The rising use of the product in the form of a biofuel is likely to drive demand for the ethanol. Another important element likely to drive expansion of the global ethanol market is the growing use of alcoholic drinks. Both natural and petrochemical feedstock can be utilized to make ethanol. Natural sugars ferment in the existence of yeast in the natural process. Because of the growth in shale gas output, ethylene production is growing. As oil production falls and new ethylene capacity is added, the global ethanol market is likely to become overstocked with ethylene, resulting in ethanol production stagnation.
Some prominent players in the global ethanol market include companies such as Mitsubishi Chemical Corporation, Flint Hill Resources, The Andersons, Inc., Valero Energy Corporation, Pacific Ethanol, Inc., and Cargill, Incorporated,
The global ethanol market was valued at around US$ 71.8 Bn in 2017 and is expected to be worth US$105 Bn by the end of the forecast period, from 2017 to 2022. During this time, the market is expected to grow at a CAGR of 7.9%. Players are attempting to capitalize on a plethora of profitable prospects emerging from growing demand in a variety of end-use sectors, most notably alcoholic drinks and automobiles. To stay competitive, some firms are concentrating on technological improvements in production technologies.
North America and Asia Pacific to Remain at the Forefront of Market Growth
In 2019, North America was the most important regional market, accounting for a large chunk of the global Ethanol Market. The region is expected to maintain its leadership position in the years to come. However, due to rising fuel consumption as well as increased industrial activity, Asia Pacific is expected to witness high growth opportunity over the forecast period, from 2020 to 2027. The existence of a diverse range of end use industries in the region, as well as continuously developing economies, is projected to boost market growth. Fuel as well as industrial solvents are the two key application categories projected to drive the Ethanol market in the area.
Due to growing product demand from the automobile sector and substantial raw material availability, Latin America is likely to come up as one of the most important regional marketplaces. Changes in regional environmental legislation are likely to have a beneficial influence on ethanol usage in end-use industries.
Increased Consumption of Alcoholic Beverage to Shape Contours of the Market
The enormous demand for the chemical component in the vehicle sector is estimated to drive the global ethanol market. In different countries across the globe, the usage of ethanol as a clean-burning fuel and as a gasoline additive has been significant in decreasing greenhouse gas emissions and reducing reliance on oil. The rapid growth of vehicles in a number of developed countries is accelerating the use of ethanol as an environmentally acceptable fuel in the automobile industry.
The global ethanol market has also benefited greatly from the growing number of mixed ethanol gasoline stations in developed nations, notably the US. The increasing number of ethanol biorefineries in developed countries is also expected to accelerate expansion of the global ethanol market. Ethanol is considered to be a safer and more environmentally friendly alternative to most hydrocarbon octane sources, which explains its widespread use in the automotive industry. The growing consumption of alcoholic beverages is also fueling ethanol consumption. The market is being boosted by the increasing use of ethanol in the production of high-quality alcoholic drinks. The usage of ethanol in a variety of applications such as paints, explosives, and perfumes is also likely to augur well for the global ethanol market.
The information provided in the review has been extracted from a TMR report titled “Ethanol Market (Feedstock - Coarse grain-based, Sugarcane-based, and Wheat-based; End Use - Fuel, Industrial Solvents, Beverages, and Cosmetics) - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2017–2022”.
The global ethanol market is segmented based on:
- Coarse grain-based
- Industrial Solvents
- Latin America
- North America
- Asia Pacific excluding Japan
- Middle East and Africa
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