Global Synthetic Organic Alcohol Market 2024–2033

Reports Description

As per the current market research conducted by the CMI Team, the global Synthetic Organic Alcohol Market is expected to record a CAGR of 4.78% from 2024 to 2033. In 2024, the market size is projected to reach a valuation of USD 13,184.8 Million. By 2033, the valuation is anticipated to reach USD 20,071.47 Million.

Synthetic organic alcohols are needed in many synthetic chemical processes, most commonly as ingredients for paints, binders, and other specialty chemicals. The market is also evolving in response to the demand for high-grade products, especially in industries such as their applications in electronics and pharmaceuticals, where quality is paramount.

A predominant trend influencing the market is the growing tendency to adopt greener ways of production. Given the heightened focus on sustainable considerations and ever more burdensome regulations, producers are shifting to environmentally friendly approaches to production, such as the implementation of biological raw materials and renewable power.

This realignment is due to the current increase in the supply of green goods and sustainable green practices. In addition, mastering such technologies to increase production rates and lessen synthetic organic alcohols’ harmful impact on the air is also under consideration in the area.

Furthermore, the increasing emphasis on marketable compliance with the regulations, particularly in the food, cosmetics, and healthcare sectors, has also brought innovative solutions to the marketplace. New products envisage a synthesis of alcohols that respond to high regulatory quality and safety levels, and new markets in biofuels and bioplastics are also considered, thus increasing market growth.

Synthetic Organic Alcohol Market – Significant Growth Factors                               

The Synthetic Organic Alcohol Market presents significant growth opportunities due to several factors:

• Increased Demand in Pharmaceuticals and Cosmetics: The pharmaceutical and personal care sectors make extensive use of synthetic organic alcohols for solvents and preservatives as well as active ingredients. There is a rise in demand for high-purity products across the globe, and due to an increase in healthcare spending, there is a rise in the growth of this market spectacle. Moreover, the cosmetics sector is also availing synthetic alcohols due to consumers’ increased demand for skin care and hygiene products.

• Rising Focus Towards Sustainable and Green Manufacturing: There is an inherent drive on the part of purchasers and producers to be eco-friendlier. Therefore, producers have been forced to alter their traditional techniques to utilize more green techniques such as using green materials and energy sourcing from bio-based renewable sources. There is little doubt that this trend is becoming one of the most critical growth factors as corporations try to contain their emissions and comply with legal requirements.

• Expansion of the Food and Beverage Sector: Synthetic organic alcohols are incorporated in preservatives, flavourings, and food additives. The growing food and beverages sector, attributed to a rising population, changing consumer diets, and growing popularity of fast foods, is adding to the ever increasing consumption of synthetic alcohols.

• Emerging Electronics Industry: Synthetic alcohols are used as a cleaning agent or a solvent during the production of semiconductors and other parts. These alcohols are increasingly in demand as the electronics and semiconductor industries expand due to the rising need for consumer electronics and smart devices.

• Improvements in Synthesis of Alcohols: New developments in synthetic alcohols and their production methods provide more cost-effectiveness in producing synthetic organic alcohols. These developments are broadening the potential uses in various industries, such as automotive, adhesives, and coatings, boosting market growth.

Synthetic Organic Alcohol Market – Key Developments

In recent years, the Synthetic Organic Alcohol Market has experienced several crucial changes as the players in the market strive to grow their geographical footprint and improve their product line and profits by using synergies. Some examples of the strategic developments in the Synthetic Organic Alcohol Market are:

• In 2023, Ningbo Refining and Chemical Co. Ltd. (NZRCC) and BASF signed a technology license agreement for the production of isononyl alcohol by using the oxo-technology of BASF. The NZRCC construct a 200,000-ton per year INA facility at ZRCC’s complex in Zhenhai, China, which will be started by 2026.

• In 2022, Aemetis agreed with Alaska Airlines to provide 13 million gallons of Sustainable Aviation Fuel (SAF), a blend of 40% SAF and 60% Petroleum Jet A. This blended fuel offers environmental benefits by reducing contrails and reducing carbon emissions.

These critical changes facilitated the companies to widen their portfolios, bolster their competitiveness, and exploit the possibilities for growth in the Synthetic Organic Alcohol Market. This phenomenon will likely persist since most companies struggle to outperform their market rivals.

COMPARATIVE ANALYSIS OF THE RELATED MARKET

Synthetic Organic Alcohol Market – Significant Threats

The Synthetic Organic Alcohol Market faces several significant threats that could impact its growth and profitability in the future. Some of these threats include:

• High Production Costs: The production of synthetic organic alcohols, specifically through environmentally friendly or biosynthetic techniques, is expensive due to the high cost of raw materials and energy requirements. All such escalated costs tend to restrict market growth, particularly the sectors that are sensitive to pricing, making it difficult to sway clients from the most affordable yet practical solutions.

• Safety Regulations: There are a lot of industries, for instance, pharmaceutical, cosmetic, food, and beverages, which cannot avoid synthetic organic alcohols due to the popular capacity of these solvents, yet the industries are faced with legal restrictions in their usage. Safety and environmental concerns are two of the significant issues in obtaining regulatory approval for the use of such products, and this results in high compliance costs, thereby discouraging entry into the market.

• Threat Of New Substitutes: There is concern over the availability of natural and cheaper options like organic alcohol. For example, one of the resources that can be used for alcohol production is renewable ethanol, which is used for almost similar purposes, thus competing against synthetic alcohols, which are always considered where sustainability is key.

• Volatility in Raw Material Prices: Changes in the cost of raw materials for making synthetic organic alcohols, such as petrochemicals, change the profit level. Changes in oil prices and issues with the supply chain may result in changes to the production cost, affecting the whole market.

• Environmental Concerns with Traditional Production: Production of synthetically organic alcohols using conventional methods relies on petrochemical raw materials, causing high power usage and massive emissions. With the public and authorities increasingly seeking better ways that do not harm the environment, such companies based on tradition will find it hard to keep up with the fast-changing environment, making it hard for the market to grow.

Category-Wise Insights

By Type of Alcohol

• Methanol: In the present scenario, methanol is a synthetic organic alcohol that tends to be used differently and is of great significance in industries. This chemical is mainly obtained from petrochemicals, coal, or biomass. Methanol is an essential raw material in producing medicines, formaldehyde, and man-made fibers. It is considered a fuel or an additive for fuel owing to its high energy and clean burning properties. Methanol is extensively used as a solvent, antifreeze, and in making plastics. As industries adopt carbon-neutral technologies, methanol is a hydrogen-based energy carrier with considerable hydrogen energy release that can also be produced through biofuels and hydrogen as a methanol building block.
• Ethanol: Ethanol is another definition for organic synthetic alcohol, which is perhaps the most useful and most widely employed of the three. The alcohol can be made by an alcoholic fermentation of sugar, which is present in fruits and manufactured by providing ethylene to water. Ethanol is also used as a solvent and a disinfectant added to fuel. In the beverage industry, it is mainly used in making alcoholic beverages, while most hand sanitizers and antiseptics contain it in the medical field. Using fossil fuels is becoming increasingly complex, and healthier alternatives like chemicals and biofuels, such as bioethanol, are gaining popularity.

• Isopropanol: Also called isopropyl alcohol, isopropanol can be defined as a synthetic organic alcohol that is among the most widely used in many industries. The hydration process of propene, which involves mixing of water and propene is used a lot to make most of isopropanol. Isopropanol is said to be the most preferred alcohol due to its solubility and cleaning attributes, which are its most highly marketed properties. These properties, as well as drying fast and cleaning oils and dirt, made it familiar in hospitals for sterilizing and disinfecting surfaces and medical equipment.

• Butanol: Another synthetic organic alcohol with a high degree of solvency, and in various industries, plastic butanol is easy to use. This can come from petrochemicals or biomasses such as corn and sugarcane through fermentation. The most significant portion of butanol-consume is used industrially as a solvent in combination with paint, coating, varnish, or adhesive because butanol has low volatility and excellent solubility. Butanol also finds a place in the production of fabrics and drug formulations.

• Others: Methanol, ethanol, isopropanol, and butanol are some of the more common alcohols used, and numerous other synthetic organic alcohols exist too and find their use in certain specific industries. Pentyl, hexyl, and octyl alcohols come under this category, and they exist mainly as solvents, chemical reaction intermediates, within plasticizers and scents, and cosmetics. For instance, benzalkonium chloride is a common pharmaceutical and cosmetic ingredient that works as a solvent and preservative thanks to its antibacterial effects. Another type of synthetic alcohol is Glycol Ether, which is used as a flowable agent in paints, inks, and coatings to enhance the quality of their application.

By Application

• Solvents: One of the significant uses of synthetic organic hydroxyl compounds is that of solvents in various industries. Ethyl alcohol, isopropyl alcohol, and butanol, among others, can dissolve oils and fats, resins, and other organic materials due to their high solvency characteristics. For example, the pharmaceutical industry relies on synthetic alcohols to manufacture pharmaceuticals. In contrast, in the beauty industry, cosmetic products contain alcohol mainly because they help in holding perfume oils and other actives. Another example is paints, printing inks, adhesives, and coatings, where solvents are compounds that aid in carrying pigments and accelerating the drying process.

• Disinfectants: Ethanol and isopropanol, for example, are essential raw materials in the manufacture of disinfectants for related organic syntheses. Such organic isomers can eradicate or prevent the multiplication of bacteria, viruses, and fungi and so are vital in hospitals, homes, and personal care products. Due to their rapid evaporation and low toxicity, they can be used to sterilize surfaces, medical apparatus, and skin without the risk of leaving toxic residues. Alcohol-based products such as hand sanitizers are essential in curbing the spread of sickness since their use helps keep everyone proper hygiene.

• Leasing: Sizes and qualities of metalworking fluids – combinations of synthetic organic alcohols such as ethylene glycol and propylene glycol and others, have been widely used as coolants in automobiles, industrial and domestic appliances, etc. Such alcohols decrease the freezing temperature of water to avoid ice formation in the engine, radiator, and cooling systems during cold seasons. Ethylene glycol is a common cooling agent used in various types of automobile antifreeze because of its excellent heat dispensing characteristics. Comparatively, propylene glycol is more suited for food-safe ornamental antifreeze systems and food processing chillers.

• Fuel Additives: Synthetic organic alcohols such as ethanol and isopropanol are used as fuel additives to enhance various fuels’ performance and efficiency. Thus, ethanol, usually blended with gasoline, is an octane booster and reduces dependence on fossil fuels, providing environmental benefits. Because of this, this compound is ubiquitously present in oxygenated fuels to suppress the emissions of carbon monoxide and fine particles, which is favourable to the urban environment.

• Others: The category of such stylized compounds, synthetic organic alcohols, does not limit itself to commonly known places of usage such as spices, thinner, antiseptic, antifreeze, and fuel additives but has numerous other applications in other sectors. Cosmetics and personal care products are found to be used as emollients, preservatives, and carriers for fragrance, enhancing the stability of the product and absorption into the skin. Cosmetic synthetic ethanol alcohol in the food business acts like an appetizing and preservative chemical, reducing its perishability without losing its quality. Moreover, even in the plastics and polymers industrial processes, synthetic organic alcohols are used as intermediates in making plasticizers, enhancing the materials’ flexibility and strength.

By End Use

• Pharmaceuticals: Synthetic organic alcohols are extremely important to the pharmaceutical industry and take on several other vital roles in the processes of drug formulation and drug production. Dissolving and stabilizing active pharmaceutical ingredients (APIs) during the formulation process is aided by solvent agents like ethanol and isopropanol, which are very common in the practice. These alcohols also find application in healthcare as they are used as surface and instrument sanitizers in environments where there are chances of infecting people.

• Cosmetics: Synthetic organic alcohols perform various functions in the cosmetics sector that contribute to the effectiveness of a product and the comfort of a consumer. The other key essential roles of these organic amines are as used in their active pharmaceutical ingredients for the patients and readers in the cosmetic mix. Their quick-evaporating properties make them ideal for perfumes, hair sprays and other sprayable cosmetics, which create a light and moisturizing feel without leaving heaviness on the skin.

• Automotive: There are numerous synthetic organic alcohol engines, especially for formulations, maintenance practices, and other aspects. Ethanol, for instance, is blended with gasoline for cleaner burning fuels, as well as octane boosters to Improve combustion efficiency and reduce emissions. Isopropanol is a common ingredient in auto care products that cut grease, dirt, and grime off surfaces and parts.

• Others: Apart from these main uses, synthetic organic alcohols have numerous final applications in many sectors. For instance, in the case of isopropanol and similar compounds in the electronics industry, those are cleaning products used to get rid of dust, grease, and other substances from the boards or other elements of the equipment to maintain its operation and durability. In the case of the clothing industry, synthetic organic alcohols are used as solvents in the dyeing and finishing stages of the fabric, enhancing the colours and properties of the fabric.

Report Scope

Synthetic Organic Alcohol Market – Regional Analysis

The Synthetic Organic Alcohol Market is segmented into regions: North America, Europe, Asia-Pacific, and LAMEA. Here is a brief overview of each region:

• North America: The demand for Synthetic Organic Alcohol in North America is expected to increase gradually owing to its various functionalities in many industries, including pharmaceuticals, cosmetics, automotive and food and beverages, among others. The region has a well-established chemical manufacturing plant that aids in producing various synthetic alcohols like ethanol, isopropanol, and butanol.

• Europe: The synthetic organic alcohol market in Europe is showing a high growth rate, additionally increasing in favour of the market due to the growth of some verticals, such as grocery, drugs, cosmetics, contact lenses, food, automotive, and food and beverages. Grades of fuels that are offered and manufactured in Europe are subjected to strict control and sports regulation in nearly every country, and this helps to formulate good quality raw materials so that manufacturers can make products that are friendly to the environment and bio alcohols that are produced.

• Asia-Pacific: The Asia-Pacific region is seeing a rapid expansion of the synthetic organic alcohol market due to high industrial and urban development levels within this territory. Nations like China, India, and Japan are among the biggest consumers and producers of synthetic alcohols due to their broad-based manufacturing activities and growth in the use of chemicals in industries such as pharmaceutical, cosmetics, and automotive industries.

• LAMEA: The synthetic organic alcohol market in LAMEA Regions (Latin America, Middle East & Africa) has a positive growth outlook, attributed to growing industrialization and increased consumer awareness on cleanliness issues. In the region of Latin America, hospitable countries such as Brazil and Argentina are experiencing an increase in the consumption of synthetic alcohols in the scope of pharmaceuticals and cosmetics industries and food production.

Competitive Landscape – Synthetic Organic Alcohol Market

The Synthetic Organic Alcohol Market is highly competitive, with many service providers globally. Some of the key players in the market include:

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

These companies implement a series of techniques to penetrate the market, such as innovations, mergers and acquisitions and collaboration.

The emerging companies in the Synthetic Organic Alcohol Market are adopting modern technologies and innovative business plans to establish themselves. They are inclined to focus on eco-friendly processes that reduce the effects of pollutants. Furthermore, these new players pour resources into making alcohol derivatives with specific qualities for different uses.

For example, some of these firms are researching synthetic alcohols for use in medicinal and cosmetic products. In contrast, other firms are investigating their potential in chemical synthesis as solvents and intermediates. Due to these unique value propositions and the addressing of the new market needs, these new players are set to change the existing order in the Synthetic Organic Alcohol Market.

The Synthetic Organic Alcohol Market is segmented as follows:

By Type of Alcohol

• Ethanol
• Methanol
• Butanol
• Isopropanol
• Others

By Application

• Fuel Additives
• Disinfectants
• Solvents
• Antifreeze
• Others

By End Use

• Automotive
• Cosmetics
• Pharmaceuticals
• 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