India Bioethanol Market Size Likely to Expand at a CAGR of 11.5% By 2033

According to current market research conducted by the CMI Team, the global India Bioethanol Market is expected to record a CAGR of 11.5% from 2024 to 2033. In 2024, the market size is projected to reach a valuation of USD 2.3 Billion. By 2033, the valuation is anticipated to reach USD 6.5 Billion.

India Bioethanol Market: Growth Factors and Dynamics

• Government Innovation and Policies: The Indian Government is taking many measures through the national biofuel policy to incentivize and foster Bioethanol production and utilization. Examples such as average ethanol blending in petrol and other subsidies would proliferate investment and expansion in the market.

• Higher Consumption of Biofuels: Mounting apprehensions over the environment and surging low-emission benchmarks boost the bioethanol market as cleaner fuels dominate regular ones. Bioethanol is helming the nudging trend and is outselling traditional liquid fuels with the help of straightforward processing.

• Growing Agricultural Surplus: India has a strong agricultural economy, with a surplus of sugarcane and, of course, other feedstock options like corn and wheat. The agricultural surplus enabling bioethanol production is becoming a major factor in the industry’s growth.

• Technology Advancements: Technological improvements in bioethanol production processing for second-generation biofuels demonstrate improvements in efficiencies and declining bioethanol production costs. Bioethanol processing technology advances with enzymatic processing and fermentation technology, increasing the yield and sustainability of bioethanol.

• Increase in Flex-Fuel Vehicles: The differential increase in the production and adoption of flex-fuel vehicles (FFV) in India, which operate on 10%—85% alcohol mixed with gasoline, drives the demand for bioethanol. Increasing government incentives for FFV use should further increase vehicle production and consumer products.

• International Trends: Collaborations with countries like Brazil and others where bioethanol fuel has gained consumer and commercial confidence provide trend knowledge of production and consumption and bioethanol’s viability for the market.

• Investment in Infrastructure: Growing investments in infrastructure development are leading to bioethanol production and distribution capabilities, including refineries and distribution improvements. Improvements in infrastructure development and investments in distribution generate conditions that enable viable market growth.

• Energy Security Concerns: With nearly half of the energy needs of plants in India being imported, newer concerns for bioethanol security options have emerged within the clean energy space.

Bioethanol Market in India: Mergers and Acquisitions

• In 2021, BPCL will substantially invest in biofuel infrastructure, including the establishment of ethanol production plants in several states. This will support the government’s blending target while working towards decreasing its reliance on imported crude oil.

• In 2020, HPCL entered into alliances and partnerships with various sugar factories and distilleries to strengthen ethanol production capabilities and provide an assured supply for blending with fossil fuels.

• In 2020, Shree Renuka Sugars Ltd. announced capacity expansions of its ethanol distilleries to double production in light of the government’s increased blending targets and began executing those plans.

Report Scope

Bioethanol Market in India: COVID-19 Impact

The COVID-19 pandemic has had a substantial upheaval on the Bioethanol Market in India from both negative and positive perspectives. Some of the main impacts are as follows:

• Disruption to Supply Chains: Lockdowns and other restrictions placed upon market instability during the pandemic created supply chain disruptions that impacted the availability of bioethanol production and the supply of raw materials necessary to create bioethanol, leading to delays in production and distribution and consumer market price fluctuations.

• Disruption to Supply Chains: Lockdowns and other restrictions placed upon market instability during the pandemic created supply chain disruptions that impacted the availability of bioethanol production and the supply of raw materials necessary to create bioethanol, leading to delays in production and distribution and consumer market price fluctuations.

• Shift to Alternative Uses: As some bioethanol producers could not fulfill their requirement for bioethanol towards transport-ready fuel during the first quarters of the pandemic, they diversified into pharmaceutical and other industrial applications. These are the demand drivers for bioethanol in the industrial sector for sanitizers and disinfectants.

• Clean Energy Acceptance on Speed Dial: The COVID-19 pandemic explained, if not starkly, the prominence of sustainability along with clean energy transition. Clean energy and biofuels-related policies and programs emerged as an alternative clean infrastructure to fossil fuels. Subsequently, this would lead to a long-run rise in the bioethanol market.

• Biofuel Technology Investments: That crisis has brought private and government investment in biofuel technologies that will complement production capacity and efficiency. Such an investment allows the industry to recover from its losses while facilitating future growth.

• Trends in Government Support and Policies: With the expanding economic burden brought upon India by COVID-19, a string of government subsidies for the biofuels sector were announced, including financial incentives with policy frameworks to spur bioethanol production and industrial utilization.

• Changes in Consumer Behavior Patterns: The pandemic has turned the world towards sustainability and health, which would alter consumer preferences. Such changes might create more of a socially acceptable potential for bioethanol to offer cleaner fuel alternatives in the long run.

• Resilience and Evolution: The bioethanol industry demonstrated resilience by adapting to ongoing market dynamics, which included diversifying product offerings and creating newer market segments. The remodeling features allow this industry to VHD to survive the shift of views spawned by the pandemic.

The COVID-19 pandemic has both positive and negative implications for the India bioethanol market; competition and opportunities are now crammed with pandemic-induced challenges.

List of the prominent players in the India Bioethanol Market:

• Indian Oil Corporation Ltd
• Bharat Petroleum Corporation Limited
• Hindustan Petroleum Corporation Limited
• Balrampur Chini Mills Ltd
• Praj Industries Ltd
• Shree Renuka Sugars Ltd
• Triveni Engineering & Industries Ltd
• Bajaj Hindusthan Sugar Ltd
• Godavari Biorefineries Ltd
• DSCL
• Jain Irrigation Systems Ltd
• Simbhaoli Sugars Ltd
• Others

The India Bioethanol Market is segmented as follows:

By Source

• Sugarcane-based Bioethanol
• Corn-based Bioethanol
• Other

By End-Use

• Fuel & Transportation
• Industrial
• Beverages
• Pharmaceuticals

By Purity Grades

• Fuel Grade Bioethanol
• Industrial Grade Bioethanol
• Pharmaceutical Grade Bioethanol