Bioethanol Market - Global Industry Insights, Trends, Outlook and Opportunity Analysis 2017-25

Bioethanol is a colorless, renewable and environment friendly fuel with a high octane number derived from natural production technology such as fermentation, distillation, rectification, and dehydration. The emissions released due to the burning of ethanol are less volatile with sunlight than those produced by combustion of gasoline. This in turn results in lesser harm to the ozone layer. Another benefit of bioethanol is that any plant containing sugar and starch can be used for the production of bioethanol. However, during the manufacturing of bioethanol, a large amount of carbon dioxide is released, which harms the environment.

Mounting demand for vehicles, environmental concerns and the renewable nature of bioethanol are major drivers for the bioethanol market. A major hurdle for the market is the high investment and production costs. The Food vs Fuel debate regarding the use of agricultural land for the production of bioethanol is a major hindrance to the growth of the bioethanol market. However, the bioethanol producers have now begun using feedstock from agricultural land that is not profitable for food crop cultivation.

Bioethanol Taxonomy

By application

  • Feedstock
  • Fuel
  • Food

By source

  • Maize
  • Corn
  • Wheat crops
  • Waste straw
  • Reed canary grass
  • Cord grasses
  • Jerusalem artichoke
  • Potatoes
  • Others

 By blend

  • E10
  • E20 & E25
  • E70 & E75
  • E85
  • Other

By end user

  • Automobile
  • Energy
  • Petrochemical
  • Fuel
  • Medical
  • Others

Bioethanol is used as a fuel for transport, power generation, feedstock in chemical industry, fuel for fuel cells and in cogeneration systems, in manufacturing processes due to its clean burning ability and easy availability. Bioethanol is presently blended with gasoline in varying concentrations to be used as fuel. The first generation fuels are directly produced from food crops. Second generation fuels are produced from lignocellulose and waste products, while third generation fuels are produced from feedstock such as micro algae and fourth generation fuels are produced from algae and microorganisms capable of absorbing and converting CO2 to bioethanol.

Market Outlook

  • North America is home to one of the largest bioethanol markets, mainly due to favorable government and environmental regulations particularly in the U.S. Moreover, technological developments and swiftly emerging automotive industry is projected to add significantly towards rising consumption in this region.
  • Latin America is expected to provide ample opportunity for bioethanol market due to the accessibility of arable land and high soil productivity in Brazil and Columbia. High production of sugar cane in Brazil is likely to increase the production of these fuels in this region.
  • In Europe, the EU aims to achieve 10% transport fuel derived from renewable sources such as bioethanol for every member country. Blending obligations of bioethanol with fossil fuels and growing demand for energy from European countries such as France, Germany, Sweden, Netherlands, Belgium and Spain are expected to increase the use of this bioethanol in Europe. Rising import bills as a result of oil importations is expected to influence countries to shift to this cleaner and cheaper fuel alternative in the near future.
  • Asia Pacific is expected to provide ample growth opportunities for bioethanol market on account of large population and availability of fertile land in countries such as India, Thailand, and China. Moreover, India being an agricultural country is in turn projected to contribute significantly towards the development of this fuel.

Bioethanol is a striking option to fossil fuel sources due to its high octane value and lower greenhouse gas emissions. With the increasing population and the need to reduce the effect of greenhouse gases along with the various environmental regulations, the future for the bioethanol market seems bright. For bioethanol to substitute petrol, the manufacturing procedure has to be more cost-effective coupled with an increase in yields and diversity of crops used. However, with an increase in demand for bioethanol, production in emerging countries is suspected to have diverted farmlands away from edible harvests, thus increasing food costs for poor patrons. Major producers in the bioethanol market include CropEnergies, British Sugar, New Generation Biofuels Holdings, Inc., Vivergo Fuels Limited, Butalco GmbH, and Global Green SA.

Research Methodology

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  • Primary Research (Trade Surveys and Experts Interviews)
  • Desk Research
  • Proprietor Data Analytics Model

In addition to this, Coherent Market Insights has access to a wide range of the regional and global reputed paid data bases, which helps the company to figure out the regional and global market trends and dynamics. The company analyses the industry from the 360 Degree Perspective i.e. from the Supply Side and Demand Side which enables us to provide granular details of the entire ecosystem for each study. Finally, a Top-Down approach and Bottom-Up approach is followed to arrive at ultimate research findings.

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Coherent Market Insights desk research is based on a principle set of research techniques:

  • National level desk research: It Includes research analysis of regional players, regional regulatory bodies, regional trade associations, and regional organization.
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Coherent Market Insights has a large amount of in-house repository of industry database. This is leveraged as a burner for initiating a new research study. Key secondary sources include:

  • Governmental bodies, National and international social welfare institutions, and organizations creating economic policies among others.
  • Trade association, National and international media and trade press.
  • Company Annual reports, SEC filings, Corporate Presentations, press release, news, and specification sheet of manufacturers, system integrators, brick and mortar - distributors and retailers, and third party online commerce players.
  • Scientific journals, and other technical magazines and whitepapers.
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Preliminary Data Mining

The raw data is obtained through the secondary findings, in house repositories, and trade surveys. It is then filtered to ensure that the relevant information including industry dynamics, trends, and outlook is retained for further research process.

Data Standardization:

Holistic approach is used to ensure that the granular and uncommon parameters are taken into consideration to ensure accurate results. The information from the paid databases are further combined to the raw data in order to standardize it.

Coherent Statistical model

We arrive at our final research findings through simulation models. Coherent Data Analytics Model is a statistical tool that helps company to forecast market estimates. Few of the parameters considered as a part of the statistical model include:

  • Micro-economic indicators
  • Macro-economic indicators
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  • Technology indicators

Data Processing

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Data Validation

This is the most crucial stage of the research process. Primary Interviews are conducted to validate the data and analysis. This helps in achieving the following purposes:

  • It provides first-hand information on the market dynamics, outlook, and growth parameters.
  • Industry experts validates the estimates which helps the company to cement the on-going research study.
  • Primary research includes online surveys, face-to face interviews, and telephonic interviews.

The primary research is conducted with the ecosystem players including, but not limited to:

  • Raw Material Suppliers
  • Manufacturers
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  • Distributors
  • End-users

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