NAICS 325193 Quarterly Industry Report
Ethyl Alcohol Manufacturing
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 325193Sector: 32Updated: Q1 2026
About This Report
This Fair Market Value industry report for NAICS 325193 provides business owners, acquirers, and financial advisors with data-driven valuation insights for the ethyl alcohol manufacturing sector, drawing on data from the U.S. Census Bureau[4] and U.S. Energy Information Administration[7] renewable fuel production data. Additional data is drawn from Bureau of Labor Statistics[8].. The report aggregates transaction multiples, financial benchmarks, and market trends specific to NAICS 325193 establishments, supporting buy-sell agreements, succession planning, SBA-financed acquisitions, and litigation support engagements.
Industry Definition & Overview
Ethyl Alcohol Manufacturing (NAICS 325193) encompasses establishments primarily engaged in manufacturing nonpotable ethyl alcohol, including fuel-grade ethanol produced from corn and other agricultural feedstocks, industrial-grade alcohol used in solvents and chemical formulations, and denatured alcohol for pharmaceutical, cosmetic, and cleaning product applications. Fuel ethanol production represents the dominant segment, with domestic capacity exceeding 17 billion gallons annually from roughly 200 operating ethanol plants across the Corn Belt and Great Plains states. According to the U.S. Census Bureau[4], approximately 78 establishments employ over 10,000 workers in this sector.
Corn-based dry mill ethanol production accounts for the vast majority of domestic output, with each facility processing millions of bushels of corn annually through fermentation, distillation, and dehydration processes to produce fuel-grade ethanol blended into the national gasoline supply. The Bureau of Labor Statistics[5] reports production roles including ethanol plant operators managing fermentation and distillation systems, quality control technicians testing alcohol purity and denaturant compliance, grain receiving and handling operators, and co-product processing specialists managing dried distillers grains production.
Federal renewable fuel standard mandates require petroleum refiners to blend specified volumes of renewable fuels including ethanol into the gasoline supply, creating a regulatory floor for ethanol demand. Per the SBA Office of Advocacy[6], the industry includes farmer-owned cooperative ethanol plants, publicly traded ethanol producers, and agricultural commodity companies operating fuel ethanol production alongside grain merchandising and animal feed operations.
What's Included in This Industry
- Valuation multiples benchmarked to fuel ethanol and industrial alcohol manufacturers
- Revenue and EBITDA trends for domestic ethyl alcohol production operations
- SBA lending data and financing terms for NAICS 325193
- Comparable transaction data from recent ethanol plant acquisitions and mergers
- Industry risk factors including corn pricing, ethanol margins, and regulatory policy changes
- Workforce composition and labor cost benchmarks for ethanol manufacturing
- Regional market analysis covering ethanol production across Corn Belt states
- Capital expenditure benchmarks for fermentation, distillation, and co-product equipment
- Growth projections tied to renewable fuel mandates and sustainable aviation fuel demand
- Owner compensation and discretionary earnings benchmarks
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Subsector | Chemical Manufacturing | 325 |
| Industry Group | Basic Chemical Manufacturing | 3251 |
| NAICS Industry | Other Basic Organic Chemical Manufacturing | 32519 |
| National Industry | Ethyl Alcohol Manufacturing | 325193 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 311221 | Wet Corn Milling and Starch Manufacturing | Wet corn milling establishments producing corn syrup and starch through processes that overlap with ethanol production in integrated corn processing facilities |
| 324110 | Petroleum Refineries | Petroleum refineries purchasing fuel ethanol for blending into finished gasoline products in compliance with federal renewable fuel standard mandates |
| 325199 | All Other Basic Organic Chemical Manufacturing | Basic organic chemical manufacturers consuming industrial ethanol as a solvent and chemical intermediate in downstream organic chemical synthesis operations |
| 312140 | Distilleries | Distilleries producing potable spirits through similar fermentation and distillation processes but classified separately from nonpotable ethyl alcohol manufacturers |
| 424610 | Plastics Materials and Basic Forms and Shapes Merchant Wholesalers | Plastics materials and basic forms merchant wholesalers and chemical distributors handling industrial ethanol distribution to pharmaceutical and manufacturing customers |
| 424710 | Petroleum Bulk Stations and Terminals | Petroleum bulk station operators receiving and distributing fuel ethanol through terminal infrastructure for blending into the gasoline supply chain |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | Iowa | 19.4% | 37 |
| 2 | Nebraska | 12.0% | 23 |
| 3 | Kansas | 8.9% | 17 |
| 4 | Illinois | 8.9% | 17 |
| 5 | Minnesota | 8.9% | 17 |
| 6 | South Dakota | 8.4% | 16 |
| 7 | Indiana | 6.8% | 13 |
| 8 | Wisconsin | 5.8% | 11 |
| 9 | California | 4.7% | 9 |
| 10 | Ohio | 3.7% | 7 |
% Of Establishments
0%
19%
Source: County Business Patterns, U.S. Census Bureau[3]
Frequently Asked Questions
Common questions about this industry.
What is the typical valuation multiple for an ethanol plant?
Ethanol plants typically trade at 4x to 7x EBITDA under normalized margin conditions, with premium valuations for facilities with low cost positions, strong corn basis advantages, and modern co-product processing capabilities. Per U.S. Census Bureau[4] data, plant valuations are highly sensitive to the ethanol crush margin spread between ethanol prices and corn feedstock costs.
What SBA loan options are available for ethanol manufacturers?
The SBA 7(a) loan program[10] provides up to $5 million for plant acquisitions and equipment, while the CDC/504 program[11] finances distillation upgrades and energy efficiency improvements. Farmer-owned cooperative ethanol plants and independent producers with stable margin histories typically qualify for SBA lending programs.
How does the renewable fuel standard affect ethanol demand?
EPA[12] administers the Renewable Fuel Standard program requiring petroleum refiners to blend specified volumes of renewable fuels including corn ethanol into the gasoline supply. This mandate creates a regulatory demand floor that has supported domestic ethanol production growth, though annual volume requirements are subject to EPA rulemaking and can create market uncertainty.
How do corn prices affect ethanol plant profitability?
Corn represents approximately 70 to 80 percent of total ethanol production costs, making the corn-to-ethanol crush margin the primary profitability determinant. Per U.S. Department of Agriculture[13] grain market data, ethanol plant margins are compressed when corn prices rise faster than ethanol prices, requiring effective grain procurement and risk management strategies.
What co-products generate revenue for ethanol plants?
Dried distillers grains with solubles serve as a high-protein animal feed sold to livestock operations, while corn oil extraction provides additional revenue from biodiesel feedstock sales. Per U.S. Department of Agriculture[13] data, co-product revenue typically contributes 20 to 30 percent of total plant revenue and is critical to maintaining positive operating margins.
What is the SBA size standard for ethanol manufacturers?
The SBA[9] classifies businesses with up to 1,000 employees as small for NAICS 325193 ethyl alcohol manufacturing. Most individual ethanol plants operate with fewer than 100 employees, allowing the vast majority of domestic ethanol producers to qualify for SBA programs.
What growth opportunities exist for ethanol producers?
Sustainable aviation fuel, carbon capture and sequestration credits, cellulosic ethanol production, and industrial alcohol demand represent growth pathways. Per U.S. Energy Information Administration[7] renewable fuel data, ethanol-to-jet fuel conversion technology and federal production tax credits for sustainable aviation fuel are creating new demand channels for ethanol producers.
What are key factors in ethanol plant acquisition due diligence?
Critical factors include plant nameplate capacity and efficiency metrics, corn basis and procurement position, energy cost structure, co-product processing capabilities, and proximity to ethanol demand markets. Per U.S. Census Bureau[4] industry data, plant age, technology generation, and water supply access also influence acquisition valuations and integration planning.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Census Bureau, County Business Patterns census.gov
- [4]U.S. Census Bureau census.gov
- [5]Bureau of Labor Statistics bls.gov
- [6]SBA Office of Advocacy advocacy.sba.gov
- [7]U.S. Energy Information Administration eia.gov
- [8]Bureau of Labor Statistics bls.gov
- [9]SBA size standards sba.gov
- [10]SBA 7(a) loan program sba.gov
- [11]CDC/504 loan program sba.gov
- [12]EPA epa.gov
- [13]U.S. Department of Agriculture usda.gov
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