Ethanol Market By Type(Bio-Ethanol and Synthetic Ethanol), By Grade (Food Grade, Industrial Grade, Pharmaceutical Grade, and Fuel Grade), By End-Use Industry (Food & Beverages, Automotive, Healthcare, Textiles, and Cosmetics & Personal Care)–Global Analysis & Forecast 2020-2030.
Report ID : 326 | Published Date : Jul 2020 | Pages : 160 | Region : Global | Report Code : CM-32
Ethanol Market Overview and Introduction
Ethanol, also known as ethyl alcohol, is a colorless liquid that is commonly produced from natural sources such as corn; however, it can also be produced from the hydration of ethylene. Ethanol is highly flammable and its inhalation may lead to headache and coughing as per the Centers for Disease Control and Prevention (CDC). It can kill bacteria, fungi, and viruses due to which, it is used in sanitizers. The world is presently coping with the COVID-19 pandemic in which hand sanitizers play a vital role to prevent the infection. As a result, the demand for sanitizers has been exponentially increasing, thus propelling the demand for ethanol. Moreover, government regulations to manufacture sanitizers with more than 70% of alcohol content are further driving market growth.
Ethanol is considered to be one of the best bio-based fuels across the globe. Also, several regional governments have been undertaking initiatives to promote bio-based fuels in the automotive industry to reduce the carbon footprint, which is another factor driving this growth. Moreover, collaborations between alcoholic beverage producers and food-grade ethanol manufacturers will create new growth opportunities in the ethanol market during the forecast period.
However, fluctuations in raw material prices and the high costs associated with ethanol fuel as compared to other fuels are limiting market growth. Additionally, the low consumption of alcoholic beverages during the COVID-19 pandemic and the introduction of electric vehicles are the factors that may negatively impact market growth.
The global ethanol market can be segmented into type, grade, end-use industry and region.
Ethanol Market By Type
Based on type, the market can be segmented into bio-ethanol and synthetic ethanol. Bio-ethanol accounted for the largest market share in 2019 and expected to grow with the highest CAGR during the forecast period (2020-2030). Increasing environmental concerns across the globe are leading to the development of new policies by governments to reduce carbon emissions. This will fuel bio-ethanol market growth considerably. Additionally, the growing popularity of bio-based fuels in the automotive industry is supplementing bio-ethanol market growth.
Ethanol Market By Grade
Based on grade, the market can be segmented into food grade, industrial grade, pharmaceutical grade, fuel grade, and others. The food-grade segment accounted for the largest market share in 2019 owing to the growing consumption of alcoholic beverages, such as beer, rum, vodka, whiskey, and others, across the globe. Additionally, the increasing utilization of ethanol as a natural product for concentrating flavors and enhancing food smells are supplementing market growth.
Ethanol Market By End-Use Industry
Based on end-use Industry, the market can be segmented into food & beverages, automotive, healthcare, textiles, cosmetics & personal care, and others. The food & beverages segment held the largest market share in 2019 and is expected to continue its dominance during the forecast period. The growth of this segment can be attributed to the extensive utilization of ethanol for making alcoholic beverages such as beer, wine, and distilled spirits, among others. However, the automotive segment is expected to grow with the highest CAGR owing to the increasing adoption of ethanol as a fuel. Also, government initiatives to promote bio-based fuel are supplementing the growth of this segment.
Ethanol Market By Region
Based on region, the global ethanol market can be segmented into North America, Europe, Asia Pacific, and the Rest of the World (ROW).North America accounted for the largest market share in 2019 owing to the high production of ethanol for alcoholic beverages. Additionally, an upsurge in the adoption of bio-ethanol in the automotive industry as a fuel or fuel additive is supplementing regional growth. Asia Pacific is expected to grow with the highest CAGR during the forecast period. The growth for this region can be attributed to the growing utilization of industrial-grade ethanol in various end-use industries including textiles and paints & coatings. The increasing utilization of ethanol as a fuel due to environmental concerns is expected to propel market growth in the region.
Ethanol Market Prominent Players
Some of the prominent players in the ethanol market include ADM, POET, LLC, Valero Energy Corporation, Flint Hills Resources, Cargill Incorporated., The Andersons, Inc., and BP p.l.c., among others.