The $101.4 billion global ethanol (Ethyl alcohol) market is one of the largest markets driven by end user demand across segments. The ethanol report presents analysis and outlook of ethanol sourced from different sources including sugarcane, corn, wheat, and others to 2030. Further, the ethanol market study also provides information across diverse end-user industries including Industrial Solvent, Fuel/Fuel Additive, Bacteriacide/Disinfectant, Beverages, Personal Care, and other applications. Further, key market drivers, challenges, trends, companies and forecasts to 2030 are included in the report.

 

Ethanol (Ethyl Alcohol) Market Report Highlights, 2021

• The global Ethanol Market Size stood at $101.4 Billion in 2020 and is poised to register 6.3% growth over the forecast period (2021 to 2028)
• The COVID-19 resulted in y-o-y decrease of 2.7% in market value
• Fuel/Fuel Additive are the most consumed applications with 48.3% market share
• Corn based ethanol accounted for 51.6% of market share during 2020
• Driven by the US, North America dominates the global Ethanol market with 48.9% market share
• 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 in the United States, and others are market driving forces
• On the other hand, Rise in Raw Material Prices and Brazil’s Ethanol Imports Tax Increased to 20% pose market challenges
• Market is partially fragmented in nature and is characterized by large companies with high capital investment capability.

 

Ethanol (Ethyl Alcohol) Market Size Outlook to 2030

Ethanol (Ethyl Alcohol) Market Analysis, 2021

Enhanced utilization of ethanol as a biofuel majorly among developing economies such as India and China have been witnessed. The use and production of biodiesel have increased considerably due to rise in petroleum costs and 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 bio-ethanol reduces import bills for energy-deficient countries and offers improved balance of trade and payments. All these factors together are expected to provide lucrative opportunities for the market growth.

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

Ethanol is the lowest cost octane with 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. Since past four decades, ethanol remains as an effective tool to reduce harmful emissions from the automotive. 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.

Moreover, automobile manufacturers are trying to meet the increasingly stringent fuel economy standards. This has led to a higher compression ratio engine that require even higher octane fuels. Ethanol is blended to gasoline with a percentage that varies from country to country. Most vehicles in the United States run on fuel with up to 10% ethanol (E10) for petrol and 15% ethanol (E15) for diesel. Many petrol stations in Australia also sell E10, which is cheaper than the regular gasoline in Australia.

The market is witnessing significant growth owing to the rising demand for biofuels. Moreover, rising environmental concerns and stringent governmental regulations is supporting the development of Greenhouse Gases, Regulated Emissions, and Energy Use in Transportation Model (GREET) model. As per the Department of Energy’s GREET model, the use of bioethanol significantly reduces greenhouse gas emissions by 34% compared to petroleum-derived gasoline and avoiding indirect emissions, which further catapult the market growth.

In the present market scenario, the United States is a net importer of petroleum to meet the energy demand in the country. More than 98% gasoline in United States contains ethanol, typically E10. The United States imported only 11% of petroleum it consumed which is equal to 2.34 billion barrels per day, according to US Energy Information Administration (EIA). This was the lowest percentage since 1957. Ethanol supply also supports the consumption of petroleum and ensures energy security as transportation accounts for nearly 75% of the total petroleum consumption in the country.

The EU markets have adopted E85 (fuel that contains up to 85% ethanol) blends to be used. In some colder countries, the E70 blend is used. The crude oil, natural gas, and other downstream products for energy consumption are negatively impacting the environment across the world. Using biofuel for energy consumption reduces the harmful emissions. In the past four decades Bioethanol considered as a successful alternative for petroleum. Due to the rising environmental awareness worldwide, various governments are initiating many programmes to boost the biofuel consumption to reduce the negative impacts on the environmental impact.

 

Ethanol (Ethyl Alcohol) Companies Profiled in the Report

• Kirin Holdings Co Ltd
• Archer Daniels Midland Co (ADM)
• The Andersons Inc. (Andersons)
• BP Plc. (BP)
• Cargill Inc.

 

Ethanol Market Trends- Uplifting the Restrictions on the Sales of Gasoline with a Higher Percentage Content of Ethanol in the United States

The Trump administration lifted restrictions on ethanol, which acted as a boon to farmers, since ethanol is an alcohol manufactured from corn or sugar cane that is blended with gasoline to reduce emissions that are detrimental to the environment. The Trump administration announced it would allow for the year-round sale of gasoline with higher concentrations of ethanol. The decision is intended largely to satisfy US corn producers and ethanol manufacturers.

The move is acting as a boon to corn farmers, since corn is widely used to make ethanol domestically. Allowing for the year-round sale of E15 is likely to give farmers more avenues to sell corn, which could bolster revenue especially when prices are low.

Most gasoline supplies in the United States year-round are likely to continue to contain no more than 10% ethanol. However, those who drive flexible fuel vehicles or use E15, will now be able to use it all year-round. New model cars are designed to process more ethanol blends without damaging the car.

 

Ethanol Market Drivers- 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 and biodiesel made from biomass material. The market is witnessing significant growth owing to rapid demand of energy and increased utilization of ethanol, as biofuel reduces dependence on crude oil. Moreover, ethanol and biodiesel are considered as cleaner burning fuel 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, economy standards, and combating air pollution. The aforementioned factors are expected to give an impetus to the market growth.

 

Ethanol Market Challenges- Brazil’s Ethanol Imports Tax Increased to 20%

Brazil is one of the major importer of ethanol from the United States, and is also the second largest producer of ethanol worldwide. In order to protect local producers from growing imports from the United States, Brazil’s government imposed 20% taxing for ethanol imports for the first time in 2017. This import tariff was effective since September 2017.

This import tariff duty by the Brazilian government ended an agreement between Brazil and United States, to keep global ethanol trade free of taxes, in order to boost the ethanol industry. Brazil and United States are the world’s two largest ethanol manufactures. This import duty entirely impacted the US ethanol producers as most of the ethanol imports are from Unites States. Hence, this Brazilian import is one of the short term restraints for the US ethanol industry.

 

Ethanol companies (The Andersons Inc.)-

• The Ethanol Group remained profitable for the full year despite a challenging margin environment and recorded a large one time gain as a result of the TAMH merger.
• The Ethanol Group's current year results reflect higher sales volumes of ethanol from the recently acquired ethanol trading business and the newly constructed ELEMENT facility which are now being included in the Company's Consolidated Financial Statements.
• The Ethanol Group expects continued margin headwinds from a current oversupply of ethanol and the high corn basis across the Eastern Corn Belt.
• Reported revenue of US$968.7 million for FY2019, which increased 29.7% YoY, and recorded CAGR of 16.7% during 2017-19.
• The segment accounted for 11.9% of the company's revenue in FY2019.
• In FY2019, the segment reported a gross profit of US$26.4 million, which increased 21.7% YoY.
• Increase in the revenue was primarily due to TAMH merger and the LTG acquisition.

 

Saudi Arabia Ethanol (Ethyl Alcohol) Market Analysis and Outlook-

Being an oil producing economy, from initial phase, the country’s interest in bioethanol and other biofuels was less. However, after the emergence and dominance of non-OPEC countries and high volatility of crude oil prices, the Saudi Arabian government is focusing on diversifying its portfolio, in order to aid growth in economy.

Thus, the government is planning to diversify its economy, through agriculture, which has a significant potential as a new revenue stream.

Over a decade ago, OPEC used to dominate and lead the global crude oil market. However, with the discoveries of oil reserves in non-OPEC countries, such as the United States, Russia, and Canada, the OPEC region no longer solely dominates the global oil market.

In the recent years, Saudi Arabia successful produced ethanol from dates. Saudi Arabia is a dry country, with a huge production volume of dates.

However, due to some hurdles, the commercial production to scale has not been commenced in Saudi Arabia.

• Islamic states are against the adoption of ethanol as an alternative fuel, since it is alcoholic. As per Islamic rules, the use and consumption of alcohol is restricted.
• Higher costs of in-house production of ethanol is primarily due to lack of availability of preferable raw materials.
• Furthermore, low availability of water, which is largely required for the production of ethanol, is hindering the production of ethanol.

Due to the aforementioned factors, the Saudi Arabian bioethanol market is expected to witness slow growth over the forecast period.

 

Ethanol (Ethyl Alcohol) Market Report Segmentation

• Applications
  • Industrial Solvent
  • Fuel/Fuel Additive
  • Bacteriacide/Disinfectant
  • Beverages
  • Personal Care
  • Other Applications
• Source Types
  • Sugarcane
  • Corn
  • Wheat
  • Other Types
• Regions
  • North America
  • Europe
  • Asia Pacific
  • Middle East Africa
  • Latin America

 

 

1.    TABLE OF CONTENTS    2
1.1 List of Tables    6
1.2 List of Figures    7

2.    EXECUTIVE SUMMARY    9
2.1 Summary    9
2.2 Ethanol Industry Outlook, 2019 – 2028    10
2.3 Abbreviations    11

3.    INTRODUCTION TO ETHANOL MARKET    12
3.1 Market Segments - Types, Applications, and Countries    12
3.2 Research Methodology    13

4.     MACRO FACTORS SHAPING THE MARKET OUTLOOK    14
4.1 Economic Factors    14
4.2 Demographic Factors    15

5.    OVERVIEW OF THE ETHANOL MARKET    16
5.1 Ethanol Industry Panorama, 2021    16
5.2 Ethanol Companies Profiled in the Report    18
5.3 Ethanol Market Dynamics    18
5.4 Ethanol Market Restraints    21
5.5 Largest Ethanol End-User Applications    22
5.6 Dominant Source Types    23
5.6.1 Sugarcane based Ethanol Market size outlook    24
5.6.2 Corn based Ethanol Market size outlook    26
5.6.3 Wheat based Ethanol Market size outlook    27
5.6.4 Other Source based Ethanol Market size outlook    29

5.7 Regional Analysis    30

6.    PRE-COVID and POST COVID MARKET OUTLOOK    31
6.1 Post COVID Scenario    31
6.2 Pre COVID Scenario    32

7.    TRENDS IN ETHANOL END USER MARKETS    33
7.1 Industrial Solvent    34
7.2 Fuel/Fuel Additive    36
7.3 Bactericide/Disinfectant    38
7.4 Beverages    39
7.5 Personal Care    40
7.6 Other Applications    41

8.    NORTH AMERICA ETHANOL MARKET  OUTLOOK   43
8.1 Outlook    43
8.2 Trends and Opportunities    44
8.2.1 Fuel/Fuel Additives dominate the North American Ethanol Market    44
8.2.2 Corn dominates the North American Ethanol Market    45
8.2.3 The US dominates the North American Ethanol Market    46
8.3 Market Outlook by Country    47
8.3.1 United States Ethanol Market Size Outlook    47
8.3.2 Canada Ethanol Market Size Outlook    48
8.3.3 Mexico Ethanol Market Size Outlook    49

9.    EUROPE ETHANOL MARKET ANALYSIS  AND OUTLOOK   50
9.1 Outlook    50
9.2 Trends and Opportunities    51
9.2.1 Fuel/Fuel Additives dominate the European Ethanol Market    51
9.2.2 Corn dominates the European Ethanol Market    52
9.2.3 Germany dominates the European ETHANOL Market    53
9.3 Market Outlook by Country    54
9.3.1 Germany Ethanol Market Size Outlook    54
9.3.2 United Kingdom Ethanol Market Size Outlook    56
9.3.3 France Ethanol Market Size Outlook    58
9.3.4 Spain Ethanol Market Size Outlook    59
9.3.5 Italy Ethanol Market Size Outlook    60
9.3.6 Rest of Europe Ethanol Market Size Outlook    60

10.    ASIA PACIFIC ETHANOL MARKET  OUTLOOK   61
10.1 Outlook    61
10.2 Trends and Opportunities    62
10.2.1 Fuel/Fuel Additive dominate the Asia Pacific Ethanol Market    62
10.2.2 Corn dominate the Asia Pacific Ethanol Market    63
10.2.3 China dominates the Asia Pacific ETHANOL Market    64
10.3 Market Outlook by Country    65
10.3.1 China Ethanol Market Size Outlook    65
10.3.2 India Ethanol Market Size Outlook    67
10.3.3 Japan Ethanol Market Size Outlook    69
10.3.4 South Korea Ethanol Market Size Outlook    71
10.3.4 Rest of Asia Pacific Ethanol Market Size Outlook    72

11.    LATIN AMERICA ETHANOL MARKET  OUTLOOK   73
11.1 Outlook    73
11.2 Trends and Opportunities    74
11.2.1 Fuel/Fuel Additives Dominate the Latin American Pacific ETHANOL Market    74
11.2.2 Corn dominate the Latin American Ethanol Market    75
11.2.3 Brazil dominates the Latin America ETHANOL Market    76
11.3 Market Outlook by Country    77
11.3.1 Brazil Ethanol Market Size Outlook    77
11.3.2 Argentina Ethanol Market Size Outlook    79
11.3.3 Rest of Latin America    82

12.    MIDDLE EAST AND AFRICA ETHANOL MARKET  OUTLOOK   84
12.1 Outlook    84
12.2 Trends and Opportunities    85
12.2.1 Fuel/Fuel Additive dominate the Middle East and Africa Ethanol Market    85
12.2.2 Corn dominate the Middle East and Africa Ethanol Market    86
12.2.3 Saudi Arabia dominates the MEA Ethanol Market    87
12.3 Market Outlook by Country    88
12.3.1 Saudi Arabia Ethanol Market Size Outlook    88
12.3.2 South Africa Ethanol Market Size Outlook    90
12.3.3 Rest of Middle East & Africa Ethanol Market Size Outlook    91

13.    COMPETITIVE LANDSCAPE     92
13.1 KIRIN HOLDINGS COMPANY    92
13.1.1 Overview    92
13.1.2 Major Products    92
13.1.3 Financials    92
13.2 ARCHER-DANIELS-MIDLAND COMPANY (ADM)    94
13.2.1 Overview    94
13.2.2 Financials    95
13.2.3 SWOT Analysis    99
13.3 THE ANDERSONS, INC.    102
13.3.1 Overview    102
13.3.2 Major Products    102
13.3.3 Financials    103
13.3.4 SWOT Analysis    104
13.4 BP PLC    108
13.4.1 Overview    108
13.4.2 Major Products    109
13.4.3 Financials    111
13.4.4 SWOT Analysis    111
13.5 Cargill Inc.    115
13.5.1 Overview    115
13.5.2 SWOT Analysis    116

14.    APPENDIX    119
14.1 About USD Analytics    119
14.2 Sources and Research Methodology    119
14.3 Copyright    120

 

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