Industrial Alcohol Market Report 2026

The industrial alcohol market size has grown rapidly in recent years. It will grow from $195.78 billion in 2025 to $222.64 billion in 2026 at a compound annual growth rate (CAGR) of 13.7%. The growth in the historic period can be attributed to expansion of chemical manufacturing industries, increasing use of ethanol as industrial solvent, growth of pharmaceutical production capacities, rising demand from personal care manufacturing, availability of fermentation-based production.

The industrial alcohol market size is expected to see rapid growth in the next few years. It will grow to $369.01 billion in 2030 at a compound annual growth rate (CAGR) of 13.5%. The growth in the forecast period can be attributed to increasing adoption of renewable alcohol sources, rising demand for pharmaceutical-grade alcohols, expansion of biofuel blending programs, growing use in specialty chemical synthesis, increasing regulatory focus on sustainable chemicals. Major trends in the forecast period include increasing use of bio-based industrial alcohols, rising demand from pharmaceutical manufacturing, expansion of industrial solvent applications, growing adoption in sanitization and hygiene products, enhanced focus on purity and grade differentiation.

The growing demand from the pharmaceutical industry is expected to drive the growth of the industrial alcohol market in the coming years. The pharmaceutical sector involves the discovery, development, production, and distribution of medications. Industrial alcohol is used as a chemical intermediate in the manufacture of various pharmaceutical products and as a solvent to dissolve and extract active ingredients from plant materials and other sources. For example, in September 2024, according to the European Federation of Pharmaceutical Industries and Associations (EFPIA), a Belgium-based trade association, total pharmaceutical manufacturing output in Europe reached $452.18 billion (€390,000 million), up from $421.22 billion (€363,300 million) in 2022, reflecting growth of approximately 7.3%. Therefore, rising demand from the pharmaceutical industry is propelling the industrial alcohol market.

Key companies in the industrial alcohol market are focusing on expanding their project pipelines to maximize market revenues. Project pipeline expansion involves strategically increasing and diversifying the number of projects or initiatives an organization develops and manages over time. For instance, in February 2023, Axens SA, a US-based provider of solutions for converting oil and biomass into cleaner fuels, launched Jetanol, a new brand for its alcohol-to-jet technology. This process converts alcohol into jet fuel, with industrial alcohol serving as a primary feedstock. Five industrial-scale projects using this technology are currently in advanced engineering or early construction stages, with a combined capacity to produce over 1.4 million tons (460 million gallons) of sustainable aviation fuel (SAF) annually.

In September 2024, LanzaTech Global, Inc., a US-based carbon recycling company producing industrial alcohol, partnered with SEKISUI CHEMICAL CO., LTD to develop multiple commercial-scale facilities in Japan that convert municipal and industrial solid waste into ethanol. Through this collaboration, SEKISUI aims to deploy LanzaTech’s technology, equipment packages, engineering services, and intellectual property to produce sustainable ethanol, further strengthening its position in the industrial alcohol market. SEKISUI CHEMICAL CO., LTD is a Japan-based chemical company.

Major companies operating in the industrial alcohol market are Cargill Incorporated, Cristalco SAS, Raizen Energia SA, MGP Ingredients Inc., Green Plains Inc., Grain Millers Inc., The Andersons Inc., BIRLA SUGAR, Valero Energy Corporation, Flint Hills Resources, Roquette Freres SA, Jiangsu Lianhai Biological Technology Co. Ltd., Cosan S.A., Celanese Corporation, IG Petrochemicals, Aemetis Inc., Vantage Oleochemicals, Pannonia Bio, Godrej Industries Ltd., Balrampur Chini Mills Ltd., Praj Industries Ltd.

North America was the largest region in the industrial alcohol market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the industrial alcohol market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the industrial alcohol market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The industrial alcohol market consists of sales of tertiary butanol, haltanol and denatured ethanol. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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