Major players in the ethyl alcohol market are Advanced Bioenergy LLC, Andersons Ethanol Group, Archer Daniels Midland Company, Aventine Renewable Energy, Braskem, British Petroleum, Cargill Corporation, Green Plains Inc., Kirin Holding Company and LyondellBasell Industries NV.
The global ethyl alcohol market is expected to grow from $457.43 billion in 2020 to $489.49 billion in 2021 at a compound annual growth rate (CAGR) of 7%. The growth is mainly due to the companies rearranging their operations and recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach $585.47 billion in 2025 at a CAGR of 5%.
The ethyl alcohol market consists of sales of ethyl alcohol and related services.Ethyl alcohol is used as a solvent in the synthesis of other organic chemicals, as an ingredient in alcoholic beverages like beer, wine or brandy, and as a gasoline additive in the automotive industry.
Ethyl alcohol also known as ethanol or grain alcohol is a volatile, flammable, colourless liquid industrially used as a chemical intermediate to make pharmaceutical ingredients or as a solvent.
Rising demand for ethanol in the food processing industry is contributing to the growth of the ethyl alcohol market.It is used as an intoxicating ingredient in manufacturing alcoholic and non-alcoholic beverages such as vodka and gin.
Additionally, ethyl alcohol is also used as a natural product in non-alcoholic beverages.Due to increased ready-to-eat, frozen and packaged foods, the food processing industry is growing significantly.
As a result, the demand from the food processing industry has also increased due to growing population through new births and migrations, which further increases the industry’s production and demand for ethanol.The demand for ethanol in the food processing industry will lead to the expansion of the global market for ethyl alcohol.
For example, in India, the ethanol market is expected to grow from $2.50 billion in 2018 to $7.38 billion by 2024, at a CAGR of 14.50% due to ethanol use in applications such as food and beverages. Rising demand for ethanol in food processing industry is expected to boost the demand for ethyl alcohol during the forecast period, driving the market.
The rise in awareness about ill effects of alcohol consumption is expected to limit the growth of the ethyl alcohol market.According to a study by World Health Organization (WHO), alcohol consumption is responsible for more than 200 diseases and injury conditions.
It possesses risks of health problems such as mental and behavioural disorders, diseases such as liver cirrhosis, cardiovascular diseases and injuries from road accidents.With rising awareness of effects of alcohol consumption on global health, the demand for information on consumption and its related harm and policies, has risen significantly.
For example, in 2020, according to the Journal of Studies, alcohol awareness in the Yukon increased to 42%, a 10% rise in awareness due to warning labels on alcohol bottles and drugs. This is bound to negatively impact the market.
The ethyl alcohol market covered in this report is segmented by end use industry into automotive, food and beverages, pharmaceutical, personal care, others. It is also segmented by feedstock type into coarse-grain based ethanol, sugarcane-based ethanol, wheat-based ethanol.
Companies are increasingly producing ethanol from corn and sugar in the ethyl alcohol market.Ethanol is produced from corn by dry milling process.
In this process, corn kernel is prepared into flour or mash, which is then mixed with water.It is purified through distillation and dehydration to create ethanol.
The rising demand for liquid fuels in the transportation industry, global rising demand for oil, and negative consequences of global warming have contributed to the increased use of corn-based sugar to produce ethanol, thereby reducing global warming gases.It can be used in many of today’s passenger cars and trucks as a substitute for burning gasoline.
The US Department of Agriculture (USDA) predicts that during the 2020-21 crop season, 5.2 billion hectares of corn will go to ethanol generation, up 250 million hectares compared to the approximate amount of corn which moved to ethanol processing during the 2019-20 crop season. Additionally, the U.S and Brazil produce 85% of the global ethanol from corn. Production of ethanol from corn helps in reducing greenhouse gases by 18% and production of ethanol from sugar helps in reducing greenhouse gases by 90%. Production of ethanol from corn and sugar offers several advantages such as reduced greenhouse gases and decreases the dependency of foreign oil.
In October 2019, The Andersons, Inc., a USA-based company specialized in agriculture, grain, rail, plant nutrients, and ethanol merged with Marathon Petroleum Corp. to form a new entity, The Andersons Marathon Holdings LLC. The merger is expected to enhance and broaden the ethyl alcohol facilities. The ethyl alcohol facilities in the merger include those in Albion, Mich, Clymers, Ind, and Greenville, Ohio. Marathon Petroleum Corp. is a USA-based petroleum refining company that specializes in refining, supplying, marketing, and transporting petroleum products.
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