The global ethanol market is projected to receive growth opportunities on the back of a decent demand in various types of industries such as alcoholic beverages and automobiles. Some of the crucial factors driving the growth of the market in the alcoholic beverages sector could be changing preferences and tastes of consumers, changing lifestyles, and elevating demand for premium quality alcohol. Apart from growing as a substitute to gasoline fuel, ethanol is foretold to exhibit its significance as a solvent for several substances. Applications such as explosives, lacquers, paints, and perfumes could increasingly up the demand for ethanol in the coming years.
The global ethanol market, as per the statistical study of Transparency Market Research (TMR), is envisioned to garner a US$105.0 bn by the completion of 2022 at a CAGR of 7.9%. In 2017, the market secured a valuation of US$71.8 bn.
Global Ethanol Market: Major Insights
The international ethanol market is foreseen to gather enormous chunks of demand in the near future due to the application of the chemical compound in the automobiles sector. Ethanol could be extensively used as a fuel additive and also fuel for automobiles while presenting itself as a vital component in the industry. Ethanol could create sundry business prospects in the coming years, especially in this sector, owing to factors such as its cheaper cost than conventional fuels, numerous advantages, ecofriendly nature, rising disposable income, increasing demand for automobiles, and expanding population base.
The international ethanol market is envisaged to be segregated as per feedstock, where key segments could be coarse grain-based, sugarcane-based, and wheat-based ethanol. According to the analysis presented in the publication, the market for coarse grain-based ethanol is anticipated to secure a larger share by 2022 end. In terms of revenue, it could collect a US$56.0 bn by the same year. On an annual basis, it is predicted to grow at a US$3.5 bn between 2017 and 2022. By end use, the market could be classified into four segments, viz. fuel, industrial solvents, beverages, and cosmetics.
In view of regional segmentation, the international ethanol market is prophesied to testify the superiority of North America with respect to revenue share. It could be one of the most attractive regions in the market with a US$48.3 bn prognosticated to be earned by the concluding forecast year. Europe could produce an absolute revenue prospect of US$3.4 bn during the course of the forecast timeframe. However, Japan is expected to exhibit a lethargic growth until the end of 2022. It attained an only 1.3% revenue share in 2017. Asia Pacific except Japan (APEJ) foretold to lose 1 basis point (BPS) and the Middle East and Africa (MEA) to lose 74 BPS over 2017 by 2022 could expect better earnings ahead compared to Japan.
Global Ethanol Market: Vendor Landscape
Companies such as Archer-Daniels-Midland Company, Cargill, Incorporated, Solvay Group, Mitsubishi Chemical Corporation, Pacific Ethanol, Inc., Green Plains, Inc., The Andersons, Inc., Valero Energy Corporation, POET, LLC, and Flint Hill Resources LP are expected to showcase their prominence in the worldwide ethanol market.