Ethanol is simple ethyl alcohol with the chemical formula C2H5OH. It is an organic alcohol compound also called drinking alcohol or grain alcohol. Ethanol is an explosive, slightly toxic, and colorless compound. Apart from alcoholic beverages, ethanol has a lot of uses in various aspects. That’s why the market is expanding globally day by day.
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Why is the market of ethanol extending?
- Chemical Reaction:
There are lakhs of chemical reactions happening in the laboratories to create new chemical compounds for various reasons. Ethanol is a readily available organic solvent, so it is used as a solvent in almost all kinds of chemical reactions.
- Additive:
Ethanol acts as an additive to automotive gasoline. The mixture is known as gasohol.
(Gasoline +Alcohol= Gasohol)
- Preservative:
When it comes to biology, there is a vast need for preserving specimens for future reference. It may be in zoological parks or herbariums. Ethanol is used as the preservative while preserving those specimens.
- Flavorings:
Ethanol is also used as essence or flavor in perfumes, room fresheners, and other things. Apart from ethanol’s various uses, the demand for acetic acid gives rise to the need for ethanol and, hence, the market. So one of the most important driving forces of the ethanol market is the increasing demand for acetic acid in paints, inks, and coating sectors. This demand is mainly coming from countries like South Korea and China.
When the demand for ethanol is mixed with acetic acid, it results in an increased pull of the global ethanol market.That’s why the global market is demanding more ethanol day by day, resulting in the expansion of the market.
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Market Outlook of Ethanol:
The global ethanol market was 116.9 billion liters in the year 2020. The forecasting period is from 2021 to 2026. In this period, it has been expected that the market will grow at a CAGR rate of 2.5% every year. So this results in 135.5 billion liters till 2026.
Looking at the ethanol market’s whole outlook, non-fuel uses contribute to 13-15% of the market. This includes chemicals, pharmaceuticals, alcoholic beverage industries, etc. But fuel applications are donating 7% to the global market outcome. The Asia Pacific is the leading industry globally. This is the largest producer and consumer of industrial-grade ethanol.
Ethanol is mainly used as a preferred organic solvent in every chemical reaction. So in the industrial ethanol market, the solvents have a significant share of 63%, but it also increases day by day. As mentioned earlier, intermediate chemicals like acetic acid and acrylates also increase the demand for ethanol. So this has a share of almost 17% in the total industrial ethanol market demand.
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Market Analysis of Ethanol:
The market is expected to grow in Brazil, Asia, and Europe at a higher rate than others because of the demand for solvents and chemical intermediates.
The industrial ethanol sector is growing because of the increased use of personal care products, cleaning products, and food and beverages sectors.
In North America, the market is being pushed by industrial ethanol as a niche material. The growing usage of antibacterial products such as hand washes, hand sanitizer, etc., has increased industrial ethanol demand.
Conclusion:
Moreover, due to various reasons and specifically with the increased use of some products, ethanol’s global market is expanding day by day. So if you want to look at a detailed analysis of the ethanol market globally, you can study the report made by NPCS. It has commented with correct data and correct facts.
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