Ethanol Market: By Source By Grade By Application and Region Forecast 2020-2031
Ethanol Market: By Source By Grade By Application and Region Forecast 2020-2031
Ethanol market size was valued at US$ 99.9 billion in 2024 and is expected to reach US$ 157.5 billion by 2031, growing at a significant CAGR of 6.7% from 2025-2031. The market is driven by various factors like the rising consumption of alcoholic beverages and the growing use of ethanol as a bio-fuel product are the key market drivers enhancing the market growth. Growing concerns about climate change are a major driver. Ethanol is seen as a cleaner alternative to fossil fuels, reducing greenhouse gas emissions. Many governments are offering subsidies and incentives for ethanol production and use. This is making it more attractive for producers and consumers. New technologies are constantly being developed to improve the efficiency and cost-effectiveness of ethanol production.
This is making it a more viable option for large-scale use. Demand for ethanol is increasing in various sectors like transportation fuels, industrial applications, and even the beverage industry. This is due to factors like population growth and urbanization. However, the road isn't entirely smooth. Here are some constraints on the market, setting up large-scale ethanol production facilities requires a significant initial investment, and this can be a barrier for new entrants. Ethanol faces competition from traditional fossil fuels and even alternative energy sources like solar and wind power. Changes in government policies and regulations can create instability in the market, making investors hesitant.
Study Period
2025-2031Base Year
2024CAGR
6.7%Largest Market
North-AmericaFastest Growing Market
Asia-Pacific
Research into advanced biofuels derived from non-grain sources like cellulose is opening new doors. Changing Consumer Preferences increase demand for eco-friendly products is a tailwind for ethanol. The various generation processes/techniques for ethanol production are the improved 1st Generation processes of high gravity (VHG) fermentation. This technique allows fermentation with higher sugar concentrations, reducing distillation energy and waste, and developments in yeast strains and using agricultural residues alongside corn can improve yield and reduce reliance on food crops. Cellulosic Conversion (2nd Generation), this approach targets unlocking ethanol from lignocellulosic biomass (wood waste, crops) which is more abundant than corn.
Advancements include pretreatment methods to break down tough cellulose and hemicellulose into fermentable sugars. Improved enzyme technology and fermentation processes are being developed to optimize conversion efficiency. Next-Gen Technologies (3rd & 4th Generation) explore alternative feedstocks like algae and use microbes or enzymes specifically designed to break down complex biomass. Consolidating bioprocessing (combining fermentation and distillation) for a more streamlined approach. Electrochemical conversion- Utilizing electricity to directly convert biomass into ethanol is under development. Overall, these advancements aim to make ethanol production more sustainable by, reducing reliance on food crops and land use, utilizing waste materials as feedstock, lowering energy consumption throughout the process, and creating integrated biorefineries that produce valuable co-products alongside ethanol.
North America currently leads the market, driven by government support for biofuel production and environmental concerns. The US dominates the region due to rising demand for bio-based products and developed infrastructure for research & development, increasing the demand for bio-fuel in automobiles.
Asia Pacific is expected to witness the fastest growth due to factors like expanding manufacturing capacity and the presence of major producers like China and India.
The availability of abundant feedstock for production is another growth driver in this region including rising disposable incomes, increasing urbanization, and growing government investment in security infrastructure.
The Middle East and Africa regions have the potential for growth due to government initiatives and the presence of agricultural resources. However, underdeveloped infrastructure currently hinders market expansion
Latin America
Europe
Asia Pacific
Middle East
North America
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Report Benchmarks |
Details |
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Report Study Period |
2025-2031 |
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Market Size in 2024 |
US$ 99.9 billion |
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Market Size in 2031 |
US$ 157.5 billion |
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Market CAGR |
6.7% |
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By Source |
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By Type |
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By Grade |
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By Application |
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By Region |
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Ethanol market size was valued at US$ 99.9 billion in 2024 and is expected to reach US$ 157.5 billion by 2031, growing at a significant CAGR of 6.7%.
•Growing concerns about climate change •Rising consumption of alcoholic beverages • Growing use of ethanol as a bio-fuel product •Government subsidies and incentives
•Focus on Sustainability •Integration with Advanced Technologies • Changing Consumer Preferences •Advanced Biofuels
The key Players of the market are United Breweries, Aventine Renewable Energy, AB Miller, Archer Daniels Midland Company, Kirin, Pure Energy Inc., Cargill Corporation, Samson Distilleries Private Limited, Shakumbari Sugar And Allied Industries Limited, Saraya Distilleries Limited, Archer Daniels Midland Company, BioUrja Group, Pacific Ethanol, Inc, INEOS Solvents Germany GmbH, Flint Hills Resource, Alcool Ferreira S, Mitsubishi Chemical Corporation, Andersons Ethanol Group, Godavari Biorefineries Limited, Wallams (India) Agro Products & Power Limited, Shree Renuka Sugars Limited, E.I.D. Parry (India) Limited, and Bajaj Hindusthan Limited
North America is the dominant in the market.
| 1. Executive Summary |
| 2. Global Ethanol Market Introduction |
| 2.1. Global Ethanol Market Taxonomy |
| 2.2. Global Ethanol Market Definitions |
| 2.2.1. Source |
| 2.2.2. Grade |
| 2.2.3. Application |
| 3. Global Ethanol Market Dynamics |
| 3.1. Drivers |
| 3.2. Restraints |
| 3.3. Opportunities/Unmet Needs of the Market |
| 3.4. Trends |
| 3.5. Global Ethanol Market Dynamic Factors - Impact Analysis |
| 3.6. Global Ethanol Market Competition Landscape |
| 4. Global Ethanol Market Analysis, 2020 - 2024 and Forecast, 2025 - 2031 |
| 4.1. Market Analysis, 2020 - 2024 and Forecast, 2025 - 2031 ((Revenue, USD Mn) and Volume (000 Ltrs) |
| 4.2. Year-over-Year (Y-o-Y) Growth Analysis (%) |
| 4.3. Market Opportunity Analysis |
| 5. Global Ethanol Market, By Source, 2020 - 2024 and Forecast, 2025 - 2031 (Revenue, USD Mn) and Volume (000 Ltrs) |
| 5.1. Grain Based |
| 5.1.1. Market Analysis, 2020 - 2024 and Forecast, 2025 - 2031 ((Revenue, USD Mn) and Volume (000 Ltrs) |
| 5.1.2. Year-over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) |
| 5.1.3. Market Opportunity Analysis |
| 5.2. Second Generation |
| 5.2.1. Market Analysis, 2020 - 2024 and Forecast, 2025 - 2031 (Revenue, USD Mn) and Volume (000 Ltrs) |
| 5.2.2. Year-over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) |
| 5.2.3. Market Opportunity Analysis |
| 5.3. Sugar & Molasses Based |
| 5.3.1. Market Analysis, 2020 - 2024 and Forecast, 2025 - 2031 (Revenue, USD Mn) and Volume (000 Ltrs) |
| 5.3.2. Year-over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) |
| 5.3.3. Market Opportunity Analysis |
| 6. Global Ethanol Market Forecast, By Grade, 2020 - 2024 and Forecast, 2025 - 2031 |
| 6.1. Industrial Grade |
| 6.1.1. Market Analysis, 2020 - 2024 and Forecast, 2025 - 2031 (Revenue, USD Mn) and Volume (000 Ltrs) |
| 6.1.2. Year-over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) |
| 6.1.3. Market Opportunity Analysis |
| 6.2. Pharmaceutical Grade |
| 6.2.1. Market Analysis, 2020 - 2024 and Forecast, 2025 - 2031 (Revenue, USD Mn) and Volume (000 Ltrs) |
| 6.2.2. Year-over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) |
| 6.2.3. Market Opportunity Analysis |
| 6.3. Food Grade |
| 6.3.1. Market Analysis, 2020 - 2024 and Forecast, 2025 - 2031 (Revenue, USD Mn) and Volume (000 Ltrs) |
| 6.3.2. Year-over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) |
| 6.3.3. Market Opportunity Analysis |
| 6.4. Lab Grade |
| 6.4.1. Market Analysis, 2020 - 2024 and Forecast, 2025 - 2031 (Revenue, USD Mn) and Volume (000 Ltrs) |
| 6.4.2. Year-over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) |
| 6.4.3. Market Opportunity Analysis |
| 7. Global Ethanol Market Forecast, By Application, 2020 - 2024 and Forecast, 2025 - 2031 |
| 7.1. Bactericide/Disinfectant |
| 7.1.1. Market Analysis, 2020 - 2024 and Forecast, 2025 - 2031 (Revenue, USD Mn) and Volume (000 Ltrs) |
| 7.1.2. Year-over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) |
| 7.1.3. Market Opportunity Analysis |
| 7.2. Industrial Solvent |
| 7.2.1. Market Analysis, 2020 - 2024 and Forecast, 2025 - 2031 (Revenue, USD Mn) and Volume (000 Ltrs) |
| 7.2.2. Year-over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) |
| 7.2.3. Market Opportunity Analysis |
| 7.3. Fuel/Fuel Additive |
| 7.3.1. Market Analysis, 2020 - 2024 and Forecast, 2025 - 2031 (Revenue, USD Mn) and Volume (000 Ltrs) |
| 7.3.2. Year-over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) |
| 7.3.3. Market Opportunity Analysis |
| 7.4. Beverages |
| 7.4.1. Market Analysis, 2020 - 2024 and Forecast, 2025 - 2031 (Revenue, USD Mn) and Volume (000 Ltrs) |
| 7.4.2. Year-over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) |
| 7.4.3. Market Opportunity Analysis |
| 7.5. Personal Care |
| 7.5.1. Market Analysis, 2020 - 2024 and Forecast, 2025 - 2031 (Revenue, USD Mn) and Volume (000 Ltrs) |
| 7.5.2. Year-over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) |
| 7.5.3. Market Opportunity Analysis |
| 7.6. Others |
| 7.6.1. Market Analysis, 2020 - 2024 and Forecast, 2025 - 2031 (Revenue, USD Mn) and Volume (000 Ltrs) |
| 7.6.2. Year-over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) |
| 7.6.3. Market Opportunity Analysis |
| 8. Global Ethanol Market Forecast, By Region, 2020 - 2024 and Forecast, 2025 - 2031 ((Revenue, USD Mn) and Volume (000 Ltrs) |
| 8.1. North America |
| 8.1.1. Market Analysis, 2020 - 2024 and Forecast, 2025 - 2031 (Revenue, USD Mn) and Volume (000 Ltrs) |
| 8.1.2. Year-over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) |
| 8.1.3. Market Opportunity Analysis |
| 8.2. Europe |
| 8.2.1. Market Analysis, 2020 - 2024 and Forecast, 2025 - 2031 (Revenue, USD Mn) and Volume (000 Ltrs) |
| 8.2.2. Year-over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) |
| 8.2.3. Market Opportunity Analysis |
| 8.3. Asia-Pacific |
| 8.3.1. Market Analysis, 2020 - 2024 and Forecast, 2025 - 2031 (Revenue, USD Mn) and Volume (000 Ltrs) |
| 8.3.2. Year-over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) |
| 8.3.3. Market Opportunity Analysis |
| 8.4. Latin America |
| 8.4.1. Market Analysis, 2020 - 2024 and Forecast, 2025 - 2031 (Revenue, USD Mn) and Volume (000 Ltrs) |
| 8.4.2. Year-over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) |
| 8.4.3. Market Opportunity Analysis |
| 8.5. Middle East and Africa |
| 8.5.1. Market Analysis, 2020 - 2024 and Forecast, 2025 - 2031 (Revenue, USD Mn) and Volume (000 Ltrs) |
| 8.5.2. Year-over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) |
| 8.5.3. Market Opportunity Analysis |
| 8.6. Global Ethanol Market - Opportunity Analysis Index, By Source, Grade, Application, and Region, 2024 - 2030 |
| 9. North America Ethanol Market Analysis, 2020 - 2024 and Forecast, 2025 - 2031 ((Revenue, USD Mn) and Volume (000 Ltrs) |
| 9.1. By Source Analysis 2020 - 2024 and Forecast 2025 - 2031 by Revenue (USD Mn), Y-o-Y Growth (%), and Market Share (%) |
| 9.1.1. Grain Based |
| 9.1.2. Second Generation |
| 9.1.3. Sugar & Molasses Based |
| 9.2. Grade Analysis 2020 - 2024 and Forecast 2025 - 2031 by Revenue (USD Mn), Y-o-Y Growth (%) and Market Share (%) |
| 9.2.1. Industrial Grade |
| 9.2.2. Pharmaceutical Grade |
| 9.2.3. Food Grade |
| 9.2.4. Lab Grade |
| 9.3. Application Analysis 2020 - 2024 and Forecast 2025 - 2031 by Revenue (USD Mn), Y-o-Y Growth (%) and Market Share (%) |
| 9.3.1. Bactericide/Disinfectant |
| 9.3.2. Industrial Solvent |
| 9.3.3. Fuel/Fuel Additive |
| 9.3.4. Beverages |
| 9.3.5. Personal Care |
| 9.3.6. Others |
| 9.4. Country Analysis 2020 - 2024 and Forecast 2025 - 2031 by Revenue (USD Mn) Y-o-Y Growth (%) and Market Share (%) |
| 9.4.1. USA |
| 9.4.2. Canada |
| 9.5. North America Ethanol Market - Opportunity Analysis Index, By Source, Grade, Application, and Country, 2024 - 2030 |
| 9.6. North America Ethanol Market Dynamics Trends |
| 10. Europe Ethanol Market Analysis, 2020 - 2024 and Forecast, 2025 - 2031 ((Revenue, USD Mn) and Volume (000 Ltrs) |
| 10.1. By Source Analysis 2020 - 2024 and Forecast 2025 - 2031 by Revenue (USD Mn), Y-o-Y Growth (%), and Market Share (%) |
| 10.1.1. Grain Based |
| 10.1.2. Second Generation |
| 10.1.3. Sugar & Molasses Based |
| 10.2. Grade Analysis 2020 - 2024 and Forecast 2025 - 2031 by Revenue (USD Mn), Y-o-Y Growth (%) and Market Share (%) |
| 10.2.1. Industrial Grade |
| 10.2.2. Pharmaceutical Grade |
| 10.2.3. Food Grade |
| 10.2.4. Lab Grade |
| 10.3. Application Analysis 2020 - 2024 and Forecast 2025 - 2031 by Revenue (USD Mn), Y-o-Y Growth (%) and Market Share (%) |
| 10.3.1. Bactericide/Disinfectant |
| 10.3.2. Industrial Solvent |
| 10.3.3. Fuel/Fuel Additive |
| 10.3.4. Beverages |
| 10.3.5. Personal Care |
| 10.3.6. Others |
| 10.4. Country Analysis 2020 - 2024 and Forecast 2025 - 2031 by Revenue (USD Mn) Y-o-Y Growth (%) and Market Share (%) |
| 10.4.1. Germany |
| 10.4.2. UK |
| 10.4.3. France |
| 10.4.4. Spain |
| 10.4.5. Italy |
| 10.4.6. Russia |
| 10.4.7. Poland |
| 10.4.8. Rest of Europe |
| 10.5. Europe Ethanol Market - Opportunity Analysis Index, By Source, Grade, Application, and Country, 2024 - 2030 |
| 10.6. Europe Ethanol Market Dynamics Trends |
| 11. Asia-Pacific Ethanol Market Analysis, 2020 - 2024 and Forecast, 2025 - 2031 ((Revenue, USD Mn) and Volume (000 Ltrs) |
| 11.1. By Source Analysis 2020 - 2024 and Forecast 2025 - 2031 by Revenue (USD Mn), Y-o-Y Growth (%), and Market Share (%) |
| 11.1.1. Grain Based |
| 11.1.2. Second Generation |
| 11.1.3. Sugar & Molasses Based |
| 11.2. Grade Analysis 2020 - 2024 and Forecast 2025 - 2031 by Revenue (USD Mn), Y-o-Y Growth (%) and Market Share (%) |
| 11.2.1. Industrial Grade |
| 11.2.2. Pharmaceutical Grade |
| 11.2.3. Food Grade |
| 11.2.4. Lab Grade |
| 11.3. Application Analysis 2020 - 2024 and Forecast 2025 - 2031 by Revenue (USD Mn), Y-o-Y Growth (%) and Market Share (%) |
| 11.3.1. Bactericide/Disinfectant |
| 11.3.2. Industrial Solvent |
| 11.3.3. Fuel/Fuel Additive |
| 11.3.4. Beverages |
| 11.3.5. Personal Care |
| 11.3.6. Others |
| 11.4. Country Analysis 2020 - 2024 and Forecast 2025 - 2031 by Revenue (USD Mn) Y-o-Y Growth (%) and Market Share (%) |
| 11.4.1. Japan |
| 11.4.2. China |
| 11.4.3. India |
| 11.4.4. ASEAN |
| 11.4.5. Australia & New Zealand |
| 11.4.6. Rest of Asia-Pacific |
| 11.5. Asia-Pacific Ethanol Market - Opportunity Analysis Index, By Source, Grade, Application, and Country, 2024 - 2030 |
| 11.6. Asia-Pacific Ethanol Market Dynamics Trends |
| 12. Latin America Ethanol Market Analysis, 2020 - 2024 and Forecast, 2025 - 2031 ((Revenue, USD Mn) and Volume (000 Ltrs) |
| 12.1. By Source Analysis 2020 - 2024 and Forecast 2025 - 2031 by Revenue (USD Mn), Y-o-Y Growth (%), and Market Share (%) |
| 12.1.1. Grain Based |
| 12.1.2. Second Generation |
| 12.1.3. Sugar & Molasses Based |
| 12.2. Grade Analysis 2020 - 2024 and Forecast 2025 - 2031 by Revenue (USD Mn), Y-o-Y Growth (%) and Market Share (%) |
| 12.2.1. Industrial Grade |
| 12.2.2. Pharmaceutical Grade |
| 12.2.3. Food Grade |
| 12.2.4. Lab Grade |
| 12.3. Application Analysis 2020 - 2024 and Forecast 2025 - 2031 by Revenue (USD Mn), Y-o-Y Growth (%) and Market Share (%) |
| 12.3.1. Bactericide/Disinfectant |
| 12.3.2. Industrial Solvent |
| 12.3.3. Fuel/Fuel Additive |
| 12.3.4. Beverages |
| 12.3.5. Personal Care |
| 12.3.6. Others |
| 12.4. Country Analysis 2020 - 2024 and Forecast 2025 - 2031 by Revenue (USD Mn) Y-o-Y Growth (%) and Market Share (%) |
| 12.4.1. Brazil |
| 12.4.2. Mexico |
| 12.4.3. Argentina |
| 12.4.4. Rest of Latin America |
| 12.5. Latin America Ethanol Market - Opportunity Analysis Index, By Source, Grade, Application, and Country, 2024 - 2030 |
| 12.6. Latin America Ethanol Market Dynamics Trends |
| 13. Middle East and Africa Ethanol Market Analysis, 2020 - 2024 and Forecast, 2025 - 2031 ((Revenue, USD Mn) and Volume (000 Ltrs) |
| 13.1. By Source Analysis 2020 - 2024 and Forecast 2025 - 2031 by Revenue (USD Mn), Y-o-Y Growth (%), and Market Share (%) |
| 13.1.1. Grain Based |
| 13.1.2. Second Generation |
| 13.1.3. Sugar & Molasses Based |
| 13.2. Grade Analysis 2020 - 2024 and Forecast 2025 - 2031 by Revenue (USD Mn), Y-o-Y Growth (%) and Market Share (%) |
| 13.2.1. Industrial Grade |
| 13.2.2. Pharmaceutical Grade |
| 13.2.3. Food Grade |
| 13.2.4. Lab Grade |
| 13.3. Application Analysis 2020 - 2024 and Forecast 2025 - 2031 by Revenue (USD Mn), Y-o-Y Growth (%) and Market Share (%) |
| 13.3.1. Bactericide/Disinfectant |
| 13.3.2. Industrial Solvent |
| 13.3.3. Fuel/Fuel Additive |
| 13.3.4. Beverages |
| 13.3.5. Personal Care |
| 13.3.6. Others |
| 13.4. Country Analysis 2020 - 2024 and Forecast 2025 - 2031 by Revenue (USD Mn) Y-o-Y Growth (%) and Market Share (%) |
| 13.4.1. Gulf Cooperation Council (GCC) Countries |
| 13.4.2. Israel |
| 13.4.3. South Africa |
| 13.4.4. Rest of MEA |
| 13.5. MEA Ethanol Market - Opportunity Analysis Index, By Source, Grade, Application, and Country, 2024 - 2030 |
| 13.6. MEA Ethanol Market Dynamics Trends |
| 14. Competition Landscape |
| 14.1. Strategic Dashboard of Top Market Players |
| 14.2. Company Profiles (Introduction, Financial Analysis, Grade & Service Offerings, Key Developments, Strategies, and SWOT Analysis) |
| 14.2.1. Archer Daniels Midland Company |
| 14.2.2. Cargill Corporation |
| 14.2.3. Pacific Ethanol, Inc |
| 14.2.4. BioUrja Group |
| 14.2.5. Pacific Ethanol, Inc |
| 14.2.6. INEOS Solvents Germany GmbH |
| 14.2.7. Flint Hills Resources |
| 14.2.8. Alcool Ferreira SA |
| 14.2.9. Mitsubishi Chemical Corporation |
| 14.2.10. Andersons Ethanol Group |
| 15. Research Methodology |
| 16. Key Assumptions and Acronyms |
Key Market Players
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