Global Synthetic Organic Alcohol Market 2024–2033

Reports Description

As per the current market research conducted by 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 of the utmost important.

A predominant trend influencing the market is the growing tendency to adopt greener ways of production. In view of heightened focus on sustainable considerations and ever tougher 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 supply of green goods and sustainable green practices. In addition to this, mastering of such technologies to increase production rates and to lessen synthetic organic alcohols’ harmful impact on air is also under consideration in the area.

Furthermore, the increasing emphasis on marketable compliance with the regulations particularly in food, cosmetics, and health care sectors has also been a factor that brings innovative solutions in the marketplace. New products envisage a synthesis of alcohols that respond to high regulatory quality and safety levels, and also consider new markets in biofuels and bioplastics, thus increasing the 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 as well as the personal care sectors make extensive use of synthetic organic alcohols for the purposes of solvents and preservatives as well as active ingredients. There is a rise in demand for high purity products across the globe and due to increase in healthcare spending there is rise in the growth of this market spectacle. Moreover, the cosmetics sector is also availing synthetic alcohols due to the increase in demand for skin care and hygiene products amongst the consumers.

• Rising Focus Towards Sustainable and Green Manufacturing: There is an inherent drive on the part of purchasers as well as producers to be eco-friendlier. Therefore, producers have been forced to alter from their traditional techniques to utilizing more green techniques such as using green materials and energy sourcing from renewable sources which are bio-based. There is little doubt that this trend is becoming one of the most important factors of growth as corporates are trying 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 growing consumption of synthetic alcohols.

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

• Improvements in Synthesis of Alcohols: New developments in synthetic alcohols as well as in their production methods are providing a higher cost-effectiveness in the production of synthetic organic alcohols. These developments are broadening the potential uses in various industries in automotive, adhesives and coatings and this boosts the market growth.

Synthetic Organic Alcohol Market – Key Developments

In recent years, the Synthetic Organic Alcohol Market has experienced a number of 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 has signed a technology license agreement for the production of the 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 entered into an agreement with Alaska Airlines to provide 13 million gallons of Sustainable Aviation Fuel (SAF), which is a blend of 40% SAF and 60% Petroleum Jet A. This blended fuel provides environmental benefits by reducing contrails and reducing carbon emissions.

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

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 as well as the energy requirements. All such escalated costs tend to restrict the market growth in particular the sectors that are sensitive to pricing making it difficult to swaying clients from most affordable yet effective solutions.

• Safety Regulations: There are a lot of industries for instance pharmaceutical, cosmetic, and food, and beverages which cannot avoid the use of 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 major issues in obtaining regulatory approval of the use of such products and this results in high costs of compliance thereby discouraging entry into the market.

• Threat Of New Substitutes: There is also concern over the availability of natural and cheaper options like organic alcohols. For example, one of the resources that can be used for alcohols 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 used for making synthetic organic alcohols for example petrochemicals change the profit level. Changes in oil prices and issues with the supply chain may result in changes to the production cost which in turn has an effect on the market as a whole.

• Environmental Concerns with the 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 for better ways which do not harm the environment, such companies that base my on tradition will find it hard keeping 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 which has a great tendency of being used in different ways with great significance in industries. This chemical is mostly obtained from petrochemicals, coal or biomass. Methanol is an important raw material in production of medicines, formaldehyde and man-made fibers. And, it is considered to be a fuel or an additive for fuel, owing to its high energy and clean burning properties. Methanol is extensively used as a solvent, as an antifreeze and in the making of plastics. As carbon-neutral technologies are adopted by the industries, methanol takes the form of a hydrogen-based energy carrier with considerable hydrogen energy release that can also be produced through biofuels and hydrogen as 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 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 in the medical field, most hand sanitizers and antiseptics contain it. Using fossil fuels is becoming increasingly difficult, and healthier alternatives like chemical and bio fuels, such as bioethanol, are rising in 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 attribute, which are its most highly marketed properties. These properties as well drying fast and cleaning oils and dirt made it common in hospitals for sterilizing and disinfecting surfaces and medical equipment.

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

• Others: Methanol, ethanol, isopropanol, and butanol are some of the more common alcohol 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 the 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 major uses of synthetic organic hydroxyl compounds is that of solvents in various industries. Ethyl alcohol, isopropyl alcohol, and butanol, among others, are able to dissolve oils and fats, resins, and other organic materials due to their high solvency characteristics. For example, the pharmaceutical industry relies on synthetic alcohols in the manufacture of pharmaceuticals, while in the beauty industry, the cosmetic products contain alcohols mainly because they help in holding perfume oils and other actives. Another example is given by paints, printing inks, adhesives and coatings where such solvents are compounds that aid in carrying pigments and accelerating the drying process.

• Disinfectants: Ethanol and isopropanol, for example, are important raw materials in the manufacture of disinfectants for related organic syntheses. Such organic isomers have the capacity to eradicate or prevent the multiplication of bacteria, viruses, and fungi, and so are vital in the 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. Such products as hand sanitizers that are alcohol-based are very important in curbing the spread of sickness since their use helps to keep everyone with proper hygiene.

• Leasing: Sizes and qualities of metal working fluids – combinations of synthetic organic alcohols such as ethylene glycol and propylene glycol and others, have been widely used as coolants in automobile, industrial and domestic appliances, etc. Such alcohols decrease the freezing temperature of water in order to avoid the formation of ice 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: The synthetic organic alcohols such as ethanol and isopropanol are used as fuel additives for enhancing the performance and the efficiency of various fuels. Thus, ethanol, which is usually in the blend with gasolines, is an octane booster and reduces dependence on fossil fuels, which provide environmental benefits. It is because of this that this compound is ubiquitously present in oxygenated fuels in order 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 do not limit itself to commonly known places of usage such as spices, thinner, antiseptic, antifreeze, and fuel additive, but has numerous other applications in other sectors. In cosmetics and personal care products they find use 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 appetizing and preservative chemicals in the product 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, which enhances the flexibility and strength of the materials.

By End Use

• Pharmaceuticals: Synthetic organic alcohols are extremely important to the pharmaceutical industry and take on several other important roles in the processes of drug formulation and drug production. Dissolving and stabilizing of active pharmaceutical ingredients (APIs) during the formulation process is aided by solvent agents like ethanol and isopropanol which are very common to 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 a variety of functions in the cosmetics sector that contribute to the effectiveness of a product and the comfort of a consumer. The other key basic 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 use in perfumes, hair sprays and other sprayable cosmetics, which creates a light and moisturizing feel without leaving heaviness on the skin.

• Automotive: There are numerous synthetic organic alcohols engines, especially for formulations, maintenance practices, and others aspects. Ethanol, for Instance, is blended together 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 formulated to 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 – as well as its durability. In the case of the clothing industry, synthetic organic alcohols are in the process used as solvents in the dyeing and finishing stages of the fabric enhancing colors and properties of the fabric.

Report Scope

Synthetic Organic Alcohol Market – Regional Analysis

The Synthetic Organic Alcohol Market is segmented into various regions, including 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 the production of 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 cosmetic 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 able to make production that is 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 levels of industrial and urban development 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 like pharmaceutical, cosmetics and automotive.

• 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 issues of cleanliness. In the region of Latin America, hospitable countries as Brazil and Argentina are experiencing the increase in the consume of synthetic alcohols in the scope of pharmaceuticals and cosmetics industries and food production as well.

Competitive Landscape – Synthetic Organic Alcohol Market

The Synthetic Organic Alcohol Market is highly competitive, with a large number of 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 in order to penetrate into the market, such 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 which aim at reducing the effects of pollutants. Furthermore, these new players are pouring resources to make 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, whereas 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