The Global Ethanol Market is estimated to be valued at US$ 2,773.5 Mn in 2023 and is expected to exhibit a CAGR of 8.25% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Ethanol is a biofuel made from organic matter through fermentation. It has high octane value and is used as a gasoline additive to increase octane rating and reduce emissions from vehicles. Ethanol provides superior performance and reduces emissions, thereby meeting emission regulations.
Market key trends:
One of the major trends in the ethanol market includes increasing production of advanced biofuels from cellulosic feedstocks. Advanced biofuels made from agricultural residues and woody biomass emit less greenhouse gases compared to corn-based ethanol. The industry is investing in research and development of cellulosic ethanol production technologies which utilize waste biomass from forestry and agricultural industries as raw material. This is expected to drive the ethanol market size over the forecast period as cellulosic ethanol production will help reduce dependency on conventional ethanol feedstocks and meet sustainability targets.
Segment Analysis
The global ethanol market is segmented into types and applications. Based on type, corn ethanol dominates the market. Corn is the major feedstock used for ethanol production as it is widely grown crop in many countries and abundantly available. According to USDA reports, around 4 billion bushels of corn was used for ethanol production in 2021 in the US alone, accounting for over 35% of total corn production.
The applications segment is further divided into fuel, beverages, chemicals & others. The fuel segment holds the largest market share owing to the consumption of corn-based ethanol in gasoline blending. Ethanol mandates by regulatory bodies in many nations regarding fuel standards have further propelled the fuel segment growth.
Key Takeaways
The Global Ethanol Market is expected to witness high growth, exhibiting a CAGR of 8.25% over the forecast period, due to increasing demand for fuel ethanol from the automotive industry and supportive government policies promoting ethanol blending.
Regional analysis - North America currently dominates the global ethanol market, accounting for over 50% of the total demand. The US is the largest producer as well as consumer of fuel ethanol globally. However, Asia Pacific is expected to emerge as the fastest growing market led by China and India. The rapidly growing automotive sector and increasing blending targets are anticipated to drive the region's growth.
Key players - Key players operating in the ethanol market are Archer Daniels Midland Company, POET, LLC, Green Plains Inc., Valero Energy Corporation, Flint Hills Resources. The players are focusing on capacity expansion plans and strategic partnerships with gasoline retailers to increase sales and market share. They are also investing in advanced technologies to lower production costs and optimize yields.
Read More - https://www.marketwebjournal.com/ethanol-market-driven-by-increasing-demand-for-biofuels-demand/
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