Bioethanol Market Research Report: By Fuel Blend (E5, E10, E15 to E70, E75 & E85), Feedstock Type (Gas, Liquid, Solid), End User (Transportation, Alcoholic Beverages, Cosmetics, Pharmaceuticals) - Global Industry Revenue Forecast to 2030

Market Overview

The global bioethanol market stood around $38.0 billion in 2020, and is expected to grow at a significant rate during the forecast period. The major factors responsible for the growth of the market are the increasing need for sustainable alternative fuels, depletion of natural resources, surging energy consumption, and excessive greenhouse gas production. Moreover, the large amount of biomass available for its production is driving research in the domain, which is leading to the market growth.

Due to the COVID-19 pandemic, the market for bioethanol has been negatively impacted. This is mainly attributed to the reduction of vehicle usage during the lockdown. Moreover, manufacturing plants were temporarily closed, and the distribution network was also disrupted due to the strict government regulations implemented to curb the spread of the disease. This, in turn, resulted in the decreased sale of bioethanol across the world.

Rising Usage of E10 Fuel Blend Is owing to Its Rising Consumption in Light-Duty Vehicles

The E10 category held the dominating share in the bioethanol market in 2020, based on fuel blend. This can be attributed to the fact that it can be used in most new cars and light-duty diesel vehicles without any engine or fuel system modification.

Rising Adoption of Bioethanol as Transportation Fuel Leads to This End User’s Domination

The transportation category accounted for the largest share in the market for bioethanol in 2020, and it is expected to retain its position during the forecast period, based on end user. This will be majorly due to the rising adoption of bioethanol as a transportation fuel and biofuel blending mandates by several regulatory bodies. Bioethanol is more cost-effective and ecologically friendly as compared to other fuels, which also encourages people to use it in their automobiles.

Due to Large-Scale Availability, Solid Feedstock Held Largest Share

The solid category accounted for the largest share in the bioethanol market in 2020, and it would have a substantial growth rate during the forecast period, based on feedstock type. This will majorly be due to the fact that ethanol derived from sugarcane is a 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 by spark-ignition engines.

Due to Rising Number of Biofuel Policies, North America Dominated Market

Geographically, North America contributed the highest revenue to the bioethanol market in 2020, and it is further expected to lead the market in the coming years. This will mainly be due to the large-scale production of bioethanol in the region in order to meet the demands of consumers. Additionally, the U.S. and Canada have mandated the usage of bioethanol blends in vehicles. Apart from the favorable biofuel policies, the rapid growth in the production of corn-based bioethanol, rise in crop yields, and surging focus on energy efficiency are propelling the market growth.

Research and Development (R&D) on New and Sustainable Production Methods Is Key Trend

The increasing research activities for sustainable production methods of bioethanol are the major trend in the market for bioethanol. Extensive research is being conducted so that bioethanol production from plant residues, which are suitable to produce second-generation bioethanol (SGB), can be improved. To successfully replace petrol and diesel with bioethanol, many projects have been initiated. For instance, the European Union has launched the Bioethanol for Sustainable Transportation (BEST) project with six participating countries in order to develop bioethanol vehicles. Moreover, the New Improvements for Ligno-cellulosic Ethanol (NILE) project brings together 21 industrial and research organizations from 11 member states to research on bioethanol manufacturing.

Depleting Natural Reserves due to Booming Energy Consumption Are Driving Market

The depletion of natural resources due to the booming energy consumption is one of the major factors leading to the advance of the bioethanol market. Non-renewable resources, such as oil and natural gas, which are used for the production of energy, are depleting at a high pace. Hence, to sustain the global demand, natural resources must be used more efficiently. Since bioethanol is mainly produced via the fermentation of the sugars derived from crops containing starch, it is a promising alternative fuel.

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Market Players Are Involved in Geographical Expansions to Gain Significant Position

In recent years, players in the bioethanol industry have been involved in geographical expansions in order to attain a significant position. For instance,

• In January 2020, TATA Projects Limited, an Indian infrastructure company announced that it has received multiple mega orders in the oil & gas refinery sector with combined a value of around $809.7 million. Out of these, three orders are from HPCL Rajasthan Refinery Ltd. (HRRL) and one from Bharat Petroleum Corporation Limited (BPCL). Moreover, the order received from BPCL for the latter’s second-generation bioethanol project with a proposed production capacity of 100,000 liters per day, in Odisha.
• In April 2019, Raizen Energia SA bought areas in the ports of Miramar and Vila do Conde for the storage of bulk liquids, which has strengthened its bioethanol distribution network across Brazil.

Key Players Operating in Bioethanol Market Are:

Market Size Breakdown by Segments

The bioethanol market report offers comprehensive market segmentation analysis along with market estimation for the period 2015-2030.

Based on Fuel Blend

• E5
• E10
• E15 to E70
• E75 & E85

Based on Feedstock Type

• Gas
• Liquid
• Solid

Based on End User

• Transportation
• Alcoholic Beverages
• Cosmetics
• Pharmaceuticals

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • France
  • U.K.
  • Italy
  • Spain
• Asia-Pacific (APAC)
  • Japan
  • China
  • India
  • Australia
  • South Korea
• Latin America (LATAM)
  • Brazil
  • Mexico
• Middle East and Africa (MEA)
  • Saudi Arabia
  • South Africa