Bioethanol is a renewable, clean burning alternative fuel produced from agricultural feedstocks such as sugarcane, corn, and cellulosic biomass. It is used for transportation fueling and provides an alternative to gasoline. Bioethanol is blended with gasoline to reduce reliance on imported oil and lower vehicle emissions. The increasing blending mandates for biofuels by governments worldwide are driving the demand for bioethanol.
The global bioethanol market is estimated to be valued at US$ 13.7 Billion in 2024 and is expected to exhibit a CAGR of 9.8% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The increasing biofuel blending mandates by various governments are propelling the bioethanol market. Many countries have implemented biofuel blending mandates in their efforts to reduce carbon emissions from the transportation sector and support domestic biofuel industries. For instance, the U.S. Environmental Protection Agency has finalized the 2022 renewable fuel standard (RFS) volume obligations to require 19.28 billion gallons of conventional biofuel to be blended into the transportation fuel supply in 2022. Similarly, Brazil has an ethanol blending mandate of 27% and Thailand has a biodiesel mandate of B7. Such blending mandates are creating a steady demand for bioethanol and driving its market growth.
SWOT Analysis
- Strength: Bioethanol is a renewable fuel that provides an alternative to fossil fuels and helps reduce greenhouse gas emissions. It can be produced domestically from corn and sugarcane feedstocks.
- Weakness: Currently bioethanol production requires huge agricultural land and freshwater resources. Higher production costs and lower energy content compared to gasoline are also limitations.
- Opportunity: Strong government policies and mandates in major markets for promoting biofuel blending are creating new opportunities. Advancements in bioethanol production technologies from cellulosic sources can enhance sustainability.
- Threats: Fluctuations in agricultural commodity prices directly impact bioethanol production costs. Competition from other emerging alternative fuels also poses a threat.
Key Takeaways
The global bioethanol market is expected to witness high growth. The global bioethanol market is estimated to be valued at US$ 13.7 Billion in 2024 and is expected to exhibit a CAGR of 9.8% over the forecast period 2024 to 2031.
Regional analysis related content comprises Regional analysis related content Europe dominates the global bioethanol market currently due to stringent emission reduction targets and supportive policies. The Asia Pacific region is expected to grow at the fastest pace during the forecast period due to the rapidly growing fuel ethanol demand in China and India.
Key players related content comprises Key players related content Key players operating in the bioethanol market are CropEnergies, British Sugar, New Generation Biofuels Holdings, Inc., Vivergo Fuels Limited, Butalco GmbH, and Global Green SA. CropEnergies is one of the largest producers of sustainable bioethanol in Europe. British Sugar is a leading sugar producer and has significant experience in the cultivation of sugar beet and production of ethanol in the UK. New Generation Biofuels Holdings focuses on developing cellulosic ethanol technologies.
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