In terms of revenue, the Global Ethanol Market is expected to reach USD 117.5 Billion by 2028, growing at a Compound Annual Growth Rate (CAGR) of 4.20% from 2022 to 2028.
In recent years, changing lifestyle and disposable income among the global population the consumption of alcohol beverages is growing. The consumption of alcohol beverages has increased up to 12.3L per person in 2020 to 14.6L per person in 2021. This has increased the demand for alcohol beverage companies to invest more in their business. As Ethanol is the basic raw material required the demand for it is increasing rapidly.
Key Highlights from Report:
- The synthetic Ethanol sub-segment of the type of segment is anticipated to dominate the Ethanol Market. Synthetic Ethanol is the most east and efficient way for manufacturing and abundantly used in producing alcoholic beverages. It is also used in sanitizer production and thus helps in the segment to grow during the forecast period.
- The 1st generation feedstock sub-segment of the raw material segment is accounted for the largest market share in 2021 for the Ethanol Market. Majority of the raw materials used to produce Ethanol is derived from crop derivatives. As beverage companies require pure source of Ethanol to extract alcohol they prefer 1st generation feedstock. Thus, this segment is expected to grow at an increasing pace in coming years.
- North America is the largest regional segment. This surge is attributed to the rising demand for Ethanol in developed economies such as the U.S. and Canada. The growing beverage industry and key market players drive this region.
In recent years, the growth of industrialization and urbanization has demanded for the growth of Ethanol manufacturing. Ethanol being the most important raw material for producing alcoholic beverages, it has other uses in the manufacturing industry such as chemical extraction, oil & gas industry, source for biofuel which helps reducing carbon monoxide percentage after combustion. Exports of Ethanol fell as well, as the combination of lower world-wide transportation fuel demand and increased protectionism drove exports to a disappointing 1.3 billion gallons, a five-year low. While the decreased demand caused by the pandemic is understandable, the rising protectionism is inexcusable. U.S. government efforts to remove trade barriers in China, Brazil, and elsewhere proved futile as countries chose to sacrifice consumer savings in favour of pleasing special interests.
North America dominated the Global Ethanol Market in 2021 and is likely to continue the same trend during the forecast period. This region has the most advanced manufacturing and diversified industrial system. Also, growing technological advancements with the availability of surplus knowhow over the years makes this region prominent for the market to flourish in coming years. On the other hand, developing countries such as India, China and Indonesia are showing huge potential to manufacture Ethanol in their respective organizations. However, insufficient funds, lack of skilled labour and social issues make it difficult for the market to grow.