The global ethanol market is expected to grow at a high rate owing to the sustained increase in demand from the biofuels and food and beverage industries.
Growing consumer awareness of environmentally friendly products and supportive government policies are driving the growth of the ethanol market. The use of ethanol in industries such as automotive, chemicals, food and beverage, personal care, and cosmetics and pharmaceuticals continues to grow.
A focus on technological advancements and the development of low-cost raw materials is also driving growth. Amid the COVID-19 crisis, the global ethanol market is expected to reach US$100.3 billion by 2024, registering a compound annual growth rate (CAGR) of 6.2% over the period. ‘to analyse.
The United States is the largest regional market for ethanol, accounting for an estimated 45.1% share of the global total. The market is expected to reach US$45.3 billion by the end of the analysis period. China is expected to spearhead the growth and become the fastest growing regional market with a CAGR of 8.9% over the analysis period.
A major factor fueling the growth of the ethanol market is the growing importance of ethanol as a fuel or fuel additive in the automotive industry. Ethanol fuel offers advantages due to low carbon monoxide products over gasoline engines.
Adding ethanol to fuel is also propelled by its ability to burn much cleaner than pure gas, making it easier to reduce the carbon footprint. Ethanol is widely used in the production of alcoholic beverages such as cider, beer, beer, and wine. Ethanol is also used as a natural product to extract and concentrate flavors and aromas in soft drinks.
Soaring crude prices and growing concerns about greenhouse gases are expected to drive demand for ethanol in both developed and developing countries over the next few years. In addition, the ban on MTBE in several countries, including the United States, is another boon for the ethanol market. The demand for ethanol is also increasing in the food industry in the United States
High consumption of processed, packaged and frozen foods and high consumption of alcoholic beverages are driving the demand for ethanol. With growing environmental concerns and the depletion of fossil fuel sources affecting fuel supplies, regional governments in countries such as China, India, Vietnam and Thailand are encouraging the use of alternatives such as fuel ethanol.