Global Industrial Ethanol Market: Country Overview; Value Chain Analysis; Production Process; Trade Analysis; Cost Structure; Market Dynamics: Drivers & Constraints, Industry Events, Innovations & Trends, SWOT Analysis, Porter’s Five Forces; Industry Best Practices: Sourcing Strategy, Procurement Model, Contract Structure, Negotiation Levers, Pricing Model; Key Supplier Analysis, 2024-2032

Customer Industrial Ethanol Industry Report by Regional Category Spend, Price Analysis, Key Demand, Price Indicators, and Best Buying Practices

The global industrial ethanol market reached a volume of about 8.88 billion litres in 2021. The industry is projected to grow at a CAGR of around 3.5% in the forecast period of 2022-2027 to reach a volume of 9.94 billion litres by 2027.

The industrial ethanol industry report comprehensively analyses the industry, including key segments, trends, drivers, restraints, the competitive landscape, and other essential market aspects. Industrial application of ethanol accounts for 7% of the total consumption of the product. The industrial ethanol industry is led by technological improvements and usage-specific advancements. The key demand indicator in the industry report is the highest category spender by region — North America.

Industry Definition and Segmentation

Ethanol also called ethyl alcohol, can be produced synthetically from petrochemical feedstock such as coal and oil derivatives or maybe organically obtained from starch and sugar sources like sugar cane, maize, sugar beet, wheat, rye, and potatoes. Ethanol is one of the greatest volumes of natural chemicals that are utilised in industrial and consumer commodities. The global industrial ethanol industry report comprises segments based on type (synthetic ethanol and bioethanol), raw material (1st generation feedstock (kernels and starchy crops biomass), 2nd generation feedstock T(industrial waste CO2) and petroleum-derived chemicals), application (transportation, energy, chemical, and others), and regions (Europe, North America, Asia Pacific, Latin America, and the Middle East and Africa).

North America and Latin America Regions are Driving the Growth of the Industry

The largest producer of industrial ethanol is the United States, followed by Brazil which manufactures a major part of the bioethanol globally. The market in North America is driven by the processing of industrial ethanol as an ideal material. Furthermore, the rising awareness of consumers regarding the utilisation of antibacterial commodities like hand sanitizer and cleaners for exterior areas to stop the spread and possible harm caused by viruses and bacteria is leading to the market development. Such products are produced by using industrial-grade ethanol and are gaining substantial demand specially among modern consumers.

The most important market driver responsible for the growth of the global ethanol market is the governing force towards the manufacturing of bioethanol. Rising awareness about decreasing carbon emissions and utilisation of substitute fuels is also driving the biofuel market. Steps such as technological advancements, application-based developments, digitalisation of operations, and modification as per the developing technologies in robotic mechanisms along with artificial intelligence are taken by the market players in the industrial ethanol market which is helping in furthering the growth of their business. In addition, capitalising on research and development to enhance the product range is acting as a critical growth factor in the short to medium term for the industrial ethanol industry.

Nevertheless, the important constraint for the global ethanol market is the inaccessibility of high-end equipment for ethanol production in emerging economies. Also, several countries are moving towards bioethanol and are shifting from their reliance on petroleum-originated ethanol.

Best Procurement Practices

The global industrial ethanol industry report by Procurement Resource gives an in-depth analysis of the best buying practices followed by industrial ethanol producing and utilising regions across the globe, such as contract terms, engagement models, and buyer and supplier negotiation levers, among others.

Category Management Studies

Ethanol can be produced by using innumerable procedures. The majority of ethanol globally is manufactured by the process of fermentation of crops (93%) with artificial ethanol (7%) which is produced by immediate hydration of ethene. An environmentally friendly and renewable alternative to ethanol, bioethanol, is made from biomass by hydrolysis and sugar fermentation methods. Bioethanol completely consists of biological products, and therefore, its incineration emits cleaner gas.

The Growth in Demand for Bio-Based Industrial Ethanol is Further Driving the Procurement of the Raw Material

Owing to the pervasive application of industrial ethanol as biofuel at present, the demand for industrial ethanol soared in the market. The U.S. is controlling the raw material segment because of the extensive demand for bio-based ethanol as a result of the federal government regulations that command the addition of ethanol in all fuels sold in the U.S. market. Due to the widespread biotechnological research in the region that needs a vast quantity of industrial ethanol the raw material segment in Germany is ruling the European market. China, in the Asia Pacific region, is leading the bio-ethanol segment because of the high demand for personal and self-care products such as hand sanitisers, oral care items that need ethanol for their manufacturing

The major zones in the industry are North America, Europe, Latin America, the Asia Pacific, and the Middle East, and Africa.

Key Industry Players Mentioned in the Industrial Ethanol Industry Report

• CropEnergies AG
• The Archer-Daniels-Midland Company
• Cosan S.A.
• Tereos
• Cargill Inc.

Market Landscape

The third-generation bio-ethanol feedstocks based on the raw material segment of industrial ethanol represent a promising raw material because of its numerous advantages over first and second-generation feedstocks. Similarly, the bio-ethanol segment has gained huge popularity in the past few years owing to the regulations and agreements signed by various governments to utilise substitute fuels and technologies to bring down global greenhouse gas emissions and alleviate climate change in the future.

Key Initiatives by Companies

• Albioma declared in February 2019 the industrial authorising of the first peak-load combustion turbine (CT) operating essentially on bioethanol as a feedstock in Saint-Pierre, Reunion Island. There are two types of fuels that work in the CT that is, bioethanol (80%) from the purification of sugarcane molasses, created locally at the Rivière du Mat distillery, and diesel fuel (20%), which is required to turn on the turbine.
• In August 2019, the Maharashtra state government pursued permission from the Central Government of India to authorise sugar-making factories based in Maharashtra to transform the sugar stock into ethanol.