Bioethanol Market Research Report - Forecast to 2027

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 2027

ID: MRFR/CnM/5710-CR | January 2019 | Region: Global | 173 pages

Please note that the assessment period of the report has been updated from 2018-2023 to 2020-2027. Cordially fill Sample form for the updated data.

Market Overview


Bioethanol Market is assumed to rise to a valuation of USD 44,396.5 Million by 2023 to support a healthy CAGR of 4.61% in the forecast period as per Market Research Future. The worldwide bioethanol market has developed by surges over the last few decades due to the intensifying understanding of the world's scarcity of fossil fuels and the necessity to formulate biobased alternatives that can provide a more environmentally feasible option and decrease the world's requirement for fossil fuels. Bioethanol is mostly produced from various crops such as wheat, sugarcane, maize, and other starchy plants. It can be exploited as a fuel in isolation and mixtures with other fossil fuels.


COVID-19 Analysis


The COVID-19 epidemic has altered ethanol markets around the requirement for U.S. ethanol for manufacturing use in several APAC countries such as South Korea. The con[untry is observing an increased demand for sanitizing products throughout the region. Despite these short-term impacts, fuel ethanol requirements remain feasible for development in the future, and councils are hard at work to increase market access in specific countries in the region. Numerous ethanol plants in America have reduced production or wasted entirely as the coronavirus epidemic cuts into fuel use and hit sidelines to improve the corn-based fuel. The coronavirus coverage has disturbed the daily life of the global population. As governments insist individuals stay indoors to control the outbreak of COVID-19, the fuel requirement has slackened. Margins to manufacture ethanol, which the United States requires to be mixed into the country's fuel group, have fallen, encouraging apprehension about plant closures and job indecision. The ethanol refining margins in the Corn Belt reduced to as low as -11 cents a gallon in initial March.


Market Dynamics


Drivers


Rising Environmental Concerns And The Need To Reduce GHG Emissions


The development of biobased alternatives can help create a more ecologically viable choice and decrease fossil fuel requirements. The natural components of bioethanol make it more workable than fossil fuels, whose international stockpiles are anticipated to be exhausted sternly over the subsequent few decades. Simultaneously, the combustion consequences are more environment-friendly than fossil fuels, as they are bereft of damaging sulfur and nitrogen compounds. The rising support for ecological arrangements worldwide is liable to be an essential driver for the forecast period's global bioethanol market.


Blending Mandates by Regulatory Bodies


The mandates created by regulatory bodies are estimated to exert a strong pull on bioethanol production in the forecast period's duration.


Opportunities


Development Of Second And Third Generation Bioethanol


Technological expansion in the bioethanol industry has directed to developing second and third-generation bioethanol, which is anticipated to persist as a promising opportunity in the global market over the forecast period. The third-generation bioethanol encompasses bioethanol production stations based on algae, which signify a momentous landmark for the bioethanol industry due to the variety of potential fuels resulting from them and the higher manufacture volume of algal bioethanol.


Challenges


Foods vs. Fuel Debate


The use of bioproducts for making fuels is debated instead for other applications related to food are projected to drive the bioethanol market share in the forecast period.


Segment Overview


By Raw Material


Maize is anticipated to control the global bioethanol market over the forecast period due to its large-scale production worldwide and the resulting ease of its obtainability. Maize reported for 42.7% of the total bioethanol market in 2017. It can grow from a value of USD 14,535.5 million in 2017 to USD 19,795.1 million by 2023.


By Application


Transportation reported a leading share of 79.1% in the global market in 2017, shadowed by food & beverages. It is likely to continue the most leading application of the bioethanol market over the forecast period due to the rising scale of commercial and passenger conveyance and the elevated cumulative influence of the atmosphere's global transportation sector.


Regional Analysis


North American Region To Benefit From Widespread Availability Of Maize


North American region held a 58% segment in the worldwide bioethanol market in 2017. It is expected to remain the foremost donor in the forecast period due to rising approval and government backing for developing environmentally viable and sustainable fuels. The extensive maize cultivation in North America has also provided the bioethanol market in the region with an encouraging and fertile business environment. The regional market was valued at USD 19,743 million in 2017 and is anticipated to increase to a revenue assessment of USD 25,987.6 million by 2023. The region is projected to be the principal regional market for bioethanol owing to the transportation sector's expansion and increasing mandates to make the industry more practical from an environmental viewpoint.


Latin American Region To Show Promising Growth


Latin America is anticipated to maintain the second location in the global bioethanol market behind North America due to the rising government support for bioethanol. Brazil is the next principal manufacturer of ethanol fuel worldwide, reporting for close to a quarter of the global numbers. Bioethanol manufacture in Latin America is anticipated to persist in its growth regularly over the forecast period due to the favorable environmental circumstances and supportive government regulations.


Competitive Landscape


The dominant players in the global bioethanol market are



  • 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


Jan 2021 Argentina's energy subdivision and corn bioethanol producers have completed an arrangement on raising the price given by oil companies to manufacture biofuels. The contract seeks to back the industry's semi paralysis since the mid of last year. Businesses in Córdoba and San Luis are presently working at 30% of operating volume. The corn-based bioethanol sector was the only one pending after the government acknowledged a price upsurge of 90.7% and 55.9% for biodiesel made from soybeans and bioethanol from sugarcane, correspondingly.


Dec 2020 Serbia's Bionex intends to commence building a USD 6.1 million bioethanol factory in Apatin in March 2021. Bionex has retained a contract to obtain a land plot in the Apatin Free Zone for 64 million dinars.


Report Overview


By Raw Material



  • Wheat

  • Maize

  • Sugarcane

  • Industrial Beets

  • Cereals and Starches

  • Others


By Application



  • Transportation

  • Power Generation

  • Food and Beverages

  • Industrial

  • Medical

  • Others



Frequently Asked Questions (FAQ) :


The global bioethanol market would record a CAGR of 4.61% during the forecast period encompassing 2018 to 2023.

The bioethanol market has a chance to grow up to USD 44,396.5 million by 2023.

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.

Bioethanol Market - Summary


Market Overview


The global bioethanol market size is expected to rise to a valuation of USD 44,396.5 million by 2023 at a strong CAGR of 4.61% over the forecast period (2018-2023).


The market has been driven mainly by the growing recognition of the need to reduce greenhouse gas emissions due to their adverse environmental impact. Conventional fuels such as petrol and diesel emit significant amounts of greenhouse gases, due to which bioethanol has become an increasingly popular alternative to be used in isolation as well as in combination with the traditional fuels. Growing government support to the use of bioethanol is likely to be a major driver for the global bioethanol market over the forecast period. An increasing number of governments are investing in the production of bioethanol as well as setting up the appropriate infrastructure required for its large-scale adoption, which is likely to continue over the forecast period and drive the global bioethanol market at a sturdy growth rate.


Technological development in the bioethanol industry has led to the 1development of second- and third-generation bioethanol, which is likely to remain a highly promising avenue in the global bioethanol market over the forecast period. Third generation bioethanol comprises bioethanol production channels based on algae, which represent a significant milestone for the bioethanol industry due to the diversity of potential fuels that can be derived from them as well as the higher production volume of algal bioethanol. This is likely to remain a high-potential opportunity for players in the global bioethanol market over the forecast period, as developing production processes that yield the highest amount of bioethanol most efficiently is likely to be a key competitive strategy for players operating in the bioethanol market.


Segmentation


The global bioethanol market is segmented on the basis of raw material, application, and region.


By raw material, the global bioethanol market is segmented into maize, wheat, sugarcane, industrial beet, cereals and starch, and others. Maize is likely to dominate the global bioethanol market over the forecast period due to its large-scale production all over the world and the consequent ease of its availability.


By application, the global bioethanol market is segmented into transportation, food and beverages, industrial, power generation, medical, and others. Transportation is likely to remain by far the most dominant application of the bioethanol market over the forecast period due to the growing scale of commercial and passenger transportation and the high cumulative impact of the overall transportation sector on the environment.


Regional Analysis


The global bioethanol market is segmented into North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa.


North America is likely to remain the leading contributor to the global bioethanol market over the forecast period due to the growing popular and government support to the development of environmentally viable and sustainable fuels. The widespread cultivation of maize in North America has also provided the bioethanol market in the region with a highly promising and fertile business environment. The North America region is expected to be the major regional market for bioethanol due to the growth of the transportation sector and increasing mandates to make the sector more viable from an environmental perspective.


Latin America is likely to retain the second position in the global bioethanol market behind North America due to the growing government support for the use and production of bioethanol. Brazil is the second largest producer of ethanol fuel in the world, accounting for close to a quarter of the global figures for the same. Bioethanol production in Latin America is likely to continue to grow at a steady rate over the forecast period due to the conducive environmental conditions and supportive government regulations.


Asia Pacific and Europe hold relatively minor shares in the global bioethanol market, but support for the use of bioethanol, especially in transportation applications, is growing in the two regions and could result in steady growth of the bioethanol market over the forecast period.


Competitive Landscape


Dominant players in the global bioethanol market include Pannonia Bio (Hungary), Cristal Union (France), DowDuPont (U.S.), Tereos (France), Cropenergies AG (Germany), BP PLC (U.K.), BlueFire Renewables Inc. (U.S.), Petrobras (Brazil), Archer Daniels Midland Company (U.S.), Valero Marketing and Supply Company (U.S.), and Alcogroup (Serbia).

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.