Bioethanol Market, By Feedstock (Sugarcane, Corn, Wheat, and Other Feedstocks), By Blend (E10, E15 to E70, and E75 to E85), By Application (Automotive and Transportation, Power Generation, Pharmaceutical, Cosmetics, and Other Applications) - Trends, Analysis and Forecast till 2034

Bioethanol Market was valued at USD 50.7 Billion in 2024 and is projected to grow at a CAGR of 5.8% to reach USD 84.6 Billion by 2034.

Bioethanol, also known as ethanol or ethyl alcohol, is a type of renewable biofuel produced from organic materials, primarily crops such as corn, sugarcane, wheat, or barley. It is considered a renewable fuel because the carbon dioxide released during its combustion is offset by the carbon dioxide absorbed by the crops during their growth, creating a closed carbon cycle.

Ongoing initiatives in research and development aimed at enhancing bioethanol production technology, including the utilization of cutting-edge feedstock, more effective fermentation procedures, and the creation of second- and third-generation bioethanol production techniques. Further, the demand for renewable fuels like bioethanol is also anticipated to increase as a result of the global effort to reduce greenhouse gas emissions and combat climate change and the use of biofuels is being encouraged by governments and regulatory organizations worldwide which is expected to boost the growth of the Bioethanol Market.

Growing Demand for Sustainable Transportation Fuels

Growing consumer awareness of environmental issues and a preference for sustainable products and services, including transportation fuels. Consumers are increasingly considering the carbon footprint and environmental impact of their transportation choices. Bioethanol, as a renewable and lower-emission fuel option, can meet the demand for sustainable transportation fuels from environmentally conscious consumers. As the cost of sustainable transportation fuels becomes more competitive with conventional fuels, the demand for Bioethanol Market is expected to grow.

Restrains:

The bioethanol market is influenced by political and market factors, such as changing government policies, fluctuations in feedstock prices, and uncertainty in global energy markets. These uncertainties can impact investment decisions, hinder Bioethanol Market growth, and create challenges for industry stakeholders.

Bioethanol requires dedicated infrastructure for production, blending, storage, and distribution. The lack of adequate infrastructure and compatibility with existing gasoline infrastructure can impede the widespread adoption of Bioethanol Market.

Bioethanol Market is segmented based on Feedstock, Blend, Application and Region.

Feedstock Insight

On the basis of Feedstock, Bioethanol Market is segmented into Sugarcane, Corn, Wheat, and Other Feedstock. Sugarcane and Corn are expected to dominate the target market growth as sugarcane is one of the primary feedstock used for bioethanol production, particularly in countries with favorable climates for sugarcane cultivation, such as Brazil whereas the production of corn-based bioethanol has significantly increased in recent years due to favorable government policies and blending mandates.

Blend Insights

On the basis of Blend, Bioethanol Market is segmented into E10, E15 to E70, and E75 to E85.  E10 i.e. 10% Ethanol is expected to dominate the target market growth as it is one of the most widely used bioethanol blends globally. It contains 10% ethanol and 90% gasoline and also it is compatible with most gasoline powered vehicles and can used without modifications.

Application Insights

On the basis of Application, Bioethanol Market is segmented into Automotive and Transportation, Power Generation, Pharmaceutical, Cosmetics, and Other Applications. Automotive and Transportation are expected to dominate target market growth as Bioethanol is primarily used as a renewable fuel additive in gasoline blends for transportation purposes. It is commonly blended with gasoline in various ratios, such as E10 (10% ethanol), E15 (15% ethanol), and E85 (85% ethanol). The automotive and transportation sector represents the largest and most significant market for bioethanol.

Regional Insights:

On the basis of region the Bioethanol Market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

North America is estimated to witness a significantly high revenue share over the forecast period. North America, particularly the United States, has been a major player in the bioethanol market. The United States has implemented blending mandates, such as the Renewable Fuel Standard (RFS), which require the use of biofuels, including bioethanol, in transportation fuels. The large-scale production of corn-based bioethanol in the U.S. contributes to its significant revenue share in the market.

Bioethanol Market Report Scope:

Segments Covered in the Report:

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2024 to 2034. For the purpose of this study, has segmented the Bioethanol Market report based on Feedstock, Blend, Application and Region:

Bioethanol Market, By Feedstock:

• Sugarcane
• Corn
• Wheat
• Other Feedstocks

Bioethanol Market, By Blend:

• E10
• E15 to E70
• E75 to E85

Bioethanol Market, By Application:

• Automotive and Transportation
• Power Generation
• Pharmaceutical
• Cosmetics
• Other Applications

Bioethanol Market, By Region:

• North America
  • Middle East & Africa
    • GCC
    • Israel
    • South Africa
    • Rest of Middle East & Africa
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Rest of Asia Pacific
  • Europe
    • Germany
    • UK
    • France
    • Russia
    • Italy
    • Rest of Europe
  • U.S.
  • Canada

The key players operating the Bioethanol Market includes, Abengoa Bioenergy SA, Algenol, DowDuPont, Cargill Incorporated, Ethanol Technologies, GranBio, Jilin Fuel Ethanol Co. Ltd (CNPC), Green Plains, Inc., Pacific Ethanol, Inc. and Archer Daniels Midland Company.

• In February 2023, PM Modi launched the higher 20% ethanol blended petrol two months ahead of the planned rollout in April at the India Energy Week (IEW) 2023. First, the amount of ethanol in fuel will be increased from 1.5% (in 2014) to 10%, and we are currently moving towards 20% blending. 15 cities will be covered in the initial phase, and over the following two years, coverage will be extended nationwide.
• In October 2022, Union Minister of State (Ministry of Science and Technology & Earth Sciences) Jitendra Singh’s green push for second-generation (2G) bioethanol. The Indian biofuel market benefits from increased economics and long-term sustainability provided by second-generation (2G) bioethanol.
• In December 2022, Indonesia’s energy ministry launched 5% ethanol blend of fuel made using sugarcane in three years time starting with a few provinces of the country. On the densely populated island of Java, the mix is anticipated to be raised to 10% and implemented in more locations over the short term.

• Archer Daniels Midland Company
• Abengoa Bioenergy SA
• Algenol
• DowDuPont
• Cargill Incorporated
• Ethanol Technologies
• GranBio
• Jilin Fuel Ethanol Co. Ltd (CNPC)
• Green Plains, Inc.
• Pacific Ethanol, Inc.