Ethanol Market (5.75% CAGR) 2021-2030: Global Industry Size, Share, Growth, Analysis and Forecast


According to ChemAnalyst report, “Global Ethanol Market: Plant Capacity, Production, Operating Efficiency, Demand & Supply, Technology, End Use, Distribution Channel, Region, Competition, Trade, Customer & Price Intelligence Market Analysis, 2015-2030”, global Ethanol market has shown promising progress in the historic years and is anticipated to achieve a CAGR of 5.75% during the forecast period. Surging demand for ethanol as biofuel coupled with the increasing consumption of alcoholic beverages such as beer etc. is likely to drive the demand of ethanol in the forecast period. Moreover, the increasing government initiatives for promoting usage of biofuels leads to the rising demand for bio ethanol blending in gasoline, replacing the fossil fuels with biofuels is another factor propelling the demand during the forecast period.

Ethanol is also known as ethyl alcohol. Both natural and petroleum feedstocks can be employed to produce ethanol. In the natural process, it can be produced by natural sugars undergo fermentation in the presence of yeast. Ethanol is available in various grades including food grade, industrial grade, pharmaceutical grade, and lab grade. Based on purity the market can be segmented into denatured and undenatured ethanol. It has wide range of applications in fuel and as fuel additives, industrial solvents, beverages, disinfectant, personal care, and others. Out of the following applications fuel and fuel additives dominate the global ethanol market.

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In 2020, COVID-19 crisis in major global economies caused nationwide lockdowns which had an impact on a number of industries. Demand in Renewable energy sector saw a dip during the pandemic. Ethanol demand from Industrial sector slumped during Covid-19 pandemic. Additionally, Ethanol is related to biofuel which has major application as fuel. As lockdown was imposed by several countries due to pandemic, there was a dip in the usage of vehicles, thus, creating a negative impact on the industrial demand for ethanol-blended gasoline fuel, which, in turn, affected the bio-ethanol market’s demand. Major focus of Industries was on producing ethanol for Pharma application such as Sanitization. The use of ethanol sanitizers as disinfectants has increased its demand, thus, created a exponential growth in Pharma grade Ethanol.

Regionally, North America dominates the global Ethanol market and holds the largest market share due to early adoption and technological advancements. Moreover, increasing demand of green fuels is also a factor propelling demand growth in North America during the forecast period. Asia’s ethanol market is anticipated to grow in the economies like China, India, and Japan, because of increasing awareness about the harmful effects of petrochemicals-based products on human health and environment, therefore, encouraging the manufacturers to shift focus on natural alternatives i.e., bioethanol that consequently drives the growth of the Ethanol market in the forecast period.

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Major Players:

  • United Breweries,
  • Green Plains Inc.,
  • Aventine Renewable Energy,
  • AB Miller,
  • Archer Daniels Midland Company,
  • Kirin,
  • Pure Energy Inc.,
  • British Petroleum,
  • Cargill Corporation
  • Others.

“Being linked to the renewable and green industry, the global ethanol industry has shown a robust growth alongside changing consumer preference towards cleaner energy sources. North America serves as the key growth region with sufficiently installed capacities for ethanol. Government initiatives and new policies to shift towards biofuels such as Indian govt. announced the timeline change to the country’s national biofuels policy, with the release of a new “Roadmap for ethanol blending in India 2020-25” impels the market growth. Additionally, increasing consumption of biofuels like bioethanol in the aviation industry is likely to create opportunities for the market in the coming years. Hence, with new competitors emerging across the Global ethanol market, players anticipate that there will be sufficient supply demand gaps in future. At this, it is extremely important to keep an eye which region will grab the biggest market share in the upcoming years.” said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm promoting ChemAnalyst. 

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ChemAnalyst is a ‘one stop’ digital platform that offers comprehensive market intelligence data and in-depth analysis of the Indian chemical and petrochemical industry. ChemAnalyst’s team of 100+ analysts are engaged in tracking chemical prices daily, production capacity, demand and supply outlook, manufacturing plant locations, foreign trade data and news/deals for more than 400 major chemicals produced in India. ChemAnalyst is promoted by TechSci Research which is an award winning research based management consulting firm providing market research and advisory solutions to the customers worldwide, spanning a range of industries including Chemicals & Material, Automotive, Consumer & Retail, ICT, Energy & Power, Aerospace & Defense, Water and Waste Management, BFSI and more.

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