by Bioethanol is a renewable fuel which can be blended with petrol or used as a transportation fuel. It is produced from plant materials such as corn, sugarcane, and wheat through a fermentation process. Bioethanol offers environmental advantages over petrol such as reducing greenhouse gas emissions and dependence on crude oil.
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.
Key Takeaways
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.
Growing awareness about the environmental benefits of bioethanol is driving its demand globally. Stringent emission regulations are incentivizing fuel companies to increase blending ratios of bioethanol with petrol. Sustainable production and usage of bioethanol can significantly reduce greenhouse emissions from the transportation sector.
Major bioethanol producing regions including the U.S., Brazil, and EU countries are undertaking capacity expansion projects to cater to the rising fuel needs. International partnerships for technology transfer and investment in developing economies are helping expand the global bioethanol market footprint.
Market key trends
One of the key trends in the bioethanol market is the development of cellulosic bioethanol. Research is ongoing to develop technologies for an efficient conversion of non-food biomass sources like agricultural residues into ethanol. This can augment feedstock availability and make the production process more sustainable. Some leading companies are undertaking commercial cellulosic ethanol plants using feedstocks like corn cobs and stalks. Additionally, development of international standards for biomass sourcing and sustainability certifications are driving large-scale adoption of the fuel worldwide.
Porter’s Analysis
- Threat of new entrants: Low capital requirements to enter and manufacture bioethanol encourage new participants to enter the market. However, established players have strong global presence and vertical integration which deter new entrants.
- Bargaining power of buyers: Large buyers such as oil companies and automakers have significant bargaining power due to their bulk purchasing ability. However, availability of substitutes and needs to meet renewable fuel targets caps their bargaining power.
- Bargaining power of suppliers: A few agro-commodity suppliers for raw materials like corn and sugarcane dominate the market. Dependence on agricultural commodities subjects the industry to price volatility and supply shocks beyond control.
- Threat of new substitutes: Emerging low-carbon liquid fuels from biomass could replace conventional biofuels in transportation. Electric vehicles also pose a long-term threat. However, bioethanol is cost competitive and complement existing engines.
- Competitive rivalry: Stable demand and regional production lead to intense competition. Market fragmentation and contracts with industry buyers foster competition.
Geographical regions of concentration: North America accounts for over 50% of global bioethanol production led by US, with Brazil being the second largest producer. The US and Brazil meet over 80% of global ethanol fuel demand.
Fastest growing region: Asia Pacific region is witnessing fastest growth in bioethanol consumption especially in China and India. Both nations are promoting ethanol blending with gasoline to substitute fossil fuel imports and curb environmental impact. Indonesia is also emerging as a key producer and market for bioethanol.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
