Bioethanol Market: Overview

The Bioethanol Market is expected to grow from USD 10.5 billion in 2024 to USD 17.7 billion by 2033, with a CAGR of 5.06% during the period of 2025 to 2033. Concerns regarding climate change and the need to become self-sufficient in energy and reduce the use of fossil fuels are speeding up the adoption of bioethanol fuels as a renewable bioethanol alternatives. Many Governments across the globe are formulating and implementing favorable policies and blending mandates along with other incentives aimed at the promotion on use of bioethanol especially on the bioethanol in the transport industry. Improved technology in enzymatic hydrolysis and fermentation as well as in the other second-generation biofuels are increasing productivity and also widening the feedstock base to agricultural residues, wastes, and non-food crops. This transition aids in the achievement of Circular Economy as well as ecological sustainability.

Also, bioethanol is an important component to aid the fight against carbon emissions, having been adopted mainly by the automative industry, which uses it to make ethanol fuels blended with gasoline. Other sectors like chemicals and pharmaceuticals are also adopting bioethanol rapidly as a green solvent and feedstock, while other industries like beverages and personal care are benefiting from bioethanol versatility. Even with the limited adoption, the increasing demand for marine biofuels and sustainable aviation fuels (SAF) is still promising new prospects for the industry. Owing to the integration of smart agricultural practices, bioethanol is likely to make a remarkable impact together with other biotech innovations and expanding global trade networks in the achievement for global energy purposes; clean, scalable and resilient energy systems.

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Market Dynamics:

Drivers:

Innovative Feedstock Utilization 

Key industry operators' innovative feedstock utilization is fast-tracking the relevance of the bioethanol market. Companies that use waste streams as a feedstock are increasing sustainability and production resiliency. In May 2025, India's largest dairy cooperative, Amul, successfully carried out a scaled-up demonstration converting whey, a traditionally wasted item of cheese production and paneer, into bioethanol, recovering 20,000 litres of 96.71% ethanol from 450,000 litres of whey. The project had spawned plans for an investment of Rs 70 crores for a new plant with a daily capacity of 50,000 liters with a circular economy model and strengthening the rural farmer's income.

• Biotech Approvals and Efficiency Gains 

Within matured firms, corporate partnerships and regulatory approvals are empowering production capabilities. These moves strengthen industry capacity and competitive advantage. In June 2025, Danisco (India) Pvt. Ltd. received approval from India’s Genetic Engineering Appraisal Committee (GEAC) to import 2,000 metric tonnes annually of a custom-made GM yeast, Synerxia Jade, for ethanol production. This milestone enabled Danisco to greatly improve fermentation efficiency while adhering to enhanced biosafety protocols, which in turn allowed the firm to significantly augment bioethanol manufacturing operational capabilities.

Restraints:

• Curbs on Operations and Plant Closures

ABF's Vivergo Fuels will have to shut down its Hull-based biofuel plant and exepctedly so. Associated with bioethanol production, ABF, along with the UK government have fought real battles during trade negotiations with the US. Fujitsu's hull plant for Bioethenol would have continued operations if it wasn't for the tariffs on US bioethenol. Leaving trade deal tariffs on US bioethanol will cost the UK. The deal includes tariffs on US ethanol bioethenol. The UK would lose for subsidizing ethanol which remains excess in the US, if the UK also exers subsidizing ethanol, the cost will be too high. This cost will come across refineries. The Vivergo fuels and the refineries will have to bear the burden. Nullifying the trade and policies will cost jobs directly, with larger impacts on the corporate investment. Roughly 20 billion dollars worth of direct jobs stand to lose along with the 3 billion dollars worth of subsidized jobs connected to the refineries.

Opportunities:  

• Expansion Into Market Aviation Fuel 

Market Aviation Fuel serves as an excellent example of proposed expansion of aviation fuel production through the domestic ethanol producer focal point of supply stream diversification and sustaining operations. The RTFA proposed changes to the SAF mandate to include UK made crop-based ethanol and biofuels and the output of Ensus and Vivergo. While the mandate still predominantly favors HEFA based fuels, the crop-based ethanol expansion serves as additional relief supply for torching bioethanol producers.

Challenges:  

• Misuse of Subsidy and Unfair Competition 

The problem is that substantial actors take advantage of the regulatory incentives intended to foster sustainability, undermining both the legitimacy of the industry and the level-playing-field. All of these activities confuse markets and add pressure to peer operations. In May 2025, Archer Daniels Midland (ADM) was reported to have claimed double credits under the UK's biofuel subsidy scheme for ethanol produced from a corn by-product which domestic companies argued should not be considered "waste". This brought about objections from companies such as Associated British Foods, which felt that the practice was defeating the purpose of subsidies and that there was unfair competition between compliant producers in an already strained market.

Segmentation Analysis: 

The Bioethanol Market has been segmented based on Type, Fuel Blend, Generation, End Use Industry, and regions. 

By Type 

The types of bioethanol are Starch based Bioethanol, cellulosic bioethanol, sugarcane-based bioethanol, and the rest. In 2024, sugarcane-based bioethanol types dominated the market, accounting for over 42.5% of the share. This is due to the large-scale sugarcane farming in Brazil and government mandates for blending ethanol as the main transport fuel. Those agriculture regions selling starch bear crops will attempt selling sugarcane and its products due to the value of sugarcane agro products and the lower cost transport of ethanol exports. Promising cellulosic bioethanol remains 

By Fuel Blend 

Fuel blends include E10, E20, E25, E70 and E75, E85, and more. E10 captured almost 46.0 % of market share in 2024, the highest of any fuel blend. This is due to its use as a standard fuel blend in several countries including the U.S., India, and some European countries, where policies allow ethanol blending up to 10%, as a result of regulation policies supporting ethanol blending up to 10% . E10 due to its ethanol concentration is also widely accepted because it does not require any modifications to most traditional cars, thus is embraced by most drivers as well as automakers.

By Generation 

Bioethanol production splits in First, Second, and Third Generation. In 2024, First Generation Ethanol accounted for as much as 64.8%. This segment leads due to its reliance on inexpensive raw materials and established production infrastructure, as is the case with sugarcane and corn. In addition, Brazil, India, and the U.S government policies and supports continue to promote this production methods, ensuring its scalability and commercial viability against the second and third generation technologies which are advanced, but still developing.

By End Use Industry 

The primary industries which will use these are Automotive and Transportation, Power Generation, Pharmaceutical, Food and Beverage, Cosmetics and Personal Care, and Others. In 2024, the Automotive and Transportation sector retained its first place standing by attaining nearly 58.2% share. Their top position is because of government driven blending requirements for gasoline, with countries such as the U.S. and India focused on ethanol as a way to cut down on carbon emissions and reliance on fossil fuels. The sector is for the most part driven by increasing use of E10 and E20 blends in passenger vehicles, confirming its status as the world’s largest consumer of bioethanol. 

Bioethanol Market - By Regional Analysis:

The regions analyzed for the Bioethanol Market include North America, Europe, APAC, LATAM & MEA. The Asia-Pacific region dominated the Bioethanol Market and held a 37.5 % share of the market revenue in 2024.    

As per 2024, the Asia Pacific region is reported to have the highest market share. Countries such as China, India, and Japan have bolstered the need for Bioethanol services due to rapid urbanization, development of smart cities, and large-scale infrastructure projects. Increased investment is also noted within the commercial real estate, IT parks, and industrial hubs. Moreover, the region is known for its global and local service providers which strengthens the market. The focus on non-core operation outsourcing, cost-cutting, and sustainability also drives growth.   

North America is expected to see significant growth during the projection period. Adoption of advanced digital technologies such as IoT, AI, and cloud-based solutions is facilitating a shift in Bioethanol in the region. There is also broad compliance with energy-efficient buildings, as well as sustainability regulations which drives adoption. Coupled with aging infrastructure, there is also a noted increase in outsourcing within the corporate, healthcare, and education sectors. Moreover, the region is expected to continue leading growth owing to its focus on smart technologies and integrated service delivery.  

Bioethanol Market - Country Analysis:

• China 

In 2024, China accounted for approximately 36.5% of the share in the Bioethanol Market in the Asia-Pacific region. China's concerning factor is its rapid urbanization policies, coupled with the ongoing construction industry infrastructure boom. The vast investment in smart cities and new construction is increasing the need for facility services and greatly demanding their servicing. Additionally, China's robust manufacturing base and sprawling industrial zones continue to increase the outsourcing of facility solutions. Moreover, government policies targeting energy efficiency and sustainability greatly expedite adoption. Because of the aforementioned, China is the top contender for Bioethanol investment growth in the Asia-Pacific region. 

• USA   

The Bioethanol Market in the United States maintained dominance in the North American region, with a share of 76.5% in 2024. This is being a result of a more mature and well-structured real estate industry, enabling the outsourcing of Bioethanol services. Research shows Emerging digital technologies coupled with sustainable energy use is in high demand for commercial buildings, greatly empowering Bioethanol services. In addition to this, Bioethanol services enhance business continuity, enabling companies to operate uninterrupted. The healthcare, retail, and IT sectors are also some of the largest adopters of advanced service outsourcing. Because of these drivers, the United States remains in the lead, outperforming its competitors in market investment and maturity.

Key Industry Players Analysis:  

To increase their market position in the Bioethanol Market, top companies are focusing on tactics such as adopting new technologies, mergers & acquisitions, product developments, collaborations, partnerships, joint ventures, etc. 

• Abengoa S.A.  

• Archer-Daniels-Midland Company 

• BP plc 

• Cristalco (Cristal Union) 

• CropEnergies AG (Südzucker AG)

• Flint Hills Resources, LLC (Koch Industries, Inc.)

• Green Plains Inc.

• Honeywell International Inc.

• INEOS Capital Limited

• Petróleo Brasileiro S.A.

• POET LLC

• Royal Dutch Shell plc

• Valero Energy Corporation

Latest Development:

• In 2022, Archer Daniels Midland Co (ADM) anticipates launching its sustainable aviation fuel (SAF) operations by around 2026, leveraging the U.S. government's push for at least 3 billion gallons of SAF annually by 2030 and new subsidies from the Inflation Reduction Act. While further investment is needed to commercialize SAF, ADM sees economic opportunities and some existing profitability, with plans to convert up to 900 million gallons of ethanol into about 500 million gallons of SAF. Supportive policies, such as the EPA’s renewable volume obligations and federal incentives, are accelerating sector growth, aiming to decarbonize the challenging airline industry.

• In Jan 2021, Shell announced plans to build an 820,000-tonnes-per-year biofuels facility at its Energy and Chemicals Park in Rotterdam, aiming to produce large amounts of sustainable aviation fuel (SAF) and renewable diesel from waste materials like used cooking oil and animal fat. This major investment is expected to reduce up to 2.8 million tonnes of annual COâ‚‚ emissions and create hundreds of jobs while supporting the EU’s and Shell’s own net-zero goals by 2050. The facility, designed to start production in 2024, uses advanced carbon capture technology, will not use virgin palm oil, and reflects Shell’s broader strategy to transform refineries into low-carbon energy parks and cut traditional fuel output by 55% by 2030. 

Report Metrics

Scope of the Report

Bioethanol Market by Type:

• Sugarcane-based Ethanol

• Cellulosic Ethanol

• Starch-based Ethanol

• Others

Bioethanol Market by Fuel Blend:

• E10

• E20 and E25

• E70 and E75

• E85

• Others

Bioethanol Market by Generation:

• First Generation

• Second Generation

• Third Generation

Bioethanol Market by End Use Industry:

• Automotive and Transportation

• Power Generation

• Pharmaceutical

• Food and Beverage

• Cosmetics and Personal Care

• Others

Bioethanol Market by Region:

• North America

  • U.S.

  • Canada

  • Mexico

• Europe

  • Germany

  • France

  • U.K.

  • Russia

  • Italy

  • Spain

  • Netherlands

  • Rest of Europe

• Asia Pacific

  • China

  • Japan

  • India  

  • New Zealand

  • Australia

  • South Korea

  • Taiwan

  • Rest of Asia Pacific

• The Middle East & Africa

  • Saudi Arabia

  • UAE 

  • Egypt 

  • Kuwait

  • South Africa

  • Rest of the Middle East & Africa

• Latin America

  • Brazil

  • Argentina 

  • Rest of Latin America