Bioethanol Market Research Report - Forecast to 2030

Bioethanol Market Research Report: By Raw Material (Maize, Wheat, Industrial Beet, Sugarcane, Cereals & Starch, Others), By Application (Transportation, Power Generation, Food & Beverages, Industrial, Medical, Others) - Forecast till 2030

ID: MRFR/CnM/5710-CR | January 2019 | Region: Global | 185 pages

Bioethanol Market Overview


In 2020, the Bioethanol Market value is registered as USD 58.44 billion and is anticipated to grow at a significant rate of 7.65% CAGR with the bioethanol market size is USD 85.71 billion during the forecast period (2022-2030).


Bioethanol is used as a biofuel produced from various natural sources like maize, sugarcane, and corn. This is used as an alternative to petrol. For producing bioethanol, the manufacturers are highly focussing on agricultural & forest residues and energy crops like miscanthus, switchgrass, and sugarcane bagasse. It can be used as a fuel in isolation and mixtures with other fossil fuels. It is a clear and colorless liquid that is bio-degradable and is said to be a green fuel.


The Energy Information Administration (EIA) report states that it is expected that the number of vehicles reaches by 2035 are 1.7 million. Hence the liquid fuel consumption by the transportation sector is the highest of the total by nearly 73% and this consumption is expected to reach 21.9 million gallons per day which are increased from 19.1 million barrels per day in 2009. 


COVID-19 Analysis:


The COVID-19 pandemic has disturbed the day-to-day life of the global population and also changed the ethanol markets requirement all over the U.S for manufacturing use in several countries like Asia-Pacific countries. There is an increasing demand for sanitizing products in South Korea. Due to the short-term impacts, the fuel ethanol requirements remain feasible and it is very hard to work for councils to increase the market access in specific countries. Due to the epidemic cuts into fuel use and hit the sidelines to improve the corn-based fuel, Numerous ethanol plants in  America have reduced the production. To curb the spread of the virus, the government insists individuals stay in their homes themselves which has slackened the requirement of fuel. The ethanol refining margins in the corn belt are reduced to -11 cents a gallon in March due to the COVID-19 epidemic.


Market Dynamics:


Drivers:


The advanced technologies and rising R & D for the production of ethanol from algae are predicted to propel the market demand due to its faster rate of production and natural occurrence in the sea that reduces production cost. Growing environmental concerns regarding bioethanol production lead to the inclination of manufacturers, blending mandates by regulatory bodies like EPA (Environmental Protection Agency) and abundant raw material availability are driving the market growth. There is no need of changing vehicle engines by blending ethanol with conventional fuel is foster market growth.


Bioethanol is consists of natural components which make it work better than fossil fuels. Moreover, combustion consequences are more eco-friendly compared to fossil fuels due to the bereft of damaging sulfur and nitrogen compounds and growing support for ecological arrangement is accelerating the demand for the market growth. Apart, uplifting restrictions for selling gasoline which contains a high percentage of ethanol is escalating the global market. Growing government initiatives for producing and using greener fuels is boosting the growth of the market.


Restraint:


Shifting the focus to bio-butanol and less mileage provided is limiting the growth of the market. Additionally, the fall in sales and production of the automotive industry is also impacting the bioethanol market growth.


Opportunities:


The development of second and third-generation biofuels is expected to create opportunities to boost the growth of the market.


Challenges:


To produce ethanol, large arable land is required for cultivating the crops which are hindering the market growth. Apart, farmers shifting to fuel crops instead of food crops is causing a shortage of food crops across the globe. This is a major challenging factor of the market.


Study Objectives -



  • To provide detailed information about the bioethanol market structure along with various forecast segments and sub-segments for the next 10 years.

  • To provide the factors that are affecting the growth of the bioethanol market value.

  • To analyze the bioethanol market industry analysis based on porter’s five force analysis, factors-price analysis, supply chain analysis, etc.

  • To provide history and forecast revenue segments and sub-segments of the bioethanol market revenue for the main geographies.

  • To provide the country-level analysis of the current bioethanol market size and future prospective.

  • To provide country-level analysis of the bioethanol market industry growth by region, form, and application.

  • To provide a strategic profile of the prominent key players in the market, analyze their core competencies, statistics, drivers, and draw a global bioethanol market growth landscape.

  • To track and analyze new product developments, strategic alliances, and global bioethanol market research.


Segment Overview:


The global bioethanol market has been divided into segments based on raw material, application, and region.


Based on Raw Material


The global bioethanol market based on raw material is classified into few types as wheat, maize, sugarcane, industrial beets, cereals & scratches, and others. Among them, maize is expected to dominate the largest market share of 42.7% for its worldwide large-scale production and easy obtainability.


Based on Application


The bioethanol application is categorized into few types as transportation, power generation, food & beverages, industrial, medical, and others. Out of these applications, transportation is holding the leading share of 79.1% of the global market followed by food & beverages. This growth is attributed due to the growing scale of commercial and passenger conveyance and the elevated cumulative influence of the atmosphere’s global transportation sector.


Based on Region


Region-wise, the global bioethanol market is divided into five main geographies such as North America, Latin America, Europe, Asia-Pacific, and the Middle East & Africa. Among them, North America is holding the maximum share of 58% in the overall market and is predicted to remain the foremost donor in the review period for its increasing approval and government backing for developing eco-friendly and sustainable fuels.


Regional Analysis -


Globally, the bioethanol market industry based on regions is analyzed into five major regions like North America, Latin America, Europe, Asia-Pacific, and the Middle East & Africa. Due to the growing approval and government backing for the development of eco-friendly and sustainable fuels, North America is in the leading position in the bioethanol market with a 58% share. The extensive maize cultivation brings an encouraging and fertile business environment to this region. Due to the transportation sector’s expansion and rising mandates to restart the industry with more practical from an environmental viewpoint, this region is projected to be the principal regional market for bioethanol. Moreover, the technological innovations and rapidly rising automotive industry are anticipated to grow significantly in the coming seven years.


Latin America is holding the second-largest market share due to the increasing government support for bioethanol and the availability of arable land with high soil fertility in Brazil and Columbia. In Brazil, the high production of sugarcane boosts the production of these fuels in this region. Due to the environmental and government regulations from the European Union and mandatory blending obligations of biofuel to fossil fuels in Germany, Europe is expected to grow in the assessment period. Due to the high population and availability of fertile land in India, China, and Thailand, Asia-Pacific is anticipated to provide the opportunity to increase market growth.


Competitive Landscape


The prominent key players in the bioethanol market outlook are the following:



  • Cropenergies AG (Germany)

  • Cristal Union (France)

  • Archer Daniels Midland Company (U.S.)

  • Petrobras (Brazil), Tereos (France)

  • Alcogroup (Serbia)

  • DowDuPont (U.S.)

  • BlueFire Renewables Inc. (U.S.)

  • Pannonia Bio (Hungary)

  • Valero Marketing and Supply Company (U.S.)

  • BP PLC (U.K.)


Recent Developments



  • In Dec 2020, one of the leading enterprises, Serbia’s Bionex is planning to build a bioethanol factory in Apatin in March 2021 with an investment of USD 6.1 billion. Moreover, Bionex has continued to have a contract for obtaining the land plot for 64 million dollars in the Apatin Free zone.

  • October 2021- The Coca-Cola Company revealed that their first-ever beverage bottle consisted of 100% of plant-based plastic, except for the cap and the label, which have been produced with technologies ready for commercial scale. The latest launched model beverage bottle gets to the market after the company announced plans regarding the development of PlantBottle. The company's new prototype plant-based bottle is constructed from plant-based paraxylene (bPX) that has been transformed to plant-based terephthalic acid utilizing a novel Virent technology (bPTA). The Coca-Cola Company's second breakthrough technology, which it co-owns with Changchun Meihe Science & Technology, speeds the bMEG production process while also allowing for feedstock flexibility, allowing for the use of a wider range of renewable materials. bMEG is typically manufactured by first converting sugarcane or corn into bioethanol, then transformed to bioethylene glycol. MEG can now be produced straight from sugar sources, simplifying the procedure.

  • October 2021- The Federal Association of German Bioethanol Industry Association has unveiled the latest kind of the refuele10.com website. The website that has been online since 2018 has been totally reviewed and updated, and users can expect: an updated database on E10 engine compatibility for all the passenger cars and extra information related to the climate compatibility of E10.

  • In Dec 2020, one of the leading enterprises, Serbia’s Bionex is planning to build a bioethanol factory in Apatin in March 2021 with an investment of USD 6.1 billion. Moreover, Bionex has continued to have a contract for obtaining the land plot for 64 million dollars in the Apatin Free zone.

  • In January 2021, the most popular brand, Argentina’s energy subdivision, and corn bioethanol producers are completing an arrangement for manufacturing biofuels and raise the price given by oil companies. This arrangement seeks back the industry’s semi paralysis from the mid of the previous years.


Report Overview:


Globally, the bioethanol market research includes the Market Overview, COVID-19 analysis, Market Dynamics, Study Objectives, Segment Overview, Regional Analysis, Competitive Landscape, Recent developments, Segmentation Table, and FAQs. The market scenario includes the bioethanol market drivers, restraints, challenges, and opportunities. The bioethanol market forecast segments are raw material, application, and region.


Segmentation Table


The bioethanol market trends have been segmented globally based on the raw material, application, and region.


By Raw Material


Wheat, maize, sugarcane, industrial beets, cereals & scratches, and others.


By Application


Transportation, power generation, food & beverages, industrial, medical, and others.


By Region


Asia-Pacific, Europe, North America, and the rest of the world are the four main geographies included in the bioethanol market.



Report Scope:
Report Attribute/Metric Details
  Market Size   2028: USD 85.71 billion
  CAGR   7.65% (2022-2030)
  Base Year   2021
  Forecast Period   2022-2030
  Historical Data   2019 & 2020
  Forecast Units   Value (USD Million)
  Report Coverage   Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered   Raw Material, Application
  Geographies Covered   North America, Europe, Asia-Pacific, and Rest of the World (RoW)
  Key Vendors   Cropenergies AG (Germany), Cristal Union (France), Archer Daniels Midland Company (U.S.), Petrobras (Brazil), Tereos (France), Alcogroup (Serbia), DowDuPont (U.S.), BlueFire Renewables Inc. (U.S.), Pannonia Bio (Hungary), Valero Marketing and Supply Company (U.S.), BP PLC (U.K.)
  Key Market Opportunities   Development Of Second And Third Generation Bioethanol
  Key Market Drivers

  • Rising Environmental Concerns And The Need To Reduce GHG Emissions
  • Blending Mandates by Regulatory Bodies


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    Frequently Asked Questions (FAQ) :


    The global bioethanol market would record a CAGR of 7.65% during the forecast period encompassing 2021 to 2028.

    Bioethanol Market is projected to be worth USD 85.71 billion by 2028

    Maize is expected to top the raw material segment of the bioethanol market.

    Transportation has the scope to dominate the application-based segmentation of the bioethanol market.

    North America has the chance to emerge as the biggest contributor to the growth of the bioethanol market by 2027.

    Global Bioethanol Market: Competitive Landscape


    Some of the major players operating in the global bioethanol market are Archer Daniels Midland Company (US), DowDuPont (US), BP PLC (UK), Cropenergies AG (Germany), Petrobras (Brazil), Pannonia Bio (Hungary), Cristal Union (France), Alcogroup (Belgrade), Tereos (France), Valero Marketing and Supply Company (US), and BlueFire Renewables Inc (US).


    Archer Daniels Midland Company (US), DowDuPont (US), BP PLC (UK), Petrobras (Brazil), and Tereos (France) collectively holds the largest market share of the global bioethanol market. There is intense competition among these players to capture the largest market share in the global market. These players are implementing various strategies such as capacity expansions, supply/distribution agreements, mergers & acquisitions, investments, product launches, and joint ventures to maintain their market dominance and increase global presence. Among them, expansions, mergers, agreements, and acquisition, were the most widely used growth strategies in 2017.


    Archer Daniels Midland Company (ADM) is the leading producer and innovator of bioethanol products. The company operates through five segments– food ingredient solutions, supplement, animal nutrition, fuel, industrial products, logistics solutions, and financial products. In July 2018, ADM acquired Chamtor, a French producer of wheat-based sweeteners and starches. Additionally, in the same year, it established a joint venture with Cargill and Aston Foods, to serve the customers in Egypt and Russia respectively. Furthermore, in 2018, ADM expanded its manufacturing capacity by investing USD 96 million to remain competitive in the market. These acquisitions, joint ventures, and expansion were carried out to strengthen its position in global market and meet the increasing demand for bioethanol products.


    DowDuPont, is involved in the development of agricultural products, specialty materials, and chemicals. It operates through following segments: agriculture, performance materials and coatings, industrial intermediates and infrastructure, packaging and specialty plastics, electronics and imaging, nutrition and biosciences, transportation and advanced polymers, and safety and construction. In June 2018, the company merged with Archer Daniels Midland Company (ADM) to develop, produce, and market cellulose enzymes for the operation of the grain-based ethanol plant. This agreement was done to cater the growing demand for bioethanol products and increase their market share in the global market.


    BP PLC is one of the largest oil & gas corporations. The company operates through three segments, namely, upstream, downstream, and rosneft. In November 2017, BP PLC formed a joint venture with Copersucar to own and operate a major ethanol storage terminal in Brazil, and flexibly connect with the ethanol production with the country’s main fuels markets.


    Petrobras is among the leading bioethanol producers across the globe. It’s operating business segments includes, exploration and production; refining, transportation & marketing; gas & power; biofuels; distribution. There have been no recent developments by the company in the bioethanol market.


    Tereos is a holding company, is among the prominent players in sugar, starch, and alcohol producing inustries which operates through four business segments—starch & sweeteners, sugar international, sugar Europe, and others. In December 2016, signed an agreement to purchase 45.97% stake in Guarani, held by Petrobras, through its subsidiary Petrobras Biocombustível, for USD 202 million. This agreement is expected to strengthen its position in the market and increase its share in the global bioethanol market.