Ethanol Market Evaluation With Focus On development & Trends 2018 – 2026


Ethanol commonly known as ethyl alcohol is colorless and flammable chemical compound with an agreeable odor and taste. It is renewable, and can be produced by the fermentation of starch and sugar based biological materials and cellulosic feedstock, such as sugarcane, wood, wheat, corn, and barley. Corn and starch based crops are majorly used for the production of ethanol. Ethanol is highly soluble in water and most of the organic solvent, due to this it is widely used as a solvent in various industries. Further, it is extensively used as a preservative in pharmaceutical industries and it is a major component in producing alcoholic beverages.

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Extensive usage of ethanol in automotive industry as a fuel or fuel additive, is propelling the demand for ethanol in the global market. The ethanol market has witnessed a rapid growth over the past 10 years due to rapid funding for biofuel by the regulating bodies, since biofuel is considered as an eco-friendly alternative for gasoline. Further, according to the U.S. National Geospatial-Intelligence Agency, one liter of ethanol significantly reduces CO2 emissions by more than 95%, thereby saving approximately 2.3 Kilograms of carbon dioxide (CO2). Further, ethanol is also responsible for reducing carcinogenic and particulate emissions by approximately 65% to 70%.

Ethanol finds application in end-use industries such as automotive, alcoholic beverages, pharmaceuticals, and cosmetics. Alcoholic beverages segment accounted for the largest share in terms of both revenue and volume, owing to increasing usage of ethanol in alcoholic beverages.

North America accounted for the largest market share in global ethanol market in 2016 and the same is anticipated to maintain its supremacy throughout the forecast period, with the U.S. being the major contributing country. According to the Renewable Fuels Association (RFA), the country exported close to 850 million gallons of ethanol to more than 50 countries.

Latin America is the second largest market for ethanol accounting for a share of more than 35% in terms of revenue. Brazil is the major contributor to the growth of the ethanol market in Latin America both in terms of revenue and volume. Raizen, GranBio, and Petorbras are some of the major ethanol producing companies based in Brazil.

Major Players in the Global Ethanol Market

Major players operating the global ethanol market include Cargill Inc., Archer Daniels Midland Company, Grain Processing Corporation, Ace Ethanol LLC, Advanced Bio Energy LLC, MGP Ingredients, Flint Hills Resources, Marquis Energy, and various others.

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About Author

Zarya Jones is a reporter for Oak Tribune. After graduating from NYU with a master degree in sociology, Zarya got an internship at WABC-TV New York and worked on profiling local businesses. Zarya was also a columnist for the NPR. Zarya mostly covers business and community events.