Home Bulk Chemicals Ethanol Market Size ,Trends, Growth, & Share-2031

Ethanol Market

Ethanol Market Size, Share & Trends Analysis Report By Type (Grain-based, Sugarcane-based), By Application (Alcoholic beverages, Automotive fuel, Pharmaceuticals, Personal care, Textile, Fertilizers, Pesticides), By Feedstock (Sugarcane, Corn, Wheat, Barley) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Report Code: SRCH792DR
Study Period 2020-2032 CAGR 5.9%
Historical Period 2020-2022 Forecast Period 2024-2032
Base Year 2023 Base Year Market Size USD XX Billion
Forecast Year 2032 Forecast Year Market Size USD XX Billion
Largest Market North America Fastest Growing Market Middle East
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Market Overview

Ethanol Market Size is Expected to grow at higher CAGR 5.9% Over the Forecast Period.

Ethanol is a chemical compound formed by microbial fermentation of carbohydrates or through the process of synthesis using ethylene.  It is a clear, colorless, flammable liquid with a pungent odor and smoky taste. Ethanol is also extracted by the process of fermentation of sugar derived from natural sources like sugar cane, grapes, grains, and potatoes.

Market Dynamics

Debouching Trends in the Brewery Industry to Drive the Market Growth

Ethanol is extensively used in the production of alcohol-based beverages, and the rising consumption of alcohol drives market growth. In 2016, the global alcohol consumption was almost 6.4 liters per person aged 15 and above. The debouching trends in the brewery industry and increasing demand for crafted beer among the millennials drive the market growth. As per the Brewers Association, in 2018, the U.S market for crafted beer witnessed a growth rate of 4% by volume and contributed about 13.2% to the U.S. beer market.

Regional Analysis

North America: Home to the World’s Largest Automobile Industry

As per the International Monetary Fund World Economic, North America ranked first in the world in terms of nominal GDP and second in terms of purchasing power in 2018, which was about USD 19.39 trillion in 2019 and is expected to reach USD 24.53 trillion by 2023. In the U.S., the automobile industry is the backbone of the industrial sector, and the country’s light-vehicle sales accounted for about 17 million units in 2019. The total foreign direct investment in the automotive sector reached USD 115 billion in 2018, further boosting the market growth.

Rising Tourism Activities to Drive the Middle East’s, Ethanol Market

The Middle East is home to one of the largest tourism sectors; in 2018, the region’s international tourist arrival grew by 6%, which is about 1.4 billion tourists.  In the UAE, the travel and tourism sector contributed about 5.2% to the country’s GDP in 2016, which was about USD 18.7 billion. The country’s travel and tourism sector employ about 317, 500 people. Thus, rising tourism activities is subsequently boosting the demand for alcohol from hotels and resorts, providing an impetus to the market growth.   

Report Scope

Report Metric Details
By Type
  1. Grain-based
  2. Sugarcane-based
By Application
  1. Alcoholic beverages
  2. Automotive fuel
  3. Pharmaceuticals
  4. Personal care
  5. Textile
  6. Fertilizers
  7. Pesticides
By Feedstock
  1. Sugarcane
  2. Corn
  3. Wheat
  4. Barley
Company Profiles Archer Daniels Midland Company Cargill INC. Flint Hills Resources LLC. Green Plains INC. INEOS LyondellBasell Industries N.V. Mitsubishi Chemical Corporation Pacific Ethanol INC. Poet LLC The Andersons INC. Valero Energy Corporation Wilmar International Limited. Panda Energy International
Geographies Covered
North America U.S. Canada
Europe U.K. Germany France Spain Italy Russia Nordic Benelux Rest of Europe
APAC China Korea Japan India Australia Taiwan South East Asia Rest of Asia-Pacific
Middle East and Africa UAE Turkey Saudi Arabia South Africa Egypt Nigeria Rest of MEA
LATAM Brazil Mexico Argentina Chile Colombia Rest of LATAM
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
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Segmental Analysis

Grain-Based Ethanol to Witness Significant Demand during the Forecast Period

The grain-based ethanol reduces greenhouse gas emission by 35–50% compared to gasoline. As per the U.S. Department of Energy, Oregon Department of Environmental Quality, and California Air Resources Board (USDA), the emerging technology in ethanol production has the ability to decrease the emission by almost 70% in the coming years.  As per the statistic by CARB, since 2011, the use of ethanol has reduced about 22 million metric tons of GHG from California’s transportation sector. The U.S. is the leading producer of ethanol globally, with the total annual production of around 15,800 million gallons in 2019.

Rapidly Expanding Pharmaceutical Industry and Rising R&D Activities

The pharmaceutical industry uses ethanol for the manufacturing of medicinal drugs and syrups, such as Benadryl, Cheracol Plus, Dimetane, Donnatal, Geritol, Novahistine, Robitussin, Sominex, Triaminic, Tylenol, and Vicks. Thus, the rapidly expanding pharmaceutical industry across the globe provides an impetus to the market growth. As per the statistics of the Observatory of Economic Complexity (OEC), the sales of special pharmaceuticals were valued at USD 12.2 billion in 2017.

Rising R&D activities for the development of new medicines and products are subsequently increasing the demand for ethanol. As per the data provided by the European Federation of Pharmaceutical Industries and Associations, the R&D activities in Brazil, India, and China grew by 11.5%, 11%, and 9.4%, respectively. India is one of the largest providers of generic drugs across the globe, and the rapid expansion of the pharmaceutical sector drives market growth. In 2017, the Indian pharmaceutical industry witnessed about 46 merger and acquisition deals worth USD 1.47 billion. As per the IBEF, in October 2018, the Uttar Pradesh State (India) government announced to launch six pharma parks in the state worth about USD 712–855 million.

Market Size By Type

Market Size By Type
  • Grain-based
  • Sugarcane-based
  • Top Key Players

    Ethanol Market Share of Key Players

    Ethanol Market Share of Key Players
    Archer Daniels Midland Company Cargill INC. Flint Hills Resources LLC. Green Plains INC. INEOS LyondellBasell Industries N.V. Mitsubishi Chemical Corporation Pacific Ethanol INC. Poet LLC The Andersons INC. Valero Energy Corporation Wilmar International Limited. Panda Energy International Others

    Frequently Asked Questions (FAQs)

    What is the estimated growth rate (CAGR) of the global Ethanol Market?
    The global Ethanol Market size is growing at a CAGR of 5.9% from 2023 to 2031.
    Some of the top industry players in Ethanol Market are, Archer Daniels Midland Company, Cargill INC., Flint Hills Resources LLC., Green Plains INC., INEOS, LyondellBasell Industries N.V., Mitsubishi Chemical Corporation, Pacific Ethanol INC., Poet LLC, The Andersons INC., Valero Energy Corporation, Wilmar International Limited., Panda Energy International, etc.
    North America has the largest share of the market.
    Debouching trends in the brewery industry to drive the market growth are the key driver for the growth of the market.

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