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, stands as an emerging growth factor for the synthetic ethanol industry. In recent times Thorn plant, as well as other plants producing synthetic ethanol, synthetic ethyl alcohol has been more and more incorporated into gasoline, especially as an additive for bioethanol. Such official requirements and benefits contribute to the development of the market and investment activities in the sector of 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. For such applications that need clarity and consistent nature, this is a selected option. The increase in industrial uses of the 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 for different industries.

• Technological Advancements in Production Processes: Ongoing developments in the production methods like catalytic processes 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 growth in the market as far as quality production and market size are concerned as well as keeping the producers engaged in a competitive atmosphere.

• Government Support and Regulatory Frameworks: Government Policies Affecting the Synthetic Ethanol Market. Investments in ethanol production facilities are supported by subsidies, tax reliefs and laws requiring incorporation of ethanol into the fuel. Environmental policies that seek to limit the emissions of greenhouse gases and the general promotion of sustainable development also add to this market expansion. Compliance of technologies used in the industry with the 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 increases the need for ethanol products including synthetic ethanol. In their many activities such as personal care and pharmaceuticals, consumers are increasingly searching for such green solutions. This trend towards sustainability affects the way people make their buying choices and propels corporations to seek out renewable and bio-based ethanol solutions. It is imperative for stakeholders in the market to meet the wants of the consumers in regard to sustainability in order to tap into the emerging needs and stay relevant in the competition.

• Global Economic Growth and Industrial Expansion: Foreign markets, where there is rapid economic growth, especially in the developing countries, provides a conducive premise for industrial activities and in turn creates a market for ethanol products. Urbanization and increased disposable income lead to the increase in the use of fuels and chemicals hence enhancing the growth of the market. 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 increasing 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. Among the fuel additives and other industrial materials, ethanol especially its synthetic form is in great use, however the pandemic caused major disruptions in these industries.

Lockdowns and travel restrictions worldwide led to a heavy decrease in the consumption of fuel since there were limited commuting and travel made. This caused the decline in the consumption of any fuel oil which 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 come to a standstill or reduce 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