inc., CropEnergies AG, GranBio Investimentos SA, INEOS AG, JEPSON COMMODITIES, Jubilant Ingrevia Ltd., Kanoria Chemicals and Industries Ltd., LyondellBasell Industries N.V., Merck KGaA, Mitsubishi Chemical Group Corp., POET LLC, Sasol Ltd., The Andersons Inc., Thermo Fisher Scientific Inc., and Valero Energy Corp.
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
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The market encompasses a significant role in various industries, including the automotive sectors, where ethanol-blended fuels have gained precedence due to stringent regulations aimed at reducing petrol consumption and greenhouse gas emissions. Braskem and Poet Biorefining are key players in the ethanol production capacity in the Midwest, United States.
Ethanol is produced from grain-based sources such as corn, and its production process involves the fermentation of sugars derived from the grains. The resulting ethanol is undenatured and can be used as biofuels or in the production of food and drugs, such as distilled spirits, wine, and industrial chemicals like ethylene and acetaldehyde.
Fungi and viruses can pose challenges in ethanol production, as they can contaminate the raw materials and impact the fermentation process. Aventine Renewable Energy and other industry players employ advanced technologies to mitigate these risks and ensure the biobased nature of their ethanol products.
Ethanol is also used in the production of paints and coatings, further expanding its market reach. The Food and Drug Administration (FDA) regulates the use of ethanol in food and pharmaceutical applications, ensuring its safety and quality. Overall, the Ethyl Alcohol Market continues to grow, driven by the demand for renewable energy sources and the increasing regulations on petroleum-based fuels.
Ethyl Alcohol Market Scope |
|
Report Coverage |
Details |
Page number |
171 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.28% |
Market growth 2024-2028 |
USD 16.94 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.92 |
Regional analysis |
North America, South America, Europe, APAC, and Middle East and Africa |
Performing market contribution |
North America at 44% |
Key countries |
US, Brazil, Germany, Canada, and China |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ALTO INGREDIENTS Inc., Archer Daniels Midland Co., BP Plc, Cargill Inc., CropEnergies AG, GranBio Investimentos SA, INEOS AG, JEPSON COMMODITIES, Jubilant Ingrevia Ltd., Kanoria Chemicals and Industries Ltd., LyondellBasell Industries N.V., Merck KGaA, Mitsubishi Chemical Group Corp., POET LLC, Sasol Ltd., The Andersons Inc., Thermo Fisher Scientific Inc., and Valero Energy Corp. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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