Global Bio Alcohol Market is valued at USD 163.6 Billion in 2021 and expected to reach USD 316.4 Billion by 2028 with a CAGR of 9.9% over the forecast period.
Global Bio Alcohol Market: Global Size, Trends, Competitive, And Historical & Forecast Analysis, 2022-2028: Price fluctuations of crude oil around the world, growing concern over anthropogenic climate change, and rising government initiatives for the adoption of bio alcohol are some of the major factors driving the market growth of the Global Bio Alcohol Market.
Bio alcohols can be described simply as alcohols derived from biological resources or biomass. Bioethanol, which is the principal alternative fuel for spark-ignition engines, is the most commonly recognized and manufactured bio alcohol. Bio alcohols can be derived from a broad variety of biomass, including crops, lignocellulosic crops or residues, and food waste. The first-generation bio alcohols are made from crops, which occasionally raises food versus fuel debates and other concerns. The second-generation bio alcohols are made from lignocellulosic biomass, such as forestry or agricultural wastes. While the first-generation bio alcohols are successful in technological development, the cost and efficiency of the second-generation bio alcohols still need to be enhanced to overcome the high recalcitrance to enzymatic hydrolysis. In between, bio alcohol extraction from food and/or other municipal solid wastes may provide a synergistic solution to both concerns.
The COVID-19 epidemic is sending shockwaves throughout the global economy. The impact is especially essential in oil product markets, as limitations on local and regional movements and international travel divert people and products from getting out freely, which puts a heavy toll on transportation. Limitation on social interaction and movements has spread almost as rapidly as the virus itself, e.g., decreasing commerce and shipping operations and interrupting industrial production. With more countries raising their quarantine and lockdown action diesel & gasoline consumption is projected to decrease. The anticipated forecast is a growth in intra-market travel as consumers would choose to travel locally instead of the more costly option of overseas travel.
The global Bio Alcohol market is segmented based on product type, security, source, application, and region & country level. Based on product type, the global Bio Alcohol market is segmented into bio-methanol, bio-ethanol, bio-butanol, Bio-BDO, and others. By source, the market is segmented into sugarcane, sugar beet, grains, corn, and others. By application, the global Bio Alcohol market is segmented into transportation fuel, perfume, flavor enhancer, paints, electronic cleaning, chemical intermediate, pharmaceutical applications, agrochemicals, and others.
The regions covered in the global Bio Alcohol market report are North America, Europe, Asia-Pacific, Latin America, and the rest of the World. Based on country level, the market of global Bio Alcohol is sub divided into U.S., Mexico, Canada, U.K., France, Germany, China, Italy, India, Japan, Southeast Asia, Middle East Asia (Saudi Arabia, UAE, Egypt) GCC, Africa, etc.
Some major key players for the global Bio Alcohol market report cover prominent players like -
The price fluctuations of crude oil is the key driver of the bio alcohol market. For instance, a AAA survey claims that the average price of a gallon of gasoline recently reached an all-time high of US$ 4.17, up from US$ 2.77 a year earlier. In California, gas costs on average $5.44 a gallon for vehicles. This is occurring due to the confrontation between Russia and Ukraine and the lower supply of crude oil.
Initiatives to produce bio alcohol are driven in large part by the growing concern over anthropogenic climate change, which is fueled by rising temperatures and their human causes. The most important environmental problems are greenhouse gas emissions and carbon dioxide emissions. Due to these problems, there is an increasing need for bio-alcohol, which is used in many different sectors in the forms of bio-ethanol, biobutanol, and biomethanol. As a gasoline alternative, bio-alcohol is gaining popularity in the transportation sector. The industry leader in high-octane fuel alternatives to gasoline, bio-ethanol has less reactivity in the atmosphere.
As it minimizes oxidation issues, bioethanol is desired in the power generation industry. Due to a growth in the production of bio-methanol from waste or biomass, biomethanol is now the second-largest segment. The structure of gasoline has no impact on biomethanol. As a result, it is widely chosen in applications like transportation—including cars and buses and the medical sector. Furthermore, the bio alcohol market is projected to grow quickly due to its being incompatible with traditional car engines. These alcohols provide significantly cleaner exhaust gases, and their use reduces net emissions of greenhouse gases by more than 37.1%. All of these environmentally advantageous factors are anticipated to propel the bio alcohol market over the course of the projected year.
Furthermore, the use of Bio Alcohol has received support from governments all around the world. This factor is also expected to boost the market in the coming years. Distribution and use support are two policy variables in many countries that favor the use of bio alcohol. The infrastructure required for the storage, transportation and use of bio alcohols is supported or approved by several countries. Most of these costs are related to ethanol and frequently require significant equipment purchases. Such support is typically justified by the claim that insufficient commercial facilities and distribution infrastructure would prevent excessive ethanol consumption and market expansion.
By reducing registration fees and road charges, for example, several governments are also encouraging the use of flex petrol vehicles, which are designed to consume a higher proportion of ethanol and gasoline than conventional automobiles. While most gasoline vehicles produced in OECD countries are permitted to use up to 10% and some are permitted to use up to 20% ethanol, gasoline vehicles are permitted to utilize up to 85% ethanol.
Agriculture and forestry policies had a big impact on the bio alcohol industry prior to the introduction of liquid biofuels. The systems for raising first-generation biofuel feedstock, systems for raising livestock, and the production levels and prices of those systems are all directly impacted by agricultural subsidies and pricing mechanisms. Despite the establishment of numerous suggestions on agricultural policies and agricultural protection in several OECD countries, international trade negotiations under the auspices of the World Trade Organization (WTO) have failed to reach an agreement. These rules will have an effect on the production of bio alcohol feedstock, which will have a significant impact on patterns of agricultural production facilities and international agricultural trade.
Many modern bio alcohol industries, most notably those that produce transportation-related biofuels, have originated and expanded as a result of having specific goals. The current voluntary and mandatory requirements for the integration of liquid bio alcohols are summarized by the G8 + 5 group, which consists of the G8 nations (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). However, it should be noted that legislation in this region is constantly evolving.
Regardless of the fact that tax rates are intended to encourage domestic production and to safeguard domestic producers, tax exemptions are a way to increase demand for bio alcohol. One of the most widely used instruments is taxation or punishment, which has a big impact on how well bioethanol performs commercially and how competitive it is with other energy sources. Under the Energy Tax Act of 1978, the United States became one of the first OECD countries to introduce tax advantages for biofuels in response to an unanticipated rise in oil prices in the 1970s. The combined alcoholic beverage tax may be excluded under the law. In place of tax exemptions, the producers' income tax credit was implemented in 2004. Since then, some countries have adopted a variety of tax evasion strategies.
Asia Pacific region is predicted to be the fastest-growing market for bio-alcohols due to the continued increase in end-user industries such as construction, and electronics. The area has the presence of a huge population and is experiencing a continually expanding demand for high-performance products with a growth in the income of the middle class. The nations in the region including China, India, and Indonesia are spending substantially on development and infrastructure projects. However, the diminishing automobile sector may hamper the demand for bio-alcohols in the region in the coming years. Hence, Asia-Pacific is projected to experience the highest growth rate over the projection period due to the above-mentioned reasons.
Europe has become the largest user and producer of bio-alcohols followed by North America. This is owing to tight government regulations about a sustainable eco-friendly environment and carbon pollution. Automobile industries in the U.S. and Germany are mainly focusing on bio-based fuels to increase fuel proficiency. The U.S. accounts for the second place owing to the government's legislation in supporting loan guarantees to those firms that are using effective bio-based chemicals for production.
- The Roadmap for Blending Ethanol in India by 2025 study was unveiled by Prime Minister Narendra Modi in June 2021.
- The TVS Apache RTR 200 Fi E100, the country's first ethanol-powered motorcycle that can run on both flex ethanol fuel and pure ethanol, was revealed by TVS India in July 2019.
|2015 - 2020
|2021 - 2028
|Market Size in 2021:
|USD 163.6 Billion
|Base year considered
|Forecast Period CAGR %:
|Market Size Expected in 2028:
|USD 316.4 Billion
|Tables, Charts & Figures:
|Oilfield Communications Companies
|BASF SE, Arkema, Vereinigte BioEnergie AG, CREMER OLEO GmbH & Co. KG, VERBIO, BRASKEM, DuPont, Cargil, DSM, Raizen, Mitsubishi Chemical Corporation, BP Biofuels, Genomatica Inc., and GODAVARI BIOREFINERIES LTD.
|By Product Type, By Source, By Application
|North America, U.S., Mexico, Canada, Europe, UK, France, Germany, Italy, Asia Pacific, China, Japan, India, Southeast Asia, South America, Brazil, Argentina, Columbia, The Middle East and Africa, GCC, Africa, Rest of the Middle East and Africa
We are always looking to hire talented individuals with equal and extraordinary proportions of industry expertise, problem solving ability and inclination interested? please email us firstname.lastname@example.orgJOIN US
BrandEssence® Market Research and Consulting Pvt ltd.
124, City Road, London EC1V 2NX
© Copyright 2024-25 BrandEssence® Market Research and Consulting Pvt ltd. All Rights Reserved | Designed by BrandEssence®