The industrial alcohol market is estimated to reach USD 93.3 billion in 2020 and is projected to account for USD 112.0billion by 2025, recording a CAGR of 3.7% during the forecast period. There is a rising demand for fuel grade ethyl alcohol which is used as a blend in transportation fuels. The North American region dominates in grain and corn production used for ethyl alcohol manufacturing. The Asia pacific region is projected to grow at the highest growth rate.
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Based on application, chemical intermediates & solvents segment is estimated to account for the largest share in the industrial alcohol market in 2019. This application of industrial alcohol segment accounts for the largest share in the industrial alcohol market. Benzyl alcohol and isopropyl alcohol are majorly used as solvents. Approximately 46% of isopropyl alcohol produced is used in industrial solvent applications, whereas around 28% of benzyl alcohol is used as solvents. Apart from use as an industrial solvent, alcohol is also used in the manufacturing of chemical intermediaries and fertilizers.
Based on type, the cereals & grains segment is estimated to account for the largest share in the industrial alcohol market in 2019. Ethyl alcohol is used in a wide variety of industries due to which it is used in food grade as well as fuel grades.Pure ethyl alcohol is used for its sanitizing, cleaning, and solvent properties. Many medicines, food products, flavorings, and cosmetics could not be produced without it. It is used to process vaccines, compound tonics, syrups, tinctures, liniments, and antiseptics as well as being vital in the manufacture of pharmaceuticals such as chloroform, atabrine, and barbiturates. It is used in the production of adhesives, cosmetics, detergents, explosives, inks, hand cream, plastics, and textiles.
Based on source, fossil fuel segment is estimated to account for the largest share in the industrial alcohol market in 2019. The need to reduce dependence on fossil oil as a direct source of fuel is the major driving force for the methanol market. Methanol is used for spreading gasoline supplies in many gasoline markets around the world. Industrial alcohols extracted from the petroleum or synthetic ethyl alcohol can be manufactured easily through the hydrolysis of ethylene, which is a major petrochemical. Alcohol is synthesized from petroleum by creating ethylene, and then hydrating to form ethanol. Both synthetic and fermented alcohol meant to be used for non-drinking purposes are purposely denatured to avoid liquor tax.