The Global Ethanol Market is estimated to be valued at US$ 2,773.5 Mn in 2023 and is expected to exhibit a CAGR of 8.25% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Ethanol is a clear, colorless, flammable alcohol produced by the natural fermentation of sugars and is the primary alcohol found in alcoholic beverages. It has wide applications as a solvent, fuel additive to increase octane andreduce emissions, and in production of perfumes, lotions and other cosmetics. As a fuel, ethanol has lower greenhouse emissions than gasoline and its use reduces reliance on imported petroleum. This has driven biofuel mandates worldwide to increase usage of ethanol in gasoline blends.
Market key trends:
One of the key trends in the ethanol market is rising demand for biofuels. Stringent environmental norms aimed at curbing vehicular emissions have boosted demand for low-carbon biofuels. Ethanol is increasingly blending with gasoline fuels to reduce lifecycle carbon footprint of transportation fuels. The U.S., Brazil and Europe have instituted biofuel blending mandates with ethanol being a major biofuel component. Growing concerns regarding energy security and reducing dependence on crude oil imports have further augmented demand for domestically produced biofuels like ethanol.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as the ethanol market requires high capital investments and strict government regulations and norms for production facilities.
Bargaining power of buyers: The bargaining power of buyers is high due to the presence of numerous global and regional players offering ethanol. Buyers can negotiate on price points with suppliers.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as suppliers have to rely on a limited number of feedstock suppliers for raw materials.
Threat of new substitutes: The threat of new substitutes is low as ethanol is the major biofuel widely used as a gasoline additive and in alternative fuel vehicles.
Competitive rivalry: The rivalry in the ethanol market is high owing to the presence of numerous global players competing on pricing strategies and product differentiation.
Key Takeaways
The Global Ethanol Market size is expected to witness high growth, exhibiting CAGR of 8.25% over the forecast period, due to increasing demand for fuel ethanol from the automotive industry. The market was valued at US$ 2,773.5 Mn in 2022.
Regional analysis: North America dominated the global ethanol market in 2022 and is projected to maintain its lead over 2023-2030. The growth in the region can be attributed to the increasing usage of ethanol gasoline blend in the United States. Asia Pacific is anticipated to be the fastest growing market owing to rising demand from China, India, and other emerging nations in the region.
Key players:
Key players operating in the ethanol market are Archer Daniels Midland, POET, Valero Energy, Green Plains, and Pacific Ethanol. Archer Daniels Midland is one of the largest producer and marketer of ethanol in the North America region.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.