Market Overview

Global Bioethanol Market size was valued at USD 59.76 Billion in 2022 and is projected to reach USD 89.82 Billion by 2030. Is growing at a CAGR of 4.65% from 2023 to 2030.

The Sustainable Development Goals (SDGs) are one of the main goals of the United Nations. Sustainability slows climate change and reduces global warming. To fight climate change, we must use alternative fuels. Biofuels such as bioethanol play an important role in the overall picture.

Bioethanol can be produced from biomass through the process of hydrolysis and sugar fermentation. Bioethanol is composed entirely of biological products, therefore, the combustion of bioethanol produces cleaner emissions (CO2, steam and heat). This cycle of creation and energy burning means bioethanol could potentially be a carbon-neutral fuel source. Bioethanol as a substitute for petroleum products. Some countries blend gasoline with bioethanol.

According to the US Energy Information Administration (EIA), liquid fuel consumption is expected to rise from 19.1 million barrels per day in 2009 to 21.9 million gallons per day by 2035, up from 19.1 million barrels per day in 2009.

In the oil and gas refinery business, TATA Projects Limited, an Indian building company, got several big orders worth $809.7 million in January 2020. HPCL Rajasthan Refinery Ltd. (HRRL) made three orders, and Bharat Petroleum Corporation Limited placed one. (BPCL). Also, the order for BPCL's second-generation bioethanol project in Odisha, which is supposed to be able to make 100,000 liters of bioethanol per day, has been placed.

Industry News

• In May 2022, Blue Biofuels Inc. announced that its fifth generation of the Cellulose-to-Sugar ("CTS") machine is on schedule and that testing and additional engineering for larger volumes have begun. In addition, Blue Biofuels has mapped out the future and commissioned K.R. Komarek Inc. to construct the successors of the fifth-generation CTS machine through commercialization.
• In November 2021, Alto Ingredients, Inc. announced the sale of its fuel ethanol manufacturing facility in Stockton, California to Pelican Acquisition LLC for USD 24.0 million in cash, with USD 16.2 million of the proceeds used to settle the company's remaining term debt.
• In October 2021, The Coca-Cola Company announced its first bottle made entirely of plant-based plastic. Coca-Cola's technology, which it co-owns with Changchun Meihe Science & Technology, expedites the production of bio-based monoethylene glycol (bMEG) and permits a broader range of renewable materials. bMEG is produced by converting sugarcane or corn into bioethanol, which is subsequently converted into bio ethylene glycol.
• In October 2021, ADM signed a contract with BioUrja Group to sell its ethanol manufacturing facility in Peoria, Illinois. Critical to their strategic evaluation of dry mill ethanol assets was the sale of their Peoria facility.
• In July 2019, Waste to bioproducts producer Greenbelt Resources has teamed up with New Age Renewable Energy to offer a sustainable solution for processing dairy industry wastes into bioproducts.
• In June 2019, Clariant, a world leader in specialty chemicals, will open in Podari, southern Romania, it’s most innovative plant where it will produce bioethanol.
• In Feb 2019, Albioma announced the industrial commissioning of the first peak-load combustion turbine (CT) operating primarily on bioethanol in Saint-Pierre, Réunion Island.

Market Dynamics

Drivers 

The bioethanol industry is primarily driven by government regulatory agencies that support production. The market is expanding as a result of rising demand for gasoline additives and expanding government initiatives to produce and employ cleaner fuels, such as bio-ethanol. Companies have been prompted by stricter regulations to produce significantly cheaper, greener, and more efficient energy. Market technological advances have resulted in the development of second and third-generation bioethanol, which is anticipated to remain a viable option on the global market. Increasing environmental concerns, which motivate producers to produce bioethanol, blending regulations from regulatory agencies like the EPA (Environmental Protection Agency), and abundant raw material availability are the factors driving the global bioethanol market.

As a consequence of economic development, population growth, increased consumer affluence, and the discovery of new energy uses, countries are increasingly concerned with energy security. Several countries continue to import vast quantities of crude oil and may use it as a substitute to reduce their dependence. As a result of a growing emphasis on enhancing energy security, the global bioethanol oil market is anticipated to offer lucrative opportunities.

Restraints 

Concerns have shifted to the use of biomass, especially plants, to make energy that are cheap and can be used in many different ways. Using waste to make bioethanol has been shown to be cost-effective, but the biggest problems come from the need to create inhibitors. When bioethanol is made from waste, the first, second, and third generations of feedstock are all used. When second-generation biomass, like lignocelluloses, is pre-treated, it makes byproducts that slow down the process.  Some of the things that stop the growth are weak acids, furans, and phenolic chemicals. The cost of the treatment as a whole goes up because of these inhibitors. This review focuses on the process, the chemicals with inhibitory roles that are separated from lignocellulose-rich material during pre-treatment, how they work, and how to minimize their effects on the fermentation process.

Challenges 

As the number of electric cars grows, the market is likely to shrink in the near future. In the past few years, sales of electric cars have gone up, and this trend is expected to keep going through the forecast period. The International Energy Agency says that by 2020, there will be more than 10 million electric vehicles in use around the world. This is a 43% increase from 2019. The world market for electric cars is booming. Because of this, both fossil fuels and bioethanol would be used less. Because of this, the bioethanol business is likely to die out soon as the number of electric cars grows.

Market Segmentation

On the Basis of Type:

During the forecast period, the segment of starch will increase its market share significantly. The market share of the starch segment increased from USD 25,857.50 million in 2017 and continued to rise through 2021. In 2020, the starch segment held a sizable market share, and this trend is anticipated to continue throughout the forecast period. The expansion of the starch segment can be attributed to the rising demand from APAC and North America as well as the global availability of a vast array of starch-based commodities. Corn is regarded as having the maximum starch content, between 70 and 73 percent. In North America, the most preferred feedstock for bioethanol production is starch-based crops, specifically maize.

During the forecast period, the segment of starch will increase its market share significantly. The market share of the starch segment increased from USD 25,857.50 million in 2017 and continued to rise through 2021. In 2020, the starch segment held a sizable market share, and this trend is anticipated to continue throughout the forecast period. The expansion of the starch segment can be attributed to the rising demand from APAC and North America as well as the global availability of a vast array of starch-based commodities. Corn is regarded as having the maximum starch content, between 70 and 73 percent. In North America, the most preferred feedstock for bioethanol production is starch-based crops, specifically maize.

On the Basis of Application:

In 2021, the transportation group had the biggest share of the bioethanol market, and it is expected to grow at a CAGR of 14.8% from 2022 to 2027. Transportation is likely to be the best place to put your money because more bioethanol is being used as a transportation fuel and because several regulatory bodies, such as the Renewable Energy Directive (EU RED) and the Renewable Fuel Standard, have blending requirements. (EPA RFS). Also, the number of cars goes up as people get more money. The Energy Information Administration (EIA) says that by 2035, there will be 1.7 million more cars on the road than there are now. The International Organization of Motor Vehicle Manufacturers (OICA) says that the number of cars made in the first nine months of 2021 went up by 10%, from 52.15 million to 57.26 million, compared to the same time last year. With more cars being made, the demand for bioethanol is likely to go up as well. As a result, the transportation bioethanol market is expected to grow over the next few years.

On the Basis of Blend 

The market is segmented based on Blend into E5, E10, E15 to E70, E75 & E85, and Others. E10 represented a substantial market proportion. Blending bio-ethanol with conventional fuels increases their renewability. E10 gasoline contains 10% ethanol and 90% regular unleaded gasoline. Bioethanol is a low-carbon fuel that can assist in decarbonizing the transportation sector. Several European and non-European countries have mandated the use of E-10 gasoline blends in automobiles in an effort to reduce global greenhouse gas (GHG) emissions. Multiple end-use industries are increasing their demand for E-10 gasoline mixtures, thereby driving segment growth.

On the Basis of Region:

Geographically, the global Bioethanol market has been analyzed in various regions such as North America, Latin America, Middle East, Asia-Pacific, Africa, Europe, and India. The global Bioethanol region is dominating this market in the upcoming future.

Geographically, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. North America dominated the market in 2015, with over two-thirds share of the global ethanol market, owing to the regulatory blending mandates and large number of manufacturing companies in the U.S. Asia-Pacific is expected to grow with the highest rate during the forecast period, caused by the increase in production capacities in China, Thailand, and India.

Italy is expected to witness the highest CAGR in the European bioethanol market, owing to the rapid increase in production capacity of first- & second-generation bioethanol. Major companies like Mossi & Ghisolfi and TPG are increasing their production capacity by setting up new plants and are also actively involved in other developmental activities such as joint ventures and agreements.

Market Key Players

Archer Daniels Midland, POET, Green Plains, Valero, Flint Hills Resource, Abengoa, Shell, Pacific Ethanol, Petrobras, Andersons, and others.

• Archer Daniels Midland

The Archer-Daniels-Midland Company, also known as ADM, is an American global company that has been around since 1902 and is based in Chicago, Illinois. The company runs more than 270 plants and 420 crop procurement sites around the world. In these places, cereal grains and oilseeds are turned into products that are used in the food, beverage, nutraceutical, industrial, and animal feed markets around the world.

• POET

POET LLC is a biofuel company in the United States that focuses on making bioethanol. The headquarters of the privately owned company, which used to be called Broin Companies, is in Sioux Falls, South Dakota. In 2007, the Renewable Fuels Association named POET the biggest ethanol producer in the United States. Each year, POET makes 1.1 billion US gallons (4,200,000 m3) of fuel. POET makes 3 billion gallons of ethanol each year, which is 19% of all the ethanol made in the U.S.

POET runs 33 ethanol plants in Indiana, Iowa, Michigan, Missouri, Ohio, Minnesota, South Dakota, and Missouri. In 2007, the company got a $80 million grant from the U.S. Department of Energy to build a plant in Emmetsburg, Iowa, to make cellulosic ethanol. On September 3, 2014, the building opened to the public for the first time. It will use corn cobs, leaves, and husks from farms in the area to make 25 million gallons of ethanol each year.

• Green Plains

Green Plains Inc. (NASDAQ: GPRE) is a top biorefining company. Its main goal is to develop and use fermentation, agricultural, and biological technologies to turn crops that grow every year into sustainable ingredients with added value. This includes making cleaner biofuels with less carbon, green feedstocks for advanced biofuels, and high-purity alcohols that can be used in cleaning products and disinfectants. Green Plains is a creative company that makes Ultra-High Protein and other new ingredients for animal and aquaculture meals to help meet the growing demand for sustainable protein around the world. The Company also has a 48.9% limited partner interest in Green Plains Partners LP and a 2.0% general partner interest.

• Valero

Valero Energy Corporation is a downstream oil company based in the United States. Its main business is making and selling transportation fuels, other petrochemical products, and electricity. Its main office is in San Antonio, Texas, which is in the United States. The company owns and runs 16 refineries in the United States, Canada, and Wales. Together, they can process about 3 million barrels (480,000 m3) of oil per day. They also have 11 ethanol plants that can produce 1.2 billion US gallons (4,500,000 m3) of ethanol per year, and a 50-megawatt wind farm. Before CST Brands was spun off in 2013, Valero was one of the largest retailers in the United States. It was a Fortune 500 company and had about 6,800 retail and wholesale stores under the Valero, Diamond Shamrock, Shamrock, Beacon, and Texaco brands in the United States, Canada, the United Kingdom, and the Caribbean.

• Flint Hills Resource

Flint Hills Resources is one of the biggest companies that refines oil. Most of its business is in the Midwest and Texas. Flint Hill Resources makes important things that power and improve people's lives, like stable fuels for transportation that keep us moving and chemical building blocks that make modern life possible.

Flint Hills Resources is a private company with its headquarters in Wichita, Kansas. It is a wholly owned subsidiary of Koch Industries, Inc., which is one of the biggest private companies in the United States. Forbes magazine says that Koch Industries, Inc. could make as much as $100 billion a year in sales. Usually, the company puts 90 percent of its profits back into its businesses. These businesses include fuels for transportation, fertilizers, tools and technologies for process and pollution control, minerals, energy, ranching, and more.

The Bioethanol market research report is categorized based on type, applications and region.

On the Basis of Type:

• Starch-based
• Sugar-based
• Cellulose-based

On the Basis of Application:

• Transportation
• Pharmaceuticals
• Cosmetics
• Alcoholic Beverages

On the Basis of Blend 

• E5
• E10
• E15 to E70
• E75 & E85
• Others

Further the regions are divided into countries as follows

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• France
• Italy
• Spain
• UK
• Nordic Countries
• Denmark
• Finland
• Iceland
• Sweden
• Norway
• Benelux Union
• Belgium
• The Netherlands
• Luxembourg
• Rest of Europe
• Asia-Pacific
• Japan
• China
• India
• Australia
• South Korea
• Southeast Asia
• Indonesia
• Thailand
• Malaysia
• Singapore
• Rest of Southeast Asia
• Rest of Asia-Pacific
• The Middle East & Africa
• Saudi Arabia
• UAE
• Egypt
• South Africa
• Rest of the Middle East & Africa
• Latin America
• Brazil
• Argentina
• Rest of Latin America

Scope of Report

Conclusion 

Bioethanol is a liquid biofuel that could reduce the amount of greenhouse gases and other toxic gases that cars give off. It is a source of energy that doesn't run out. Bioethanol is made from corn, soybeans, wheat straw, switchgrass, sugar cane, woodchips, microalgae, and other raw materials. It is made by a method called microbial fermentation, which uses less energy and produces CO2 as a byproduct. This CO2 can be used to grow microalgae, which can help reduce greenhouse gas emissions. Bioethanol is made by first separating the lignin and hemicellulose from the cellulose, then hydrolyzing the cellulose to get fermented sugars, then fermenting the sugars to turn them into ethanol, and then distilling the ethanol to separate and clean it. Even so, the chemical process between ethylene and steam can also be used to make bioethanol fuels. Most fuel is made up of 90% gasoline and 10% ethanol. In 2022, the global Bioethanol Market was worth USD 59.76 billion, and by 2030, it is expected to be worth USD 89.82 billion. Is rising at a rate of 4.65% per year between 2023 and 2030. The global bioethanol market is driven by a rise in environmental concerns, which makes manufacturers more likely to make bioethanol, blending requirements from regulatory bodies like the Environmental Protection Agency (EPA), and the easy availability of raw materials. But the high cost of investing in cellulosic ethanol and concerns about using food crops to make fuel are likely to slow the growth of the bioethanol market over the next few years. Also, the development of second- and third-generation biofuels is likely to give the bioethanol market a lot of chances to grow.