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Bioethanol Market By Fuel Blend (E5, E10, E15 to E70, E75 & E85, Others) By Feedstock (Starch-based, Sugar-based, Cellulose-based) By End-Use Industry(Transportation, Alcoholic Beverages, Cosmetics, Pharmaceuticals, Others) - Growth, Future Prospects & Competitive Analysis, 2016 – 2028

About this report

The global Bioethanol Market report explores the critical analysis of the bioethanol industry using key parameters. The report consists of investment strategies, the need for investments in the bioethanol industry, and the multiple benefits for the investors. Importantly, this report sets out major changes in the bioethanol industry's global technical regulations and how economic and non-economic barriers are helping the market grow. Moreover, the report examines historical and projected global, regional, and country market sizes. The report also examines key investment propositions, the demand and supply gap, competitor positioning, SRC analysis, STAR analysis, and Tornado analysis. Key technological advancements and other analyses, including Value Chain, Porter's Five Forces, PESTEL, etc.


Key Highlights of the report

How are the major segments performing in the Global Bioethanol Market?

The E10 fuel blend segment led the market in 2021 and is expected to continue throughout the projection period. Blending bioethanol with conventional fuels improves their renewability; E10 is a gasoline blend that contains 90% regular unleaded gasoline and 10% ethanol. Bioethanol is a low-carbon fuel that can help with transportation decarbonization. Most new cars and light-duty diesel vehicles can have this installed without requiring engine or fuel system modifications. Bioethanol demand in the E10 segment is expected to rise due to increased use in the vehicle industry. Many countries in Europe and other regions have mandated using E-10 fuel blends in automobiles to reduce global greenhouse gas (GHG) emissions. As a result, demand for E-10 gasoline blends is increasing in various end-use industries, bolstering segment growth.

The sugar-based feedstock segment dominated the market in 2021 as the ethanol derived from sugarcane is a sustainable fuel source with direct emissions up to 90% lower than diesel or gasoline. Since the invention of the automobile, bioethanol from biomass has been regarded as an adequate fuel, especially for cars with spark-ignition engines. Ethanol production is now primarily conducted at sugar mills across the globe. Emerging nations are leading the way in accepting molasses-based ethanol on a global scale. The disinfectant and coalescing properties are driving demand. Adopting low-carbon fuel standards will accelerate the use of sugar-based feedstock for ethanol production.

The transportation end-use industry segment dominated the market in 2021 due to increasing bioethanol adoption as a transportation fuel and biofuel blending mandates imposed by several regulatory bodies. Bioethanol is less expensive and environmentally friendly than other fuels, encouraging people to use it in automobiles. With increased automotive production, demand for bioethanol is expected to rise, resulting in a prospering transportation bioethanol industry during the forecast period.

Which region dominated the Global Bioethanol Market?

In 2021, North America held a dominant position in the global market for bioethanol due to rising acceptance and government subsidies for developing environmentally viable and renewable fuel sources. North America uses a variety of ethanol fuel blends and is one of the world's largest fuel consumers. The U.S. is the world's largest consumer and producer of bioethanol, followed by China, Brazil, Canada, and India. Countries in this region have mandated the use of higher blends in vehicles. The growth in domestic motor gasoline consumption, which is now blended with 10% ethanol by volume, and higher renewable fuel standard targets, have contributed to an increase in regional bio-ethanol production. The enormous amount of maize grown in North America has made the region's bioethanol market attractive and fertile.

What is the competitive environment of the Global Bioethanol Market?

Players in the bioethanol market primarily use key strategies such as technology launches, acquisitions, and R&D activities. Players in the bioethanol market have recently expanded their operations overseas to gain a dominant position. For instance, ADM and BioUrja Group signed a contract in October 2021 to sell the ethanol production facility in Peoria, Illinois. Their strategic review of dry mill ethanol assets included selling their Peoria facility. Similarly, Raizen purchased areas in the ports of Miramar and Vila do Conde for liquid bulk storage in April 2019, which will aid in expanding its distribution network throughout Brazil.

Executive Summary

What are all technical developments being developed in the Global Bioethanol Market?

Market technological advancements have led to the development of second and third-generation bioethanol, which is predicted to remain a viable potential in the global market. Moreover, rapid technological advancements and increased R&D budgets to produce ethanol from algae are expected to drive demand due to its faster rate of production and natural occurrence in water bodies, which is anticipated to lower production costs. For instance, Coca-Cola Company announced the launch of its first beverage bottle made entirely of plastic derived from plants in October 2021. Coca-technology, Cola's, which it co-owns with Changchun Meihe Science & Technology, accelerates bMEG production while allowing for a broader range of renewable materials. bMEG is produced by converting sugarcane or corn to bioethanol and then to bio ethylene glycol. Similarly, Blue Biofuels Inc announced in May 2022 that its fifth generation Cellulose-to-Sugar (CTS) machine is on schedule and that testing and further engineering toward larger volumes have begun. Blue Biofuels has also laid out a plan for the future and hired K.R. Komarek Inc to build the successors of the fifth generation CTS machine through commercialization.

Which are the key investments by the players in the Global Bioethanol Market?

As bioethanol produces fewer volatile emissions, it may eventually replace fossil fuels in the transportation and energy sectors. As a result, the bioethanol market is currently seeing investments from many companies. The increase in investments in bio-based energy production is driving up market demand. Several companies plan to expand their operations by opening new facilities, establishing bio-based energy operations, or looking into new acquisition or joint venture opportunities to meet the rising demand for bioethanol in their geographic presence. For instance, Serbia's Bionex, one of the leading enterprises, plans to invest USD 6.1 billion in building a bioethanol factory in Apatin in March 2021. Bionex has maintained a contract to acquire a land plot in the Apatin Free Zone for 64 million dollars. Also, Shree Renuka Sugars Ltd (SRSL), a subsidiary of Wilmar International Ltd in Singapore, received a five-year Rs 1.75 billion (SGD 31 million) transition finance loan from DBS in May 2022. The funds will support SRSL's sustainable bioethanol business in India.

Some major players in the market are POET LLC, Green Plains, Tereos, Valero Energy Corporation, Archer Daniels Midland, Raizen, Flint Hills Resources, Pacific Ethanol, Sekab Biofuels & Chemicals AB, and The Andersons Inc.

What are the Major Driving Factors for the Global Bioethanol Market?

Government regulatory bodies encouraging production are the primary drivers for the global bioethanol market. Growing market growth is driven by rising government initiatives to produce and use greener fuels like bio-ethanol and rising consumer demand for blending in gasoline. Implementing strict regulations has motivated businesses to concentrate on developing better, cleaner, and more affordable energy. The market's technological developments have led to the creation of second and third-generation bioethanol, which is anticipated to continue to be competitive on the global market.

What are the Major Risks for the Global Bioethanol Market?

The market's growth is hampered by a shift toward bio-butanol and less mileage. The decline in automotive sales and production and the increased use of electric vehicles affect the bioethanol market's growth. A sizable amount of fertile cultivable land must be set aside to grow the crops used to produce ethanol, which is expected to restrain market expansion over the forecast period. In addition, conventional farmers are less likely to switch from growing food to growing fuel crops, which could also result in a global shortage of food crops.

Which is the key End-Use Industry in the Global Bioethanol Market?

The transportation end-use industry segment dominated the global market in 2021 and is expected to continue throughout the projection period. Due to the increased use of bioethanol as a transportation fuel and blending requirements imposed by various regulatory bodies, such as the Renewable Energy Directive (EU RED) and the Renewable Fuel Standard (EPA RFS), transportation is anticipated to be the most profitable investment sector. Moreover, the number of vehicles increases in tandem with disposable income. The Energy Information Administration (EIA) predicts that by 2035, there will be 1.7 million vehicles on the road. The International Organization of Motor Vehicle Manufacturers (OICA) reports that the production of automobiles increased by 10% in the first nine months of 2021, from 52.15 million units in the same period the previous year to 57.26 million vehicles. The demand for bioethanol will increase with rising auto production, leading to a booming transportation bioethanol market throughout the forecast period.

How is the Bioethanol Market performing in regions?

North America dominated the global bioethanol market in 2021 and is expected to continue this dominant position over the forecast period. The region is a major consumer of vehicle fuel and utilizes different ethanol fuel blends. Higher bioethanol blends have been mandated in vehicles in some nations, including the U.S. and Canada. The U.S. is also the world's leading producer of bioethanol. This region is anticipated to be the main regional market for bioethanol owing to the expansion of the transportation sector and growing environmental mandates to restart the industry more practically. Furthermore, technological advancements and the rapidly expanding automotive sector are expected to grow significantly over the forecast period.

Besides, due to increased government support for bioethanol and the accessibility of arable land with greater soil fertility in Columbia and Brazil, Latin America is expected to be the fastest-growing regional market during the forecast period. The high sugarcane production in Brazil boosts the production of these fuels in the region. Brazil was among the first to experiment with blending ethanol into gasoline. Many automobile manufacturers in the country made changes to accommodate the change. The country has raised the tax on imported ethanol, which is expected to enhance the regional market growth.

What is the regulatory landscape for the Global Bioethanol Market?

Government regulatory agencies supporting production are the key factors driving global market growth. Many governments around the world have made bioethanol fuel blends mandatory. Bioethanol also improves fuel efficiency and lowers vehicles' greenhouse gas (GHG) emissions. European Union environmental and government regulations and mandatory biofuel blending obligations in Germany enhance the market growth. For instance, in August 2019, the state of Maharashtra, India, requested permission from the federal government so that sugar factories there could convert their stock of sugar into the market for bioethanol.

What is the Market Size of Bioethanol regarding value?

The global bioethanol market is anticipated to grow at a substantial CAGR of 13.6% in the upcoming years. The global bioethanol industry was estimated to be worth USD 34.1 billion in 2021 and was expected to be worth USD 73.28 million by 2028.

What are the major players planning for the future of the Bioethanol Market?

Increased adoption of eco-friendly products is expected to open up new growth opportunities for market participants. Recent global market developments have caused changes in the value chain. Initially, manufacturers relied on two to three suppliers for raw materials, which poses a risk because contingency plans do not always work. Manufacturers are now considering ways to mitigate risk, such as acquiring stakes in raw material companies or entering forwarding agreements. For instance, Argentina's energy division and corn bioethanol producers partnered in January 2021 to produce biofuels and raise oil prices. The goal of this agreement is to break the industry's semi-stagnation. Likewise, CropEnergies tests new bioethanol fuel for Stuttgart Airport in October 2021. Stuttgart Airport, CropEnergies, and mineral oil company Mabanaft Deutschland are testing a 20 percent renewable ethanol fuel.

Segmentation of Global Bioethanol Market -

Global Bioethanol Market – By Fuel Blend

  • E5
  • E10
  • E15 to E70
  • E75 & E85
  • Others (E85 to E100)

Global Bioethanol Market – By Feedstock

  • Starch-based
  • Sugar-based
  • Cellulose-based

Global Bioethanol Market – By End-Use Industry

  • Transportation
  • Alcoholic Beverages
  • Cosmetics
  • Pharmaceuticals
  • Others (chemical, paint & coatings)

Global Bioethanol Market – By Region

  • North America
    • The U.S.
    • Canada
  • Europe
    • Germany
    • France
    • The U.K.
    • Italy
    • Spain
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • South-east Asia
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East & Africa
    • GCC Countries
    • South Africa
    • Rest of the Middle East and Africa

Frequently asked questions about the global Bioethanol Market

The global bioethanol market also suffered from the COVID-19 pandemic, which resulted in a decline of over 7.1% in revenue generated in 2020.

North America accounted for the highest share in the global bioethanol market regarding value and volume.

Rising environmental concerns that push manufacturers to produce bioethanol, blending requirements from regulatory bodies like the EPA (Environmental Protection Agency), and an abundance of raw material supply are the key factors propelling the global market growth.

The sugar-based segment had a major share in 2021, with more than 52% of the market revenue. Besides, starch-based are projected to witness the fastest growth.

Transportation had a major share in the global market in 2021 and is projected to continue its dominance over the forecast period.

Bioethanol Market Scope

Report Attribute Details
Market Value in 2021 USD 34.1 billion
Market Value in 2028 USD 73.28 million
CAGR 13.6%
Benchmarking Year 2021
Past data 2016 – 2021
Forecast period 2022 – 2028
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Published Date:  Sep 2022
Category:  Energy
Report ID:   60683
Report Format:   PDF
Pages:   120
Rating:    4.6 (30)
Delivery Time: 24 Hours to 48 Hours   
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