Bioethanol is produced from various agricultural feedstocks such as corn, sugarcane, and wheat and is predominantly used as a gasoline additive to increase octane levels and reduce vehicle emissions. It possesses several advantages over gasoline such as lower toxicity, biodegradability, and reduces net carbon dioxide emissions by 12% on average compared to gasoline. R&D is being focused on developing advanced technologies for commercial-scale production of bioethanol from cellulosic sources.
The global Bioethanol Market is estimated to be valued at US$ 13.7 billion in 2024 and is expected to exhibit a CAGR of 9.8% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The market is witnessing increasing demand for cellulosic ethanol to meet renewable fuel targets. Several companies are investing in advanced technologies to produce bioethanol from non-food lignocellulosic biomass feedstocks such as agricultural residues, forest residues, and energy crops through biochemical and thermochemical conversion processes. For instance, INEOS Bio is developing renewable diesel and sustainable aviation fuel production facilities using waste biomass. Similarly, Gevo Inc. is focusing on producing isobutanol and renewable gasoline from non-food biomass for blending into transportation fuels through the ATJ-SPK pathway. Such initiatives are expected to drive the demand for advanced biofuels and support the market growth over the forecast period.
- Threat of new entrants: The threat of new entrants in the bioethanol market is low. Significant capital investments are required to enter the industry due to established infrastructure.
- Bargaining power of buyers: The bargaining power of buyers in the bioethanol market is moderate. Buyers have a few alternatives for obtaining biofuel and are somewhat sensitive to price changes.
- Bargaining power of suppliers: The bargaining power of suppliers is moderate. Suppliers of raw materials such as corn, sugarcane, and wheat have some control over prices but substitution between materials is possible.
- Threat of new substitutes: The threat of substitutes is moderate as other biofuels and fossil fuel alternatives continue development but bioethanol remains cost competitive.
- Competitive rivalry: Competition in the bioethanol market is high as rivals compete on production capacity and efficiency.
The global bioethanol market is expected to witness high growth over the forecast period of 2024 to 2031. The global Bioethanol Market is estimated to be valued at US$ 13.7 billion in 2024 and is expected to exhibit a CAGR of 9.8% over the forecast period 2024 to 2031.
Regional analysis comprises The North American region dominates the global bioethanol market currently. Strong government support through tax incentives and regulations in the US and Canada is fueling market growth in this region.
Key players operating in the bioethanol market are CropEnergies, British Sugar, New Generation Biofuels Holdings, Inc., Vivergo Fuels Limited, Butalco GmbH, and Global Green SA. Key players are focusing on strategic collaborations and capacity expansions to strengthen their presence in the market.