The global market for bio-ethanol is expected to grow at a CAGR of more than 4% during the forecast period.
Major factors driving the growth of the market studied, is the increasing demand from the automotive industry, and increasing government initiatives. In case of the United States, specifically, uplifting restrictions on selling gasoline containing a higher percentage of ethanol in the country will be a major driver in the country.
On the flipside, shifting focus to bio-butanol and less mileage provided, when blended with more percentage of bio-ethanol, is going to somehow hinder the market growth.
The global bioethanol market is fragmented, with top seven companies having a share of ~30%. Some of these major players include POET LLC, Valero Energy Corporation, Archer-Daniels-Midland Company, Green Plains Inc., and Flint Hills Resources, LLC, among others.
Automotive and transportation industry dominated the market a with more than 80% of the total share.
Increasing consumption of Bio-fuels in the Aviation Industry is likely to act as an opportunity in the future.
North America dominated the market across the world, with the largest consumption from the United States.
Food & Beverages to Drive Market Growth
The best-known end-user of renewable ethanol, after the transport sector, is the drinks industry. Bio-ethanol is used in alcoholic beverages, such as vodkas, liquors, and other spirits for fermentation process. In recent times, bio-ethanol is one of the most desired fermentation products in beer brewing and wine-making.
Bio-ethanol is used as a natural product to extract and concentrate flavors and aromas, which are then used by the food and drink industry.
As a food additive, ethanol can help evenly distribute food coloring, as well as enhance the flavor of food extracts.
It can also be used in the production of cakes, such as in flavorings. For example, vanilla extract, a common food flavoring, is made by curing and processing vanilla beans in a solution of ethanol and water.
For instance, the baking industry plays an important role in the United States. There are more than 2,800 commercial bakeries and 6,000 retail bakeries operating in the United States.
Furthermore, the bakery industry in China has entered a period of rapid growth. In the coming years, the country is anticipated to become the largest producer and consumer of baked products.
Hence, the growth in drinks and bakery industries is expected to increase the demand for bio-ethanol for food and beverages applications in the coming years.
North America to Dominate the Global Market
North America region dominated the global market share. The United States is the largest producer of bio-ethanol, worldwide, followed by Brazil, China, and Canada. It is also the largest consumer of bio-ethanol.
In the recent years, bio-ethanol production increased as a result of higher renewable fuel standard (RFS) targets and growth in domestic motor gasoline consumption, almost all of which is now blended with 10% ethanol by volume.
Moreover, the US pharmaceutical industry is also expanding at a rapid pace. According to the Centre of Medicare & Medicaid Services (CMS), the US National Health Expenditure is projected to grow by an average of 5.5% annually over the next decade.
Driven by biofuel policies, which aim to reduce greenhouse gas (GHG) emissions and increase domestic energy supply, US production and consumption of bio-ethanol have doubled over the years.
The demand for bio-ethanol has improved over the decade in the region, owing to factors, such as rapid growth in corn-based bio-ethanol in the United States, advances in crop yields, efficient energy usage in fertilizer production, biomass-to-ethanol conversion rates, and energy efficiency in ethanol production,.
These factors are also expected to drive the market in North America, during the studied period.
Key Topics Covered
1 INTRODUCTION 1.1 Study Assumptions 1.2 Scope of the Report
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS 4.1 Drivers 4.1.1 Increasing Government Initiatives 4.1.2 Uplifting of Restrictions on Selling Gasoline Containing a Higher Percentage of Ethanol in the United States 4.2 Restraints 4.2.1 Shifting Focus to Biobutanol 4.2.2 Decline in Automotive Industry 4.3 Industry Value-chain Analysis 4.4 Porter's Five Forces Analysis 4.4.1 Bargaining Power of Suppliers 4.4.2 Bargaining Power of Consumers 4.4.3 Threat of New Entrants 4.4.4 Threat of Substitute Products and Services 4.4.5 Degree of Competition
5 MARKET SEGMENTATION 5.1 Feedstock 5.1.1 Sugarcane 5.1.2 Corn 5.1.3 Wheat 5.1.4 Other Feedstocks 5.2 Application 5.2.1 Automotive and Transportation 5.2.2 Food and Beverage 5.2.3 Pharmaceutical 5.2.4 Cosmetics and Personal Care 5.2.5 Other Applications (Power Generation and Fuel Cells) 5.3 Geography 5.3.1 Asia-Pacific 5.3.2 North America 5.3.3 Europe 5.3.4 South America 5.3.5 Middle-East and Africa
6 COMPETITIVE LANDSCAPE 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements 6.2 Market Share Analysis 6.3 Strategies Adopted by Leading Players 6.4 Company Profiles 6.4.1 Abengoa Bioenergy SA 6.4.2 Archer Daniels Midland Company 6.4.3 Cristal Union 6.4.4 CropEnergies AG 6.4.5 Ethanol Technologies (ETHTEC) 6.4.6 Flint Hills Resources 6.4.7 GranBio Investimentos SA 6.4.8 Green Plains Inc. 6.4.9 Henan Tianguan Group Co. Ltd 6.4.10 Husky Energy Inc. 6.4.11 INEOS Group AG 6.4.12 Jilin Fuel Ethanol Co. Ltd 6.4.13 Kraul & Wilkening U. Stelling GmbH 6.4.14 Lantmannen Agroetanol 6.4.15 Pacific Ethanol Inc. 6.4.16 POET LLC 6.4.17 Raizen Energia SA 6.4.18 SEKAB Biofuel Industries AB 6.4.19 SUNCOR Energy Inc. 6.4.20 Tereos SA 6.4.21 Valero Marketing and Supply Company 6.4.22 Verbio Vereinigte Bioenergie AG
7 MARKET OPPORTUNITIES AND FUTURE TRENDS 7.1 Increasing Consumption of Biofuels in the Aviation Industry