Industrial Alcohol Market

Strategic Acquisitions and Organic Expansions were the Core Strengths of the Leading Players of the Industrial Alcohol Market

The key players in the industrial alcohol market include Cargill (U.S.), Raizen Energia (Brazil), Green Plains Inc. (U.S.), Cristalco (France), and MGP Ingredients Inc. (U.S.). Other players include The Andersons Inc. (U.S.), Sigma-Aldrich Inc. (U.S.), Grain Processing Corporation (U.S.), Greenfield Specialty Alcohols Inc. (Canada), and Flint Hills Resources (U.S.).

Strategic acquisitions and organic expansions were the core strengths of the leading players of the industrial alcohol market; these strategies were adopted by the players to increase their market presence. They also helped the players diversify their businesses geographically, strengthen distribution networks, and enhance their production capacities. Market leaders such as Cargill (U.S.), Raizen Energia (Brazil), Green Plains Inc. (U.S.) and MGP Ingredients (U.S.) successfully tapped the potential markets through expansions, investments, acquisitions, and agreements or joint ventures.

Cargill (U.S.) is a leading company in food, agriculture, financial & industrial, pharmaceutical, and personal care products & services with more than 150 years of industry experience. The company has established itself as an international food conglomerate, with its wide range of offerings covering most of the sectors of food & beverage industry. The company is one of the leaders in the manufacturing of alcohol and distilleries for both, beverages and industrial purposes. Cargill works in close cooperation with its customers to meet their requirements, enhance the products, and ensure consistent quality. The company manufactures varied standards of ethyl alcohol, which finds application in the beverage industry, as well as in the pharmaceutical, energy, food products, chemical, and personal care sectors. Cargill has a well-developed global presence and aims to increase its business in emerging markets to develop a significant global network by adopting strategies such as expansions and joint ventures. The company adopted expansions as its business strategy to secure its position in developed countries in North America and Europe. The main focus of the company is to enhance its production capacity by opening new plants and signing joint ventures, so that the increased demand for ethyl alcohol is met. For instance, in December 2015, Cargill entered into a joint venture with USJ group (Brazil), to install a technology system, fluid quip process technology, which helps the company to integrate corn ethyl alcohol production with sugarcane ethyl alcohol facility. This investment by the company on installing new technology in their production facility, aims at maintaining the ethyl alcohol production capacity, irrespective of the feedstock available, so that the supply and demand scale is maintained.

Raizen Energia (Brazil) is a leading energy company, formed as a result of a merger of assets from Cosan and Royal Dutch Shell in Brazil. It owns a fully integrated process for the sugar-energy industry, including all the stages-sugarcane cultivation, sugar & ethyl alcohol production, internal logistics, exportation, distribution, and marketing. The company mainly focuses on the domestic market and strategizes investment plans in order to improve the production capacity of the company. For instance, in January 2015, Raizen enhanced the production of second generation alcohols, using straw and bagasse as the feedstock, by investing in establishing seven ethanol plants at Piracicaba. Raizen has a large production capacity for the fuel sector, thereby leading the Brazilian biofuel market

Related Reports:

Industrial Alcohol Market by Type (Ethyl, Methyl, Isopropyl, Isobutyl, Benzyl Alcohol), Source (Sugar & Molasses, Corn, Grains, Fossil Fuels), Application (Personal Care, Pharmaceutical, Fuel, Food, Chemical), and Region - Global Forecast to 2022

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Report Code
FB 5016
Published ON
Feb, 2017
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