Alcohol Market - Snapshot

Alcohol refers to the ingredient that is found in spirits, wine, and beer and its absorption leads to drunkenness. Alcohol is produced as a result of fermentation of sugars in various food done by yeasts. For instance, wine is produced from sugar found in grapes, cider is extracted out of the sugar found in apples, beer made from the sugar founded in malted barley and vodka from the sugar found in beets and potatoes.

Alcohol is classified as a ‘sedative hypnotic’ drug. It means that alcohol acts to slow down the central nervous system (CVS) at substantially high doses. At lower doses of alcohol, it induces feelings of talkativeness and euphoria and it acts like a stimulant. However, drinking of too much of alcohol at one go often leads to respiratory problems, drowsiness, or even death.

Use of Ethanol as a Fuel Bolsters its Demand in the Market

Some of the uses of alcohol are mentioned as below

  • Used as a fuel
  • Used as an ingredient in various alcoholic beverages such as beer and wine
  • Used as a solvent
  • Used to produce methylated spirit (meth)

Two of the best-known alcohols are methanol or methyl alcohol and ethanol. Ethanol is considered one of the most popular type of alcohol in the world. The burgeoning demand for ethanol has exceeded 100 billion liters, out of which over 80% of the total ethanol are utilized as fuel. Ethanol is regarded as a renewable source of fuel. It is also considered as a potential replacement for gasoline. The wide acceptance of ethanol as a fuel acts a stimulant for the increased demand for ethanol, which is likely to drive the global alcohol market. The demand for ethanol fuel is especially high in countries like Brazil, Europe, and the US. The global alcohol market is expected that pick up in pace in Asia Pacific also.

Ethanol also finds use in many applications such as cosmetics, alcoholic beverages, pharmaceuticals, and in various industrial applications, which is likely to support growth of the global alcohol market in the years to come.

Compounds having at least one hydroxyl (-OH) group attached to a single bonded alkane is referred to as alcohol. There are numerous types of alcohol being used in varied applications across industries. Some of the popular types of alcohol are ethanol, methanol, butanol, pentanol, ethylene glycol, sorbitol and xylitol among many others. The market for alcohol is vast and it is used in many applications, the most common being in alcoholic beverages, as solvents, fuel, preservatives, antifreeze and antiseptics. Alcohol can be produced by a variety of methods including oxo processes, hydration reactions and through biological fermentation.

Ethanol is one of the most used alcohol type in the world. The global demand for ethanol exceeds 100 billion liters of which more than 80% are used as fuel. Ethanol is considered as renewable fuel and a potential substitute for gasoline. The wide acceptance of ethanol fuel is the driver for this market. The demand for ethanol as fuel is particularly high in the U.S, Europe and Brazil. The demand is expected to pick up in Asia Pacific as well. Ethanol is also used in alcoholic beverages, in pharmaceuticals, cosmetics and other industrial applications. Ethanol is used as an antiseptic to disinfect the skin before injections and other invasive procedures. It is also commonly used as soaps and hand sanitizers due to its volatile nature.
 
Methanol is another important type of alcohol, which has witnessed extraordinary demand growth from several sectors. It is commonly used as an intermediate to produce formaldehyde used in automotive, pharmaceutical, resins and wood industry. It is also the intermediate chemical for other chemicals such as methyl methacrylate, methyl chloride, dimethyl terepthalate, and acetic acid among others. Methyl methacrylate is used to manufacture LED and LCD of electronic devices and as cement in total hip replacements and total knee replacements. Methyl chloride is primarily used to manufacture silicone which is used widely to produce adhesives, sealants, lubricants and in certain medical applications. Dimethyl terephthalate is used to manufacture recyclable plastic bottles and acetic acid is used in a wide array of industries such as paints and coatings, adhesives and fleece. The methanol market is driven by the expanding horizons of its application and high growth in the end use industries. Most of the other alcohols are used in different industries as feed stocks. Ethylene glycol finds application as antifreeze in low temperature regions and applications.
 
The overall alcohol market is expected to grow at a fast pace, due to its application in so many industries in different forms. The main opportunity lies with ethanol due to its application as automotive fuel which is expected to grow exponentially with growing automotive industry. Alcoholic drinks are another favorable market for ethanol, as it is the main psychoactive constituent in the beverages. The global alcoholic beverage demand has increased substantially over the past few years and is expected to rise especially in Asia Pacific region.
 
North America is the largest producer of alcohol, followed by South America, Europe and Asia Pacific. The U.S. and Brazil are the largest producers of ethanol, which constitute the bulk of alcohol demand. Asia Pacific region however is growing rapidly both in terms of demand and production.
 
Some of the key players operating in the alcohol market are Methanex Corporation, Aventine Renewable Energy-Pekin, Absolute Energy LLC, and Glacial Lakes Energy LLC among many others.

This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers' or customers' journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.

Our key underpinning is the 4-Quadrant Framework EIRS that offers detailed visualization of four elements:

  • Customer Experience Maps
  • Insights and Tools based on data-driven research
  • Actionable Results to meet all the business priorities
  • Strategic Frameworks to boost the growth journey

The study strives to evaluate the current and future growth prospects, untapped avenues, factors shaping their revenue potential, and demand and consumption patterns in the global market by breaking it into region-wise assessment.

The following regional segments are covered comprehensively:

  • North America
  • Asia Pacific
  • Europe
  • Latin America
  • The Middle East and Africa

The EIRS quadrant framework in the report sums up our wide spectrum of data-driven research and advisory for CXOs to help them make better decisions for their businesses and stay as leaders.

Below is a snapshot of these quadrants.

1. Customer Experience Map

The study offers an in-depth assessment of various customers’ journeys pertinent to the market and its segments. It offers various customer impressions about the products and service use. The analysis takes a closer look at their pain points and fears across various customer touchpoints. The consultation and business intelligence solutions will help interested stakeholders, including CXOs, define customer experience maps tailored to their needs. This will help them aim at boosting customer engagement with their brands.

2. Insights and Tools

The various insights in the study are based on elaborate cycles of primary and secondary research the analysts engage with during the course of research. The analysts and expert advisors at TMR adopt industry-wide, quantitative customer insights tools and market projection methodologies to arrive at results, which makes them reliable. The study not just offers estimations and projections, but also an uncluttered evaluation of these figures on the market dynamics. These insights merge data-driven research framework with qualitative consultations for business owners, CXOs, policy makers, and investors. The insights will also help their customers overcome their fears.

3. Actionable Results

The findings presented in this study by TMR are an indispensable guide for meeting all business priorities, including mission-critical ones. The results when implemented have shown tangible benefits to business stakeholders and industry entities to boost their performance. The results are tailored to fit the individual strategic framework. The study also illustrates some of the recent case studies on solving various problems by companies they faced in their consolidation journey.

4. Strategic Frameworks

The study equips businesses and anyone interested in the market to frame broad strategic frameworks. This has become more important than ever, given the current uncertainty due to COVID-19. The study deliberates on consultations to overcome various such past disruptions and foresees new ones to boost the preparedness. The frameworks help businesses plan their strategic alignments for recovery from such disruptive trends. Further, analysts at TMR helps you break down the complex scenario and bring resiliency in uncertain times.

The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:

1. What can be the best investment choices for venturing into new product and service lines?

2. What value propositions should businesses aim at while making new research and development funding?

3. Which regulations will be most helpful for stakeholders to boost their supply chain network?

4. Which regions might see the demand maturing in certain segments in near future?

5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?

6. Which are the key perspectives that the C-suite are leveraging to move businesses to new growth trajectory?

7. Which government regulations might challenge the status of key regional markets?

8. How will the emerging political and economic scenario affect opportunities in key growth areas?

9. What are some of the value-grab opportunities in various segments?

10. What will be the barrier to entry for new players in the market?

Note: Although care has been taken to maintain the highest levels of accuracy in TMR’s reports, recent market/vendor-specific changes may take time to reflect in the analysis.

Custom Market Research Services

TMR offers custom market research services that help clients to get information on their business scenario required where syndicated solutions are not enough.

REQUEST CUSTOMIZATION

Alcohol Market

Pre Book