Industrial Alcohols Market  Advancements: Elevating Manufacter

Industrial alcohol is a clear, colorless, flammable liquid which is primarily used as a raw material in various chemical processes and as a solvent in the pharmaceutical industry. It finds wide applications as a solvent, fuel, and chemical intermediate. Being cost-effective and easily available, industrial alcohol has emerged as an important feedstock in chemical and pharmaceutical industries. The Industrial Alcohol Market is estimated to be valued at US$ 180.75 Billion in 2023 and is expected to exhibit a CAGR of 10% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights. Market key trends: Increasing application of industrial alcohol in the chemical industry is the key trend fueling the market growth. Industrial alcohol is extensively used as a raw material in the manufacturing of chemical intermediates such as methyl methacrylate, acetic acid, ethyl acetate, and formaldehyde which find application in polymers, plastics, paints and coatings industries. These chemicals are experiencing high demand owing to rapid growth of end-use industries across the globe. Apart from this, rising usage of industrial alcohol as a cleaning agent and disinfectant spurred by COVID-19 outbreak is also driving its demand significantly. Furthermore, growing need for biofuels along with expanding pharmaceutical industry are some of the important factors expected to propel the industrial alcohol market over the forecast period. Porter’s Analysis Threat of new entrants: New entrants face high threat as the industrial alcohol market is dominated by few well established players. Start up players require huge capital investment and technical expertise to build production capacity and compete with existing players. Bargaining power of buyers: Buyers have moderate bargaining power due to availability of product substitutes. Buyers can negotiate on price depending on order quantity. Bargaining power of suppliers: Supply side factors remain balanced as raw material suppliers rely on consistent demand from mature industrial alcohol buyers. Threat of new substitutes: Threat from substitutes is moderate as product demand depends on food & beverages, pharmaceutical and chemical applications that have limited substitutes. Competitive rivalry: Intense rivalry exists among existing players to protect and expand market share through product innovation and price strategies. SWOT Analysis Strength: Vast application scope in food & beverages, pharmaceuticals and industrial use. Growing acceptance of bio-based industrial alcohol due to sustainability factor. Weakness: Vulnerable to fluctuations in raw material prices. High capital requirement for production facilities and R&D activities. Opportunity: Rising health awareness boosting demand for pharmaceutical grade industrial alcohol. Favorable policies supporting biofuel production from industrial alcohol. Threats: Stringent regulations pertaining to production and usage. Threat from emerging sustainable bio-based product substitutes. Key Takeaways The global industrial alcohol market is expected to witness high growth, exhibiting CAGR of 10% over the forecast period, due to increasing demand for bio-based industrial alcohol from end use industries. North America dominate current demand backed by strong production of fuel grade ethanol in the US. Asia Pacific is fastest growing market with countries like China and India ramping up industrial alcohol capacities. Regional analysis: North America holds the major share of over 35% in global industrial alcohol market due to large scale production of fuel grade ethanol in US. Asia Pacific is fastest growing region with China and India expanding their production capacities backed by supportive government policies promoting biofuel usage. Key players operating in the industrial alcohol market are 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 are focusing on capacity expansion through mergers, acquisitions and greenfield projects to leverage opportunities in emerging economies.