Global Extra Neutral Alcohol (ENA) Market, By Raw Material (Grain-Based, Sugarcane-Based, Fruit Based, and Others), Purity (95%-98%, 98%-99%, and More than 99%), Application (Potable Alcohol, Pharmaceuticals, Flavors & Fragrances, Cosmetics & Personal Care, and Others) - Industry Trends and Forecast to 2033.
Extra Neutral Alcohol (ENA) Market Analysis and Size
The increasing usage of ENA in the pharmaceutical industry is underpinned by its critical role in ensuring product quality, regulatory compliance, and technological innovation is driving for the growth of market. The high production costs of ENA ultimately lead to higher prices for end consumers, affecting demand is restraining the market growth. Rapid urbanization and rising disposable incomes in emerging markets are fostering the growth of the ENA market is expected to provide opportunitiy for the market growth. Price volatility of raw materials and alternative solvents challenge the ENA market is expected to challenge the market.
The global Extra Neutral Alcohol (ENA) market report provides details of market share, new developments, and the impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, products approvals, strategic decisions, product launches, geographic expansions, and technological innovations in the market. To understand the analysis and the market scenario, contact us for an analyst brief. Our team will help you create a revenue-impact solution to achieve your desired goal.
Data Bridge Market Research analyses that the global Extra Neutral Alcohol (ENA) market is expected to reach USD 14.74 billion by 2033 from USD 7.45 billion in 2023, growing with CAGR of 7.13% during forecast period of 2024-2033.
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Report Metric
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Details
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Forecast Period
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2024 to 2033
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Base Year
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2023
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Historic Years
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2022 (Customizable to 2016-2021)
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Quantitative Units
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Revenue in USD Billion
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Segments Covered
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Raw Material (Grain-Based, Sugarcane-Based, Fruit Based, and Others), Purity (95%-98%, 98%-99%, and More than 99%), Application (Potable Alcohol, Pharmaceuticals, Flavors & Fragrances, Cosmetics & Personal Care, and Others)
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Countries Covered
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China, India, Japan, South Korea, Australia & New Zealand, Thailand, Indonesia, Singapore, Malaysia, Philippines, Rest of Asia-Pacific, U.S., Canada, Mexico, Germany, France, U.K., Russia, Italy, Spain, Netherlands, Belgium, Switzerland, Turkey, Luxemburg, Rest of Europe, Brazil, Argentina, Rest of South America, South Africa, United Arab Emirates, Israel, Egypt, Saudi Arabia, Rest of Middle East and Africa
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Market Players Covered
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TEREOS PARTICIPATIONS, kakirasugar, Cargill, Incorporated, Radico Khaitan Limited., BCL INDUSTRIES LTD, NSL Sugar, Tandlianwala Sugar Mills Ltd., Gulshan Polyols Ltd., Associated British Foods plc, Dhampur Bio Organics Limited, Hunza Sugar Mills (Pvt.) Limited, IFB Agro Industries Limited., Radical Bio Organics Limited, PRO INDUSTRIES PTE LTD (Subsidiary of Oswal Group Global), Agro-Chemical and Food Company Limited (ACFC), New Phaltan, Baramati Agro, Vitthal Corporation Ltd., Pioneer Industries Private Limited, SHIKHA PACKAGING INDIA PVT LTD, and The Boudh Distillery Pvt. Ltd. Among others
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Market Definition
Extra Neutral Alcohol (ENA) is a high-purity alcohol with at least 96% ethanol content. It is free from impurities and has a neutral smell and taste. ENA is commonly used in the production of alcoholic beverages like vodka, gin, and liqueurs. It also has applications in the pharmaceutical industry for making medicines and sanitizers, the cosmetic industry for perfumes and deodorants, and the chemical industry as a solvent. Additionally, ENA is used in the food industry for flavor extracts and in the production of vinegar.
Global Extra Neutral Alcohol (ENA) Market Dynamics
Drivers
- Inclining Usage of ENA in Pharmaceutical Industry
Extra Neutral Alcohol (ENA), a high purity solvent and ingredient, is widely used in pharmaceutical formulations due to its ability to effectively dissolve active pharmaceutical ingredients, ensuring consistency and efficacy. ENA is crucial in pharmaceutical manufacturing, particularly in sanitizers and disinfectants, due to its high-purity nature and regulatory compliance, especially during the COVID-19 pandemic, ensuring product safety and efficacy.
The pharmaceutical sector's expanding global footprint and the increasing prevalence of chronic diseases are further boosting the demand for ENA. As pharmaceutical companies scale up production to meet growing healthcare needs worldwide, the requirement for high-quality solvents and excipients like ENA continues to rise. This trend is particularly evident in emerging markets where healthcare infrastructure and pharmaceutical manufacturing capabilities are evolving rapidly. In addition, technological advancements and innovations in pharmaceutical formulations are driving new applications for ENA. The development of novel drug delivery systems and biotechnological processes requires solvents with specific purity levels and performance characteristics, wherein ENA plays a crucial role. Its versatility and compatibility with various APIs make it a preferred choice for pharmaceutical manufacturers seeking to enhance the bioavailability and therapeutic efficacy of their products.
- Expansion in Various Industrial Applications Of ENA
The expansion in various industrial applications of Extra-Neutral Alcohol (ENA) is significantly driving the ENA market. One major area of growth is the beverage industry, where ENA is a crucial component in the production of high-quality spirits such as vodka, gin, and other distilled beverages. Its high purity and neutral taste make it an ideal base for these products, leading to increased demand. As consumer preferences lean towards premium and craft alcoholic beverages, the need for ENA has surged, contributing to market growth.
In the personal care and cosmetics industry, ENA is widely used as a solvent and preservative in products such as perfumes, deodorants, and other grooming items. The alcohol's ability to dissolve essential oils and fragrances effectively makes it a valuable ingredient in these formulations. With a growing focus on personal hygiene and grooming, there is a heightened demand for personal care products, which in turn boosts the demand for ENA. Moreover, the trend towards natural and organic cosmetics, where ENA derived from natural sources is preferred, further propels the market.
In the food industry, ENA is utilized as a food-grade solvent and preservative, playing a vital role in the production of flavorings, extracts, and colorings. The increasing consumption of processed and convenience foods, coupled with the necessity to maintain food safety and quality, has led to a growing reliance on ENA. Its application in extending the shelf life and enhancing the quality of food products underscores its importance in food manufacturing and preservation, driving market expansion.
Furthermore, the chemical industry extensively uses ENA as a raw material in the production of various chemical compounds and intermediates, such as paints, coatings, and solvents. The continuous industrial development and the rising demand for chemical products across sectors like construction and automotive have spurred the need for ENA. This broad spectrum of applications across multiple industries highlights the versatility and indispensability of ENA, solidifying its position as a critical driver of market growth. By meeting the diverse needs of these industries, ENA continues to be a vital ingredient, ensuring its sustained demand and market expansion.
Opportunity
- Rapid Urbanization and Increasing Disposable Incomes in Emerging Markets
As people move to cities, they often adopt more modern lifestyles, which include a higher consumption of alcoholic beverages. This shift in living conditions and consumer habits drives the demand for ENA, a key ingredient in producing high-quality spirits and other alcoholic drinks. Urban areas typically offer better access to various retail outlets, bars, and restaurants, further fueling alcohol consumption. This urban migration trend can lead to a steady increase in the demand for ENA, as manufacturers need more raw materials to produce beverages that cater to the urban population's preferences.
Moreover, the rise in disposable incomes in these emerging markets enhances consumers' purchasing power, enabling them to spend more on premium and branded alcoholic products. With more disposable income, consumers are likely to shift from low-cost, locally-produced spirits to higher-quality, branded options that often use ENA in their production process. This trend not only boosts the demand for ENA but also encourages international beverage companies to expand their presence in these markets, thereby increasing the overall market size for ENA.
Restraint/Challenge
- Price volatility of raw materials and availability of alternative solvents and alcohols
Price volatility of raw materials, such as grains, sugarcane, and other agricultural products used to produce ENA, can impact production costs. Factors like weather conditions, geopolitical events, and market demand can cause fluctuations in the prices of these raw materials. For instance, a poor harvest due to drought can drive up the cost of grains, directly increasing the cost of producing ENA. This volatility makes it difficult for producers to predict expenses and maintain stable pricing for their products, potentially squeezing profit margins and causing financial instability.
Additionally, the availability of alternative solvents and alcohols further complicates the market dynamics. Various industries use ENA for its purity and neutrality, but they also have other options. Solvents and alcohols like ethanol, isopropanol, and methanol can serve similar purposes in industrial applications, pharmaceuticals, and cosmetics. When the price of ENA rises, companies may switch to these alternatives, reducing the demand for ENA. This shift can lead to a decline in market share for ENA producers.
Recent Developments
- In June 2024, Radico Khaitan Limited launched Rampur Asava Indian Single Malt Whisky in India, expanding from its successful international markets to states like Uttar Pradesh initially. Priced at USD 120 the rollout will extend to key states and include the canteen store department. This move diversifies Radico Khaitan's product offerings, leveraging their expertise in the extra neutral alcohol market to enhance brand reputation and market presence domestically
- In September, BCL Industries is going to expand its distilleries’ capacity to 850 kilo litre per day (KLPD) in upcoming two years in order to meet the growing market demand. Thus, through this expansion, the company will become a forward and backwards integrated distillery-Ethanol Industry plant
Global Extra Neutral Alcohol (ENA) Market Scope
The global Extra Neutral Alcohol (ENA) market is segmented into three notable segments based on raw material, purity, and application. The growth amongst these segments will help you analyze major growth segments in the industries and provide the users with a valuable market overview and market insights to make strategic decisions to identify core market applications.
Raw Material
- Grain-Based
- Sugarcane-Based
- Fruit-Based
- Others
On the basis of raw material, the market is segmented into grain-based, sugarcane-based, fruit-based, and others.
Purity
- 95%-98%
- 98%-99%
- More than 99%
On the basis of purity, the market is segmented into 95%-98%, 98%-99%, and more than 99%.
Application
- Potable Alcohol
- Pharmaceuticals
- Flavors & Fragrances
- Cosmetics & Personal Care
- Others
On the basis of application, the market is segmented into potable alcohol, pharmaceuticals, flavors & fragrances, cosmetics & personal care, and others.
Global Extra Neutral Alcohol (ENA) Market Regional Analysis/Insights
The global Extra Neutral Alcohol (ENA) market is segmented into three notable segments based on raw material, purity, and application.
The countries in the global Extra Neutral Alcohol (ENA) market China, India, Japan, South Korea, Australia & New Zealand, Thailand, Indonesia, Singapore, Malaysia, Philippines, Rest of Asia-Pacific, U.S., Canada, Mexico, Germany, France, U.K., Russia, Italy, Spain, Netherlands, Belgium, Switzerland, Turkey, Luxemburg, Rest of Europe, Brazil, Argentina, Rest of South America, South Africa, United Arab Emirates, Israel, Egypt, Saudi Arabia, Rest of Middle East and Africa.
Asia-Pacific region is expected to dominate the market due to factors like widespread use in pharmaceutical sector's expanding global footprint. China is expected to dominate in Asia-Pacific due to increasing prevalence of chronic diseases. U.S. is dominating in the North America region, due to increasing In the personal care and cosmetics industry, ENA is widely used as a solvent and preservative in products such as perfumes, deodorants, and other grooming items. Germany is dominating in Europe, due to it’s In the food industry, ENA is utilized as a food-grade solvent and preservative, playing a vital role in the production of flavorings, extracts, and colorings.
The country section of the report also provides individual market-impacting factors and changes in market regulation that impact the current and future trends of the market. Data point downstream and upstream value chain analysis, technical trends porter's five forces analysis, and case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, the impact of domestic tariffs, and trade routes are considered while providing forecast analysis of the country data.
Competitive Landscape and Global Extra Neutral Alcohol (ENA) Market Share Analysis
The global Extra Neutral Alcohol (ENA) market competitive landscape provides details by competitors. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, production sites and facilities, company strengths and weaknesses, product launch, product trials pipelines, product approvals, patents, product width and breadth, application dominance, technology lifeline curve. The above data points provided are only related to the companies’ focus related to the global Extra Neutral Alcohol (ENA) market.
Some of the prominent participants operating in the global Extra Neutral Alcohol (ENA) market are TEREOS PARTICIPATIONS, kakirasugar, Cargill, Incorporated, Radico Khaitan Limited., BCL INDUSTRIES LTD, NSL Sugar, Tandlianwala Sugar Mills Ltd., Gulshan Polyols Ltd., Associated British Foods plc, Dhampur Bio Organics Limited, Hunza Sugar Mills (Pvt.) Limited, IFB Agro Industries Limited., Radical Bio Organics Limited, PRO INDUSTRIES PTE LTD (Subsidiary of Oswal Group Global), Agro-Chemical and Food Company Limited (ACFC), New Phaltan, Baramati Agro, Vitthal Corporation Ltd., Pioneer Industries Private Limited, SHIKHA PACKAGING INDIA PVT LTD, and The Boudh Distillery Pvt. Ltd among others.
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