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Ethanol Market - Growing Government Initiative Expected to Lead Market Growth – Growing at a Compound Annual Growth Rate (CAGR) 4.5% from 2022 to 2028

As stated in our extensive report; providing insights on Key Drivers, Key Restraints, Segments (i.e., By Source, Purity, Application and Region); the Global Ethanol Market accounted for USD 90.3 Billion in the year 2021.

Ethanol is a plant-based fuel manufactured from corn and other plants. Ethanol is widely used, with Ethanol present in more than 98 percent of gasoline sold in the United States. E10 is the most prevalent Ethanol blend (10 percent Ethanol, 90 percent gasoline). Many alcoholic beverages, such as beer, wine, and distilled spirits, contain Ethanol as an intoxicating element. Hence, the growing consumption of alcoholic beverages is a principal component assisting the market growth.

Ethanol can be manufactured from each natural as well as petrochemical feedstock. Natural sugars are fermented in the presence of yeast in the natural process. Ethylene production is increasing owing to the upward push in shale gas production. As oil output reduces and new ethylene capacities come online the market is anticipated to overstock with ethylene, which is expected to deliver stagnancy in the production of Ethanol.

“Key Factors Likely to Drive Growth of Ethanol Market”

The utility of Ethanol as a biofuel is one of the major market drivers. The automotive industry has grown rapidly during the last years and has confronted many problems to control air pollutants. Ethanol is mixed with gasoline in up to concentrations of 10% and 15% to tackle the trouble of growing air pollutants as a result of automobiles. The addition of Ethanol gives major advantages in terms of improved fuel economy, expanded thermal efficiency, and helps cold starts during the winter season. U.S. and Brazil are the nations which are main the world, in phrases of the utility of Ethanol as biofuel.

Other major elements riding the market are the growing government initiativesand uplifting of regulations on marketing fuel, containing a better percentage of Ethanol in the United States. Over the quick term, growing demand for bioethanol mixing in fuel and growing government projects to provide and use greener fuels, like bio-Ethanol, are riding the market’s growth. Also, increasing the intake of biofuels like bioethanol in the aviation industry is possible to create possibilities for the market in the coming years.

Asia Pacific is expected to witness fastest growth in the Global Ethanol Market during the forecast period. This is due to the increasing fuel consumption along with increased industrial activities in the region.

Some of the key players in the Global Ethanol Market include- United Breweries, Aventine Renewable Energy, AB Miller, Archer Daniels Midland Company, Kirin, Pure Energy Inc., British Petroleum, Cargill Corp., and others.