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Extra Neutral Alcohol Market - Forecast(2023 - 2028)
Extra Neutral Alcohol Market Overview
Extra Neutral Alcohol Market
(ENA) size is forecast to reach $11.5 billion by 2026, after growing at a CAGR
of 6.3% during 2021-2026 due to increasing consumption in developing and
emerging countries. Nearly 90% of the ENA produced in India is used in the
manufacture, processing and consumption of alcoholic beverages, which is
constantly growing. In addition, a gradual change from country liquor towards
Indian Produced Foreign Liquor (IMFL) in recent years has also led to a rise in
demand for drinking alcohol such as odorless alcohol, whiskey, rum, brandy, and
so on. Rising disposable incomes, shifting perceptions towards drinking and Western
alcohols are other factors facilitating the market for potable alcohol. In addition, since ENA finds numerous
applications in flavors & fragrance sector, expanding cosmetics and
personal health care, printing and pharmaceutical industries are expected to be
highly lucrative for the extra neutral alcohol market. According to the Associated
Alcohols & Breweries limited, India’s extra neutral alcohol consumption of
2.7 billion litres in 2017 which estimated to grow 3.8 billion litres of ENA consumption
by 2023. On the other hand, ENA is used in cosmetic products such as perfume,
toiletries, cologne, hair spray, air freshener and detergent. It is also used
in the manufacturing of antiseptics, medicines, syrups and sprays for medicine,
which boost the demand of extra neutral alcohols.
The Emergence of COVID-19 Pandemic
The tragedy of COVID-19, which is
declared as pandemic by the World Health Organization, is having a noticeable
impact on global economic growth. Currently the fuel extra neutral alcohol
market has been affected due to COVID-19 pandemic where most of the industrial
activities are at halt. According Fragrances & Flavors Association of India
(FAFAI), the production of fragrance and flavors were hit with 80% loss. This
in turn has affected the demand and supply chain as well, thereby limiting the
growth in 2020.
Report Coverage
The report “Extra Neutral Alcohol Market – Forecast (2021-2026)”, by IndustryARC,
covers an in-depth analysis of the following segments of the market.
By Raw Material: Grain-Based and Sugarcane-Based.
By Application: Potable Alcohol {Fermented Alcoholic Beverages [Wine (Red Wine, Rose Wine, White Wine), Cider, Beer, Perry], Distilled
Alcoholic Beverages (Rum, Gin, Whisky, Tequila, Vodka, Others), Compound
Alcoholic Beverages (Liqueurs, Cocktails, Others), Flavors and Fragrances (Toothpaste, Mouthwash, Foods and beverages, Confectionaries, Others)}, Pharmaceuticals (Antiseptics, Osmotic Drugs Delivery Devices, Syrups, Medicated sprays, Others), Cosmetics and Personal Care (Bath products, Haircare products, Eye and Facial Makeup, Skin Care Products, Others), and Others.
By Geography: North
America (USA, Canada, and Mexico), Europe (UK, Germany, Italy, France,
Spain, Netherlands, Russia, Belgium, and Rest of Europe), Asia Pacific (China,
Japan, India, South Korea, Australia & New Zealand, Indonesia, Taiwan,
Malaysia, and Rest of Asia Pacific), South America (Brazil, Argentina,
Colombia, Chile, and Rest of South America), and RoW (Middle East and Africa)
Key Takeaways
- Extra neutral alcohol contains 96 % alcohol by volume, a colorless food grade alcohol. It has a neutral smell and taste and is extracted from different sources, such as molasses from sugar cane, grains, and so on.
- According Indian Brand Equity Foundation (IBEF), the global spirits market is forecast to be at 3.19 billion cases by 2021, with whiskey, gin, and tequila expected to make gains of 55.2 million, 7.1 million, and 5.8 million litre cases, respectively, between 2017 and 2021.
- Demand of extra neutral alcohol is increasing because it is high distilled alcohols that contains no impurities and is used for the manufacture of alcoholic beverages like gin can, odorless alcohol, alcoholic fruit beverages and aperitifs. Growing beverages demand across the globe, propels the market demand.
- Extra neutral alcohol acts as an important ingredient in the manufacture of various cosmetics and skin care products because of its properties, as a manufacturing aid in the food industry, and as a carrier of flavours & fragrance.
Figure: Extra Neutral Alcohol Market Revenue, 2021-2026 (US$ Billion)
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Extra Neutral Alcohol Market Segment Analysis – By Raw Material
Grain based segment held the largest share of more than 55% in the extra
neutral alcohol market in 2020 because grain based materials are used in
production of alcoholic beverages such as wine, whiskey, gin, rum, vodka, and
more. Grains produce alcohols with excellent quality better than
others. Grain based distilleries has been a
huge demand for grain based extra neutral alcohol for the fast growing Indian Made Foreign Liquor (IMFL)
Industries and for blending in Foreign Liquor outside India which has been a
multifold surge in demand for extra neutral alcohol.
Extra Neutral Alcohol Market Segment Analysis – By Application
Potable alcohol segment held the largest share of more than 30% in the extra neutral alcohol market in 2020, and is growing at a CAGR of 6.1% during 2021-2026. There are different grades of alcohol available on the market including fuel grade and industrial grade. Extra neutral alcohol (ENA) is a highly distilled food grade alcohol containing approximately 96 % volume of alcohol. This alcohol is used to make alcoholic beverages such as odorless alcohol (vodka), gin, and rum that are potable. The demand for extra neutral alcohol (ENA) worldwide is being driven by increased demand for alcoholic drinks around the world. According to India Brand Equity foundation (IBEF), global spirits market is forecast to reach at 3.19 billion cases by 2021. However, the consumer goods market in India is expected to reach US$ 103.70 billion by FY21 from US$ 68.38 billion in FY18 at a CAGR of 23.15%. on the other hand, the FMCG sector in India is expected to grow US$220 billion by 2025. Hence, due to higher disposable incomes and changing life style, the consumption of alcohols rapidly increases. However, the intake of alcohol is expected to boost the demand of extra neutral alcohol industry.
Extra Neutral Alcohol Market Segment Analysis – By Geography
APAC
dominated the extra neutral alcohol market share with more than 42.7% in 2020
with rise in the consumption of alcoholic beverages in Asian countries. The
intake of odorless alcohol, brandy, vermouth, and so on has been higher in
European countries but in the last few years it has declined, and rise in Asia
Pacific region. India’s overall liquor market grew by an estimated 7% in
2017-18. There are various types of alcoholic beverages available in
India, in which beer is the fastest-growing alcohol in the country. According to the
Indian Made Foreign Liquor (IMFL) consumption of red wine is accounting with
61% (approx.) in 2020 of total wine consumption in India to 71.6% in 2017.
India consumed 0.8% of total wine compared to the rest of the Asian Countries. Thus, the demand for premium alcohols is expected to drive
growth in the extra neutral alcohol market in the future.
Extra Neutral Alcohol Market Drivers
Increasing Consumption of Extra Neutral Alcohol
The global
demand for extra neutral alcohol (ENA) dominates the potable alcohol in the
pharmaceutical industry. It is used for the processing of disinfectants, sprays
and syrups as well. According India Brand Equity Foundation (IBEF), Indian
healthcare sector is expected to cross US$ 372 billion by 2022 and medical
device market expected to grow US$ 25 billion by 2025. Thus, the consumption of
alcoholic beverages accounts for a major share of the extra neutral alcohol
produced. In the flavours and fragrance industry, dilute ethanol is used to
produce distilled vinegar; flavor extracts and concentrates for soft drinks and
food products. In addition, ENA also finds industrial use and is utilized in
the production of some lacquers, paints and ink for the printing industry, as
well as in cosmetics and personal care products such as toiletries, hair spray,
and perfumes. Hence, increasing demand of alcohol will be propel the growth of
extra neutral alcohol market.
Rising Demand of Alcoholic Beverages
Rising alcohol
consumption, increasing disposable incomes, increasing party culture in urban
areas around the world, and the proliferation of clubs, lounges, and bars have
given the alcohol industry an impetus. A favorable market climate for the
allied extra-neutral alcohol industry was subsequently generated by the
increasingly rising alcohol industry. According to the National
Epidemiologic Survey on Alcohol and Related Conditions, in America around 24
million adults consume more than 74 drinks per week. Thus, the growth of the extra
neutral alcohol industry has been fostered by the increasing customer
preference for branded liquors over national liquors. In the cosmetic and
personal care sectors, the use of extra neutral alcohol as a volatile carrier
of flavours & fragrances and solvents has contributed to its use in
perfumes and sprays.
Extra Neutral Alcohol Market Challenges
Uncertainty of Extra Neutral Alcohols in Upcoming Years
With new laws and
specifications going into force may be difficult for extra neutral alcohol
market in coming years. Extra neutral alcohols are ethanol and ethanol is
highly flammable and can be dangerous to health and safety if not handled
properly will require medical attention. Some of the safety concerns include
burns, redness, and rashes if it comes in contact with an open wound on the
skin or eyes, it can cause temporary blindness.
Market Landscape
Technology launches, acquisitions and R&D
activities are key strategies adopted by players in the Extra Neutral Alcohol
Market. Major players in the Extra Neutral Alcohol Market are Illovo
Sugar Ltd., NCP Alcohols, USA Distillers, Sasol Solvents, Mumias Sugar Company,
Agrochemical and Food Company Ltd (AFCL), Kakira Sugar Works Ltd (KSW), Tag
Solvent Products, Swift Chemicals, Greenpoint Alcohols, and among others.
Relevant Reports:
Report Code:
CMR 0993
Report Code:
FBR 0394
For more Chemicals and Materials related reports, please click here
1. Extra Neutral Alcohol Market - Market Overview
1.1 Definitions and Scope
2. Extra Neutral Alcohol Market - Executive Summary
2.1 Key Trends by Raw Material
2.2 Key Trends by Application
2.3 Key Trends by Geography
3. Extra Neutral Alcohol Market – Comparative analysis
3.1 Market Share Analysis- Major Companies
3.2 Product Benchmarking- Major Companies
3.3 Top 5 Financials Analysis
3.4 Patent Analysis- Major Companies
3.5 Pricing Analysis (ASPs will be provided)
4. Extra Neutral Alcohol Market - Startup companies Scenario Premium Premium
4.1 Major startup company analysis:
4.1.1 Investment
4.1.2 Revenue
4.1.3 Product portfolio
4.1.4 Venture Capital and Funding Scenario
5. Extra Neutral Alcohol Market – Industry Market Entry Scenario Premium Premium
5.1 Regulatory Framework Overview
5.2 New Business and Ease of Doing Business Index
5.3 Successful Venture Profiles
5.4 Customer Analysis – Major companies
6. Extra Neutral Alcohol Market - Market Forces
6.1 Market Drivers
6.2 Market Constraints
6.3 Porters Five Force Model
6.3.1 Bargaining Power of Suppliers
6.3.2 Bargaining Powers of Buyers
6.3.3 Threat of New Entrants
6.3.4 Competitive Rivalry
6.3.5 Threat of Substitutes
7. Extra Neutral Alcohol Market – Strategic Analysis
7.1 Value/Supply Chain Analysis
7.2 Opportunity Analysis
7.3 Product/Market Life Cycle
7.4 Distributor Analysis – Major Companies
8. Extra Neutral Alcohol Market– By Raw Material (Market Size -$Million)
8.1 Grain-Based
8.2 Sugarcane-Based
9. Extra Neutral Alcohol Market– By Application (Market Size -$Million)
9.1 Potable Alcohol
9.1.1 Fermented Alcoholic Beverages
9.1.1.1 Wine
9.1.1.1.1 Red Wine
9.1.1.1.2 Rose Wine
9.1.1.1.3 White Wine
9.1.1.2 Cider
9.1.1.3 Beer
9.1.1.4 Perry
9.1.2 Distilled Alcoholic Beverages
9.1.2.1 Rum
9.1.2.2 Gin
9.1.2.3 Whisky
9.1.2.4 Tequila
9.1.2.5 Vodka
9.1.2.6 Others
9.1.3 Compound Alcoholic Beverages
9.1.3.1 Liqueurs
9.1.3.2 Cocktails
9.1.3.3 Others
9.2 Flavors and Fragrances
9.2.1 Toothpaste
9.2.2 Mouthwash
9.2.3 Foods and beverages
9.2.4 Confectionaries
9.2.5 Others
9.3 Pharmaceuticals
9.3.1 Antiseptics
9.3.2 Osmotic Drugs Delivery Devices
9.3.3 Syrups
9.3.4 Medicated sprays
9.4 Cosmetics and Personal Care
9.4.1 Bath products
9.4.2 Haircare products
9.4.3 Eye and Facial Makeup
9.4.4 Skin Care Products
9.4.5 Others
9.5 Others
10. Extra Neutral Alcohol Market - By Geography (Market Size -$Million/Billion)
10.1 North America
10.1.1 USA
10.1.2 Canada
10.1.3 Mexico
10.2 Europe
10.2.1 UK
10.2.2 Germany
10.2.3 France
10.2.4 Italy
10.2.5 Netherlands
10.2.6 Spain
10.2.7 Russia
10.2.8 Belgium
10.2.9 Rest of Europe
10.3 Asia-Pacific
10.3.1 China
10.3.2 Japan
10.3.3 India
10.3.4 South Korea
10.3.5 Australia and New Zealand
10.3.6 Indonesia
10.3.7 Taiwan
10.3.8 Malaysia
10.3.9 Rest of APAC
10.4 South America
10.4.1 Brazil
10.4.2 Argentina
10.4.3 Colombia
10.4.4 Chile
10.4.5 Rest of South America
10.5 Rest of the World
10.5.1 Middle East
10.5.1.1 Saudi Arabia
10.5.1.2 UAE
10.5.1.3 Israel
10.5.1.4 Rest of the Middle East
10.5.2 Africa
10.5.2.1 South Africa
10.5.2.2 Nigeria
10.5.2.3 Rest of Africa
11. Extra Neutral Alcohol Market – Entropy
11.1 New Product Launches
11.2 M&As, Collaborations, JVs and Partnerships
12. Extra Neutral Alcohol Market – Market Share Analysis Premium
12.1 Market Share at Global Level - Major companies
12.2 Market Share by Key Region - Major companies
12.3 Market Share by Key Country - Major companies
12.4 Market Share by Key Application - Major companies
12.5 Market Share by Key Product Type/Product category - Major companies
13. Extra Neutral Alcohol Market – Key Company List by Country Premium Premium
14. Extra Neutral Alcohol Market Company Analysis - Business Overview, Product Portfolio, Financials, and Developments
14.1 Company 1
14.2 Company 2
14.3 Company 3
14.4 Company 4
14.5 Company 5
14.6 Company 6
14.7 Company 7
14.8 Company 8
14.9 Company 9
14.10 Company 10 and more
"*Financials would be provided on a best efforts basis for private companies"