Analysis of Bio Alcohol Market Covering 30+ Countries Including Analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more
The global sales of Bio Alcohol Market in 2021 was held at US$ 9.2 Billion. With 6.4%, the projected market growth during 2022 - 2032 is expected to be slightly higher than the historical growth, and the market size is expected to grow to US$ 17.9 Billion by 2032. Grain-based Bio Alcohol is expected to be the highest revenue-generating segment, projected to grow at a CAGR of over 7.8% during 2022 – 2032.
Market Size (2022)
US$ 9.6 Billion
Global Market Size (2032)
US$ 17.9 Billion
Global Market CAGR (2022-2032)
U.S. Market CAGR (2022 – 2032)
Key Companies Covered
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As per the Global Bio-Alcohol Market research by Fact.MR - a market research and competitive intelligence provider, historically, from 2017 to 2021, the value of the Bio Alcohol increased at around 5% CAGR. During next 10 years, the bio alcohol market is projected to garner an absolute dollar opportunity of US$ 17.9 Bn, growing at a CAGR of 6.4% during 2022 – 2032.
The key revenue drivers, which affect the bio alcohol demand, include increased fuel costs of conventional fuels. The carbon dioxide emissions from regular fuels contributing to global warming, and the use of coal for energy generation that can cause the combustion of cancerous substances like ethyl benzene, xylene, toluene, and benzene can all be mitigated by bio-ethanol.
The primary reason for the rise in demand for bio alcohol is that it develops jobs in the nation by helping farmers and establishing new fuel pumps, along with water-saving plant designs. Additionally, the nation can generate bio alcohols on its own, saving money on crude oil exports.
The market is being stimulated by new government policies which states about increasing the production of Bio Alcohol for ethanol blending in fuel, power generation, gas, biomass, feedstock, and its usage in medicinal treatment. The higher use of bio alcohols reduces the carbon footprint, increasing the chance that bio alcohol products will be used as fuel in the future. In addition to this, the growing use of bio alcohol in the developing economies is positively stimulating the global market for bio alcohols
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The key factors that are propelling the Bio Alcohol market are the fluctuation of crude oil prices. For example, according to a report published by AAA agency, the average price of a gallon of gasoline recently hit an all-time high number of US$ 4.17, compared to US$ 2.77 one year ago. Drivers in California need to fork over an average price of US$ 5.44 a gallon. This is taking place as a result of the conflict between Russia and Ukraine, and lower availability of crude oil.
The growing worry over anthropogenic climate change, which is fuelled by evidence of rising temperatures and their human sources, is a key force behind bio alcohol initiatives. Only a few people today disagree that action must be taken to reduce greenhouse gas emissions, and many nations are relying heavily on bio alcohols as part of their efforts to combat climate change.
As compared to petroleum-based fuels, electricity, heat, and transportation, bio alcohol usage is seen as a significant source of emissions reduction. The urge to improve Bio Alcohol usage has been driven in large part by concerns about climate change. Other environmental issues have also been important, not the least of which is the desire to minimise air pollution in urban areas. Modern methods of burning biomass or the use of biofuels in engines may lower the controlled emissions linked to gasoline usage. Additionally, the creation of Bio fuels through garbage, which decomposes the municipal solid waste, offers a reliable manner of disposing of waste.
Supporting the agricultural industry and farm incomes have been a major part of bio alcohol market growth, as it is the most important, driver for biofuel programmes in a number of wealthy nations. Reviving agriculture as a source of bio alcohols feedstock is viewed as a solution to the dual issues of excessive agricultural production and shrinking global market prospects in nations with heavily supported agricultural sectors.
The potential to boost agricultural earnings while lowering taxes and subsidies has a significant influence on decision-makers. While many of the OECD nations, particularly those in Europe and North America, have long embraced natural energy sources to support agriculture, an increasing number of developing nations are being targeted for their biofuel production in order to promote rural development and energy security.
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The governments across the world have been supporting the use of Bio Alcohol. In many nations that support the use of bio alcohol, policy factors include distribution and use support. Many nations support or approve investments in the infrastructure needed for the storage, transportation, and use of bio alcohols. The majority of these expenditures are focused on ethanol and frequently call for sizable equipment purchases.
Such assistance is frequently justified by the argument that excessive ethanol consumption and market expansion would not be achievable until sufficient commercial facilities and distribution infrastructure are in place. Many governments are also promoting flex petrol vehicles, which are intended to use a higher proportion of ethanol and gasoline than traditional vehicles, for example by lowering registration fees and road taxes. While the majority of gasoline vehicles made in OECD nations can use up to 10% and some up to 20% ethanol, gasoline vehicles can utilise up to 85% ethanol.
Prior to the advent of liquid biofuels, agricultural and forestry policy had a significant impact on the bio alcohol sector. In fact, agricultural subsidies and pricing structures have a direct impact on livestock production systems, systems for raising first-generation biofuel feedstock, production levels and prices of those systems. International trade negotiations under the aegis of the World Trade Organization (WTO) have failed to come to an agreement, despite the introduction of various recommendations on agricultural policies and agricultural protection in several OECD nations. These regulations will have an impact on the development of bio alcohol feedstock, which will have substantial ramifications for international agricultural trade and patterns of agricultural production facilities.
Many contemporary bio alcohol sectors, notably biofuels for transportation, where the merging authority is becoming increasingly more powerful, have developed and grown as a result of limited aims. The G8 + 5 group, which consists of the G8 countries (Canada, France, Germany, Italy, Japan, the Russian Federation, the United Kingdom, and the United States of America), as well as five developing economies (Brazil, China, India, Mexico, and South Africa), summarises the current voluntary and mandatory requirements for the integration of liquid bio alcohols. Despite the fact that laws in this field are continuously changing, it should be highlighted.
Tax exemptions are a means to boost the demand for bio alcohol despite the fact that tax rates are meant to stimulate domestic production and to protect domestic producers. One of the most popular tools is taxes or penalties, which have a significant impact on both the commercial performance and competitiveness of bio alcohol in comparison to other energy sources.
Following an unexpected oil price spike in the 1970s, the United States of America was one of the first OECD nations to establish tax breaks for biofuels under the Energy Tax Act of 1978. The statute allows for exclusions from the combined alcoholic beverage tax. The producers’ income tax credit was introduced in 2004 to replace tax exemptions. Since then, various forms of tax evasion have been adopted by some nations.
North America is projected to account for over US$ 800 Mn in Bio Alcohol market by the end of 2032. During the projection period, North America is expected to be the largest Bio Alcohol Market. Various factors that are responsible for it include the high spending cost of North American countries. Some of the key players in the North American Bio Alcohol market are also world leading companies which include Ginkgo Bioworks, Cargill Inc, Bioamber Inc, Genomatica Inc, Raizen S.A., Myriant Corporation & Cool Planet Energy Systems Inc.
U.S. Bio Alcohol Market Analysis
The United States is expected to account for the largest market of US$ 6.2 Bn by the end of 2032. It is expected to be projected to have an absolute dollar growth of US$ 3.1 Bn. United States is the largest producer and consumer of the Bio-ethanol in the world, according to the report of index mundi United States consumes 838.00 Thousand Barrels per Day.
This is due to several factors such as
U.K. Bio Alcohol Market Analysis
The demand for bio alcohol in the U.K. is projected to reach US$ 6.2 Bn by 2032. During 2022 – 2032, the market is expected to garner an absolute dollar opportunity of US$ 3.1 Bn, growing at a CAGR of 7.1%.
Japan Bio Alcohol Market Analysis
Bio alcohol market in Japan is likely to register an absolute dollar opportunity of US$ 410 Mn during 2022 – 2032. The market in the country is likely to reach a valuation of US$ 839 Mn by 2032, growing at a CAGR of 7% during the forecast period.
South Korea Bio Alcohol Market Analysis
The bio alcohol market in South Korea is expected to reach a valuation of US$ 530 Mn by 2032. The market in the country is expected to gross an absolute dollar opportunity of US$ 222.5 Mn during 2022 – 2032.
The highest used grain for bio alcohol production globally is Corn. Demand growth of grains as a raw material for Bio alcohol was recorded at 6.2% during 2017 – 2021, while it is expected to grow at a CAGR of 7.8% during 2022 – 2023. Almost all the world's ethanol is produced from starch and sugar-based feedstock. The sugar in foods is much easier to extract and ferment, making more ethanol output accessible.
In the United States, corn is the leading crop, and accounts for a significant portion of domestic ethanol production. Corn ethanol is categorized as a renewable fuel under the Renewable Fuel Standard (RFS), a scheme that sets minimum volume targets for the renewable fuel category. This guarantees that the supply of livestock feed and domestic markets for meat and corn will be met.
Corn production benefits from almost a century of infrastructural development and study. Corn is a crop that producers are quite knowledgeable and experienced in. Due to its infrastructure and grower expertise, maize is a natural crop for new applications like bio-ethanol.
Some of the key players in bio alcohol industy include BASF SE, Ginkgo Bioworks, BP Biofuels, Cargill Inc, Mitsubishi Chemical Corporation, Bioamber Inc., Genomatica Inc., Raizen S.A., Myriant Corporation, and Cool Planet Energy Systems Inc.
Some of the recent developments in the Bio alcohol industry are:
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The global Bio Alcohol Market is worth more than US$ 9.6 Bn at present.
The value of Bio Alcohol Market is projected to increase at a CAGR of around 6.4% during 2022 – 2032.
While the market in South Korea is expected to grow at nearly 5.6%, the market in Japan is projected to register a CAGR of nearly 7.0% during 2022 - 2032.
The global demand for Bio Alcohol is being fueled by a considerable increase in the price of conventional fuel, global warming effects caused due to conventional crude oil and the cost-saving happening to nations by saving the foreign exchanges.
The growth of the market for Bio Alcohol in China is projected to expand at a CAGR of around 7.3% during 2022 – 2032.
The growth of the market for Bio Alcohol in China is projected to expand at a CAGR of around 7.1% during 2022 – 2032.
The value of Bio Alcohol Market increased at a CAGR of around 5% during 2017 – 2021.
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