Global Synthetic Ethanol Market Size Likely to Expand at a CAGR of 6.5% By 2033

The CMI Team’s most recent market research predicts that from 2024 to 2033, the global market for synthetic ethanol will grow at a CAGR of 6.5%. In 2024, the market size is projected to reach a valuation of USD 59,496.68 Million. By 2033, the valuation is anticipated to reach USD 92,298.88 Million.

Synthetic Ethanol Market: Growth Factors and Dynamics

• Increasing Demand for Renewable Fuels: The transition from fossil energy to renewable energy sources to mitigate carbon emissions is an emerging growth factor for the synthetic ethanol industry. In recent times, synthetic ethyl alcohol has been increasingly incorporated into gasoline, especially as an additive for bioethanol, at the Thorn plant and other plants producing synthetic ethanol. Such official requirements and benefits contribute to market development and investment activities in ethanol production technologies and standards.

• Expansion of Industrial Applications: Various industrial applications of synthetic ethanol include chemicals, coatings, and pharmaceutical industries in which synthetic ethanol is actively employed as a solvent. This is a selected option for applications that need clarity and consistency. The increase in industrial uses of synthetic varnish is due to new ways of synthesizing and environmentally friendly solvent alternatives. This takes off a lot of corners and opens new growth edges since companies are looking for better formulations and new uses to cater to different industries.

• Technological Advancements in Production Processes: Ongoing developments in production methods like catalytic and fermentation methods are improving the productivity and cost of synthetic ethanol manufacture. Improvements in catalysts, raw material acquisition, and waste management are associated with cheaper production costs. These technological advances enhance market growth in terms of quality production and market size and keep producers engaged in a competitive atmosphere.

• Government Support and Regulatory Frameworks: Government Policies Affecting the Synthetic Ethanol Market. Subsidies, tax breaks, and laws requiring the incorporation of ethanol into fuel all support investments in ethanol production facilities. Environmental policies that seek to limit greenhouse gas emissions and promote sustainable development also contribute to this market expansion. Compliance of industry technologies with regulatory regimes guarantees market stability and facilitates the introduction of green ethanol technologies.

• Consumer Shift Towards Sustainable Products: Rising consumer advocacy and enhancement in demand for sustainable products also increase the need for ethanol products, including synthetic ethanol. Consumers are increasingly searching for green solutions in their activities, such as personal care and pharmaceuticals. This trend towards sustainability affects how people make their buying choices and propels corporations to seek renewable and bio-based ethanol solutions. Market stakeholders must meet consumers’ sustainability needs to tap into emerging needs and stay relevant in the competition.

• Global Economic Growth and Industrial Expansion: Foreign markets with rapid economic growth, especially in developing countries, provide a conducive premise for industrial activities and, in turn, create a demand for ethanol products. Urbanization and increased disposable income lead to an increase in the use of fuels and chemicals, enhancing the market’s growth. The growth of sectors such as automotive, pharmaceutical and cosmetics in the developing nations provides market entry to synthetic ethanol manufacturers to increase their marketing reach and meet growing industrial requirements.

Synthetic Ethanol Market: Partnership and Acquisitions

• In January 2023, two Delhi-based businesses announced their plans to invest INR 295 crore in Chhattisgarh to set up facilities for the production of ethanol and electricity and the manufacturing of nutritional supplements and fortified grains.

Report Scope

Synthetic Ethanol Market: COVID-19 Analysis

The surge of the COVID-19 pandemic was detrimental to the growth plan of synthetic ethanol over the period, primarily on account of the great reduction of orders from the transportation and manufacturing industries. Ethanol, especially its synthetic form, is in great use among fuel additives and other industrial materials; however, the pandemic caused major disruptions in these industries.

Lockdowns and travel restrictions worldwide led to a heavy decrease in fuel consumption since limited commuting and travel were made. This caused a decline in the consumption of any fuel oil that had synthetic ethanol as one of its key ingredients, one of the main markets for synthetic ethanol produced.

Apart from this, while extended factory supply chains were disrupted, production due to industrial facilities came to a standstill or reduced capacity utilization as an additional factor contributing to the lack of demand in synthetic usage, such as solvents and cleaners. The global health crisis due to the novel coronavirus further compounded the problem as ethanol producers could not keep up with the level of ethanol and reached a steady supply, creating more problems for the market.

List of the prominent players in the Synthetic Ethanol Market:

• INEOS Group Holdings S.A.
• LyondellBasell Industries N.V.
• Sasol Limited
• BP plc
• Royal Dutch Shell plc
• TotalEnergies SE
• Celanese Corporation
• Archer Daniels Midland Company
• Green Plains Inc.
• Valero Energy Corporation
• Honeywell International Inc.
• Praxair Inc. (now part of Linde plc)
• Air Liquide S.A.
• Eastman Chemical Company
• ExxonMobil Corporation
• Others

The Synthetic Ethanol Market is segmented as follows:

By Feedstock

• Starch
• Sugar
• Cellulose Based
• Others

By Application

• Fuel & Fuel Additives
• Industrial Solvents
• Beverages
• Disinfectant
• Personal Care
• Others

Regional Coverage:

North America

• U.S.
• Canada
• Mexico
• Rest of North America

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