Global Ethyl Alcohol Market - Segmented by Grade, Purity, Application, and Geography – Trends and Forecasts (2018 - 2023)
The ethyl alcohol market is estimated to witness a CAGR of approximately 5% during the forecast period (2018 - 2023). In terms of production, North America is projected to continue leading the market. The United States is expected to witness the highest growth during the forecast period, followed by South America. Ethyl alcohol, also called ethanol (CH3OH), is a very versatile chemical with applications in a wide variety of industries, such as automotive, medical, beverage, etc. The growth of the end-user industries and the increasing application of ethanol as a biofuel are likely to drive the ethyl alcohol market in coming years.
Rising demand for Ethanol as a Biofuel
With the increasing concerns related to the greenhouses gases (GHG) emission from fossil fuels, ethanol has emerged as a feasible alternative. Use of the corn-based ethanol can help to reduce GHG emissions from vehicles by 18% to 29% per mile traveled compared to the petroleum-based fuels. Additionally, ethanol is highly biodegradable in nature as it is made of organic materials. Any spills caused in case of ethanol, do not cause any major hazardous impact on the environment as 74% of ethanol breaks down within 5 days. Thus, such factors have increased the demand for ethanol as a biofuel, which is driving the ethanol market.
Fuel is the Major Market Application
Ethyl Alcohol is majorly consumed as a fuel. For the last several years, refiners add ethanol to fuel because it burns cleaner than pure gas which helps to reduce emissions. Additionally, the use of ethanol as a fuel helps to reduce the oil dependency. In the United States, more than 97% of the gasoline contains ethanol. E10, one of the most common blends, contains 90% gasoline and 10% ethanol in order to oxygenate fuel and reduce emission. Since 2001, the E15 blend, which contains 15% ethanol, has also been approved for use. Additionally, E85, known as flex fuel, is also used in flexible fuel vehicles which can operate on any blend of ethanol and gasoline up to 83%.
North America to Dominate the Market
North America is expected to dominate the market during the forecast period, followed by South America. Whereas, Asia-Pacific is expected to witness the highest market growth owing to the increasing demand from the beverage and automotive industries. In Asia-Pacific, the consumption of alcohol has seen a substantial increase in past few years owing to the changing culture in the region. The alcohol consumption has increased majorly in Western Pacific and South-East Asian countries. Moreover, the strong growth of the medical industry fuelled by the increasing investments in the sector, and the increasing fuel demand is projected to increase the demand for ethyl alcohol in the region during the forecast period.
June 2017: In California, Pacific Ethanol Inc. acquired Illinois Corn Processing, LLC (ICP) for USD 76 million, which includes USD 15 million in working capital. This added 90 million gallons in capacity adjacent to the company’s Pekin, IL plant. The acquired plant produces gin/vodka, ethanol, and proteins.
April 2017: Butamax Advanced Biofuels, a 50-50 joint venture (JV) between BP and DuPont, acquired Nesika Energy and its advanced ethanol facility in Scandia, Kansas, United States.
Major Players: Sigma-Aldrich Corporation, Cargill, Incorporated, Solvay Group, Braskem, and Archer-Daniels-Midland Company, among others.
Reasons to Purchase this Report
To understand the impact of increasing stringent regulations on the ethyl alcohol market
Analyzing various perspectives of the market with the help of Porter’s five forces analysis
To understand the dominating grade & application in the ethyl alcohol market
To identify the region and countries that are expected to witness the fastest growth during the forecast period
Identify the latest developments, market shares, and strategies employed by the major market players
3-month analyst support, along with the Market Estimate sheet (in Excel)
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