Global alcohol market to grow substantially

Recently, Global Information Corporation (GII), a global market research information provider headquartered in Japan, released a forecast report. The report analyzes and forecasts the global alcohol market by process technology, type, application, and region. According to the report, the global alcohol market will grow from US$96.75 billion in 2021 to US$142.62 billion in 2028, with an average annual growth rate of 5.7%.

According to the report, the expansion of the promotion and application of bioethanol will be a driving factor for the alcohol market. Bioethanol is commonly used as a transport biofuel to reduce the impact of greenhouse gases on the atmosphere. As the global population grows and industrialization progresses, the demand for energy continues to increase, resulting in the rising cost of crude oil and natural gas over the past few years. In this context, the growing awareness of climate change and the introduction of renewable resources have propelled the development of bioethanol and underpinned the market demand.

The volatility of raw material prices is a major negative factor for the alcohol market. The report believes that industrial alcohol is inelastic in terms of price demand, and the alcohol industry relies heavily on raw materials such as sugar, corn and wheat, and the price of raw materials is affected by many factors, including planting yield, climatic conditions and crop quality. In addition, the global alcohol market is currently facing the impact of shutdowns caused by the new crown pneumonia epidemic.

According to the report, developing economies will be new opportunities for the alcohol market. With changing lifestyles, economic growth and use of renewable resources in emerging countries, the demand for alcohol products has increased. The report predicts that the demand for alcohol products such as ethanol and isobutanol in China, India, and developing countries such as the Middle East and Africa will grow substantially in the next few years.