Bioethanol Global Market Opportunities and Strategies to 2032

This report describes and explains the bioethanol market and covers 2017-2022, termed the historic period, and 2022-2027 termed the forecast period, along with further forecasts for the period 2027-2032. The report evaluates the market across each region and for the major economies within each region.

The global bioethanol market reached a value of nearly $37,802.9 million in 2022, having grown at a compound annual growth rate (CAGR) of 7.4% since 2017. The market is expected to grow from $37,802.9 million in 2022 to $63,326.2 million in 2027 at a rate of 10.9%. The market is then expected to grow at a CAGR of 12.5% from 2027 and reach $114,247.5 million in 2032.

Growth in the historic period resulted from increased demand for clean energy sources, increasing fuel costs, growing demand from the automotive and transportation sectors, emerging markets growth. Factors that negatively affected growth in the historic period were high investment cost and the COVID-19 impact.

Going forward, government support, global population growth and urbanization, shift to alternative sources of power generation, favorable regulations for blending ethanol, increasing research and development (R&D) activities, and increasing global awareness to reduce greenhouse gas emissions will drive the growth. Factors that could hinder the growth of the bioethanol market in the future include the Russia-Ukraine war impact and the rising demand for electric vehicles.

The bioethanol market is segmented by type into corn-based ethanol, sugarcane-based ethanol, cellulosic ethanol and other types. The corn-based ethanol market was the largest segment of the bioethanol market segmented by type, accounting for 57.9% of the total in 2022. Going forward, the sugarcane-based ethanol segment is expected to be the fastest growing segment in the bioethanol market segmented by type, at a CAGR of 11.2% during 2022-2027.

The bioethanol market is segmented by blend into E10, E20 and E25, E70 and E75, E85 and other blends. The E10 market was the largest segment of the bioethanol market segmented by blend, accounting for 81.8% of the total in 2022. Going forward, the E20 and E25 segment is expected to be the fastest growing segment in the bioethanol market segmented by blend, at a CAGR of 11.5% during 2022-2027.

The bioethanol market is segmented by production technology into dry mill and wet mill. The dry mill market was the largest segment of the bioethanol market segmented by production technology, accounting for 91.1% of the total in 2022. Going forward, the dry mill segment is expected to be the fastest growing segment in the bioethanol market segmented by production technology, at a CAGR of 10.9% during 2022-2027.

The bioethanol market is segmented by application into automotive and transportation, food and beverage, pharmaceutical, cosmetics and personal care and other applications. The automotive and transportation market was the largest segment of the bioethanol market segmented by application, accounting for 69.8% of the total in 2022. Going forward, the automotive and transportation segment is expected to be the fastest growing segment in the bioethanol market segmented by application, at a CAGR of 11.1% during 2022-2027.

North America was the largest region in the bioethanol market, accounting for 42.0% of the total in 2022. It was followed by South America, and then the other regions. Going forward, the fastest-growing regions in the bioethanol market will be Asia Pacific and the Middle East where growth will be at CAGRs of 13.3% and 12.6% respectively. These will be followed by South America and Western Europe where the markets are expected to grow at CAGRs of 11.2% and 10.2% respectively.

The global bioethanol market is fragmented, with a large number of players in the market. The top ten competitors in the market made up to 15.32% of the total market in 2022. CropEnergies AG was the largest competitor with 3.12% of the market, followed by Valero with 2.90%, Green Plains with 2.44%, Archer-Daniels-Midland Company with 1.85%, Tereos SCA with 1.57%, Raízen with 1.52%, Cristalco with 0.90%, Abengoa Bioenergy with 0.48%, POET with 0.29% and Alto Ingredients with 0.25%.

The top opportunities in the bioethanol market segmented by type will arise in the corn-based ethanol segment, which will gain $14,850.1 million of global annual sales by 2027. The top opportunities in the bioethanol market segmented by blend industry will arise in the E10 segment, which will gain $20,921.2 millions of global annual sales by 2027. The top opportunities in the bioethanol market segmented by production technology will arise in the dry mill segment, which will gain $23,306.2 million of global annual sales by 2027. The top opportunities in the bioethanol market segmented by application will arise in the automotive and transportation segment, which will gain $18,192.3 million of global annual sales by 2027. The bioethanol market size will gain the most in the USA at $8,168.2 million.

Market-trend-based strategies for the bioethanol market include investing in second-generation bioethanol, use of artificial intelligence, new plant expansions, collaborations and acquisitions, technological advancement, and product innovations.

Player-adopted strategies in the bioethanol market include expanding product applications, expanding production capabilities, and strategic partnerships and collaborations.

To take advantage of the opportunities, the analyst recommends the bioethanol companies to focus on second-generation bioethanol, focus on innovative product launches, focus on technologically advanced products, focus on fast-growing product types and blends, expand in emerging markets, focus on collaborations and partnerships, provide competitively priced offerings, participate in trade shows and events, focus on B2B promotions, focus on urban population, and focus on fast-growing applications.