NEW YORK, Jan. 17, 2023 (GLOBE NEWSWIRE) -- The following key points are highlighted by IndexBox's recent report on the global ethanol market.
Ethyl Alcohol Market Forecast
The global ethanol market was valued at $84B in 2022 and is projected to reach $107B by 2030, growing at a CAGR of 3.0% during the period under review. The major drivers of growth for this market are expected to be the increasing demand for biofuels and antiseptics, rising consumption of alcoholic beverages, and expanding applications in the chemicals industry.
Ethanol Applications
Ethyl alcohol, also known as ethanol, is a clear, colorless, flammable liquid with a characteristic odor. It is miscible with water and has a slightly bitter taste.
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The global ethyl alcohol market can be segmented based on type, application, production process, and geography. On the basis of type, it can be classified into Anhydrous ethanol (AE), Hydrous ethanol (HE), and Denatured ethanol (DE). The industrial use of ethanol is widespread, with the majority of demand coming from the Asia-Pacific region.
Ethanol is widely used as a fuel in internal combustion engines. The demand for biofuels is being driven by the need to reduce greenhouse gas emissions and the reliance on fossil fuels. Ethanol is one of the most popular biofuels due to its high energy density and low emissions. It is also a renewable resource that can be produced from plant materials such as corn, sugarcane, and wheat.
It is also used as a solvent in many industries such as paints & coatings, pharmaceuticals, cosmetics, and cleaning agents. The rising concerns about hygiene is another factor, driving the growth of the ethyl alcohol market.
Food & beverage industry is also one of the major consumers of ethyl alcohol. Ethyl alcohol is used as a food additive and preservative in this industry. It is also used as an ingredient in alcoholic beverages, the consumption of which has been growing steadily around the world. This is especially true in developing countries where incomes are rising and there is an increasing number of middle-class consumers. The growth in the alcohol market is expected to lead to increased demand for ethyl alcohol as a raw material for spirits production.
Cosmetics & personal care industry is another significant consumer of ethyl alcohol. Ethyl alcohol is used as an active ingredient in many skincare and haircare products such as lotions, creams, toners, etc.
However, the availability of substitutes such as methanol and butanol is expected to restrain the growth of this market in the coming years.
Ethyl Alcohol Market Challenges
The ethyl alcohol market is facing a number of challenges. Firstly, the high cost of production is making it difficult for manufacturers to compete with established players in the market. Secondly, the volatile nature of raw materials prices is negatively impacting margins. Thirdly, government regulations around the world are becoming stricter, which is limiting the growth potential of the market.
Bioethanol production
Bioethanol production is the process of converting biomass into fuel. The most common method of bioethanol production is by fermentation, which uses enzymes to convert carbohydrates into alcohols.
There are two main types of bioethanol: first-generation and second-generation. First-generation bioethanol is made from food crops such as corn, wheat, and sugarcane. Second-generation bioethanol is made from non-food crops such as wood, grasses, and agricultural waste. Sugar cane is the major source for the production of ethyl alcohol, while corn is the second-largest source.
The United States is the largest producer of bioethanol, followed by Brazil and China. Brazil is the largest producer of sugarcane in the world. The country has nearly 40% share in the global sugar cane output. The United States is the leading producer of corn in the world with a production share of more than 30%.
Logistic tensions
Logistic tensions have been mounting in the US ethyl alcohol market since early 2020 as the COVID-19 pandemic led to widespread panic buying and hoarding of hand sanitizer and other cleaning products containing alcohol. This surge in demand caused a spike in prices for ethanol, the main component of ethyl alcohol, and created a shortage of the product. As a result, many manufacturers of hand sanitizer and other alcohol-based products were forced to ration their supplies or switch to less effective alternative ingredients.
About IndexBox
IndexBox is a market research firm developing an AI-driven market intelligence platform that helps business analysts find actionable insights and make data-driven decisions. The platform provides data on consumption, production, trade, and prices for more than 10K+ different products across 200 countries.
Companies Mentioned in the Report
Archer Daniels Midland Company, Cargill Incorporated, Corn Products International Inc., The Andersons Inc.
Sources
World – Ethyl Alcohol - Market Analysis, Forecast, Size, Trends and Insights
EU - Ethyl Alcohol - Market Analysis, Forecast, Size, Trends and Insights
Asia - Ethyl Alcohol - Market Analysis, Forecast, Size, Trends and Insights
U.S. - Ethyl Alcohol - Market Analysis, Forecast, Size, Trends and Insights
