Bioethanol Market Size was valued at USD 62.90 Billion in 2023. The Bioethanol industry is projected to grow from USD 67.71 Billion in 2024 to USD 113.4 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 6.66% during the forecast period (2024 - 2032). Government initiatives and laws, as well as the growing acceptance of alternative fuel vehicles are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The bioethanol Market CAGR is expanding rapidly as a result of rising demand for renewable fuel sources and efforts to minimize greenhouse gas emissions. Bioethanol is a renewable fuel that is made from biomass such as corn, sugarcane, and wheat. It is a clean-burning fuel that can be used in place of gasoline, lowering the quantity of greenhouse gases released by cars. The rising need for sustainable fuel sources is a primary driver of the bioethanol market. As public awareness about climate change grows, there is increasing pressure on governments and corporations to decrease their carbon footprints. Bioethanol is an appealing choice for many since it is a sustainable fuel source that can be generated domestically, eliminating reliance on foreign oil.
In addition to environmental benefits, bioethanol has economic benefits because it can provide jobs in the agricultural and biofuel industries. As a result, several governments throughout the world are enacting legislation and providing incentives to encourage the production and use of bioethanol.
Government initiatives and laws supporting the use of renewable fuel sources are another driver of the bioethanol market. Many governments all over the globe are creating laws and incentives to encourage the production and use of bioethanol as part of their initiatives to lower greenhouse gas emissions and improve energy security. For instance, the Renewable Fuel Standard (RFS) in the United States mandates that a specific amount of transportation fuel sold in the country be derived from renewable sources, such as bioethanol. Similarly, the Renewable Energy Directive (RED) of the European Union establishes targets for the use of renewable energy in transportation, including biofuels.
These rules and mandates are propelling the bioethanol market forward by providing a stable and predictable market for bioethanol producers and encouraging investment in the biofuel industry. Furthermore, many governments provide tax breaks and subsidies to bioethanol producers, bolstering the industry's expansion.
Another driving force in the bioethanol industry is the growing use of flexible fuel vehicles (FFVs), which can run on gasoline, bioethanol, or a combination of the two. FFVs are becoming increasingly popular, particularly in nations such as Brazil, where they account for a sizable share of the vehicle fleet. In Brazil, for example, FFVs account for more than 80% of new car sales, thanks in part to government incentives and requirements supporting the use of bioethanol. The country has a thriving bioethanol industry, and many gas stations provide both gasoline and bioethanol blends.
The growing use of FFVs is propelling the bioethanol market forward, since it expands the market for bioethanol producers and promotes investment in the biofuel industry. Furthermore, the use of bioethanol in FFVs has the potential to cut greenhouse gas emissions, making it an appealing alternative for environmentally aware consumers.
Overall, the growing popularity of FFVs is a significant driver of the bioethanol market, particularly in developing nations. Demand for bioethanol is predicted to rise as more countries and consumers prioritize sustainability and lowering their carbon footprints.In April 2023, POET LLC (US) said it agreed to a contract giving exclusive rights to Midwest Commodities located in Detroit, Michigan. Midwest Commodities will only be transloading truck-to-container DDGS for the company as what they need in order to effectively serve their global customers.
The Bioethanol Market segmentation, based on type includes Maize, Wheat, Industrial Beet, Sugarcane, and Cereals & Starch. Maize category is predicted to dominate the market, because of its widespread availability and large-scale manufacture. The majority of bioethanol produced in the United States is derived from starch-based crops and is processed in a dry or wet mill. A dry milling process is formed when maize is crushed into flour, fermented to produce ethanol, and combined with co-products such as distillers' grains and carbon dioxide. Wet mills produce maize sweeteners, ethanol, and a range of by-products. Maize is split into starch, protein, and fibre, and then processed into goods. The use of maize mills is predicted to increase internationally, which will help the bioethanol market flourish.
Figure1: Bioethanol Market, by type, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The Bioethanol Market segmentation, based on Application, includes Transportation, Power Generation, Food & Beverages, Industrial, and Medical. Transportation category accounted for the biggest market share in 2022, owing to the increased usage of bioethanol as a transportation fuel and mixing regulations imposed by numerous regulatory bodies, such the Renewable Fuel Standard (EPA RFS) and the Renewable Energy Directive (EU RED). However, due to the increased use of bioethanol in the power generation industry, electricity generation is expected to rise at the fastest rate.
By region, the study provides market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American Bioethanol Market area will dominate this market, owing to increased approvals and government funding for producing eco-friendly and sustainable fuels. This region's countries have forced the use of higher mixes in cars. Because of greater renewable fuel standard requirements and increased domestic motor gasoline consumption, which is now blended with 10% ethanol by volume, bio-ethanol output has surged. North America's massive maize crop has produced an alluring and productive economic climate for the region's bioethanol sector.
Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure2: BIOETHANOL MARKET SHARE BY REGION 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe Bioethanol Market accounts for the second-largest market share because of the abundance of raw materials and rising demand from the vehicle industry. Further, the German Bioethanol Market held the largest market share, and the UK Bioethanol Market was the fastest growing market in the European region
The Asia-Pacific Bioethanol Market Is expected to grow at the fastest CAGR from 2023 to 2032. This is because of rising demand for biofuels in countries such as China, India, and Thailand, as well as government programs and requirements supporting the use of renewable fuel sources in the region. Moreover, China’s Bioethanol Market held the largest market share, and the Indian Bioethanol Market was the fastest growing market in the Asia-Pacific region.
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Bioethanol Market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Bioethanolindustry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Bioethanol industry to benefit clients and increase the market sector. In recent years, the Bioethanol industry has offered some of the most significant advantages to medicine. Major players in the Bioethanol Market, including Fetch Robotics (US), BlueBotics SA (Switzerland), SSI Schafer (Germany), Daifuku C0. Ltd (Japan), Dematic Corp. (US) and others, are attempting to increase market demand by investing in research and development operations.
The Archer-Daniels-Midland Company, or ADM, is an American food processing and commodities trading firm headquartered in Chicago, Illinois. Around the world, the firm manages approximately 270 factories and 420 crop procurement facilities where cereal grains and oilseeds are converted into goods used in the food, beverage, nutraceutical, industrial, and animal feed industries. ADM and BioUrja Group have reached an agreement for ADM to sell its ethanol manufacturing facility in Peoria, Illinois, in October 2021. The sale of their Peoria facility is one of the outcomes of their strategic analysis of dry mill ethanol assets.
Coca-Cola, also known as Coke, is a carbonated soft drink produced by the Coca-Cola Company. In 2013, Coke products were sold in more than 200 nations, and each day, people drank more than 1.8 billion servings of company beverages. On the 2018 Fortune 500 list of the biggest companies in the US by total revenue, Coca-Cola was ranked No. 87. According to Interbrand's 2020 "best brand" study, Coca-Cola was the world's sixth most valuable brand. October 2021, The Coca-Cola Company has unveiled the world's first beverage bottle made completely of plant-based plastic. Coca-Cola's technology, which it co-owns with Changchun Meihe Science & Technology, accelerates the bMEG manufacturing process while allowing for a broader range of renewable ingredients. bMEG is produced by converting sugarcane or corn to bioethanol, which is subsequently transformed to bio ethylene glycol.
January 2020, TATA Projects Limited, an Indian infrastructure company, has received multiple big orders in the oil and gas refinery sector totaling $809.7 million. HRRL (HPCL Rajasthan Refinery Ltd.) placed three orders, while BPCL (Bharat Petroleum Corporation Limited) placed one. In addition, an order has been placed for BPCL's second-generation bioethanol project in Odisha, with a proposed production capacity of 100,000 litres per day.
May 2022, Blue Biofuels Inc. revealed that the fifth generation of their Cellulose-to-Sugar ("CTS") machine is on track, and that testing and further engineering toward bigger volumes has begun. Blue Biofuels has also worked out a plan and hired K.R. Komarek Inc. to manufacture the successors to the fifth-generation CTS machine through commercialization.
July 2019, Greenbelt Resources, a waste-to-bioproducts company, has joined forces with New Age Renewable Energy to provide a long-term solution for converting dairy waste into bioproducts.May 2022: Blue Biofuels Inc. announces their fifth generation Cellulose-to-Sugar (“CTS”) machine is on schedule, with testing now underway along with further engineering towards larger volumes. Additionally, Blue Biofuels has mapped out the path forward, contracting K.R. Komarek Inc. to build the successors of the fifth-generation CTS machine through commercialization.
| Report Attribute/Metric | Details |
| Market Size 2023 | USD 62.90 Billion |
| Market Size 2024 | USD 67.71 Billion |
| Market Size 2032 | USD 113.4 Billion |
| Compound Annual Growth Rate (CAGR) | 6.66% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type, Application, and Region |
| Geographies Covered | North America, Europe, AsiaPacific, and the Rest of the World |
| Countries Covered | The US, Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Fetch Robotics (US), BlueBotics SA (Switzerland), SSI Schafer (Germany), Daifuku C0. Ltd (Japan), Dematic Corp. (US) |
| Key Market Opportunities | Increased passenger vehicle sales |
| Key Market Dynamics | Increasing government initiatives to develop and use cleaner fuels |
Bioethanol Market Highlights:
Frequently Asked Questions (FAQ) :
The Bioethanol Market size was valued at USD 62.90 billion in 2023.
The Bioethanol Market is projected to grow at a CAGR of 6.66% during the forecast period, 2024-2032.
North America had the largest share in the Bioethanol Market.
The key players in the Bioethanol Market are Fetch Robotics (US), BlueBotics SA (Switzerland), SSI Schafer (Germany), Daifuku C0. Ltd (Japan), Dematic Corp. (US).
The Maize category dominated the Bioethanol Market in 2023.
The Transportation had the largest share in the Bioethanol Market.
Research Analyst Level I In her 3 years of experience in the market research field, she has handled critical cross-domain projects. she has an in-depth knowledge of market estimation & analysis, problem-solving, primary as well as secondary research, and team management.she holds an engineering degree and is an mba professional from a well-known university, capable of evaluating the market and competitive conditions. an exceptional strategist with excellent communication skills and a passion for delivering cutting-edge & practical insights for the market. proficient in multi-tasking, and can successfully deal with competing demands, while maintaining complete confidentiality. generated business through active client and project development, networking, and high-quality responses. her knowledge and skills have helped in making solid business decisions, securing funding from investors, and avoiding business failures.
Get in Touch
© 2024 Market Research Future ® (Part of WantStats Reasearch And Media Pvt. Ltd.)
