The global industrial alcohols market is estimated to be valued at US$180.75 billion in 2023 and is expected to exhibit a CAGR of 10.2% over the forecast period 2023-2030, according to a new report published by Coherent Market Insights.
Industrial alcohols refer to a group of organic chemicals that are used in various industries such as pharmaceuticals, cosmetics, chemicals, and food and beverages. These alcohols are derived from sources such as sugar, grains, and corn. Industrial alcohols find extensive applications as solvents, antiseptics, fuels, and raw materials for the manufacturing of various products. The increasing demand for industrial alcohols from these diverse industries is driving the market growth. Moreover, the wide range of advantages offered by industrial alcohols, such as their low toxicity, high consistency, and ability to dissolve other substances, further fuels their demand in the market.
Market Key Trends:
One key trend in the industrial alcohols market is the growing utilization of bio-based industrial alcohols. With increasing environmental concerns and the need for sustainable solutions, there is a rising preference for bio-based products. Bio-based industrial alcohols are derived from renewable sources such as biomass, agricultural waste, and non-food crops. These alcohols are considered more environmentally friendly and have lower carbon footprints compared to their petroleum-based counterparts. Additionally, bio-based industrial alcohols are known to have superior properties such as higher purity and better biodegradability. The growing adoption of bio-based industrial alcohols is expected to positively impact the market growth in the coming years.
Threat of New Entrants: The industrial alcohols market is expected to face moderate threats from new entrants due to high capital requirements and stringent regulations. Additionally, existing players have established strong distribution networks and brand recognition, making it difficult for new entrants to penetrate the market.
Bargaining Power of Buyers: Buyers in the industrial alcohols market have moderate bargaining power. While there are several players in the market, the demand for industrial alcohols is high, giving buyers some leverage. However, the availability of substitutes and the critical nature of industrial alcohols in various industries limit their bargaining power.
Bargaining Power of Suppliers: Suppliers of raw materials for industrial alcohol production have high bargaining power. The production of industrial alcohols heavily relies on feedstocks such as sugarcane, corn, and molasses. Any fluctuations in the availability of these raw materials can significantly impact the market. Suppliers can also dictate prices, affecting the profitability of industrial alcohol producers.
Threat of New Substitutes: The threat of new substitutes in the industrial alcohols market is low. Industrial alcohols are widely used in industries such as pharmaceuticals, automotive, and cosmetics due to their versatile properties. While alternative chemicals can provide similar functions, industrial alcohols remain the preferred choice for many applications.
Competitive Rivalry: The industrial alcohols market is highly competitive, with several key players operating in the industry. These players compete on factors such as product quality, pricing, and distribution networks. The market is consolidated, with top players holding a significant market share. Intense competition among these players drives innovation and product development.
The Global Industrial Alcohols Market Demand is expected to witness high growth, exhibiting a CAGR of 10.2% over the forecast period of 2023-2030. This growth is primarily attributed to the increasing demand for industrial alcohols in various end-use industries such as pharmaceuticals, chemicals, and cosmetics. The versatile properties of industrial alcohols, including solvent and antiseptic properties, make them indispensable in these industries.
In terms of regional analysis, Asia Pacific is expected to emerge as the fastest-growing and dominating region in the industrial alcohols market. Rapid industrialization, increasing population, and the presence of key players in countries like China, India, and Japan contribute to the growth in this region. Additionally, the growing automotive and pharmaceutical sectors in Asia Pacific are driving the demand for industrial alcohols.
Key players operating in the industrial alcohols market include BASF SE, Birla Sugar, Cargill Incorporated, Cristalco, Flint Hills Resources, Green Plains Inc., Greenfield Specialty, MGP Ingredients Inc., Sigma Aldrich, and The Andersons Inc. These players focus on product innovation, strategic collaborations, and mergers and acquisitions to strengthen their market position. They also heavily invest in research and development for the development of new applications and product advancements.
Overall, the industrial alcohols market is poised for significant growth, driven by the increasing demand from various industries. The market is highly competitive, and key players are continuously striving to expand their market share through innovation and strategic partnerships. The Asia Pacific region is expected to witness the highest growth, driven by rapid industrialization and the presence of key players.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it