Undenatured ethyl alcohol with ABV of ≥80% market in Italy

Earlier Report Observations

The Italian market for undenatured ethyl alcohol began adapting to new excise regulations in 2018, which established taxes and rules for production and trade. Coupled with 2019 rules governing the use of alcohol for tax-exempt purposes and associated documentation requirements, these measures contributed to a contraction in market volume to 292 million liters by 2019. Market volume then surged to 388 million liters in 2020.

Subsequent years saw a decline in market volume, coinciding with significant legislative updates. The 2021 decree law amended the Consolidated Excise Act, transposing EU directives and altering definitions for denatured alcohol and circulation regimes. The entry into force of these changes in 2022, which simplified declaration obligations for alcohol sales, further influenced the market's downward trajectory through 2022.

By 2023, market dynamics were increasingly shaped by shifting consumer trends, including growing public awareness of alcohol abuse and rising demand for low- and no-alcohol (No-Low) beverages, which contributed to a market volume of 299 million liters. The market recovered to 324 million liters in 2024 amid stricter labeling rules for spirits, a new decree on the fiscal traceability of ethyl alcohol, and sustained industrial and food-grade demand, despite a slight dip in domestic production.

Production undenatured ethyl alcohol with ABV of ≥80% in Italy

In value, 2017-2020, M $ US

Following two consecutive years of growth, Italy's production of undenatured ethyl alcohol with an alcohol content of 80% or higher declined. In 2020, the output was valued at 114.7 million US dollars, marking a gradual decrease of 9.8% compared to the previous year. Over the period from 2017 to 2020, production increased by 6.6%, with a compound annual growth rate of 2.1%. The highest value was recorded in 2019 at 127.2 million US dollars, which also saw the largest increase of 11.0%.

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

In kind, 2017-2020, M l

After two years of expansion, Italy's production of undenatured ethyl alcohol with an alcohol content of 80% or higher fell. In 2020, the country produced 139.0 million liters, indicating a year-over-year decline of 13.6%. From 2017 to 2020, production rose by 2.8%, with a compound annual growth rate of 0.9%. The peak was reached in 2019 with 160.9 million liters, which also experienced the largest increase of 16.7%.

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

Exports undenatured ethyl alcohol with ABV of ≥80% from Italy

Exports in kind, M l

Italy's exports of undenatured ethyl alcohol with an alcohol content of 80% or higher grew for the second year in a row. In 2020, the country exported 47.4 million liters, representing a 1.2% increase compared to 2019. The lowest volume was recorded in 2018 at 36.6 million liters, which saw the largest decline of 23.8%. The largest increase occurred in 2019 at 28.2%.

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

From 2017 to 2020, France, Spain, and Switzerland were the main buyers of Italy's undenatured ethyl alcohol with an alcohol content of 80% or higher, accounting for 45.4%, 20.0%, and 12.6% of exports in volume, respectively. Together, these three countries comprised 78.0% of total exports.

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

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

Exports in value, M $ US

Italy exported 51.8 million US dollars worth of undenatured ethyl alcohol with an alcohol content of 80% or higher in 2020, reflecting a slight decline of 1.9% compared to 2019. Over the 2017-2020 period, exports increased by 2.1%, with a compound annual growth rate of 0.7%. The lowest value was recorded in 2018 at 41.3 million US dollars, which experienced the largest decline of 18.5%. The highest value was in 2019 at 52.8 million US dollars, with the largest increase of 27.7%.

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

Between 2017 and 2020, France, Spain, and Switzerland consistently served as the primary destinations for Italy's exports in value terms, accounting for 37.8%, 21.5%, and 12.2% of the total, respectively. Together, these three countries made up 71.4% of all export flows.

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

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

Imports undenatured ethyl alcohol with ABV of ≥80% to Italy

Imports in kind, M l

Italy's imports of undenatured ethyl alcohol with an alcohol content of 80% or higher reached 296.8 million liters in 2020, showing a significant increase of 66.6% compared to 2019. Over the 2017-2020 period, imports grew by 52.6%, with a compound annual growth rate of 15.1%. The lowest volume was recorded in 2019 at 178.2 million liters, which saw the largest decline of 16.7%.

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

From 2017 to 2020, Hungary, Pakistan, and France were the principal suppliers of undenatured ethyl alcohol with an alcohol content of 80% or higher to Italy, accounting for 32.8%, 16.4%, and 15.1% of imports in volume, respectively. Collectively, these three countries represented 64.3% of total imports.

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

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

Imports in value, M $ US

The market performance showed noticeable fluctuations during this period. In 2020, Italy's imports of undenatured ethyl alcohol with an alcohol content of 80% or higher reached 220.9 million US dollars, corresponding to an 82.4% year-over-year increase. The largest decline was recorded in 2019 at 11.7%. The variation between the peak in 2020 and the low in 2017 was 1.9-fold.

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

Between 2017 and 2020, Hungary, Pakistan, and France were the main sources for Italy's imports in value terms, accounting for 28.3%, 17.9%, and 16.4% of the total, respectively. Together, these three countries comprised 62.6% of all import flows.

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

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