Global Ethanol Market - 2024-2031

Overview

Global Ethanol Market reached US$ 102.5 Billion in 2023 and is expected to reach US$ 153.8 Billion by 2031 growing with a CAGR of 5.2% during the forecast period 2024-2031. North America and particularly United States, is a major driver of global demand for ethanol. With their strong economic growth in recent years, they have quickly become the world's leading hub for finance, trade and industry.

Ethanol can be extracted from natural sources like plant material and agricultural by-products. The process of creating ethanol from these resources is much less energy-intensive than other sources of energy, making it a much more sustainable option over the long-term. In addition, ethanol has a much lower carbon footprint than fossil fuels which means that it does not produce as many harmful emissions into the atmosphere when it is burned, making it an environmentally friendly choice.

Ethanol became such a popular choice due to its ability to be directly converted into liquid fuels, which can then be used to meet transportation energy needs, the ethanol industry and other biofuel industries are quickly becoming more and more popular and because of this factor the ethanol market is on continuous growth.

Furthermore, advanced filtration methods are now being used to remove and reduce contaminants from ethanol, resulting in a higher quality product which further includes the installation of new filtration systems, such as ultrafiltration and nanofiltration .UF and NF systems use different membrane materials to separate molecules of different sizes, allowing for a more thorough purification of the ethanol.

The global ethanol market has seen constant growth in recent years due to the increased demand from the transportation sector. Particular growth in the transportation sector is due to its efficient combustion and low carbon emissions relative to traditional gasoline and diesel fuels. Another advantage includes potential price savings to consumers because it is typically cheaper than other fuels.

Furthermore, microbial fuel cells are the major development in this sector which is having several benefits as they can be used to produce renewable energy from agricultural waste and wastewater, such as corn stalks, sugarcane bagasse and brewery wastewater, that makes them an attractive alternative to traditional fuel sources such as oil and gas.

Dynamics

Benefits Of Ethanol As Renewable Gasoline

Ethanol is becoming increasingly popular as a reliable source of renewable gasoline in the modern world. Its renewable and clean burning properties, as well as its abundance in the environment are the major reasons for its popularity in the market. The main advantages of using ethanol as a source of renewable gasoline are related to its renewable nature and the positive environmental impacts it can have. The most prominent benefit is that ethanol is a renewable resource, so it can reduce our dependence on finite fossil fuel.

Ethanol is gaining popularity as a renewable fuel option due to its environmental benefits. It produces fewer carbon and nitrogen oxide emissions than traditional gasoline, making it a cleaner burning alternative. Its renewable source materials are sustainable and have a lesser environmental impact than petroleum-based fuels. So many industries have implemented initiatives to promote the use of ethanol as a renewable fuel source.

Also, So many government subsidies and initiatives are there to promote the biofuel production such as the loan guarantee program created by U.S. Department of Energy to help fund the development, construction and retrofitting of commercial-scale biorefineries that produce advanced biofuels.

Growing Demand For A Clean Burning Fuel

Ethanol as a renewable biofuel market is emerging and gaining popularity which proves it as a major part of the automotive industry. The constant increasing demand for better fuel efficiency and reduced emissions has led to an increasing demand from consumers for more efficient and clean burning fuel sources. As a result, the market for ethanol and renewable biofuels has grown dramatically in past years. Ethanol, in, is becoming more popular with consumers as an affordable and clean burning fuel option.

The demand for environmentally friendly fuel sources is increasing because of several factors, including the rising cost of conventional fuels, environmental concerns about emissions and governmental and state incentives for the use of renewable energy sources. In Brazil, the government increased tax prices on using petroleum-based fuels than it does for using ethanol-based fuels. Because of this a significant increase in the demand for ethanol-based gasoline is being reflected and helped to fuel a growth in the ethanol market.

Crafting a Greener Future with Ethanol Biofuel

Ethanol biofuel has been used from long time as an environmentally friendly source of energy due to its potential to reduce greenhouse gas emissions Ethanol biofuel has the potential to reduce greenhouse gas emissions because it does not release carbon dioxide as it burns, unlike fossil fuels. As a result, production and use of ethanol biofuel is estimated to reduce greenhouse gas emissions by up to 88%.

Ethanol biofuel burns cleaner than fossil fuels, making it a more environmentally friendly option when it comes to air pollution. The emissions generated by ethanol biofuel are significantly lower in terms of volatile organic compounds, particulate matter and nitrogen oxides, which are some of the primary causes of air pollution.

An Inexpensive Alternative to Traditional Gas

Ethanol fuel is typically cheaper than traditional gasoline and that price difference can be quite substantial depending on the region. The lower cost of production for ethanol fuel is largely due to its renewable nature, which does not require finite resources like oil and coal, also the reduce cost is the most significant benefits of ethanol biofuel.

Ethanol biofuel can help create jobs in the renewable energy sector. By investing in the production of ethanol fuel, businesses can create more job opportunities for individuals who are interested in renewable energy. However, this can also help to stimulate the economy, as more renewable energy-related jobs are created and given to those who are qualified for them.

Limited Production Of Ethanol

The limited availability of ethanol is having a significant impact on the global ethanol market in several countries, as it has created a disruption in supply and demand which has resulted in higher prices for ethanol and a lack of supply in some countries. Also, due to the limited availability, there is an increased risk of adulterated ethanol and lower quality ethanol being produced, which can impact the overall market's reputation.

According to U.S. Department of Agriculture (USDA) global ethanol production decreased from nearly 95 billion liters in 2018 to 85 billion liters in 2022,which was primarily due to reduced availability of ethanol in certain countries, such as China and India and the negative impact of COVID-19. Reduction in ethanol availability is due to an increased demand for other biofuels, like biodiesel and renewable diesel, as well as a decrease in the availability of feedstocks, like corn and sugarcane.

Challenges of Ethanol Biofuel Regulation

Government policies and incentives for the production and use of ethanol biofuel can change quickly and without warning and this uncertainty leads to up and down in businesses from investing in the fuel. Regulatory uncertainty is an issue that is difficult to predict and also difficult to navigate for businesses invested in the production and use of ethanol biofuel.

U.S. Environmental Protection Agency has set the federal renewable fuel standard that requires fuel refiners to provide a certain percentage of ethanol into their gasoline each year. When the renewable fuel standard levels are set too low, the demand for ethanol can decrease, leading to lower prices and reduced profitability for ethanol producers.

Segment Analysis

The global ethanol market is segmented based on potential of feedstock, generation, fuel type, end-user and region.

Starch-based Feedstocks an important source

Starch-based feedstock is an important source of energy in many industries, primarily for producing ethanol. It is derived from a variety of crops, most commonly corn, but also potatoes, sweet potatoes, tapioca, rice, rye and barley. Corn is the most common source of starch-based feedstock due to its high production in agriculture all globally and cost-effectiveness, as well as the fact that it provides a high yield of ethanol. Due to this reason, it is the preferred option for many energy companies

Potatoes are another source of starch-based feedstock and offer a number of advantages compared to corn. Potatoes contain more starch than corn, which results in more ethanol being produced. Furthermore, potatoes are a more sustainable option as they require less area land and water to grow. Sweet potatoes, tapioca, rice, rye and barley are also used as sources of starch-based feedstock, but to a lesser extent than corn and potatoes.

Geographical Penetration

North-America is Growing owing to government initiatives

North America globally accounts for a large production of Ethanol. According to a report from the Renewable Fuels Association, U.S. is the leading producer and consumer of ethanol globally. The US is also the world's largest market for ethanol, accounting for nearly 1/3 of global ethanol consumption. Within U.S., the majority of ethanol in the fuel supply comes from corn ethanol. In the Automotive and biofuel segment, the trend has been similar, with US being the top producer and consumer of ethanol-based fuel.

The US ethanol industry has benefited from government incentives and supportive policies, as well as from an increase in the number of cars capable of using ethanol-blended gasoline. The US is well-positioned to remain the world's leading ethanol producer, given its vast supply of corn and other feedstock, advanced Feedstock Biofuel and supportive policies. Going forward, US will continue to be a major player in the global ethanol market.

Competitive Landscape

The major global players in the market include Royal Dutch Shell, BP, Valero Energy Corporation, Petrobras, Chevron Corporation, Sasol, Cenovus Energy Inc., PBF Energy, Husky Energy, Abengoa Bioenergy

COVID-19 Impact Analysis

The impact of COVID-19 on the global ethanol market has been significant. The coronavirus pandemic has led to a reduction in global demand for crude oil as transportation restrictions and lockdowns have led to a reduction in overall mobility which in turn, has led to a decline in demand for gasoline fuel, creating an opportunity for ethanol to replace gasoline as an automotive fuel.

Global ethanol production has increased significantly since the pandemic began in 2020. The increment is primarily due to the increased demand for ethanol as a gasoline fuel substitute. The increased demand for ethanol as a fuel substitute has also led to a surge in prices. Also increase in price has led to a more profitable ethanol industry, which has attracted additional investment from the private sector.

Russia-Ukraine War Analysis

Russia and Ukraine's ongoing conflict has had an impact on global ethanol production markets. While the conflict has yet to directly affect ethanol production, it has caused instability in global markets. Ethanol prices have been volatile after the conflict due to increased uncertainty and reduced trading activity which has resulted in a decrease in investments in the region, which has in turn affected ethanol production.

The war impact caused a decrease in Ukrainian production of ethanol and gasoline which led to a decrease in global production, as Ukraine was one of the major players in the global ethanol and gasoline markets prior to the conflict. Also decrease in production of ethanol and gasoline due to Ukraine-Russia conflict caused a notable impact on global supply and demand.

By Feedstock

• Starch
  • Cereals
• Corn
• Barley
• Rye
• Wheat
• Sorghum Grain
  • Root Crops
• Potato
• Cassava
• Sugars
  • Sugar Beets
  • Sugar Cane
  • Sweet Sorghum
• Cellulosic Materials
  • Crop Residues
• Straw
• Corn Stover
• Bagasse
  • Wood/Forest Residues
  • Dedicated Energy Crops
• Willow
• Poplar
• Switchgrass
  • Industrial and Other Wastes

By Generation

• First Generation
• Second Generation
• Third Generation

By Fuel Type

• Traditional
• Bioethanol
  • E5
  • E10
  • E15 to E70
  • E75 to E85
  • Others

By End-User

• Automotive
• Food and Beverage
• Pharmaceuticals
• Cosmetics
• Fuel Cells
• Fertilizers
• Pesticides
• Industrial Solvent
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Development

• In June 2023, the Renewable Fuels Association (RFA) Governor Cooper said that under the Feedstock-neutral carbon-reduction program, which features ethanol and other renewable liquid fuels as key components. Governor Cooper confidently proclaimed that corn ethanol today has a carbon footprint that is already 50 percent smaller than gasoline and that RFA members have made a commitment to reach net zero emissions from ethanol by the year 2050 and even sooner. Governor Cooper also highlighted the fact that ethanol is a low-cost and low-carbon solution that is readily available today to help propel the global energy transition.
• On March 25, 2023, RFA the Renewable Fuel Association announced a summer contest with a prize of free fuel. The contest, which is slated to launch in 2023, will offer contestants the chance to win up to two years of free fuel which is an incredible opportunity, both for the winners and for the environment. As the Energy Transition becomes more pressing, this contest provides an incentive for people to make the switch to renewable fuel sources, mainly Ethanol.
• In June 2023, Bharat Petroleum is launching a revolutionary initiative to help revolutionize sustainable transportation. Through its Ethanol Blended Diesel (EBD) and Flex Fuel Program, the oil major is introducing an extensive range of alternative fuels to reduce emissions from diesel-run vehicles. The program will help reduce the dependency of diesel-run vehicles on traditional fuels and will also promote the use of cleaner fuels.

Why Purchase the Report?

• To visualize the global ethanol market segmentation based on the feedstock, generation, fuel type, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-Development.
• Excel data sheet with numerous data points of ethanol market-level with all segments.
• The PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The Global Ethanol Market report would provide approximately 68 tables, 70 figures and 213 Pages.

Target Audience 2024

• Government policy makers
• Alcohol manufacturers
• Renewable fuel producers
• Automotive manufacturers