Ethanol Market Revenue Forecast | CAGR Analysis to 2034

1. Global Ethanol Market Size, Share | CAGR of 6.0% Report Overview: The Global Ethanol Market is projected to reach approximately USD 180.3 billion by 2034, up from USD 100.7 billion in 2024, expanding at a compound annual growth rate (CAGR) of 6.0% during the forecast period from 2025 to 2034. The global ethanol market is experiencing steady growth, driven by rising demand for cleaner, renewable energy sources and sustainable industrial applications. Ethanol, a bio- based alcohol primarily produced from crops like corn, sugarcane, and biomass, is widely used as a fuel additive, solvent, and key ingredient in personal care, pharmaceuticals, and beverages. Its role in reducing greenhouse gas emissions and supporting energy independence makes it increasingly important across global markets. With supportive government policies, advancements in biofuel technologies, and expanding applications in both energy and non- energy sectors, the ethanol market is expected to see consistent expansion in the coming years. Key Takeaways: The Global Ethanol Market is projected to grow from USD 100.7 billion in 2024 to USD 180.3 billion by 2034, at a 6.0% CAGR. Synthetic ethanol dominates the market by type, holding over 71.2% share due to cost-effective production and industrial use. Denatured ethanol leads in purity, capturing 59.2% share, driven by its use in industrial and fuel applications. Corn is the top source for ethanol, holding a 48.2% share, supported by strong biofuel demand and agricultural infrastructure. Fuel is the largest application segment, with a 41.1% share, as ethanol is widely used as a renewable fuel additive. North America leads the ethanol market with a 48.2% share, generating USD 48.5 billion, driven by the U.S. as the top producer and consumer.

2. Download Exclusive Sample Of This Premium Report: https://market.us/report/ethanol-market/free-sample/ Key Market Segments: By Type Synthetic Ethanol Bioethanol By Purity Denatured Undenatured By Source Corn Sugarcane Wheat Cellulose Petrochemical Others By Application Pharmaceuticals oAPI oDisinfectants

3. oHerbal Medicinal Products oSyrups oOthers Fuel oE5 oE10 oE15 to E70 oE75 and E85 oOthers Personal Care and Cosmetics oPerfumes and Fragrances oHair Care oHygiene Products oSkin Care oOthers Beverages Chemicals Others Drivers The global ethanol market is primarily driven by increasing demand for cleaner and renewable energy sources. One of the key drivers is the widespread adoption of ethanol- blended fuels in the transportation sector. Governments around the world are mandating ethanol-gasoline blends such as E10, E15, and even E20 to reduce greenhouse gas emissions and dependence on fossil fuels. This regulatory push is particularly strong in countries with large agricultural bases and ambitious decarbonization goals. The abundance of agricultural feedstocks such as sugarcane, corn, wheat, and other biomass materials has also supported ethanol production, especially in regions with well-established farming and biofuel infrastructure. As food grain surpluses grow in some economies, surplus crop use for bioethanol becomes an effective waste-to-value strategy, aligning with circular economy principles. Additionally, the rising demand for bio-based chemicals and solvents across industries such as pharmaceuticals, cosmetics, paints, and personal care has expanded ethanol’s applications beyond just fuel. Ethanol’s role as a low-toxicity, biodegradable solvent makes it a preferred choice in formulations that aim to reduce the use of petroleum-based ingredients. The COVID-19 pandemic also played a temporary role in increasing industrial ethanol demand, particularly for use in hand sanitizers and disinfectants. Though demand in this area has stabilized, it has introduced ethanol to new product segments, thereby sustaining long- term interest. Restraining Factors Despite the growing momentum of the global ethanol market, several restraining factors continue to hinder its full potential. One of the most significant challenges is the volatility of feedstock prices. Ethanol is primarily produced from agricultural commodities such as corn,

4. sugarcane, and wheat. Any fluctuation in crop yields due to weather patterns, natural disasters, or geopolitical instability can disrupt supply chains and lead to increased production costs, which directly affect ethanol pricing and profitability. Another major limitation is the ongoing debate around the food-versus-fuel dilemma. The use of edible crops for biofuel production raises ethical and economic concerns, particularly in regions where food insecurity is an issue. Allocating agricultural land and resources to fuel rather than food can drive up food prices, triggering opposition from civil society and policy adjustments that could impact ethanol production quotas. Infrastructure constraints also limit the scalability of ethanol, especially in countries lacking efficient distribution networks for ethanol-blended fuels. Many regions still lack adequate blending stations, pipelines, and refueling infrastructure, which makes it difficult for ethanol to reach its intended markets at scale. Retrofitting existing fuel stations or vehicles to support higher ethanol blends involves significant investment, which some regions may not prioritize. In addition, ethanol’s lower energy density compared to gasoline reduces fuel efficiency per liter, making it less attractive to consumers when crude oil prices are low. This can reduce demand, especially in cost-sensitive markets where price per distance traveled matters more than sustainability. Opportunities The global ethanol market presents significant opportunities across multiple sectors, especially as the world shifts toward low-carbon and bio-based economies. One of the most promising opportunities lies in the development and scaling of second-generation (2G) ethanol, which uses non-food biomass such as agricultural residues, forestry waste, and municipal solid waste. This not only reduces competition with food crops but also supports sustainable waste management practices. Governments and research institutions are increasingly supporting the commercialization of such technologies, making 2G ethanol a focal point for innovation and investment. Another major opportunity is the growing demand for ethanol as a bio-based chemical feedstock. Ethanol can be used to produce ethyl acetate, acetic acid, and other organic compounds that are integral to the pharmaceutical, cosmetic, and chemical industries. As companies seek greener raw materials, ethanol’s biodegradable and non-toxic nature gives it a competitive edge in sustainable manufacturing. The expansion of ethanol blending mandates in developing countries also opens new avenues. Nations in Asia, Latin America, and Africa are exploring ethanol blending programs not only to reduce greenhouse gas emissions but also to improve energy security by reducing dependency on imported oil. These emerging markets offer untapped growth potential for both domestic ethanol production and international trade. Aviation biofuels represent another frontier for ethanol use. Research and pilot projects are underway to convert ethanol into jet fuel components, which could help decarbonize a hard- to-abate sector. As global aviation regulators and airlines commit to net-zero targets, the role of ethanol in sustainable aviation fuel (SAF) could expand significantly.

5. Trends One of the strongest trends is the shift toward second-generation ethanol, derived from non- food biomass like agricultural and forest residues. Crop residues are becoming preferred feedstocks, especially in North America, Europe, and Asia-Pacific, thanks to their lower environmental impact and cost. For instance, North America sourced about 60% of its cellulosic ethanol from corn stover in 2022, while Asia-Pacific production is projected to grow significantly in the same period Prices and inclusion mandates are changing composition strategies: Brazil recently bumped up its ethanol blend in gasoline from 27% to 30%, prompting a boom in corn ethanol production up by roughly 31% in the 2024/25 season to meet demand. Meanwhile, India’s Ethanol Blended Petrol program reached 16.2% EBP in 2024, up from 14.6% the previous year, supported by over 17,400 E20 fuel stations. Another major development is ethanol’s expansion into sustainable aviation fuel (SAF). The emergence of ethanol-to-jet facilities, like the U.S. plant set to produce 250 million gallons annually, underscores ethanol’s emerging role in cutting aviation emissions. On the industrial front, ethanol is seeing increased use in biochemical and solvent applications. Some 7.4 billion liters were used in sectors like disinfectants, cosmetics, and cleaning within 2024 a clear sign of diversification beyond fuel. Market Key Players: The Archer Daniels Midland Company POET, LLC Valero Energy Corporation Green Plains Advanced BioEnergy LLC Cargill, Incorporated INEOS HBL LyondellBasell Industries Sasol Marquis Energy LLC Pannonia Bio BIOAGRA SA Balrampur Chini Mills Ltd Shree Renuka Sugars Ltd The Andersons Inc. Bajaj Hindusthan Limited Triveni Group Raízen Conclusion The global ethanol market is steadily expanding, supported by increasing demand for cleaner fuels, sustainable industrial chemicals, and bio-based alternatives. As countries seek to reduce carbon emissions and move toward greener energy policies, ethanol plays a critical role as a

6. renewable fuel additive and environmentally friendly solvent. The market benefits from its versatility across various sectors, including transportation, pharmaceuticals, personal care, and food processing. Additionally, technological advancements in ethanol production such as second-generation bioethanol from agricultural waste are improving yield efficiency and reducing dependency on traditional feedstocks. This not only promotes circular economy practices but also ensures long-term supply chain resilience. Regulatory support, along with growing consumer awareness about environmental impacts, continues to strengthen the global demand for ethanol.