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Ethanol Market

Ethanol Market: Information by Type (Grain-Based, Sugarcane-Based), Application (Alcoholic Beverages, Automotive Fuel, Pharmaceuticals, Personal Care,), and Region — Forecast till 2030

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,
Report Code: SRCH792DR

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.

Report Scope

Report Metric Details
Base Year 2021
Study Period 2020-2030
Forecast Period 2023-2031
CAGR 5.9%
Market Size 4210
Fastest Growing Market Middle East
Largest Market North America
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
Geographies Covered
  • North America
  • Europe
  • APAC
  • Middle East and Africa
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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.   

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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.

Top Key Players of Ethanol Market

  1. Archer Daniels Midland Company
  2. Cargill INC.
  3. Flint Hills Resources LLC.
  4. Green Plains INC.
  5. INEOS
  6. LyondellBasell Industries N.V.
  7. Mitsubishi Chemical Corporation
  8. Pacific Ethanol INC.
  9. Poet LLC
  10. The Andersons INC.
  11. Valero Energy Corporation
  12. Wilmar International Limited.
  13. Panda Energy International

Ethanol Market Segmentations

By Type

  • Grain-based
  • Sugarcane-based

By Application

  • Alcoholic beverages
  • Automotive fuel
  • Pharmaceuticals
  • Personal care
  • Textile
  • Fertilizers
  • Pesticides

By Feedstock

  • Sugarcane
  • Corn
  • Wheat
  • Barley

By Regions

  • North America
  • Europe
  • APAC
  • Middle East and Africa

Frequently Asked Questions (FAQs)

What is the growth rate for the Ethanol Market?
Ethanol Market size will grow at approx. CAGR of 5.9% during the forecast period.
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 held a dominant position in the Ethanol Market, with the largest market share.
The Ethanol Market has seen the most substantial growth rate in Middle East.
The global Ethanol Market report is segmented as follows: By Type, By Application

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