Ethanol (Ethyl Alcohol) Market Report Highlights, 2021
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
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.)-
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.
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
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