2016 - 2026
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The Global 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 of 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 of 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 case of the United States, specifically, uplifting restrictions on selling gasoline containing high percentage of ethanol 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. Moreover, declining sales and production in the automotive industry will 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 litres).
|Automotive and Transportation|
|Food and Beverage|
|Cosmetics and Personal Care|
|Other Applications (Power Generation and Fuel Cells)|
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 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 has reached about 52 million vehicles till Q3 2020, registering a decline rate of about 23%, thus 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 take-up of bioethanol as a transport fuel.
- Therefore, the aforementioned factors are expected to show significant impact on the market in the coming years.
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North America Region to Dominate the Market
- North America 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 has produced about 15.4 million vehicles and has reached about 10.9 million vehicles in Q3 of 2020, with a decline rate of about 29%, thus led to a decrease in the consumption of bio-ethanol for gasoline blending, which in turn negatively impacted the market’s growth.
- Moreover, the United States 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 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 of bio-ethanol from various end-user industries like automotive and food and beverages has been decreased.
- Moreover, considering to the post-pandemic scenario, these end-user industries will pick up the pace in the North America region, thus the market demand for bio-ethanol will rise in the forecast period.
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The global bio-ethanol market is fragmented with several players opertaing in the market. Some of these major players include POET, LLC, Valero, ADM, Green Plains Inc., and Flint Hills Resources, among others.
- 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 litres per day in Odisha of India.
- In June 2019, Attis Industries Inc. has 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 Study Assumptions
1.2 Scope of the Report
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1.1 Increasing Government Initiatives
4.1.2 Uplifting of Restrictions on Selling Gasoline Containing a Higher Percentage of Ethanol in the United States
4.1.3 Other Drivers
4.2.1 Shifting Focus to Biobutanol
4.2.2 Brazil’s Ethanol Imports Tax Increased to 20%
4.2.3 Unfavorable Conditions Arising due to the Impact of COVID-19
4.3 Industry Value-chain Analysis
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Consumers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products and Services
4.4.5 Degree of Competition
5. MARKET SEGMENTATION
5.1 Feedstock Type
5.1.4 Other Feedstocks
5.2.1 Automotive and Transportation
5.2.2 Food and Beverage
5.2.4 Cosmetics and Personal Care
5.2.5 Other Applications (Power Generation and Fuel Cells)
126.96.36.199 South Korea
188.8.131.52 Rest of Asia-Pacific
5.3.2 North America
184.108.40.206 United States
220.127.116.11 United Kingdom
18.104.22.168 Rest of Europe
5.3.4 South America
22.214.171.124 Rest of South America
5.3.5 Middle-East and Africa
126.96.36.199 Saudi Arabia
188.8.131.52 South Africa
184.108.40.206 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Market Share Analysis
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.3 Alto Ingredients, Inc.
6.4.4 Attis Industries Inc.
6.4.6 CropEnergies AG
6.4.7 Ethanol Technologies
6.4.8 Flint Hills Resources
6.4.9 GranBio Investimentos SA
6.4.10 Green Plains Inc.
6.4.11 Henan Tianguan Group Co. Ltd
6.4.12 Husky Energy Inc.
6.4.14 Jilin Fuel Ethanol Co. Ltd
6.4.17 POET, LLC.
6.4.20 SUNCOR Energy Inc.
6.4.21 Tereos SA
6.4.23 VERBIO Vereinigte BioEnergie AG
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Increasing Consumption of Biofuels in the Aviation Industry
7.2 Other Opportunities
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Frequently Asked Questions
What is the study period of this market?
The Bio-ethanol Market market is studied from 2016 - 2026.
What is the growth rate of Bio-ethanol Market?
The Bio-ethanol Market is growing at a CAGR of >4.5% over the next 5 years.
Which region has highest growth rate in Bio-ethanol Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Bio-ethanol Market?
North America holds highest share in 2020.
Who are the key players in Bio-ethanol Market?
- POET, LLC.
- Green Plains Inc.
- Flint Hills Resources
Are the major companies operating in Bio-ethanol Market.