Fuel-Ethanol Market: Information by Source (Synthetic and Natural) Raw Material (Maize, Wheat, Industrial Beets, Sugarcane, Cereals & Starch, and Others) Application (Passenger Car, Light Commercial Vehicle, and Heavy Commercial Vehicle) and Region (North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa)—Forecast till 2030

Fuel-Ethanol Market Overview

The fuel-ethanol market value in 2018 was around USD 81.5 billion and could most likely attain a growth rate of 6.23% between 2021 and 2030, says Market Research Future (MRFR).

The surging need to reduce carbon emissions from gasoline in the transportation and automotive sector will bolster the use of ethanol as a bio-based additive in the next few years. North America, along with Central & South America and Europe remains a leading consumer of the product. However, several emerging countries in the Asia Pacific including India, South Korea, and China, are top crude oil importers. Ethyl alcohol’s extensive use as a blending additive benefits these economies to a large extent, in terms of higher energy security as well as efficiency of motor vehicles.

Ethanol is produced using biobased or renewable raw material feedstock. The tyes of feedstock are sugar-based, cellulosic, and starch-based. Starch-based category has taken the lead in the worldwide market, and will experience growth at a rate of 5.8% from 2020 to 2027. Starch-based items are produced using raw materials that include wheat, corn, cassava and barley. Majority of these products contain significant starch content and help bring down greenhouse gas emissions to a huge extent.

However, it is anticipated that cassava’s use as a suitable feedstock can garner importance in the coming years in emerging countries such as Thailand and China, due to its rich starch content as well as the ability to facilitate the production of ethyl alcohol containing high octane rating as well as excellent anti-knocking characteristics.

Global Fuel-Ethanol Market Share, by Raw Material, (2018)

Source: MRFR Analysis

Market Segmentation

The global fuel-ethanol market has been segmented into the source, raw material, application, and region.

Based on the source, the global fuel-ethanol market has been categorized as synthetic and natural.

By raw material, the global fuel-ethanol market has been classified as maize, wheat, industrial beets, sugarcane, cereals & starch, and others.  

Based on application, the global fuel-ethanol market has been divided into a passenger car, light commercial vehicle, and heavy commercial vehicle.

Regional Analysis

The global fuel-ethanol market has been analyzed with respect to five regions, namely, Asia-Pacific, North America, Europe, Latin America, and the Middle East & Africa. 

North America accounted for the largest market share of the global fuel-ethanol market in 2018 and is expected to show a similar trend during the forecast period. The established automotive industry and strict ethanol blending mandates in the US are propelling the market growth in the region. For instance, the US currently has 10% ethanol blending mandate for all vehicles; 15% ethanol blending mandate for cars and light pickup trucks with the model year of 2007 or later; and 85% blending mandate only for flexible-fuel cars, and for vehicles sold in Midwest. The current ethanol blending mandate in Canada is 5% and has put forth a target of 10% by the year 2020. Canada signed the Paris Agreement in 2016 and announced its futuristic objectives of minimizing emissions by nearly 30%, by the end of 2030. This regulatory scenario is considered to boost the use of low carbon intensity fuels and is ultimate to impact ethyl alcohol consumption in the future.

Latin America was the second-largest market for fuel-ethanol in 2018. Stable production of flexible fuel vehicles in Brazil and Argentina is likely to drive the demand for bioethanol fuel in the region. Also, the current ethanol blending mandate in Brazil is 18%. The current blending mandates in other Latin American countries are Jamaica 10%, Paraguay 25%, Panama 10%, Peru 7.8%, Colombia 10%, Mexico 5.8%, Chile 5%, and Costa Rica 7%.

The market in Asia-Pacific is expected to register rapid growth during the forecast period. The rising number of foreign investments coupled with government initiatives towards sustainable development is expected to boost the use of biofuels in the coming years. India’s current blending mandate is 2-3%, which is expected to increase to 10% by the year 2022. China is targeting a blending mandate of 10% by the year 2020. Indonesia set a target of 20% ethanol blending in gasoline by the year 2025.

The market in Europe is relatively mature and is expected to show steady growth during the coming years. The markets in the Middle East and Africa held the least market share of the global market and is likely to show slow growth due to flexible regulatory policies and weak economic growth.

Key Players

Some of the prominent players in the global fuel-ethanol 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).

Recent Development

March 2022

Ganesh Benzoplast Limited along with Golden Agri International Enterprises Pte. Ltd. (Singapore), K N Agri Resources Ltd and various investors, via Bluebrahma Clean Energy Solutions Pvt Ltd. is venturing into the manufacturing of Ethanol along with Extra Neutral Alcohol (ENA) with the acquisition of 100% share of an ongoing distillery based in Nasik, Maharashtra, called Sagar Industries and Distilleries Pvt. Ltd. (SIDPL).

Intended Audience

• Fuel-ethanol manufacturers


• Traders and distributors of wax emulsion


• Research and development institutes


• Potential investors


• Raw material suppliers


• Nationalized laboratories