Ethyl Alcohol Market is forecast to reach $24 billion by 2025, after growing at a CAGR of 6.03% during 2020-2025. Increasing demand for ethanol as a biofuel, expanded use in the manufacture and storage of alcohol and strict government regulations to limit the use of fossil fuels. On the flip side, a rise in understanding of alcohol consumption’s ill effects and the introduction of hybrid electric cars is expected to hamper market growth.
- In 2018, the fuel category dominated the market and is likely to grow over the forecast period as a result of increased ethanol mixing practice with gasoline worldwide.
- Over the forecast period, the rising demand for ethanol from maize and sugar is expected to provide prospects for the industry being studied.
- Due to increasing restrictions and rising demand for the food processing sector, North America dominated the market worldwide.
By Grade- Segment Analysis
Several grades ethanol are commonly used in specific industrial applications and vary in the amount of impurities present. Commercial goods are used to color food products, alcoholic or non-alcoholic drinks, cosmetics and personal care, pharmaceuticals, printing inks, organic additives, and paints and coatings.The other segment includes ethanol fuel-grade, which is largest grade around the globe. Continuous technological developments, the involvement of major market actors, and stringent regulations on greenhouse gas emissions push substantial usage of fuel-grade material.
By Application – Segment Analysis
Market segmentation of applications covers shipping, textiles, food safety, climate, connectivity, accommodation, leisure, health & hygiene, bio-medical, farming and others. Big demand comes from the requirement of transportation.The demand is classified into maize starch, sugarcane, rapeseed, corn, rice and soy bean centered on the origin. At a dominant level, North America uses maize starch and South America uses sugar cane as feed stock. The ethanol market in Europe is based on rapeseed crops.
Geography- Segment Analysis
During the forecast period, North America is expected to dominate the ethyl alcohol market
due to growth in ethyl alcohol production, increased imports of ethyl alcohol through countries such as the U.S., Canada, and Mexico.Asia Pacific, however, is projected to emerge as the fastest growing area on the ethyl alcohol market during the forecast period due to increased customer disposable income, increased demand for ethyl alcohol to be used as a gas, broad-scale acceptance of ethyl alcohol across the region’s numerous end-user industries, and so on.
Drivers –Ethyl Alcohol Market
- Fuel Segment to Dominate the Market Demand.
Due to its renewable source and eco-friendliness with lower emissions, ethanol is gaining support for use as a gas. Ethanol has a higher number of octane than oil, having superior blending properties. To reach the regular 87 octane, low-octane fuel is blended with 10 percent ethanol. Similar with gasoline engines, the output of carbon monoxide from ethanol fuel is significantly lower. Moreover, refiners have been introducing ethanol to gasoline for the past several years, as it burns better than natural oil, helping to reduce the carbon footprint. The use of ethanol as a fuel also helps to reduce the dependence on oil.Therefore, all such market trends in the forecast period are likely to drive demand for ethanol for fuel usage.
Challenges – Ethyl Alcohol Market
- Biomass Ethanol Production Faces Challenges.
From a production point of view, the processing of biomass ethanol is more efficient if concurrently using a variety of biomass sources. Choosing not to use a combination of products limits production’s economic viability. Capturing this benefit, however, complicates the choice of location and procurement strategy for a commercial plant.Many corn-based ethanol supporters argue that there are complementarities to be achieved by co-locating a plant which produces corn grain ethanol and a plant which produces biomass ethanol.Technological and economic difficulties are met with the development of biomass and cellulosic ethanol. The performance has risen much slower than expected to date. Biomass ethanol was initially seen as an alternative to corn ethanol that was more socially desirable. Though biomass ethanol has several advantages over maize ethanol, it does not in any way overpower maize ethanol.
Technology launches,acquisitions and R&D activities are key strategies adopted by players in the Ethyl Alcohol market. In 2019, the market of Ethyl Alcohol has been consolidated by the top five players accounting for xx% of the share. Major players in the Ethyl Alcohol Market are Archer Daniels Midland Company, POET, Valero, Green Plains Inc., and Flint Hills Resources LP, among others.
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