Bioethanol Market Forecasts to 2028 – Global Analysis By Type (Cellulose, Cereals & Scratches, Industrial Beets), Generation (Third Generation, Second Generation), Application (Alcoholic Beverages, Automotive and Transportation) and By Geography

Bioethanol Market Forecasts to 2028 – Global Analysis By Type (Cellulose, Cereals & Scratches, Industrial Beets), Generation (Third Generation, Second Generation), Application (Alcoholic Beverages, Automotive and Transportation) and By Geography

According to Stratistics MRC, the Global Bioethanol Market is accounted for $38.41 billion in 2021 and is expected to reach $96.13 billion by 2028 growing at a CAGR of 14.0% during the forecast period. Bioethanol has been identified as the mostly used biofuel worldwide since it significantly contributes to the reduction of crude oil consumption and environmental pollution. It can be produced using various feedstocks such as cellulose, starch and sugarcane through fermentation and chemical process. Bioethanol is an attractive alternative to conventional fuel sources, which can be used in various end use industries such as automotive, chemical, power generation and cosmetics.

Strong incentives, coupled with other industry development initiatives, are giving rise to fledgling ethanol industries in countries such as Germany, Spain, France, Sweden, China, Thailand, Canada, Colombia, India, Australia, and some Central American countries. Overall, global production continues to increase, but production fell worldwide in 2020 due to the COVID-19 pandemic. The United States is the world's largest producer of ethanol, having produced over 13.9 billion gallons in 2020. Together, the United States and Brazil produce 84% of the world's ethanol. The vast majority of U.S. ethanol is produced from corn, while Brazil primarily uses sugarcane.

Market Dynamics:

Driver:

Reducing natural reserves owing to thriving energy consumption

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

Restraint:

High Cost

Due to the high investment price of plastic grain alcohol and problems concerning the use of food crops for fuel production square measure is expected to hamper the market growth throughout the forecast amount. Characterised by more complex processes, advanced bioethanol from lignocellulosic feedstocks have higher estimated costs than conventional bioethanol technologies.

Opportunity:

Increasing government initiatives

Bioethanol's decreased carbon footprint compared to conventional fuels, as well as government support both at the policy level and in the form of tariffs is projected to drive its acceptance as a transportation fuel across diverse areas. Several rules for clean air (clean air act) and GHG (greenhouse gas) reduction, among other things, are projected to play a key role in increasing the industry. The government has pronounced many plans to help fund integrated bio-ethanol projects that use lignocellulosic biomass and other renewable feedstocks. This scheme would give financial support to twelve integrated bioethanol projects employing lignocellulosic biomass and other renewable feedstock. Such government initiatives are set to increase the demand for the market which in turn creates opportunity.

Threat:

Rising Electric Vehicle

As the use of electric vehicles rises, the market is projected to be constrained shortly. E-vehicle sales have been increasing in recent years, and this trend is expected to continue during the projected period. The worldwide electric vehicle market is exploding. As a result, there would be reduced demand for fossil and bioethanol fuels and as the use of electric vehicles expands, the market is projected to be choked soon.

Solid Feedstock segment is expected to be the largest during the forecast period

The solid category accounted for the largest share in the market, and it would have a substantial growth rate during the forecast period, based on feedstock type. This will generally be because 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.

The Automotive and Transportation segment is expected to have the highest CAGR during the forecast period

The Automotive and Transportation segment is expected to have the highest CAGR during the forecast period, as these industries utilize bio-ethanol as a fuel and fuel additive. It is used in conjunction with conventional petrol to fuel petrol engines in automobiles. It is less expensive and more environmentally friendly than petroleum. A small amount of bioethanol is mixed with pure gasoline to create blends, which burn more efficiently and emit no carbon dioxide. As a result, bioethanol fuel blends are required in many countries worldwide. This rising use of bioethanol in the transportation end-use market is thus driving its market towards growth.

Region with highest share:

The North America is projected to hold the highest market share, owing to the large-scale production of and demand for it in the province. Moreover, countries such as US and Canada have mandated the use of higher bioethanol blends in vehicles. Also, government and environmental regulations particularly in the U.S are motivating the market growth in this region. Furthermore, technological advancements and the rapidly growing automotive industry are predicted to contribute significantly over the years toward rising consumption in this province.

Region with highest CAGR:

Europe is projected to have the highest CAGR, due to the environment and government regulations from the European Union comprising Biofuels Directive and mandatory blending obligations of biofuel to fossil fuels in Germany. Rising demand for energy self-sufficiency from European countries including France, Germany, Sweden, Netherlands, Belgium, and Spain will augment the use of this biofuel in this province. Additionally, rising import bills as a result of oil imports are predicted to encourage countries to switch to this cleaner and cheaper fuel alternative in the near future.

Key players in the market:

Some of the key players profiled in the Bioethanol Market include Vivergo Fuels, Valero Energy Corporation, United Petroleum Pty, Royal Dutch Shell PLC, Poet, LLC, Petrobras, Pacific Ethanol, Inc., New Generation Biofuels Holdings, Inc., Honeywell, Hankinson Renewable Energy, Green Plains, Global Green SA, Flint Hills Resources, Dupont, CropEnergies AG, BP PLC, Beckons Industries Ltd., Archer Daniels Midland Company, Absolute Energy, LLC, Abengoa Bioenergy S.A., Archer Daniels Midland Company (ADM), Clariant AG.

Key developments:

In June 2018: Archer Daniels Midland Company (ADM) and DuPont signed an agreement to develop, produce, and market cellulose enzymes for operators of grain-based ethanol plants.

In October 2021: CropEnergies announced that it tests new bioethanol fuel for Stuttgart Airport, CropEnergies, Stuttgart Airport, and Mabanaft Deutschland, a mineral oil firm, are testing a 20 percent renewable ethanol fuel.

In June 2022: Clariant, specialty chemical company, announced that it has produced the first commercial cellulosic ethanol at its sunliquid® production plant in Podari, Romania1. The cellulosic ethanol produced at this plant can be applied as a drop-in solution for fuel blending but also offers further downstream application opportunities for sustainable aviation fuel and bio-based chemicals.

Types Covered:
• Cellulose
• Cereals & Scratches
• Industrial Beets
• Sugarcane

Generations Covered:
• Third Generation
• Second Generation
• First Generation

Fuel Blends Covered:
• E5
• E10
• E15 to E70
• E75 to E85

End Users Covered:
• Alcoholic Beverages
• Automotive and Transportation
• Cosmetics and Personal Care
• Pharmaceuticals
• Power Generation
• Other End Users

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025 and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
Comprehensive profiling of additional market players (up to 3)
SWOT Analysis of key players (up to 3)
• Regional Segmentation
Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances