|Fastest Growing Market:||Asia Pacific|
|Largest Market:||North America|
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The ethyl alcohol (ethanol) market size is projected to register a CAGR of over 5% during the forecast period (2022-2027).
The market was negatively impacted by COVID-19 in 2021. Beverage manufacturers are affected by the shortage of labor and raw materials essential for the production process. The demand is also expected to be affected by the uncertainties in consumer demand as pandemics have surged healthy food habits, and consumers are focusing on home dining as several governments have initiated preventive measures such as banning mass gatherings, especially in restaurants.
- Over the short term, major factors driving the growth of the market studied are the rising demand for ethanol as biofuel, the growing use in beer production and food processing, and stringent government policies to restrict the usage of fossil fuels. On the flip side, an increase in awareness about the ill effects of alcohol consumption and the advent of hybrid electric vehicles are likely to hamper the growth of the market studied.
- The fuel segment dominated the market, and it is likely to grow during the forecast period, owing to the increased practice of ethanol blending with gasoline across the world.
- The surging demand to produce ethanol from corn and sugar is likely to provide opportunities for the market studied during the forecast period.
- North America dominated the market across the world due to increasing regulations and rising demand for the food processing industry.
Scope of the Report
Ethyl alcohol (ethanol) is a clear, transparent liquid widely used in fuel and alcoholic beverages like beer, wine, or brandy. The market is segmented on the basis of grade, end user industry, and geography. By grade, the market is segmented into food grade, industrial grade, pharmaceutical grade, and lab grade. By end user industry, the market is segmented into automotive and transportation, food and beverage, pharmaceutical, cosmetics and personal care, and other end-user industries. The report also covers the market size and forecasts for the 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).
|Automotive and Transportation|
|Food and Beverage|
|Cosmetics and Personal Care (Includes hand-Sanitizer)|
|Other End-user Industries|
Key Market Trends
Automotive and Transportation Segment to Dominate the Market
- Crude oil and natural gas have been the major sources of energy for the automotive industries for many decades. Due to the negative environmental impact of the increasing consumption of crude oil and natural gas worldwide, as well as the high prices of crude oil, biofuels, such as bioethanol, are considered the viable alternatives to crude oil and natural gas as fuel for the automotive industries.
- Ethanol is the cheapest additive to petrol, with an octane rating of 114. It helps in reducing the cost for manufacturers and consumers. The ethanol market is directly affected by the consumption of fuel. Ethanol helps to reduce the emission of air toxins, carbon monoxide, particulate matter, nitrous oxides, and exhaust hydrocarbons by displacing aromatics in petroleum products.
- According to the Ministry of Petroleum and Natural Gas, The Indian government is targeting a motor fuel blending rate of E10 (10:90 ethanol: gasoline) by 2022 and brought forward its ethanol E20 target to 2023.
- European countries are majorly using 5% ethanol-blended fuel. The region is focusing on reducing the carbon dioxide emission from transportation through 10-20% ethanol blending based on the countries' infrastructure.
- In the current market scenario, the United States is a net importer of petroleum to meet the energy demand in the country. About 98% of gasoline in the United States contains ethanol, typically E10. If ethanol had not been domestically produced and consumed, the consumption of petroleum would have been significantly higher in the United States, as transportation accounts for about 75% of the total petroleum consumption in the country.
- Hence, all such trends in the market are likely to drive the demand for ethanol in the automotive and transportation segment during the forecast period.
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North American Region to Dominate the Market
- The North American region dominated the global market share. Stringent regulations toward reducing the usage of fossil fuels and rising demand from the food processing industry have been driving the demand for ethanol in the region.
- The government in the countries such as the United States, Canada, and Mexico, have been focusing on reducing the usage of fossil fuels and the pollution caused by them. In this regard, the region has been resorting to ethanol-blended fuels, which serves as one of the major factors driving the growth of the ethanol market in the region.
- The United States is the world leader in the production, consumption, and export of ethanol. Poet Biorefining is the largest ethanol producer in the United States. As of December 2021, the company had an ethanol production capacity of 2.7 billion gallons per annum across 33 plants in the Midwest.
- According to US Energy Information Administration, the United States fuel ethanol production capacity was 17.5 billion gal/y as of January 1, 2021, as reported by 197 producers, an increase of 0.2 billion gal/y since the beginning of 2020. Thus, increased production and consumption capacities of ethanol are likely to boost demand for ethyl alcohol.
- According to the Mexican Chamber of Cosmetic Products (CANIPEC), the Mexican cosmetics market was valued at around USD 7.14 billion in 2020 and held the 2nd position in the Latin American market and 10th in the world. Growing demand for premium skin care products, along with the need for a better lifestyle, is driving the market for personal care in the country, positively impacting the demand for ethyl alcohol.
- Hence, all such market trends are expected to drive the demand for ethanol in the region during the forecast period.
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The ethyl alcohol (ethanol) market is fragmented in nature. Some of the major players (not in any particular order) in the market include ADM, POET LLC, Valero, Green Plains Inc., and Bunge North America Inc.
- In June 2021, POET announced it had acquired Flint Hills Resources' entire ethanol business. The acquisition will help POET to boost its ethanol production capacity by 40% to 3 billion gallons per year.
Table of Contents
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1.1 Increasing Usage in the Automotive Industry
4.1.2 Increasing Government Initiatives
4.2.1 Shifting Focus toward Biobutanol
4.2.2 Brazil's Ethanol Import Tax Increased to 20%
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
4.5 Import Export Trends
4.6 Price Trends
5. MARKET SEGMENTATION
5.1.1 Food Grade
5.1.2 Industrial Grade
5.1.3 Pharmaceutical Grade
5.1.4 Lab Grade
5.2 End-user Industry
5.2.1 Automotive and Transportation
5.2.2 Food and Beverage
5.2.4 Cosmetics and Personal Care (Includes hand-Sanitizer)
5.2.5 Other End-user Industries
220.127.116.11 South Korea
18.104.22.168 Rest of Asia-Pacific
5.3.2 North America
22.214.171.124 United States
126.96.36.199 United Kingdom
188.8.131.52 Rest of Europe
5.3.4 South America
184.108.40.206 Rest of South America
5.3.5 Middle-East and Africa
220.127.116.11 Saudi Arabia
18.104.22.168 South Africa
22.214.171.124 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**/Ranking Analysis
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.1 Advanced BioEnergy LLC
6.4.2 The Andersons Inc.
6.4.5 bp PLC
6.4.6 Cargill Incorporated
6.4.7 Flint Hills Resources
6.4.8 Green Plains Inc.
6.4.10 HPCL Biofuels Limited
6.4.11 Kirin Holdings Company Limited
6.4.12 LyondellBasell Industries Holdings BV
6.4.13 Mitsubishi Chemical Corporation
6.4.14 Alto Ingredients Inc.
6.4.16 Sasol Limited
6.4.17 POET LLC
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Surging Demand to Produce Ethanol from Corn and Sugar
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Frequently Asked Questions
What is the study period of this market?
The Ethyl Alcohol (Ethanol) Market market is studied from 2017 - 2027.
What is the growth rate of Ethyl Alcohol (Ethanol) Market?
The Ethyl Alcohol (Ethanol) Market is growing at a CAGR of >5% over the next 5 years.
Which region has highest growth rate in Ethyl Alcohol (Ethanol) Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Ethyl Alcohol (Ethanol) Market?
North America holds highest share in 2021.
Who are the key players in Ethyl Alcohol (Ethanol) Market?
ADM, POET, LLC, Valero, Green Plains Inc., Bunge North America, Inc. are the major companies operating in Ethyl Alcohol (Ethanol) Market.