Ethyl alcohol market in SADC

Earlier Report Observations

From 2018 to 2020, ethyl alcohol production in SADC showed variability, peaking at 376.4 million liters in 2019 before easing to 366.6 million liters in 2020. Market volume remained relatively stable, between 210.7 and 222.1 million liters. The COVID-19 pandemic in 2020 significantly increased demand for ethanol in alcohol-based sanitizers for medical and pharmaceutical applications, which supported market value, lifting it to 187.2 million USD despite the slight dip in physical output.

Between 2021 and 2023, production fell to 358.3 million liters in 2022, with market volume declining to 185.5 million liters. This contraction occurred alongside changes in South African excise and customs regulations, which affected licensing and market access for industrial ethanol. The government's advancing biofuels strategy, indicating imminent ethanol blending in petrol, also began influencing demand considerations. A rebound followed in 2023, with production surging to 398.6 million liters as growing consumer preference for no- and low-alcohol beverages in South Africa drove new product development and increased ethanol use in this expanding segment.

In 2024, the market continues to be shaped by the sustained growth of no- and low-alcohol beverage categories, ongoing global supply chain factors, and the persistent influence of biofuels policy on demand dynamics.

Production ethyl alcohol in SADC

In kind, 2017-2020, M l

Top producers of ethyl alcohol, 2017-2020

World map of production of ethyl alcohol, 2017-2020

Ethyl alcohol production in SADC saw growth for two consecutive years before declining. In 2019, production reached its peak at 376.4 million liters, marking a 2.8% increase from the previous year. However, in 2020, output fell to 366.6 million liters, representing a 2.6% decrease compared to 2019.

Annual dynamics of production in SADC in kind, 2017-2020, M l

In value, 2017-2020, M $ US

Following two years of growth, ethyl alcohol production in SADC experienced a downturn. In 2019, production value peaked at 258.8 million US dollars, with the largest annual increase of 11.7% occurring in 2018. By 2020, the value dropped to 249.9 million US dollars, a 3.4% decline from the previous year. Over the entire 2017-2020 period, production value grew by 13.6%, translating to an average annual growth rate of 4.4%.

Annual dynamics of production in SADC in value, 2017-2020, M $ US

Exports ethyl alcohol from SADC

Exports in kind, M l

Ethyl alcohol exports from SADC declined for the second year in a row. In 2018, exports reached their highest level at 317.8 million liters, with a 2.1% increase that year. By 2020, exports fell to 265.5 million liters, showing a 9.3% decrease from 2019. From 2017 to 2020, total exports dropped by 14.7%, equivalent to an annualized decline of 5.2%.

Annual dynamics of product's exports from SADC in kind, 2017-2020, M l

Between 2017 and 2020, SADC's ethyl alcohol exports were distributed across numerous partner countries. The United Arab Emirates accounted for 11.9% of exports in volume, Singapore for 9.3%, and the United States for 7.7%. Together, these three countries represented just 28.9% of total export flows, indicating a broad and diversified export market.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from SADC in kind, 2017-2020

Exports in value, M $ US

Ethyl alcohol export revenues from SADC fell for the second consecutive year. In 2018, exports reached their peak value at 213.3 million US dollars, with the largest annual increase of 12.7% recorded that year. By 2020, exports declined to 181.0 million US dollars, down 10.1% from 2019. Over the 2017-2020 period, total export value decreased by 4.3%, corresponding to an average annual decline of 1.5%.

Annual dynamics of product's exports from SADC in value, 2017-2020, M $ US

From 2017 to 2020, the United Arab Emirates, Singapore, and the United States were significant but not dominant buyers of ethyl alcohol from SADC in value terms. The UAE accounted for 8.7% of export value, Singapore for 6.7%, and the United States for 6.2%. Collectively, these three countries made up only 21.6% of total export value, highlighting a diversified export structure.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from SADC in value, 2017-2020

Imports ethyl alcohol to SADC

Imports in kind, M l

SADC's ethyl alcohol import volumes declined for the second year in a row. In 2018, imports peaked at 173.7 million liters, with a 3.3% increase that year. The largest decline occurred in 2019, when imports fell by 26.6%. By 2020, imports dropped further to 109.6 million liters, reflecting a 14.1% decrease year-over-year. Over the 2017-2020 period, total imports decreased by 34.8%, equivalent to an average annual decline of 13.3%.

Annual dynamics of product's imports to SADC in kind, 2017-2020, M l

During 2017-2020, India, Pakistan, and Brazil were the top suppliers of ethyl alcohol to SADC in volume terms. India contributed 10.9% of imports, Pakistan 5.6%, and Brazil 3.6%. Together, these three countries accounted for only 20.2% of total import volume, demonstrating a highly diversified supplier base for SADC.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to SADC in kind, 2017-2020

Imports in value, M $ US

SADC's ethyl alcohol import value showed mixed trends from 2017 to 2020. In 2018, imports reached their highest value at 135.6 million US dollars, with a 6.9% increase that year. The largest decline occurred in 2019, when imports fell by 14.9% to 115.4 million US dollars. In 2020, imports rose slightly to 118.2 million US dollars, a 2.5% increase from 2019. Over the entire period, total import value decreased by 6.7%, translating to an average annual decline of 2.3%.

Annual dynamics of product's imports to SADC in value, 2017-2020, M $ US

From 2017 to 2020, SADC's ethyl alcohol imports in value terms were not heavily concentrated among suppliers. India accounted for 15.0% of import value, Pakistan for 6.0%, and Brazil for 5.0%. Combined, these three countries represented just 26.0% of total import flows, underscoring a diversified import structure with no single dominant supplier.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to SADC in value, 2017-2020