India Bioethanol Market Overview, 2029

India Bioethanol Market Overview, 2029

The bioethanol market in India has a rich history and holds significant potential for growth, given the country's vast agricultural resources and growing demand for cleaner and more sustainable energy sources. The bioethanol market in India has a notable history and is one that has huge potential to grow due to the country's vast agricultural resource base and increasing demand for greener and cleaner power. This policy can be traced back to the early 2000s with the first government policies for promoting biofuels in the transportation sector. The Indian government has been supporting the bioethanol market to reduce its dependency on imported fossil fuels, enhance energy security, and provide a market for surplus agricultural produce. In 2003, the Government of India launched the National Biofuel Policy, which was designed to promote the production and use of biofuels, including bioethanol, in the transportation sector. The policy targets set a target of 5% ethanol blending with gasoline by 2012 and 20% by 2017. However, the Indian bioethanol market faced challenges in meeting these targets due to feedstock constraints and inadequate production capacity. The initial focus was on molasses, a byproduct of sugar production, as the primary feedstock for bioethanol production, and this limited the growth potential of the market. To address such challenges, the government undertook to take several measures for allowing the use of other feedstocks, such as sugarcane juice, corn, and cellulosic biomass, for bioethanol production. In 2018, the Government of India revised the National Biofuel Policy, with a new target to achieve 10% ethanol blending in gasoline by the year 2022 and 20% by the year 2030. The revised policy also highlighted the need to promote advanced biofuels, such as second-generation bioethanol, produced from non-food feedstocks. The Indian bioethanol market has surged in the past years because of government support, increasing ethanol blending targets, and expanding options for feedstocks. This market is therefore likely to continue growing in the face of the government's continued commitment to market bioethanol as the cleaner and more sustainable alternative to fossil fuels within the transportation sector. R&D in India is ongoing, focusing on technology improvements for bioethanol production, reduction in cost, and widening the basket of feedstocks that can be utilized for bioethanol production.

According to the research report ""India Bio-Ethanol Market Overview, 2029,"" published by Bonafide Research, the India Bio-Ethanol market is anticipated to grow at more than 7.4% CAGR from 2024 to 2029. The major aspects for this growth story can be found in India's ever-increasing demand for clean and sustainable energy sources, continued government support for biofuel development, and recent technological innovations in production processes. One of the key drivers of the India bio-ethanol market is the increasing concern about the rise in emission of greenhouse gases and the deteriorating air quality of the country. Bio-ethanol, being a cleaner and sustainable alternative to fossil fuels, helps in addressing issues associated with the environment. The transportation sector is one of the major contributors to greenhouse gas emissions in India, while bio-ethanol use as fuel can help mitigate such emissions significantly. Another significant driver for the bio-ethanol market is the India government's support for biofuels. The government has adopted several policies and programs, including Ethanol Blended Petrol (EBP) and Pradhan Mantri Ji-Van Yojana (PMJVY), which work toward the increase of biofuels' share in the transportation sector as well as in forming a sustainable bioenergy economy. The current trends in the India bio-ethanol market are improvements in production technologies and the development of new feedstocks. Research and development in this industry are targeted toward improving the efficiency and sustainability of bio-ethanol production, while increasing the range of feedstocks for bio-ethanol production. This includes exploration of non-food feedstocks such as agricultural residues and dedicated energy crops that can help minimize the food versus fuel competition. In the recent past, the Indian bio-ethanol market has gained several milestones. For instance, in 2020, the country outstripped the 5% target for ethanol blending in gasoline to 8.5%. This is mainly due to the efforts put by the government in promoting bio-ethanol production and the increased availability of feedstock.

The India bio-ethanol market can be segmented by feedstock into starch-based, sugar-based, cellulose-based, and others. Starch-based bio-ethanol is derived from feedstocks that are rich in starch, such as corn, wheat, and potatoes. In India, however, starch-based bio-ethanol production is not as prevalent as sugar-based or cellulose-based bio-ethanol, primarily due to the limited availability of starch-rich feedstocks and the country's focus on food security. Sugar-based bio-ethanol is produced from feedstocks that have sugar as a primary or significant ingredient, such as sugarcane, sugar beet, and sweet sorghum. In India, sugarcane is the primary feedstock for bio-ethanol production, owing to the country's position as one of the world's largest sugarcane producers. The Indian government's focus on utilizing surplus sugarcane for bio-ethanol production has driven the growth of the sugar-based bio-ethanol segment. The Ethanol Blended Petrol (EBP) program, which aims to increase the share of biofuels in the transportation sector, has further boosted the demand for sugar-based bio-ethanol. Cellulose-based bio-ethanol is derived from feedstocks that are rich in cellulose, such as agricultural waste, wood chips, and dedicated energy crops. In India, the use of cellulosic biomass for bio-ethanol production is gaining traction, as it offers several advantages over conventional feedstocks. Cellulosic biomass is abundant, non-food based, and can help minimize the competition between food and fuel production. The Indian government's Pradhan Mantri Ji-Van Yojana (PMJVY) initiative aims to promote the production of second-generation (2G) ethanol from cellulosic biomass, further driving the growth of the cellulose-based bio-ethanol segment. Other feedstocks for bio-ethanol production include crude oil and chemical reactions. However, these feedstocks are less common and typically not as sustainable or environmentally friendly as starch, sugar, or cellulose-based feedstocks. The Indian government's support for biofuels and focus on reducing greenhouse gas emissions have been significant drivers for the growth of the bio-ethanol market in the country. The increasing demand for cleaner and more sustainable energy sources, coupled with advancements in production technologies, has further contributed to the market's growth. The India bio-ethanol market is primarily driven by sugar-based and cellulose-based feedstocks, with the government's initiatives and policies playing a crucial role in shaping the market dynamics.

The Indian bio-ethanol market is categorized into various end-use industries, including automotive and transportation, alcoholic beverages, cosmetics, pharmaceuticals, and others like food and beverages, fertilizers, and pesticides. The automotive and transportation sector is a significant consumer of bio-ethanol in India, primarily using it as a biofuel blended with gasoline to create an eco-friendly fuel alternative. The Indian government's push for biofuels and energy security has driven the adoption of bio-ethanol in this sector. The Ethanol Blended Petrol (EBP) program, which aims to increase the share of biofuels in the transportation sector, has further propelled the demand for bio-ethanol. The alcoholic beverages industry is another significant end-user of bio-ethanol in India. Ethanol, produced through the fermentation of sugars by yeast, is a key ingredient in various alcoholic drinks. The Indian alcoholic beverages industry significantly impacts the bio-ethanol market, as surplus molasses from sugar production is used for ethanol production. However, the government's focus on diverting molasses for fuel ethanol production may affect the availability of ethanol for the alcoholic beverages industry. Cosmetics is another end-use industry for bio-ethanol in India, utilizing it as a solvent, preservative, and denaturant in various products like perfumes, lotions, and makeup. The rising demand for cosmetics, driven by population growth and increased disposable incomes, is expected to positively impact the bio-ethanol market. Moreover, the cosmetics industry's constant search for sustainable and eco-friendly ingredients may further boost the demand for bio-ethanol as an alternative to petroleum-based products. The pharmaceutical industry in India also employs bio-ethanol for various applications, such as a solvent in drug production and as an ingredient in hand sanitizers. The expanding pharmaceutical sector, fueled by the government's healthcare focus and increased healthcare expenditure, is expected to boost the demand for bio-ethanol. The ongoing COVID-19 pandemic has emphasized the importance of hand hygiene and sanitization, potentially leading to increased demand for ethanol-based hand sanitizers in the short term.

The largest end-use industry for bio-ethanol in India is the automotive and transportation sector. Several important factors have contributed to the dominance of this sector: the support shown by the Indian government toward the development of biofuels, the need for energy security, and a growing demand for cleaner and more sustainable sources of energy. Further, the EBP program—being implemented for augmenting the share of biofuels in the transportation sector—has enhanced the demand for bio-ethanol. Prospects for the end-use segments of the India bio-ethanol market in the future are promising. The automotive and transportation sectors have good prospects and are likely to continue their dominant market share, primarily due to governmental efforts and increasing attention to reduce greenhouse gas emissions. In this connection, rising demand for electric vehicles may also challenge the market for bio-ethanol as an automotive fuel, although it represents a good complementary fuel source for electric vehicles, either in the form of hybrid vehicles or as a source of feedstock for producing green hydrogen to fuel fuel cell electric vehicles.

Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Bioethanol Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Feedstock
• Starch Based
• Sugar Based
• Cellulose Based
• Others

By End-Use Industry
• Automotive and Transportation
• Alcoholic Beverages
• Cosmetics
• Pharmaceuticals
• Other

By Blent
• E5
• E10
• E15 TO E70
• E75 TO E85
• Others

The approach of the report:
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the bioethanol industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.