H1 2023: The key players in the global Ethanol market in H1 2023 were Ace Ethanol, Absolute Energy LLC, Aemetis Inc., and Atvos. In May 2023, VERBIO North America Holdings Corporation, a subset of VERBIO Vereinigte BioEnergie AG, completed the acquisition of South Bend Ethanol, LLC for USD 230 million. The purchase deal with Mercuria Investments US, Inc. was signed. The plant has a production capacity of 250 thousand tonnes of ethanol per annum. VERBIO plans to adopt the same technology as its German plants and transform the facility into another biorefinery with combined production of bioethanol and biomethane. In May 2023, Hindustan Petroleum Corporation Limited (HPCL) announced about a greenfield expansion of Ethanol worth USD 60 million (INR 500 crores). The plant will be located on a 30-acre land at Jeetpur Behri in Una district, Himachal Pradesh, India. Regionally, North America was the leading consumer of Ethanol in H1 2023. Due to a balanced production rate, an adequate stockpile, and end-use manufacturing facilities, the overall market dynamics of ethanol in the North American market remained stable in the first three months of 2023. However, April 2023 onwards, ethanol prices began to escalate in the US. Due to rising downstream demand from the paint and fuel industries, ethanol prices have increased dramatically. Natural gas prices increased which led to an increase in the cost of production. Additionally, a rise in the price of corn used as a feedstock in the US market resulted in a rise in the cost of ethanol. Large orders were also purchased from the biofuel sector, and plants were running on regular operating rates in US.
The global Ethanol market has reached around 102 million tonnes in 2022 and is expected to grow at a CAGR of 4.80% during the forecast period until 2032. Bharat Petroleum Corporation Limited (BPCL), one of the leading refineries of India, has announced with other oil marketing corporations, to build ethanol plants with an annual capacity of about 757 crore litres in ethanol deficiency states.
Ethanol, also known as ethyl alcohol, is alcohol in common words. It has the chemical formula of C2H5OH. On an industrial level, Ethanol is produced by fermentation of molasses. This transparent liquid, Ethanol has a distinct flavor with a nice aroma. It is highly flammable in nature. Ethanol combines easily with water and a variety of organic liquids and is used to dissolve other chemical compounds. Ethanol is used as a solvent for the production of a wide range of chemicals including ethyl esters, ethyl halides, acetic acid, diethyl ether, ethyl amines. Ethanol is most commonly used solvent in chemical industries. It is employed in production of a wide range of products such as drugs, lacquer, polishes, paints, plastics, plasticizers, cosmetics, alcoholic beverages, and more. Owning up to its antibacterial properties, Ethanol is used vastly in antiseptics, sanitizers, and anti-fungal solutions.
The growth of Ethanol market is expected to increase due to its application in multiple industries on a global level. The demand from Fuel and additive Industry is dominating the Ethanol market due to its flammability properties and clean burning as a fuel. The demand of Ethanol as a solvent for the production of a wide range of chemicals is anticipated to swell the demand of Ethanol in the forecast period. In the upcoming years, the demand for ethanol will further increase even more due to rising health awareness among the population and growing demand for disinfectants. Ethanol consumption is expected to reach around 162 million tonnes by 2035.
The dominating region that demands the most significant volume is North America. This region consumed roughly 55% of the overall demand from the globe. Owing to the increment in the industrial activities and rising gas consumption coupled with need of industrial solvents, the demand of Ethanol in North America is anticipated to rise in the forecast period. Europe is the second largest consumer of Ethanol in the present times. In terms of product consumption, Brazil dominates the South American market. It was among the first nations to experiment with ethanol's combination with gasoline. Currently, North America the largest producer of Ethanol with USA and Canada as the leading nations.
The Ethanol market is segmented into sectors based on the end usage such as Fuel and its additives, Food & Beverages, Chemicals, Cosmetics & Personal Care Products, and Others. However, Fuel and Fuel Additive industry is the biggest end-user market of Ethanol, holding a share of approximately 42% of the market share in 2022. Since ethanol has a greater octane rating than gasoline, it offers superior blending qualities. Adding ethanol to gasoline results in enhancement of thermal efficiency, betterment of fuel economy, and aids in starting vehicle in low temperatures. There is a heavy usage of Ethanol in Chemical industry due to its excellent solvability properties.
Significant companies for Global Ethanol are POET Biorefining, Archer Daniels Midland, Valero Energy, Green Plains LLC, Sao Martinho, SDIC Bio Co., Ltd., Flint Hills Resources LP, Atvos, COFCO Biochemical, The Andersons, Inc., Marquis Energy LLC, and Others.
Years considered for this report:
Historical Period: 2015- 2022
Base Year: 2022
Estimated Year: 2023
Forecast Period: 2024-2032
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The objective of the Study:
•To assess the demand-supply scenario of Ethanol, which covers the production, demand, and supply of Ethanol around the globe.
•To analyze and forecast the market size of Ethanol.
•To classify and forecast the Global Ethanol market based on end-use and regional distribution.
•To examine global competitive developments such as new capacity expansions, mergers & acquisitions, etc., of the Ethanol market.
To extract data for the Global Ethanol market, primary research surveys were conducted with Ethanol manufacturers, suppliers, distributors, wholesalers, and Traders. While interviewing, the respondents were also inquired about their competitors. Through this technique, ChemAnalyst was able to include manufacturers that could not be identified due to the limitations of secondary research. Moreover, ChemAnalyst analyzed various segments and projected a positive outlook for the Global Ethanol market over the coming years.
ChemAnalyst calculated Ethanol demand around the globe by analyzing the historical data and demand forecast, which was carried out considering the production of raw material to produce Ethanol. ChemAnalyst sourced these values from industry experts and company representatives and externally validated them by analyzing the historical sales data of respective manufacturers to arrive at the overall market size. Various secondary sources, such as company websites, association reports, annual reports, etc., were also studied by ChemAnalyst.
Key Target Audience:
• Ethanol manufacturers and other stakeholders
• Organizations, forums, and alliances related to Ethanol distribution
• Government bodies such as regulating authorities and policy makers
• Market research organizations and consulting companies
The study is useful in providing answers to several critical questions that are important for industry stakeholders such as Ethanol manufacturers, customers, and policy makers. The study would also help them to target the growing segments over the coming years, thereby aiding the stakeholders in taking investment decisions and facilitating their expansion.
Report Scope:
In this report, Global Ethanol market has been segmented into following categories, in addition to the industry trends which have also been detailed below:
Attribute
Details
Market size Volume in 2022
102 million tonnes
Market size Volume by 2032
163 million tonnes
Growth Rate
CAGR of 4.80% from 2023 to 2032
Base year for estimation
2023
Historic Data
2015 – 2022
Forecast period
2024 – 2032
Quantitative units
Demand in million tonnes and CAGR from 2023 to 2032
Report coverage
Industry Market Size, Capacity by Company, Capacity by Location, Operating Efficiency, Production by Company, Demand by End-Use, Demand by Region, Demand by Sales Channel, Demand-Supply Gap, Company Share, Manufacturing Process, Policy and Regulatory Landscape.
Segments covered
By End-Use: (Fuel and its additives, Food & Beverages, Chemicals, Cosmetics & Personal Care Products, and Others)
By Sales Channel: (Direct Sale and Indirect Sale)
Regional scope
North America, Europe, Asia Pacific, Middle East and Africa, and South America.
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Market Data & Insights
Table of Content
1. Industry Market Size
It is an essential metric for market analysis, as it provides insights into the overall size and growth potential of Ethanol market in terms of value and volume.
2. Capacity By Company
On our online platform, you can stay up to date with essential manufacturers and their current and future operation capacity on a real-time basis for Ethanol.
3. Capacity By Location
To better understand the regional supply of Ethanol by analyzing its manufacturers' location-based capacity.
4. Plant Operating Efficiency
To determine what percentage manufacturers are operating their plants or how much capacity is being currently used.
5. Production By Company [Quarterly Update]
Study the historical annual production of Ethanol by the leading players and forecast how it will grow in the coming years.
6. Demand by End- Use [Quarterly Update]
Discover which end-user industry (Fuel and its additives, Food & Beverages, Chemicals, Cosmetics & Personal Care Products, and Others) are creating a market and the forecast for the growth of the Ethanol market.
7. Demand by Region
Analyzing the change in demand of Ethanol in different regions, i.e., North America, Europe, Asia Pacific, Middle East and Africa, and South America, which can direct you in mapping the regional demand.
8. Demand by Sales Channel (Direct and Indirect)
Multiple channels are used to sell Ethanol. Our sales channel will help in analyzing whether distributors and dealers or direct sales make up most of the industry's sales.
9. Demand-Supply Gap
Determine the supply-demand gap to gain information about the trade surplus or deficiency of Ethanol.
10. Company Share
Figure out what proportion of the market share of Ethanol is held currently by leading players across the globe.
11. Manufacturing Process
Discover insights into the intricate manufacturing process of Ethanol.
12. Policy and Regulatory Landscape
Gain a comprehensive understanding of the policy and regulatory landscape within the Ethanol market.
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It also highlights the immediate impact on supply due to planned and unplanned outages as well as upcoming start-up
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of force majeure, affects the plant's operating rate for the given duration. Disruption tracker gives a clear insight
into the worldwide outages affecting the commodity of interest. With every shutdown, it also reflects the impact on
supply of the product in the market at a Global level.
What is the expected global market size of Ethanol in terms of volume for 2032?
Ans:
The global market size of Ethanol is expected to reach approximately 163 million tonnes by 2032, with an expected CAGR of 4.80%.
Q2.
What are the major end-use industries of Ethanol?
Ans:
Ethanol is used in a wide range of end use industries including Fuel and its additives, Food & Beverages, Chemicals, Cosmetics & Personal Care Products, and Others.
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