Bioethanol Market is expected to reach US$ 118 Billion by 2028

Bioethanol market size is expected to reach US$ 118 billion by 2028, registering at a CAGR of 9.5% between 2022 and 2028, according to a new research study conducted by The Insight Partners.

Increasing Use of Bioethanol in Transportation Sector is Catalyzing the Bioethanol Market

Bioethanol is produced by fermenting biomass containing sugar, starch or cellulose extracted from sugar cane or grains. Bioethanol is a very useful and versatile raw material. It finds application in fuel, cosmetics, pharmaceuticals, foodstuffs, in technical applications, etc. Bioethanol is highly used in fuel production. A proportion of bioethanol is added to conventional gasoline which help to reduces greenhouse gas emissions during combustion. Bioethanol can be used as a feedstock for the production of Ethyl Tertiary Butyl Ether (ETBE), a blending component in gasoline that offers a non-hygroscopic property. Bioethanol can further be used as a fuel for modified diesel engines. This is used for reducing greenhouse gas emissions from buses and heavy vehicles in large cities. In creams, the bioethanol is used as an evaporation agent of various filler ingredients.  The bioethanol is odorless, hence it is a good base for adding perfume and is used as a substance carrier in personal and hair care products. Further, the bioethanol is one of the most commonly used ingredients in drugs and pharmaceuticals.

Based on source, the bioethanol market is segmented into starch-based, sugar-based, cellulose-based, and others. The bioethanol is made from feedstocks such as corn, agricultural residue, grain sorghum, wheat, barley and potatoes. Starch is a major substrate used for the bioethanol production in the USA, Europe and also in many other countries across the globe. According to the 2020 market data for the production and consumption of certified sustainable bioethanol published by the German Bioethanol Industry Association, bioethanol production from sugar beet pulp increased significantly by almost 19% compared to the previous year (2019), while production of grain-based bioethanol rose by 5%.

Increasing use of bioethanol fuel blends in different countries across the globe is mainly driving the bioethanol market growth.  Various advancements in production and applications have made bioethanol a promising alternative to fossil fuels. The bioethanol as an engine fuel can serve as an alternative for gasoline at any blend percentage, creating more efficient engines in the process. Bioethanol is as an alternative energy source which helps reduce emissions. Due to all these factors, the use of bioethanol in transportation sector is increasing. In addition, there is an increasing demand for bioethanol from industries such as pharmaceutical, cosmetics, and food & beverage industry. During the COVID-19 pandemic, there was a strong increase in demand for bioethanol for hand sanitizers. Further, the market players are focusing on providing the high-quality products to fulfil the customer demand. For instance, in June 2018, Archer Daniels Midland Company and DuPont Industrial Biosciences announced a collaboration to develop, produce and market cellulase enzymes for operators of grain-based ethanol plants.

A few players operating in the global bioethanol market include POET, LLC.; Tereos; BP p.l.c.; CropEnergies AG; Abengoa Bioenergía; ADM; Shell; Aemetis, Inc.; The Andersons, Inc; and Cargill, Incorporated.  Players operating in the bioethanol market are focusing on providing high-quality products to fulfill customer demand. Several other major companies were studied and analyzed during this research study to get a holistic view of the bioethanol market and its ecosystem.

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