Bioethanol Market size is evaluated at USD 87.54 billion in 2024 and is expected to cross USD 212.8 billion by the end of 2037, growing at more than 7.4% CAGR during the forecast period i.e., between 2025-2037. In 2025, the industry size of bioethanol is assessed at USD 93.6 Billion.
The primary growth driver of market is the increasing demand for renewable energy sources as a means to reduce greenhouse gas emissions and dependence on fossil fuels. Government policies and incentives supporting the use of biofuels, such as blending mandates and subsidies, also play a crucial role in driving market growth. For instance, the Renewable Fuel Standard (RFS) in the U.S. mandates the use of renewable fuels, including bioethanol, to reduce greenhouse gas emissions. Additionally, rising consumer awareness of environmental issues and the growing adoption of bioethanol in the automotive industry, particularly in flexible fuel vehicles, contribute to the market expansion.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
7.4% |
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Base Year Market Size (2024) |
USD 87.54 billion |
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Forecast Year Market Size (2037) |
USD 212.8 billion |
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Regional Scope |
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Feedstock (Starch-based, Sugar-based, Cellulose based)
Starch-based segment is anticipated to dominate over 52% bioethanol market share by 2037. The starch-based bioethanol segment’s growth can be attributed to the abundance of starch feedstocks, which provide a steady and dependable supply. According to the National Institutes of Health, sugar cane and sugar beet account for around 40% of the world's bioethanol production, whereas feedstocks containing starch account for approximately 60% of it. Moreover, the existing infrastructure and expertise for manufacturing and transporting ethanol provide similar advantages for starch-based bioethanol. Also, several countries have implemented methods and equipment for turning starch feedstocks into bioethanol. This system, which fosters a market for bioethanol made from starch, includes blending facilities, transportation networks, and ethanol plants.
Fuel Blend (E5, E10, E15 to E70, E75 to E85)
The E10 segment in bioethanol market is expected to garner a significant share by 2037. The segment is witnessing growth due to the various initiatives by several governments to enforce the use of E10 fuel mixes in cars. According to a report by the US Grains Council in 2022, the UK started transitioning its gasoline supply in September 2021 from an E5 basis to an E10 blend. The country currently consumes 280 million gallons of gasoline-ethanol or 7% of its total fuel blend. However, soon the region expects to reach a 9.7% ethanol blend.
End use (Transportation, Alcoholic Beverages, Cosmetics, Pharmaceuticals)
The pharmaceutical segment in bioethanol market is anticipated to gain a notable revenue share during the forecast period. The segment’s expansion can be attributed to the ability of bioethanol to improve the solubility of hydrophobic active pharmaceutical ingredients (APIs), as a result enhancing the bioavailability and efficacy of drugs. Moreover, bioethanol meets the strict regulatory criteria and quality standards implemented on pharmaceutical products, making it a recognized safe and compliant solvent for pharmaceutical applications. It is gaining momentum among drug producers because it offers safety and compliance with regulations.
Our in-depth analysis of the market includes the following segments:
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Feedstock |
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Fuel Generation |
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Fuel Blend |
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End use |
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North America Market Statistics
North America in bioethanol market is likely to account for around 36.4% revenue share by 2037. The market is growing in the region due to the government’s strict laws to implement the use of biofuels. Higher renewable fuel standard requirements and rising domestic motor gasoline consumption which is currently blended with 10% ethanol by volume have led to an increase in the production of bioethanol.
In the U.S., ethanol is mostly produced from corn and it is widely used across the nation. With 205 ethanol plants across the country, the United States can produce an estimated 15.8 billion gallons (59.8 billion liters) of ethanol per year, providing enough worldwide supply.
In Canada, the biofuel industry is witnessing a significant increase in investment, driven by rising global demand for biofuel. Also, the government is implementing stringent laws to increase the use of biofuels which is accelerating the growth of market. For instance, Canada's Clean Fuel Regulation (CFR) intends to reduce the carbon intensity of liquid transportation fuels and has the potential to raise the use of low carbon-intensity diesel by 2.2 billion liters and ethanol by 700 million liters by 2030.
APAC Market Analysis
The bioethanol market in Asia Pacific will encounter huge growth during the forecast period owing to the of growing biofuel demand in countries such as China, India, and Thailand as well as regional government policies and initiatives that encourage the use of renewable fuel sources.
In China, the economy is expanding at a rapid pace, which has increased energy demand and raised concerns over the nation's energy security. According to the International Energy Agency, in 2021 electricity consumption in China increased from 489% from 2000. The nation is supporting the growth of the fuel to guarantee national energy security, lessen reliance on oil imports, cut greenhouse gas emissions, and boost farmers' incomes.
In India, to lessen dependency on imported fossil fuels and fight environmental pollution, the government has launched several policies and programs to encourage the development and use of biofuels. These regulations include the Ethanol Blending Program and the National Policy on Biofuels, which set a minimum amount of ethanol blended back into gasoline.
The market in South Korea is expected to increase significantly due to changes in customer preferences, government backing, and technological advancements. Businesses are encouraged to adopt greener practices and make investments in cutting-edge technologies by consumer demand for premium, environmentally friendly products.
To increase their client base and fortify their position in the bioethanol market, major firms are branching out across different areas and breaking into new markets in developing nations. In order to meet the increasing demands of the customers, the corporations are also launching new, cutting-edge products.
Author Credits: Dhruv Bhatia
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