The global ethanol derivatives market is estimated to be valued at US$ 10.2 Bn in 2023 and is expected to exhibit a CAGR of 5.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Ethanol derivatives are mainly used as fuel and fuel additives, solvents, chemical intermediates and pharmaceuticals. Ethanol derivatives provide an eco-friendly alternative to petroleum-based chemicals and helps in reducing greenhouse gas emissions. The wide applications of ethanol derivatives in sectors like automotive, energy, chemicals, pharmaceuticals etc. is contributing to the growth of the market.
Market key trends:
Ethanol derivatives like ethyl acetate are widely being used as solvents in industrial and household applications such as paints, coatings, adhesives etc. owing to its favorable solvent properties over other alternatives. The growing popularity of green solvents along with stringent regulations over volatile organic compound emissions is expected to drive the demand for ethyl acetate over the forecast period. However, fluctuations in raw material prices may hamper the market growth.
Market key trends:
The ethanol derivatives market is witnessing rising demand for ethyl acetate and ethyl alcohol derivatives. Ethyl acetate is being increasingly used as a solvent in paints & coatings industry. The paints & coatings industry has seen steady growth in recent years due to rising construction activities and increasing demand for durable paints from automotive & packaging sectors. Moreover, ethyl alcohol continues to find large application in personal care & cosmetics industry as an antiseptic.
SWOT Analysis
Strengths: Wide range of applications in industries such as paints & coatings, pharmaceuticals, food & beverages augments market growth.
Weaknesses: Volatility in raw material prices can hamper market profitability.
Opportunities: Rising construction activities in developing nations offer lucrative opportunities.
Threats: Stringent environmental regulations related to ethanol emissions pose a challenge.
Key Takeaways
The Global Ethanol Derivatives Market Size is expected to witness high growth, exhibiting CAGR of 5.5% over the forecast period, due to increasing construction activities worldwide. The Asia Pacific region is projected to dominate the global market owing to rising industrialization in China and India.
Regional analysis
The Asia Pacific region currently holds the largest share in the global ethanol derivatives market and is expected to maintain its lead over the forecast period. This can be primarily attributed to rapidly growing construction, automotive, and packaging industries in China and India. Moreover, rising disposable incomes have been augmenting the demand for personal care and cosmetic products in Asia Pacific.
Key players
Key players operating in the ethanol derivatives market are Archer Daniels Midland Company, Green Plains Inc., POET LLC, Valero Energy Corporation, Cargill, Incorporated, Pacific Ethanol Inc., Flint Hills, Resources, The Andersons, Inc., Greenfield Global, LyondellBasell Industries N.V. Archer Daniels Midland Company is one of the largest players with robust production facilities across major global markets.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. With an MBA in E-commerce, she has an expertise in SEO-optimized content that resonates with industry professionals.