Bio-ethanol Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Bio-ethanol Market is segmented by Feedstock Type (Sugarcane, Corn, Wheat, and Other Feedstock Types), Application (Automotive and Transportation, Food and Beverage, Pharmaceutical, Cosmetics and Personal Care, and Other Applications), and Geography (Asia-Pacific, North America, Europe, South America, and Middle-East and Africa).

Market Snapshot

Bio-ethanol Market Overview
Study Period: 2016 - 2026
Base Year: 2020
Fastest Growing Market: Asia Pacific
Largest Market: North America
CAGR: >4.5 %
Bio-ethanol Market Top Companies

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Market Overview

The bio-ethanol market size was estimated at around 100 billion liters in 2020, and the market is projected to register a CAGR of over 4.5% during the forecast period (2021-2026).

The market was negatively impacted by COVID-19 in 2020. Owing to the pandemic scenario, several countries were forced to go in lockdown, which led people to minimize the usage of personal vehicles, thus, creating a negative impact on the demand for ethanol-blended gasoline fuel, which, in turn, negatively impacted the bio-ethanol market’s demand. However, the use of ethanol sanitizers as disinfectants has increased in the current situation, thus, enhancing the market’s growth for bio-ethanol. In April 2020, BASF started producing hand sanitizers from bio-ethanol in Ludwigshafen.

  • Over the short term, increasing demand for bio-ethanol blending in gasoline and increasing government initiatives to produce and use greener fuels, like bio-ethanol, are driving the market’s growth.
  • In the case of the United States, specifically, uplifting restrictions on selling gasoline containing a high percentage of ethanol will be a major driver in the country.
  • On the flip side, shifting focus to bio-butanol and less mileage provided, when blended with more percentage of bio-ethanol, are going to hinder the market's growth somehow. Moreover, declining sales and production in the automotive industry may further have an adverse impact on the market studied.
  • Increasing consumption of biofuels like bio-ethanol in the aviation industry is likely to create opportunities for the market in the coming years.
  • North America dominated the market across the world, with the largest consumption from the United States.

Scope of the Report

Bio-ethanol is a clear, colorless liquid that is biodegradable in nature and is considered to be a green fuel. It is produced by fermenting sugar and starch-bearing plant yields like corn, sugarcane, and lignocellulosic biomass. Bio-ethanol finds its major application in the automotive industry as an octane enhancer for reducing engine knocking. The bio-ethanol market is segmented by feedstock type, application, and geography. By feedstock type, the market is segmented into sugarcane, corn, wheat, and other feedstock types. By application, the market is segmented into automotive and transportation, food and beverage, pharmaceutical, cosmetics and personal care, and other applications. The report also covers the market size and forecasts for the bio-ethanol market in 15 countries across major regions. For each segment, the market sizing and forecasts have been done on the basis of volume (million liters).

Feedstock Type
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
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

Automotive and Transportation Segment to Drive the Market Growth

  • Ethanol derived from sugarcane is a comparatively sustainable fuel, with direct emissions up to 90% lower than those of gasoline or diesel. Ethanol, produced from biomass, has been considered a suitable automobile fuel since the invention of automobiles, particularly for vehicles powered with spark-ignition engines.
  • Bioethanol has mostly been used as a biofuel for transport, as it is blended with petrol at 5% and in some countries at a 10% level. Bioethanol is by far the most commonly used biofuel globally, and it is used alongside conventional petrol to fuel petrol engines in road vehicles. It can also be used for the production of the ethyl tertiary butyl ether (ETBE), which is an octane booster and used in many types of petrol.
  • In India, currently, 4% to 5% of ethanol is mixed with petrol. The government has been planning to achieve 10% ethanol blending with petrol by 2022 and 20% by 2030. To get this 10% blending, the requirement of bioethanol will be 3.3 billion liters, which is expected to propel economic opportunities for Indian sugar mills in the coming years.
  • As of Q3 2019, about 67.47 million vehicles were produced globally, and this value reached about 52 million vehicles in Q3 2020, registering a decline rate of about 23%. Thus, this led to a decrease in the demand for automotive fuels, which, in turn, negatively impacted the market growth of bio-ethanol.
  • An important consideration when marketing the price of bioethanol is the fact that ethanol contains around 30% less energy per liter than petrol. Therefore, the sale price will have an important impact on the take-up of bioethanol as a transport fuel.
  • Therefore, the aforementioned factors are expected to show a significant impact on the market in the coming years.
Bio-ethanol Market Share

North America Region to Dominate the Market

  • The North American region is dominating the global bio-ethanol market share. The United States is the largest producer of bio-ethanol worldwide, followed by Brazil, China, India, and Canada. It is also the largest consumer of bio-ethanol.
  • Presently, the total production capacity of bioethanol from biorefineries of the United States is about 66.0 billion liters per year, and the capacity is going to increase in the coming years.
  • In 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.
  • Up to Q3 of 2019, North America produced about 15.4 million vehicles, and this value reached about 10.9 million vehicles in Q3 of 2020, with a decline rate of about 29%. Thus, this led to a decrease in the consumption of bio-ethanol for gasoline blending, which, in turn, negatively impacted the market’s growth.
  • 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, the US production and consumption of bio-ethanol doubled over the years.
  • The market demand for bio-ethanol has improved over the decade in the region, owing to factors such as rapid growth in corn-based bio-ethanol, advances in crop yields, biomass-to-ethanol conversion, and energy efficiency.
  • Furthermore, owing to the COVID-19 scenario, the demand for bio-ethanol from various end-user industries like automotive and food and beverages has been decreased.
  • Moreover, considering the post-pandemic scenario, these end-user industries will pick up the pace in the North American region. Thus, the market demand for bio-ethanol may rise in the forecast period.
Bio-ethanol Market Growth Rate

Competitive Landscape

The bio-ethanol market is fragmented with several players operating in the market. Some of these major players include POET, LLC, Valero, ADM, Green Plains Inc., and Flint Hills Resources, among others.

Recent Developments

  • In February 2020, TATA Projects, an Indian infrastructure company, has received an order from Bharat Petroleum Corporation Limited for its second-generation bioethanol project with a proposed production capacity of 100,000 liters per day in Odisha of India.
  • In June 2019, Attis Industries Inc. completed the acquisition of a 100 million gallon per year corn ethanol plant from Sunoco in Fulton of New York, thus, enhancing the company’s global presence in the renewable fuel market.

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

      3. 4.1.3 Other Drivers

    2. 4.2 Restraints

      1. 4.2.1 Shifting Focus to Biobutanol

      2. 4.2.2 Brazil’s Ethanol Imports Tax Increased to 20%

      3. 4.2.3 Unfavorable Conditions Arising Due to the Impact of COVID-19

    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 Type

      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 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

      2. 6.4.2 ADM

      3. 6.4.3 Alto Ingredients Inc.

      4. 6.4.4 Attis Industries Inc.

      5. 6.4.5 Cristalco

      6. 6.4.6 CropEnergies AG

      7. 6.4.7 Ethanol Technologies

      8. 6.4.8 Flint Hills Resources

      9. 6.4.9 GranBio Investimentos SA

      10. 6.4.10 Green Plains Inc.

      11. 6.4.11 Henan Tianguan Group Co. Ltd

      12. 6.4.12 Husky Energy Inc.

      13. 6.4.13 INEOS

      14. 6.4.14 Jilin Fuel Ethanol Co. Ltd

      15. 6.4.15 KWST

      16. 6.4.16 Lantmannen

      17. 6.4.17 POET LLC.

      18. 6.4.18 Raizen

      19. 6.4.19 Sekab

      20. 6.4.20 SUNCOR Energy Inc.

      21. 6.4.21 Tereos SA

      22. 6.4.22 Valero

      23. 6.4.23 VERBIO Vereinigte BioEnergie AG

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

    1. 7.1 Increasing Consumption of Biofuels in the Aviation Industry

    2. 7.2 Other Opportunities

**Subject to Availability

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Frequently Asked Questions

The Bio-ethanol Market market is studied from 2016 - 2026.

The Bio-ethanol Market is growing at a CAGR of >4.5% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

North America holds highest share in 2020.

POET, LLC., Valero, ADM, Green Plains Inc., Flint Hills Resources are the major companies operating in Bio-ethanol Market.

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