Bio-ethanol Market - Growth, Trends, and Forecast (2020 - 2025)

The market is segmented by Feedstock (Sugarcane, Corn, Wheat, and Other Feedstocks), by Application (Automotive and Transportation, Power Generation, Pharmaceutical, Cosmetics, and Other Applications), and Geography (Asia-Pacific, North America, Europe, South America, and Middle-East and Africa)

Market Snapshot

Study Period:

2016-2025

Base Year:

2019

Fastest Growing Market:

Asia Pacific

Largest Market:

North America

CAGR:

Greater Than 4 %

Major Players:

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Market Overview

The market for bio-ethanol is expected to grow at a CAGR of more than 4% during the forecast period. Major factors driving the growth of the market studied, is the increasing demand from the automotive industry, and increasing government initiatives. In case of the United States, specifically, uplifting restrictions on selling gasoline containing a higher percentage of ethanol in the country will be a major driver in the country. On the flipside, shifting focus to bio-butanol and less mileage provided, when blended with more percentage of bio-ethanol, is going to somehow hinder the market growth..

  • Automotive and transportation industry dominated the market a with more than 80% of the total share.
  • Increasing Consumption of Bio-fuels in the Aviation Industry is likely to act as an opportunity in the future.
  • North America dominated the market across the world, with the largest consumption from the United States.

Scope of the Report

The bio-ethanol market report includes:

Feedstock
Sugarcane
Corn
Wheat
Other Feedstocks
Application
Automotive and Transportation
Food and Beverage
Pharmaceutical
Cosmetics and Personal Care
Other Applications (Power Generation and Fuel Cells)
Geography
Asia-Pacific
China
India
Japan
South Korea
Rest of Asia-Pacific
North America
United States
Canada
Mexico
Europe
Germany
United Kingdom
France
Italy
Spain
Rest of Europe
South America
Brazil
Argentina
Rest of South America
Middle-East and Africa
Saudi Arabia
South Africa
Rest of Middle-East and Africa

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Key Market Trends

Food & Beverage Segment to Drive the Market Growth

  • The best-known end-user of renewable ethanol, after the transport sector, is the drinks industry. Bio-ethanol is used in alcoholic beverages, such as vodkas, liquors, and other spirits for fermentation process. In recent times, bio-ethanol is one of the most desired fermentation products in beer brewing and wine-making.
  • Bio-ethanol is used as a natural product to extract and concentrate flavors and aromas, which are then used by the food and drink industry.
  • As a food additive, ethanol can help evenly distribute food coloring, as well as enhance the flavor of food extracts.
  • It can also be used in the production of cakes, such as in flavorings. For example, vanilla extract, a common food flavoring, is made by curing and processing vanilla beans in a solution of ethanol and water.
  • For instance, the baking industry plays an important role in the United States. There are more than 2,800 commercial bakeries and 6,000 retail bakeries operating in the United States.
  • Furthermore, the bakery industry in China has entered a period of rapid growth. In the coming years, the country is anticipated to become the largest producer and consumer of baked products.
  • Hence, the growth in drinks and bakery industries is expected to increase the demand for bio-ethanol for food and beverages applications in the coming years.

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North America Region to Dominate the Market

  • North America region dominated the global market share. The United States is the largest producer of bio-ethanol, worldwide, followed by Brazil, China, and Canada. It is also the largest consumer of bio-ethanol.
  • In the recent years, bio-ethanol production increased as a result of higher renewable fuel standard (RFS) targets and growth in domestic motor gasoline consumption, almost all of which is now blended with 10% ethanol by volume.
  • Moreover, the US pharmaceutical industry is also expanding at a rapid pace. According to the Centre of Medicare & Medicaid Services (CMS), the US National Health Expenditure is projected to grow by an average of 5.5% annually over the next decade.
  • Driven by biofuel policies, which aim to reduce greenhouse gas (GHG) emissions and increase domestic energy supply, US production and consumption of bio-ethanol have doubled over the years.
  • The demand for bio-ethanol has improved over the decade in the region, owing to factors, such as rapid growth in corn-based bio-ethanol in the United States, advances in crop yields, efficient energy usage in fertilizer production, biomass-to-ethanol conversion rates, and energy efficiency in ethanol production,
  • These factors are also expected to drive the market in North America, during the studied period.

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Competitive Landscape

The global bioethanol market is fragmented, with top seven companies having a share of ~30%. Some of these major players include POET LLC, Valero Energy Corporation, Archer-Daniels-Midland Company, Green Plains Inc., and Flint Hills Resources, LLC, among others.

Table Of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Report

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Drivers

      1. 4.1.1 Increasing Government Initiatives

      2. 4.1.2 Uplifting of Restrictions on Selling Gasoline Containing a Higher Percentage of Ethanol in the United States

    2. 4.2 Restraints

      1. 4.2.1 Shifting Focus to Biobutanol

      2. 4.2.2 Decline in Automotive Industry

    3. 4.3 Industry Value-chain Analysis

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Consumers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products and Services

      5. 4.4.5 Degree of Competition

  5. 5. MARKET SEGMENTATION

    1. 5.1 Feedstock

      1. 5.1.1 Sugarcane

      2. 5.1.2 Corn

      3. 5.1.3 Wheat

      4. 5.1.4 Other Feedstocks

    2. 5.2 Application

      1. 5.2.1 Automotive and Transportation

      2. 5.2.2 Food and Beverage

      3. 5.2.3 Pharmaceutical

      4. 5.2.4 Cosmetics and Personal Care

      5. 5.2.5 Other Applications (Power Generation and Fuel Cells)

    3. 5.3 Geography

      1. 5.3.1 Asia-Pacific

        1. 5.3.1.1 China

        2. 5.3.1.2 India

        3. 5.3.1.3 Japan

        4. 5.3.1.4 South Korea

        5. 5.3.1.5 Rest of Asia-Pacific

      2. 5.3.2 North America

        1. 5.3.2.1 United States

        2. 5.3.2.2 Canada

        3. 5.3.2.3 Mexico

      3. 5.3.3 Europe

        1. 5.3.3.1 Germany

        2. 5.3.3.2 United Kingdom

        3. 5.3.3.3 France

        4. 5.3.3.4 Italy

        5. 5.3.3.5 Spain

        6. 5.3.3.6 Rest of Europe

      4. 5.3.4 South America

        1. 5.3.4.1 Brazil

        2. 5.3.4.2 Argentina

        3. 5.3.4.3 Rest of South America

      5. 5.3.5 Middle-East and Africa

        1. 5.3.5.1 Saudi Arabia

        2. 5.3.5.2 South Africa

        3. 5.3.5.3 Rest of Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Market Share Analysis

    3. 6.3 Strategies Adopted by Leading Players

    4. 6.4 Company Profiles

      1. 6.4.1 Abengoa Bioenergy SA

      2. 6.4.2 Archer Daniels Midland Company

      3. 6.4.3 Cristal Union

      4. 6.4.4 CropEnergies AG

      5. 6.4.5 Ethanol Technologies (ETHTEC)

      6. 6.4.6 Flint Hills Resources

      7. 6.4.7 GranBio Investimentos SA

      8. 6.4.8 Green Plains Inc.

      9. 6.4.9 Henan Tianguan Group Co. Ltd

      10. 6.4.10 Husky Energy Inc.

      11. 6.4.11 INEOS Group AG

      12. 6.4.12 Jilin Fuel Ethanol Co. Ltd

      13. 6.4.13 Kraul & Wilkening U. Stelling GmbH

      14. 6.4.14 Lantmannen Agroetanol

      15. 6.4.15 Pacific Ethanol Inc.

      16. 6.4.16 POET LLC

      17. 6.4.17 Raizen Energia SA

      18. 6.4.18 SEKAB Biofuel Industries AB

      19. 6.4.19 SUNCOR Energy Inc.

      20. 6.4.20 Tereos SA

      21. 6.4.21 Valero Marketing and Supply Company

      22. 6.4.22 Verbio Vereinigte Bioenergie AG

  7. *List Not Exhaustive
  8. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

    1. 7.1 Increasing Consumption of Biofuels in the Aviation Industry

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