Global Synthetic Organic Alcohol Market Size Likely to Surpass at a CAGR of 4.8% By 2033

As per the current market research conducted by the CMI Team, the global Synthetic Organic Alcohol Market size is expected to record a CAGR of 4.8% from 2024 to 2033. In 2024, the market size is projected to reach a valuation of USD 13,185.3 Million. By 2033, the valuation is anticipated to reach USD 20,106.7 Million.

Synthetic Organic Alcohol Market: Growth Factors and Dynamics

• Rising Demand for Biofuels: The shifting world energy supply to a less carbon-emitting industry is leading to a high uptake of synthetic ethanol and methanol as blends. These alcohols are outstanding in supporting renewable energy programs, which offer an environmentally friendly substitute for fossil fuels; and reduce substantially greenhouse gas emissions.

• Expanding Pharmaceutical Industry: Since the pharma industry is one of the growing industries in India the requirement of synthetic alcohols such as ethanol and isopropanol also escalates. These alcohols are used as solvents in the formulation of drugs, sterilization asymptomatic and as intermediates in the synthesis of active pharmaceutical ingredients (APIs) which plays vital role in the preparation of drugs.

• Industrial Solvent Applications: Isopropanol and butanol are some of the synthetic alcohols that are used as solvents in industries, including the automotive, construction and manufacturing industries. Due to their capability to dissolve oils, resins and other substances, solvents are essential in formulating paint, coatings, adhesives and other industrial commodities.

• Technological Advancements in Synthesis: New synthetic methods have emerged in the formation of alcohols which have enhanced efficiency in the catalytic conversion of feedstocks, besides the green technologies in chemistry used in the synthesis. These technologies reduce the cost of production, improve the quality of the final products and make it possible to depieced alcohols from more renewable raw materials.

• Regulatory Push for Sustainable Chemicals: There has been an improvement in the standards of environmental conduct in most nations and organizations which is forcing the chemical industry to seek ways of being environmentally friendly. This regulatory pressure is leading to more people using synthetic organic alcohols made from renewable carbon, which are thought to have less of an effect on the environment than alcohols made from petrochemicals.

• Growing Personal Care Industry: The consumer product segments, especially in personal care and cosmetics, are on the rise, thus increasing the market for synthetic alcohols. These alcohols act as emollients, preservatives, and solvents to improve the texture, shelf life, and efficacy of cosmetics such as skincare products, hair products, and hygiene items which are in high consumer demand.

• Increased Demand in the Food and Beverage Industry: It is for this reason that synthetic alcohols, especially ethanol, are commonly used in foods and other related products as preservatives, flavours and in the processing of foods. Processed and packaged food products have increasingly gained demand around the world and thus the need to adopt synthetic alcohols to meet the safety and quality standards.

Synthetic Organic Alcohol Market: Partnership and Acquisitions

• In 2023, BASF and Ningbo Refining and Chemical Co. Ltd (NZRCC) signed a technology license agreement for producing isononyl alcohol (INA) using BASF’s oxotechnology. NZRCC will build a 200,000-ton per year INA plant at ZRCC’s complex in Zhenhai, China, operational by 2026.

• In 2022, Aemetis signed an agreement with Alaska Airlines to supply 13 million gallons of Sustainable Aviation Fuel (SAF), comprising 40% SAF and 60% Petroleum Jet A. This blended fuel offers lower carbon emissions and reduced contrails, enhancing environmental benefits.

Report Scope

Synthetic Organic Alcohol Market: COVID-19 Analysis

The COVID-19 pandemic has significantly impacted the Synthetic Organic Alcohol Market, with the industry experiencing both positive and negative effects. Here are some of the key impacts:

• Disruption in Supply Chains: The COVID-19 pandemic severely disrupted global supply chains, leading to raw material shortages and delayed production of synthetic organic alcohols. Manufacturing facilities faced operational challenges due to lockdowns, workforce shortages, and transportation restrictions, resulting in reduced output and supply chain bottlenecks.

• Increased Demand for Sanitizers and Disinfectants: While many industries faced a downturn, the pandemic led to a surge in demand for synthetic alcohols, particularly ethanol and isopropanol, for use in sanitizers and disinfectants. However, this sudden spike in demand strained production capacities, causing temporary shortages and price fluctuations.

• Diversification of Supply Chains: Companies have started diversifying their supply chains to mitigate risks and reduce dependency on a single source or region. By establishing multiple supply routes and sourcing raw materials locally, the industry is better positioned to handle future disruptions and ensure a steady flow of production.

• Capacity Expansion: In response to increased demand during the pandemic, many manufacturers invested in expanding their production capacities. These expansions include building new facilities, upgrading existing plants, and enhancing automation, which collectively enables the market to meet current and future demands more effectively.

• Technological Innovations: The adoption of advanced technologies, such as AI-driven production processes and real-time supply chain monitoring, has accelerated post-pandemic recovery. These innovations improve operational efficiency, reduce costs, and enhance the ability to respond to fluctuations in demand, contributing to market stabilization and growth.

• Strategic Partnerships and Mergers: Companies have engaged in strategic partnerships, mergers, and acquisitions to strengthen their market position and expand their product offerings. These collaborations help in pooling resources, sharing technological expertise, and gaining access to new markets, facilitating a faster recovery and future growth.

• Focus on Sustainability: The pandemic underscored the importance of sustainable practices, leading to a stronger emphasis on producing synthetic organic alcohols from renewable resources. This shift aligns with global sustainability goals and caters to the increasing consumer preference for eco-friendly products, helping the market recover by tapping into new, environmentally-conscious customer segments.

In conclusion, the COVID-19 pandemic has had a mixed impact on the Synthetic Organic Alcohol Market, with some challenges and opportunities arising from the pandemic in the market.

List of the prominent players in the Synthetic Organic Alcohol Market:

• BASF SE
• Sasol Limited
• The Dow Chemical Company
• Eastman Chemical Company
• LyondellBasell Industries N.V.
• ExxonMobil Chemical Company
• Celanese Corporation
• INEOS Group Holdings S.A.
• Mitsubishi Chemical Corporation
• Shell Chemicals Limited
• Chevron Phillips Chemical Company LLC
• SABIC (Saudi Basic Industries Corporation)
• LG Chem Ltd.
• Clariant AG
• DuPont de Nemours Inc.
• Others

The Synthetic Organic Alcohol Market is segmented as follows:

By Types of Alcohols

• Methanol
• Ethanol
• Isopropanol
• Butanol
• Others

By Application

• Solvents
• Disinfectants
• Antifreeze
• Fuel Additives
• Others

By End Users

• Pharmaceuticals
• Cosmetics
• Automotive
• Others

Regional Coverage:

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Russia
• Italy
• Spain
• Netherlands
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Taiwan
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America