Denatured Alcohol Market Size, Share & Trends Analysis Report By Type (Completely Denatured Alcohol (CDA), Industrial Denatured Alcohol (IDA), Trade Specific Denatured Alcohol (TSDA)), By Application (Cleaning Solvent, Fuel/Fuel Additive, Food and Beverages, Personal Care, Pharmaceutical, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global denatured alcohol market size was valued at USD 101.7 billion in 2023 and is projected to reach a value of USD 190.2 billion by 2032, registering a CAGR of 7.2% during the forecast period (2024-2032). Growing demand for bioethanol, combined with increased health and hygiene awareness, is expected to be a key factor driving Denatured Alcohol market growth during the forecast period.

Denatured Alcohol, commonly known as methylated spirits, is ethanol (ethyl alcohol) that has been rendered unfit for human consumption through the use of denaturants. Denaturants are compounds added to Alcohol to render it undrinkable, which is often done to comply with regulatory standards or to avoid alcohol taxes.

Denatured Alcohol, owing to its eco-friendliness and numerous applications in a variety of industries, its market is anticipated to expand rapidly over the next few years. Denatured alcohol market share is primarily driven by rising demand for its use in the home and various sectors. Cleaning agents are in high demand in the glass industry, as are sanitizing agents in the medical industry. It is utilized in industry and home items because people are more concerned with health and cleanliness these days, and it serves the purpose of a sanitizer.  However, one of the primary issues is that denatured Alcohol dries up quickly if not properly stored. To avoid vaporization, keep the containers well sealed and store them in a shady, cool location.

Highlights

• Industrial Denatured Alcohol (IDA) accounts for the largest share of the market based on type.
• Cleaning Solvent generates the highest revenue share of the market by application.

Market Dynamics

Denatured alcohol market drivers

Cleaning and disinfectant product demand

The rising demand for cleaning and disinfecting goods, mainly due to global health concerns, is a crucial factor boosting demand for denatured Alcohol. Its use as a significant element in disinfection and sanitizer formulations has increased, reflecting global hygiene norms. According to Statista, the global Hand Sanitizer market will generate USD 3.21 billion in revenue by 2024. It is expected to increase at a CAGR of 3.82% from 2024 to 2028. Compared globally, the United States leads in revenue generation, with USD 646.00 million in 2024.

Similarly, the COVID-19 pandemic has considerably increased the demand for effective hand sanitizers and surface disinfectants. Due to its antibacterial characteristics, denatured Alcohol has become an essential ingredient in hand sanitizer formulations. The demand for personal hygiene products during the pandemic resulted in increased production and usage of denatured Alcohol in these applications. The growing awareness of surface disinfection in various contexts, including homes, hospitals, and public spaces, boosted demand for disinfectant solutions. Denatured Alcohol, an excellent disinfectant, has seen growing use in surface disinfection formulations.

Furthermore, regulatory bodies and health organizations worldwide encourage using hand sanitizers to avoid the spread of infectious diseases. This resulted in increased manufacturing and consumption of hand sanitizers, fuelling demand for denatured Alcohol. Regular disinfection measures in commercial premises, transportation, and public areas will continue, fueling demand for denatured alcohol-based cleaning and disinfecting solutions. The demand for denatured Alcohol in cleaning and disinfection applications is likely to remain strong, driven by a continued emphasis on hygiene and infection prevention. As consumer preferences and public health policies change, the use of denatured Alcohol in these critical items is anticipated to remain a prominent denatured alcohol market trend.

Denatured alcohol market restraints

Environmental concerns

Environmental problems provide obstacles to the denatured alcohol market, particularly in terms of denaturant selection and the total environmental impact of denatured alcohol manufacturing and use. As sustainability becomes a priority across businesses, the environmental effects of denatured alcohol production and use are scrutinized more closely. Some old denaturants, including methanol, are known to have environmental consequences. Methanol can harm aquatic life and the soil when released into the environment. As a result, there is a growing emphasis on developing alternative denaturants with a lower environmental impact.

Additionally, regulatory bodies and environmental agencies are increasingly concerned with the ecological impact of industrial activities. For example, the European Chemicals Agency (ECHA) evaluates the ecological dangers of compounds used in various industries, including denatured alcohol compositions. Methanol is subject to the REACH Regulation, which compels corporations to publish information about the chemical's qualities, applications, and dangers. In certain EU nations, national regulation bans the sale of methanol and methanol-containing mixes to the general public. The Environmental Protection Agency (EPA) regulates methanol as a dangerous air pollutant under the Clean Air Act in the United States.

Similarly, the Occupational Safety and Health Administration (OSHA) oversees and regulates methanol exposure in industrial settings. Under US, Canadian, and global dangerous goods legislation, no one may offer, accept, or transport hazardous materials that do not meet the applicable criteria. Paint/varnish remover products containing methanol are classified as consumer chemical goods. They are subject to the Consumer Chemicals and Containers Regulations, 2001 (CR, 2001) of the Canada Consumer Product Safety Act (CCPSA). The quest for greener and more sustainable techniques in chemical manufacturing has prompted research and development initiatives to identify ecologically friendly denaturants. This involves looking into bio-based options with minimum environmental impact.

Denatured alcohol market opportunity

Rising demand for bio-based denatured alcohol

The growing emphasis on sustainability and eco-friendly products has generated a significant opportunity in the denatured alcohol business. Bio-based denatured Alcohol, obtained from renewable sources, is consistent with the global movement for greener alternatives, allowing manufacturers to meet consumer expectations and regulatory criteria. Manufacturers are investigating the use of bio-based ethanol made from sustainable feedstocks like corn, sugarcane, and biomass. Bio-based ethanol is a sustainable alternative to regular ethanol, contributing to manufacturing environmentally friendly denatured Alcohol.

In addition, the European Union has been a leader in promoting bio-based products. The EU's Renewable Energy Directive (RED II) encourages the use of biofuels and bio-based chemicals, including those obtained from bio-based ethanol, so promoting the development of sustainable denatured Alcohol in the region. For instance, In 2024, Lallemand Biofuels & Distilled Spirits, a leading global fermentation ingredients supplier to alcohol producers, disclosed a new partnership with Braskem, the largest polyolefins producer in the Americas as well as a market leader and pioneer in industrial biopolymer production, to develop renewable chemicals jointly. 

Moreover, significant businesses in the chemical sector are investing in R&D to improve the sustainability of denatured Alcohol. Companies, for example, are looking into enhanced fermentation techniques and novel bio-based denaturants to lessen their products' environmental impact: consumer awareness and preference for environmentally friendly items influence purchase decisions. Manufacturers who respond to this need by adding bio-based denatured Alcohol into their formulations will gain a competitive advantage and contribute to a more sustainable future.

Regional Analysis

The global denatured alcohol market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

Asia-pacific dominates the global market

Asia-Pacific is the most significant global denatured alcohol market shareholder and is estimated to grow at a CAGR of 7.6% over the forecast period. The regional market's growth can be ascribed to the fact that it is one of the major regions with an adequate agricultural land area, which provides an abundance of farm livestock required for manufacturing denatured Alcohol. This makes the region the largest producer of denatured Alcohol. 

Furthermore, two of the world's most dynamic and populous economies, China and India, use denatured alcohols extensively as a cleaning solvent for domestic and industrial uses. The Asia-Pacific area has the fastest urbanization in the globe. By 2030, more than 55% of Asia's population will be urbanized. The Pacific region has the highest proportion of urban residents, with more than 70% of the population residing in cities. In contrast, only 34% of South and South-West Asia people live in cities. Urbanization in the regional market increases with disposable income and growing concern about health and cleanliness. It will likely increase demand for cleaning solvents, resulting in a thriving denatured alcohol sector. 

Europe is anticipated to exhibit a CAGR of 7.8% over the forecast period. The region's well-established pharmaceutical and cosmetic industries are a significant element driving its growth. The European cosmetics sector is expected to be valued at USD 451 billion in 2023, a 4% increase from 2022, as it continues to grow and shifts toward transparent and natural products. This shift in customer perception drives cosmetic product makers to innovate by investing more in R&D and using natural preservatives like denatured Alcohol in their formulations. 

Additionally, global warming has become a significant worry. The region's government implements various programs to reduce pollution and GHG emissions, including strict rules requiring cleaner fuels and gasoline additives. And denatured alcohols are regarded as cleaner fuel additives than normal ones. This shift toward cleaner fuels is expected to increase demand for denatured Alcohol across the regional market shortly.

The North American denatured alcohol market is a dynamic sector shaped by industrial operations, regulatory frameworks, and various uses. Denatured Alcohol, a vital solvent, is widely used in many industries, including paints & coatings, cleaning, medicines, and personal care. Manufacturing demands, environmental laws, and denaturant developments all impact market growth. The United States Environmental Protection Agency (EPA) regulates the use of denatured Alcohol. Compliance with EPA standards is critical for firms, influencing market dynamics. The EPA's designation of denatured Alcohol as a volatile organic compound (VOC) impacts its use in specific applications, and market players must comply with these regulatory norms.

Similarly, North America's pharmaceutical and personal care industries help to drive demand for denatured Alcohol in the manufacture of medicines, disinfectants, perfumes, and other products. The market benefits from the strong healthcare industry in the region. For example, In 2023, the US pharmaceutical business saw 31 private equity agreements totaling USD 700.5 million, with ZimVie by H.I.G. Capital is the highest at USD 375 million. According to PwC, the pharmaceutical and life sciences sector performed well in 2023, with deal value and volume approaching pre-pandemic levels.

Segmental Analysis

The global denatured alcohol market is segmented based on type and application.

The market is further segmented by type into Completely Denatured Alcohol (CDA), Industrial Denatured Alcohol (IDA), and Trade Specific Denatured Alcohol (TSDA).

Industrial Denatured Alcohol (IDA) is denatured Alcohol intended for use in specialized industrial applications. It is designed to suit the solvent requirements of many industries, such as medicines, cosmetics, and chemical manufacture. IDA goes through denaturation methods that meet regulatory criteria while also responding to the specific needs of industrial processes. This denatured Alcohol is commonly used as a solvent in producing a wide range of industrial products.

The IDA category is expected to dominate the worldwide denatured alcohol market during the assessment period. Rapid industrialization and globalization are significant drivers driving the segment's expansion, aided by the governments of various economies, notably in developing economies such as India and China. Rapid industrialization in these economies is predicted to boost the expansion of many end-use sectors. As a result, the market need for denatured Alcohol will increase.

Completely Denatured Alcohol (CDA) is a form of denatured Alcohol that has undergone denaturation, rendering it unfit for human consumption. CDA is often denatured with a combination of chemicals, exempting it from some taxes and regulations that apply to potable Alcohol. CDA is widely used in several industrial applications, including producing paints, varnishes, and cleaning goods. Its low cost and formulation flexibility make it a popular choice for enterprises that require significant amounts of industrial-grade Alcohol without incurring high taxes.

The market can be bifurcated by application into cleaning solvents, fuel/fuel Additives, food and beverages, personal care, and pharmaceuticals.

Denatured Alcohol is essential in cleaning various industrial and household application solvents. Its solvent qualities allow it to dissolve grease, oils, and other pollutants efficiently. Cleaning solvents containing denatured Alcohol are widely utilized in industrial settings, auto workshops, and domestic cleaning goods.

The cleaning solvent category is expected to be the largest and fastest-growing segment in the denatured alcohol market throughout the assessment period. This segment's rise can be due to denatured Alcohol's antibacterial properties, which make it an ideal cleaning agent. Furthermore, the solvent's ability to clean a wide range of hard surfaces, including wood, plastic, and glass, and dissolve grease and stains provides it an advantage over other cleaning agents on the market. Individuals' growing awareness of hygiene and the increasing incidences of infectious diseases worldwide have fueled the market expansion of cleaning solvents.

Personal care items, including perfumes, colognes, and aftershaves, use denatured Alcohol as a fragrance carrier and solvent for other chemicals. It aids in the dispersion and dilution of aromatic substances, contributing to developing scented items. However, denatured Alcohol must meet regulatory requirements to assure consumer safety and product efficacy.

Recent Developments

• January 2024- Green Plains Inc. completed its acquisition of Green Plains Partners LP.
• February 2024- Celanese announced the commercial launch of Glaukos' iDose® TR (Travoprost Intracameral Implant), using Celanese's VitalDose® Ethylene Vinyl Acetate (EVA).