Extra Neutral Alcohol Market by Type (Type I and Type II), by Raw Material (Grain-Based and Sugarcane-Based), and by Application (Potable Alcohol, Distilled Alcoholic Beverages, Compound Alcoholic Beverages, Flavors and Fragrances, Pharmaceuticals, Cosmetics and Personal Care and Others)- Global Opportunity Analysis and Industry Forecast 2022- 2030

Market Definition:

The Extra Neutral Alcohol Market size was valued at USD 6.80 billion in 2021 and is predicted to reach USD 14.50 billion by 2030 with a CAGR of 6.7% from 2022-2030.

Extra Neutral alcohols (ENA), also known as neutral spirits are colorless food-grade alcohol without any impurities in it. ENAs are formed from molasses, resulting from refining sugarcane or sugar beets into sugar. It has neutral smell and is highly distilled in nature containing about 96% of alcohol by volume. It is widely used in the production of alcoholic beverages such as whisky, vodka, liqueurs, gin, and alcoholic fruit beverages. In addition, it has significant applications in the production of perfume, toiletries, cleaning products, cologne, paints, hair spray, and detergents.

Market Dynamics and Trends:

The demand for extra neutral alcohol is increasing due to growing consumer preference for branded liquors over country liquors as branded liquors are pure as compared to country liquors. Also, rise in sugarcane production coupled with development in fermentation industries that are related to the production of alcohol in turn are expected to propel the growth of the market during the forecast period.

Moreover, the widespread applications of extra neutral alcohol in various consumer goods such as air fresheners, colognes, detergents, syrups are expected to drive the growth of extra neutral alcohol market. Furthermore, the extensive use of ENA in the pharmaceutical industry to manufacture antiseptics, drugs, sanitizers, and vaccinations are also expected to propel the growth of the extra neutral alcohol market. In addition, increased use of ENA’s in industrial application in the production of some lacquers, paints and ink for the printing industry is driving the growth of the extra neutral alcohol market during the forecast period.

However, increase in alcohol abuse, fluctuation in the price of raw materials such as honey, ripe fruit, and sugarcane juice and stringent government policies related to the use of alcohol are the factors that are expected to restrain the growth of market during the forecast period. On the other hand, innovative approaches to produce petroleum by the process of ethanol blending to lower carbon emission for maintaining better air quality is expected to create ample growth opportunities in the upcoming years.

Market Segmentations and Scope of the Study:

The extra neutral alcohol market is segmented based on type, raw material, application, and geography. Based on the type, the industry is classified into type I, and type II. Based on raw materials, they are classified into grain-based, and sugarcane-based. Based on application, the market is categorized into potable alcohol, distilled alcoholic beverages, compound alcoholic beverages, flavors and fragrances, pharmaceuticals, cosmetics and personal care, and others. The geography breakdown and analysis of each of the aforesaid segments includes regions comprising North America, Europe, Asia-Pacific, and ROW.

Geographical Analysis:

Asia Pacific region holds the lion share of extra neutral alcohol market at present and is expected to continue its dominance during the forecast period. This is attributed to factors such as rise in the consumption of alcoholic beverages in Asian countries along with higher intake of odorless alcohol, brandy, vermouth in Asia Pacific region. For instance, in 2019, Lancet announced Vietnam as Asia’s third-largest beer consumer after China and Japan. The Lancet found that per capita alcohol consumption in Vietnam increased 90% between 2010 and 2017, the fifth highest in the world. Also, rising demand for red wine due to health benefits and treatment of heart diseases also boosts the market growth.

According to the Indian Made Foreign Liquor (IMFL), consumption of red wine accounted for 61% (approx.) in 2020 of total wine consumption in India. Thus, the demand for premium alcohol is expected to drive growth of extra neutral alcohol market. Moreover, the presence of both, local and global market players such as Asahi, Ballantine's Chivas, Hennessy, Jim Beam, Moutai, Royal Stag and San Miguel further drive the growth of the extra neutral alcohol market in this region. For instance, in October 2020, Seagram’s Royal Stag had launched campaign with global icons. The campaign features top global stars like Ranveer Singh, Rohit Sharma, Diva Dhawan, Jasprit Bumrah, Kane Williamson, Young OHM and McDonald Wanyama. This campaign was done to increase the sales and across various regions to maintain their dominance in the alcohol industry.

On the other hand, North America is expected to show a steady rise in the extra neutral alcohol market due to rising alcohol consumption, increasing disposable incomes and party culture along with the proliferation of clubs, lounges, and bars that boost the market growth. For instance, there are 71,634 Bars & Nightclubs businesses in the US as of 2022, an increase of 2.1% from 2021 as per ibisworld stats. Also, a favorable growth for extra-neutral alcohol industry was subsequently generated by the subsequent rise in 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 had been fostered by the increasing customer preference for branded liquors. In addition, the rise in the cosmetic and personal care sectors in this region increases the use of extra neutral alcohol as a volatile carrier of flavours & fragrances and solvents had also contributed to the growth of extra neutral alcohol market in this region.

Competitive Landscape:

The extra neutral alcohol market comprises various players such as Illovo Sugar Ltd., Alco 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, and Greenpoint Alcohols. These market players are adopting several strategies such as product launches and announcements across various regions to maintain their dominance in the extra neutral alcohol market.

For instance, in March 2022, Alberta Distillers Ltd had launched Alberta Premium whisky. This whisky was the highest selling whisky in 2021. Alberta Premium was made from 100% Canadian prairie rye grains grown by local farmers. These grains are uniquely nourished by nutrient-dense, glacier-fed spring water from the surrounding Rocky Mountains. 

KEY BENEFITS:

• The extra neutral alcohol market report provides the quantitative analysis of the current market and estimations through 2022-2030 that assists in identifying the prevailing market opportunities to capitalize on.

• The study comprises a deep dive analysis of the extra neutral alcohol market trend including the current and future trends for depicting the prevalent investment pockets in the market.

• The information related to key drivers, restraints and opportunities and their impact on the extra neutral alcohol market is provided in the report.

• The competitive analysis of the market players along with their market share in the extra neutral alcohol market.

• The SWOT analysis and Porters Five Forces model is elaborated in the study.

• The value chain analysis in the market study provides a clear picture of the stakeholders’ roles.

KEY MARKET SEGMENTS:

By Type 

• Type I

• Type II

By Raw Material 

• Grain-Based

• Sugarcane-Based

By Application

• Potable Alcohol

  • 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

• Others

By Geography

• North America

  • U.S

  • Canada

  • Mexico

• Europe

  • UK

  • Germany

  • France

  • Italy

  • Spain

  • Rest of Europe

• Asia-Pacific

  • China

  • India

  • Japan

  • South Korea

  • Australia

  • Rest of Asia-Pacific

• RoW

  • UAE

  • Saudi Arabia

  • South Africa

  • Brazil

  • Remaining countries