Ethanol Market Size, Share, Outlook

The global Ethanol (Ethyl Alcohol) Market Size is estimated to be $121.8 Billion in 2023 and is poised to register 6.3% growth over the forecast period 2023 to 2030.

Increase in Demand for Biofuels among End-User Industries, Shortage of petroleum and rising Prices, Rise in demand for alcohols in multiple applications, Uplifting the Restrictions on The Sales of Gasoline With A Higher Percentage Content Of Ethanol (Ethyl Alcohol) In The United States, and others are market driving forces

 

Ethanol Market Analysis

Enhanced utilization of Ethanol (Ethyl Alcohol) as a biofuel majorly among developing economies such as India and China has been witnessed. The use and production of biodiesel have increased considerably due to a rise in petroleum costs and an increase in government subsidies over Ethanol production, which resulted in reduced demand for petroleum. In addition, Ethanol caters to the increasing energy supply needs worldwide, which further creates new opportunities for market growth. Furthermore, the use of bioethanol reduces import bills for energy-deficient countries and offers an improved balance of trade and payments. All these factors together are expected to provide lucrative opportunities for market growth.

Crude oil and natural gas are the major sources of energy for the automotive industries for many decades. Due to the negative environmental impact of the increasing consumption of crude oil and natural gas worldwide, and high crude oil prices, biofuels, such as bio Ethanol, are considered a successful alternative for crude oil and natural gas as a fuel for automotive industries.

Ethanol (Ethyl Alcohol) is the lowest-cost octane with an octane rating of 113, providing strategies to save lots of money for both manufacturers and consumers. The bioethanol market is directly affected by the consumption of fuel. Over the past four decades, Ethanol remains an effective tool for reducing harmful emissions from automobiles. As Ethanol is a pure compound with 35% oxygen, it burns more cleanly and completely than petroleum products. Ethanol helps to reduce emissions of air toxics, carbon monoxide, particulate matter, nitrous oxides, and exhaust hydrocarbons, by displacing aromatics in petroleum products.

 

Market Dynamics

Market Trend- Increase in Demand for Biofuels among End-User Industries

High petroleum & gasoline prices, concerns over global climate change, and the desire to promote domestic rural economies have significantly increased the adoption of biofuels as an alternative to petroleum. Biofuels are transportation fuels such as Ethanol (Ethyl Alcohol) and biodiesel made from biomass material. The market is witnessing significant growth owing to rapid demand for energy and increased utilization of Ethanol, as biofuel reduces dependence on crude oil. Moreover, Ethanol and biodiesel are considered cleaner burning fuels when compared with gasoline and diesel fuel, which further enhances the market growth. Therefore, fuel Ethanol and blended biofuels are being utilized worldwide, focusing on improving fuel quality, and economy standards, and combating air pollution. The aforementioned factors are expected to give impetus to market growth.

Brazil also started producing Ethanol (Ethyl Alcohol) from corn (similar to the United States), to prevent the increase of sugar prices. In the present scenario, Brazil is operating four plants producing Ethanol from corn in the states of Mato Grosso and Goias. Two are flexible plants, producing Ethanol from both sugarcane and corn, and the remaining two are dedicated corn-only plants. Six additional plants are under construction and would be operational within 2-3 years.

 

Market Driver- Shortage of petroleum and rising Prices

The rapid acceleration of oil prices majorly in North America led to significant investments in the production of biofuels. The US and Brazil, therefore, account for most of the world’s Ethanol production. The production of biofuels is being referred to as a green solution to reduce the reliance on imported petroleum in these regions. Moreover, countries such as Sweden, France, and Brazil are offering incentives and subsidies to produce Ethanol (Ethyl Alcohol) to be further used in automobiles as a solution to reduce oil imports. Furthermore, the introduction of flex-fuel vehicles, which can use any combination of petrol–Ethanol blends, considerably enhanced the substitution possibilities between gasoline demand and Ethanol demand, which is fuelling the market growth. The developing and developed countries are investing heavily in the production of biofuels to cater to problems arising due to the rise in oil prices and are expected to positively impact market growth.

 

Market Segmentation

The global Ethanol (Ethyl Alcohol) Market is segmented into Source Types, Applications, and Countries.

Corn-based Ethanol accounted for 51.6% of the market share during 2022

Corn is one of the richest sources for the production of Ethanol (Ethyl Alcohol), owing to its abundance and relative ease of conversion to ethyl alcohol. Corn grain makes a good feedstock for biofuel, owing to its starch content and relatively easy conversion to Ethanol. Additionally, corn-based Ethanol is relatively less expensive to produce.

In the United States, commercial production of fuel Ethanol involves breaking down the starch present in corn into simple sugars, and then fermenting these sugars to yeast to get Ethanol. There are two major processes used in the United States to produce corn-based Ethanol, which includes wet milling and dry grinding. The majority of Ethanol produced in the United States is through dry milling, as it has a higher efficiency, and lower capital and operating costs than wet milling, specifically when producing Ethanol.

Ethanol (Ethyl Alcohol) can be used as a substitute for gasoline to be burned in many of today’s passenger cars and trucks. Most gas stations currently use 10% of Ethanol in their gasoline. However, it has also been used as 85% Ethanol to 5% gasoline, at some gas pumps called E85 or Flex fuel.

Global corn production has sharply increased in the past few decades, owing to its newly found applications in the renewable liquid fuel (bioEthanol) production industry. According to the US Department of Agriculture, the total corn production in the United States was 366,287 thousand metric tons, followed by China with 257,330 thousand metric tons.

Therefore, with tax incentives and loans for biofuel development, farmers are rapidly shifting to corn production for Ethanol to feed the expanded, government-driven demand for corn as an Ethanol feedstock.

 

The industrial Solvent segment is the fastest-growing Ethanol market during the forecast period

Ethanol (Ethyl Alcohol) is finding wide use in the pharmaceutical industry. It is used as a component in medical products to cure skin disorders, neutralize pain, and cure poisonings. It is also used in the production of pills, extracts, tinctures, and several other pharmaceutical applications.

With the increase in demand from pharmaceuticals, the demand for bioEthanol s expected to increase in the coming years. Additionally, Japan has the world’s third-largest pharmaceutical industry. The domestic market is looking forward to increasing exports, and international companies are seeking opportunities to invest in and access the large, well-funded healthcare system. An aging population and broad access to healthcare are driving the healthcare sector in the country, which is further expected to drive the demand for bioEthanol during the forecast period.

 

By Region, North America accounts for the highest market size for the period 2023 to 2030

Driven by the US, North America dominates the global Ethanol (Ethyl Alcohol) market.

United States- The United States represents one of the largest and most technologically advanced economies in the world. It is the largest producer of bioEthanol, globally, followed by Brazil, which produces half the amount of bioEthanol that is produced in the United States.

The United States overtook the world’s largest Ethanol (Ethyl Alcohol) producer Brazil, in 2006, becoming the world’s largest Ethanol producer. Since then, the production of Ethanol in the United States has been increasing over time.

In the United States, the major feedstock for Ethanol production is corn. Provisions for the usage of other feedstocks have also been made by the US government, however, owing to the sufficient supply of corn, it remains to be the major feedstock for bioethanol in the country.

The production of fuel Ethanol (Ethyl Alcohol) in the United States has been increasing over the past decade. In 2018, the United States produced 16,100 million gallons of Ethanol for fuel. The major Ethanol-producing states in the country are Iowa, Nebraska, Minnesota, Indiana, Ohio, etc.

In the United States, nearly all of the gasoline sold in the provinces is blended with Ethanol. The US government has put a mandate to blend 10% of Ethanol in gasoline, which has helped increase Ethanol production and consumption in the country. Following the United States, other countries have started putting compulsions on blending Ethanol in gasoline.

The United States is one of the world’s largest importers of crude oil. Reduction in demand for crude oil imports from the United States would significantly affect the global demand of the same, and is likely to cause the oil prices to fall, globally, which may lead to significant economic benefits for the United States.

 

Segmentation

By Application

• Industrial Solvent
• Fuel/Fuel Additive
• Bacteriacide/Disinfectant
• Beverages
• Personal Care
• Others

 

By Source Type

• Sugarcane
• Corn
• Wheat
• Others

 

By Region

• North America (United States, Canada, Mexico)
• Europe (Germany, France, United Kingdom, Spain, Italy, Others)
• Asia Pacific (China, India, Japan, South Korea, Australia, Others)
• Latin America (Brazil, Argentina, Others)
• Middle East and Africa (Saudi Arabia, UAE, Kuwait, Other Middle East, South Africa, Nigeria, Other Africa)

 

Key Players

Leading companies profiled in the study include-

• Kirin Holdings Co Ltd
• Archer Daniels Midland Co (ADM)
• The Andersons Inc. (Andersons)
• BP Plc. (BP)
• Cargill Inc.
• Poet LLC
• Valero
• Green Plains Inc.
• Bunge North America, Inc.
• Flint Hills Resources

 

Ethanol Market Outlook 2023

1 Market Overview

1.1 Introduction to Ethanol Market

1.2 Scope of the Study

1.3 Research Objective

1.3.1 Key Market Scope and Segments

1.3.2 Players Covered

1.3.3 Years Considered

 

2 Executive Summary

2.1 2023 Ethanol Industry- Market Statistics

3 Market Dynamics

3.1 Market Drivers

3.2 Market Challenges

3.3 Market Opportunities

3.4 Market Trends

 

4 Market Factor Analysis

4.1 Porter’s Five Forces

4.2 Market Entropy

4.2.1 Global Ethanol Market Companies with Area Served

4.2.2 Products Offerings Global Ethanol Market

5 COVID-19 Impact Analysis and Outlook Scenarios

5.1.1 Covid-19 Impact Analysis

5.1.2 Post-COVID-19 Scenario- Low Growth Case

5.1.3 Post-COVID-19 Scenario- Reference Growth Case

5.1.4 Post-COVID-19 Scenario- Low Growth Case

 

6 Global Ethanol Market Trends

6.1 Global Ethanol Revenue (USD Million) and CAGR (%) by Type (2018-2028)

6.2 Global Ethanol Revenue (USD Million) and CAGR (%) by Applications (2018-2028)

6.3 Global Ethanol Revenue (USD Million) and CAGR (%) by Regions (2018-2028)

 

7 Global Ethanol Market Revenue (USD Million) by Type, and Applications (2018-2022)

7.1 Global Ethanol Revenue (USD Million) by Type (2018-2022)

7.1.1 Global Ethanol Revenue (USD Million), Market Share (%) by Type (2018-2022)

7.2 Global Ethanol Revenue (USD Million) by Applications (2018-2022)

7.2.1 Global Ethanol Revenue (USD Million), Market Share (%) by Applications (2018-2022)

 

8 Global Ethanol Development Regional Status and Outlook

8.1 Global Ethanol Revenue (USD Million) By Regions (2018-2022)

8.2 North America Ethanol Revenue (USD Million) by Type, and Application (2018-2022)

8.2.1 North America Ethanol Revenue (USD Million) by Country (2018-2022)

8.2.2 North America Ethanol Revenue (USD Million) by Type (2018-2022)

8.2.3 North America Ethanol Revenue (USD Million) by Applications (2018-2022)

8.3 Europe Ethanol Revenue (USD Million), by Type, and Applications (USD Million) (2018-2022)

8.3.1 Europe Ethanol Revenue (USD Million), by Country (2018-2022)

8.3.2 Europe Ethanol Revenue (USD Million) by Type (2018-2022)

8.3.3 Europe Ethanol Revenue (USD Million) by Applications (2018-2022)

8.4 Asia Pacific Ethanol Revenue (USD Million), and Revenue (USD Million) by Type, and Applications (2018-2022)

8.4.1 Asia Pacific Ethanol Revenue (USD Million) by Country (2018-2022)

8.4.2 Asia Pacific Ethanol Revenue (USD Million) by Type (2018-2022)

8.4.3 Asia Pacific Ethanol Revenue (USD Million) by Applications (2018-2022)

8.5 South America Ethanol Revenue (USD Million), by Type, and Applications (2018-2022)

8.5.1 South America Ethanol Revenue (USD Million), by Country (2018-2022)

8.5.2 South America Ethanol Revenue (USD Million) by Type (2018-2022)

8.5.3 South America Ethanol Revenue (USD Million) by Applications (2018-2022)

8.6 Middle East and Africa Ethanol Revenue (USD Million), by Type, Technology, Application, Thickness (2018-2022)

8.6.1 Middle East and Africa Ethanol Revenue (USD Million) by Country (2018-2022)

8.6.2 Middle East and Africa Ethanol Revenue (USD Million) by Type (2018-2022)

8.6.3 Middle East and Africa Ethanol Revenue (USD Million) by Applications (2018-2022)

 

9 Company Profiles

 

10 Global Ethanol Market Revenue (USD Million), by Type, and Applications (2023-2028)

10.1 Global Ethanol Revenue (USD Million) and Market Share (%) by Type (2023-2028)

10.1.1 Global Ethanol Revenue (USD Million), and Market Share (%) by Type (2023-2028)

10.2 Global Ethanol Revenue (USD Million) and Market Share (%) by Applications (2023-2028)

10.2.1 Global Ethanol Revenue (USD Million), and Market Share (%) by Applications (2023-2028)

11 Global Ethanol Development Regional Status and Outlook Forecast

11.1 Global Ethanol Revenue (USD Million) By Regions (2023-2028)

11.2 North America Ethanol Revenue (USD Million) by Type, and Applications (2023-2028)

11.2.1 North America Ethanol Revenue (USD) Million by Country (2023-2028)

11.2.2 North America Ethanol Revenue (USD Million), by Type (2023-2028)

11.2.3 North America Ethanol Revenue (USD Million), Market Share (%) by Applications (2023-2028)

11.3 Europe Ethanol Revenue (USD Million), by Type, and Applications (2023-2028)

11.3.1 Europe Ethanol Revenue (USD Million), by Country (2023-2028)

11.3.2 Europe Ethanol Revenue (USD Million), by Type (2023-2028)

11.3.3 Europe Ethanol Revenue (USD Million), by Applications (2023-2028)

11.4 Asia Pacific Ethanol Revenue (USD Million) by Type, and Applications (2023-2028)

11.4.1 Asia Pacific Ethanol Revenue (USD Million), by Country (2023-2028)

11.4.2 Asia Pacific Ethanol Revenue (USD Million), by Type (2023-2028)

11.4.3 Asia Pacific Ethanol Revenue (USD Million), by Applications (2023-2028)

11.5 South America Ethanol Revenue (USD Million), by Type, and Applications (2023-2028)

11.5.1 South America Ethanol Revenue (USD Million), by Country (2023-2028)

11.5.2 South America Ethanol Revenue (USD Million), by Type (2023-2028)

11.5.3 South America Ethanol Revenue (USD Million), by Applications (2023-2028)

11.6 Middle East and Africa Ethanol Revenue (USD Million), by Type, and Applications (2023-2028)

11.6.1 Middle East and Africa Ethanol Revenue (USD Million), by Region (2023-2028)

11.6.2 Middle East and Africa Ethanol Revenue (USD Million), by Type (2023-2028)

11.6.3 Middle East and Africa Ethanol Revenue (USD Million), by Applications (2023-2028)

 

12 Methodology and Data Sources

12.1 Methodology/Research Approach

12.1.1 Research Programs/Design

12.1.2 Market Size Estimation

12.1.3 Market Breakdown and Data Triangulation

12.2 Data Sources

12.2.1 Secondary Sources

12.2.2 Primary Sources

12.3 Disclaimer

 

List Of Tables

Table 1 Market Segmentation Analysis

Table 2 Global Ethanol Market Companies with Areas Served

Table 3 Products Offerings Global Ethanol Market

Table 4 Low Growth Scenario Forecasts

Table 5 Reference Case Growth Scenario

Table 6 High Growth Case Scenario

Table 7 Global Ethanol Revenue (USD Million) And CAGR (%) By Type (2018-2028)

Table 8 Global Ethanol Revenue (USD Million) And CAGR (%) By Applications (2018-2028)

Table 9 Global Ethanol Revenue (USD Million) And CAGR (%) By Regions (2018-2028)

Table 10 Global Ethanol Revenue (USD Million) By Type (2018-2022)

Table 11 Global Ethanol Revenue Market Share (%) By Type (2018-2022)

Table 12 Global Ethanol Revenue (USD Million) By Applications (2018-2022)

Table 13 Global Ethanol Revenue Market Share (%) By Applications (2018-2022)

Table 14 Global Ethanol Market Revenue (USD Million) By Regions (2018-2022)

Table 15 Global Ethanol Market Share (%) By Regions (2018-2022)

Table 16 North America Ethanol Revenue (USD Million) By Country (2018-2022)

Table 17 North America Ethanol Revenue (USD Million) By Type (2018-2022)

Table 18 North America Ethanol Revenue (USD Million) By Applications (2018-2022)

Table 19 Europe Ethanol Revenue (USD Million) By Country (2018-2022)

Table 20 Europe Ethanol Revenue (USD Million) By Type (2018-2022)

Table 21 Europe Ethanol Revenue (USD Million) By Applications (2018-2022)

Table 22 Asia Pacific Ethanol Revenue (USD Million) By Country (2018-2022)

Table 23 Asia Pacific Ethanol Revenue (USD Million) By Type (2018-2022)

Table 24 Asia Pacific Ethanol Revenue (USD Million) By Applications (2018-2022)

Table 25 South America Ethanol Revenue (USD Million) By Country (2018-2022)

Table 26 South America Ethanol Revenue (USD Million) By Type (2018-2022)

Table 27 South America Ethanol Revenue (USD Million) By Applications (2018-2022)

Table 28 Middle East and Africa Ethanol Revenue (USD Million) By Region (2018-2022)

Table 29 Middle East and Africa Ethanol Revenue (USD Million) By Type (2018-2022)

Table 30 Middle East and Africa Ethanol Revenue (USD Million) By Applications (2018-2022)

 

Table 31 Financial Analysis

Table 32 Global Ethanol Revenue (USD Million) By Type (2023-2028)

Table 33 Global Ethanol Revenue Market Share (%) By Type (2023-2028)

Table 34 Global Ethanol Revenue (USD Million) By Applications (2023-2028)

Table 35 Global Ethanol Revenue Market Share (%) By Applications (2023-2028)

Table 36 Global Ethanol Market Revenue (USD Million), And Revenue (USD Million) By Regions (2023-2028)

Table 37 North America Ethanol Revenue (USD)By Country (2023-2028)

Table 38 North America Ethanol Revenue (USD Million) By Type (2023-2028)

Table 39 North America Ethanol Revenue (USD Million) By Applications (2023-2028)

Table 40 Europe Ethanol Revenue (USD Million) By Country (2023-2028)

Table 41 Europe Ethanol Revenue (USD Million) By Type (2023-2028)

Table 42 Europe Ethanol Revenue (USD Million) By Applications (2023-2028)

Table 43 Asia Pacific Ethanol Revenue (USD Million) By Country (2023-2028)

Table 44 Asia Pacific Ethanol Revenue (USD Million) By Type (2023-2028)

Table 45 Asia Pacific Ethanol Revenue (USD Million) By Applications (2023-2028)

Table 46 South America Ethanol Revenue (USD Million) By Country (2023-2028)

Table 47 South America Ethanol Revenue (USD Million) By Type (2023-2028)

Table 48 South America Ethanol Revenue (USD Million) By Applications (2023-2028)

Table 49 Middle East and Africa Ethanol Revenue (USD Million) By Region (2023-2028)

Table 50 Middle East and Africa Ethanol Revenue (USD Million) By Region (2023-2028)

Table 51 Middle East and Africa Ethanol Revenue (USD Million) By Type (2023-2028)

Table 52 Middle East and Africa Ethanol Revenue (USD Million) By Applications (2023-2028)

Table 53 Research Programs/Design for This Report

Table 54 Key Data Information from Secondary Sources

Table 55 Key Data Information from Primary Sources

 

 

List Of Figures

Figure 1 Market Scope

Figure 2 Porter’s Five Forces

Figure 3 Global Ethanol Revenue (USD Million) By Type (2018-2022)

Figure 4 Global Ethanol Revenue Market Share (%) By Type (2022)

Figure 5 Global Ethanol Revenue (USD Million) By Applications (2018-2022)

Figure 6 Global Ethanol Revenue Market Share (%) By Applications (2022)

Figure 7 Global Ethanol Market Revenue (USD Million) By Regions (2018-2022)

Figure 8 Global Ethanol Market Share (%) By Regions (2022)

Figure 9 North America Ethanol Revenue (USD Million) By Country (2018-2022)

Figure 10 North America Ethanol Revenue (USD Million) By Type (2018-2022)

Figure 11 North America Ethanol Revenue (USD Million) By Applications (2018-2022)

Figure 12 Europe Ethanol Revenue (USD Million) By Country (2018-2022)

Figure 13 Europe Ethanol Revenue (USD Million) By Type (2018-2022)

Figure 14 Europe Ethanol Revenue (USD Million) By Applications (2018-2022)

Figure 15 Asia Pacific Ethanol Revenue (USD Million) By Country (2018-2022)

Figure 16 Asia Pacific Ethanol Revenue (USD Million) By Type (2018-2022)

Figure 17 Asia Pacific Ethanol Revenue (USD Million) By Applications (2018-2022)

Figure 18 South America Ethanol Revenue (USD Million) By Country (2018-2022)

Figure 19 South America Ethanol Revenue (USD Million) By Type (2018-2022)

Figure 20 South America Ethanol Revenue (USD Million) By Applications (2018-2022)

Figure 21 Middle East and Africa Ethanol Revenue (USD Million) By Region (2018-2022)

Figure 22 Middle East and Africa Ethanol Revenue (USD Million) By Type (2018-2022)

Figure 23 Middle East and Africa Ethanol Revenue (USD Million) By Applications (2018-2022)

Figure 24 Global Ethanol Revenue (USD Million) By Type (2023-2028)

Figure 25 Global Ethanol Revenue Market Share (%) By Type (2028)

Figure 26 Global Ethanol Revenue (USD Million) By Applications (2023-2028)

Figure 27 Global Ethanol Revenue Market Share (%) By Applications (2028)

Figure 28 Global Ethanol Market Revenue (USD Million) By Regions (2023-2028)

Figure 29 North America Ethanol Revenue (USD Million) By Country (2023-2028)

Figure 30 North America Ethanol Revenue (USD Million) By Type (2023-2028)

Figure 31 North America Ethanol Revenue (USD Million) By Applications (2023-2028)

Figure 32 Europe Ethanol Revenue (USD Million) By Country (2023-2028)

Figure 33 Europe Ethanol Revenue (USD Million) By Type (2023-2028)

Figure 34 Europe Ethanol Revenue (USD Million) By Applications (2023-2028)

Figure 35 Asia Pacific Ethanol Revenue (USD Million) By Country (2023-2028)

Figure 36 Asia Pacific Ethanol Revenue (USD Million) By Type (2023-2028)

Figure 37 Asia Pacific Ethanol Revenue (USD Million) By Applications (2023-2028)

Figure 38 South America Ethanol Revenue (USD Million) By Country (2023-2028)

Figure 39 South America Ethanol Revenue (USD Million) By Type (2023-2028)

Figure 40 South America Ethanol Revenue (USD Million) By Applications (2023-2028)

Figure 41 Middle East and Africa Ethanol Revenue (USD Million) By Region (2023-2028)

Figure 42 Middle East and Africa Ethanol Revenue (USD Million) By Region (2023-2028)

Figure 43 Middle East and Africa Ethanol Revenue (USD Million) By Type (2023-2028)

Figure 44 Middle East and Africa Ethanol Revenue (USD Million) By Applications (2023-2028)

Figure 45 Bottom-Up and Top-Down Approaches For This Report

Figure 46 Data Triangulation