Global ethanol market was valued at US$ 48,734.3 million in 2016 and is expected to
register a CAGR of 1.00% to reach US$ 53,105.3 million by 2025. The market was pegged at 27,145.9 million gallons in 2016 and is expected to reach 32,165.3 million gallons by the end of the forecast period, expanding at a CAGR of 1.77%, according to a new report published by Coherent Market Insights.

According to the U.S. Department of Energy, use of high-level ethanol blends such as E85 results in lower emissions, thereby boosting the demand for ethanol. The significant rise in number of automobile vehicles on road has resulted in increased pollution levels, which is a concern for governments all over the world. Ethanol can be used as an alternative fuel, which is environment-friendly as well as renewable, thereby reducing the pollution levels.

Key Trends and Analysis of Ethanol Market:

According to the State Council General Research Office, the U.S. government is promoting the use of ethanol as a source of renewable fuel and creating awareness regarding the social and environmental hazards caused by gasoline
Dry milling process is majorly adopted by the leading ethanol manufacturers in the U.S. Marquis Energy is the biggest dry mill ethanol facility with a production capacity of around 300 million gallons of fuel grade ethanol
Significant demand for alcoholic beverages is another major factor driving the global ethanol market. According to Coherent Market Insights, the alcoholic beverages segment is expected to surpass US$ 18 billion by the end of 2017
Key Takeaways of the Market:
According to Coherent Market Insights, North America dominated the global ethanol market, valued at US$ 25,830.6 million in 2016. The region is projected to witness a CAGR of 0.45%, in terms of revenue, during the forecast period. According to the Renewable Fuels Association (RFA), the U.S. is the major export market for ethanol. The major import countries of ethanol from the U.S. are China, India, South Korea, Canada, and Brazil, among others.

Latin America is the second largest market for ethanol, accounting for over 35% share, in terms of revenue, wherein, Brazil holds a major share in the region

Asia Pacific is expected to experience significant growth potential over the forecast period. Tax rebates and favorable government regulations in China have boosted production as well as export of ethanol. Further, the government of China has set production targets for ethanol at 3.35 billion gallons by the end of 2020. Further, the commercial utilization of ethanol will allow for a reduction in energy import bill. In India, the blending target for ethanol is estimated at 20% in 2017. The Government of India has classified bamboo, rice, wheat straw, and cotton straw as second generation ethanol sources to boost the production of ethanol in India.
Archer Daniels Midland Company, Cargill, Inc., Grain Processing Corporation, Ace Ethanol LLC, Advanced BioEnergy, LLC, MGP Ingredients, Flint Hills Resources LP, and Marquis Energy are some of the leading players in the global ethanol market. In 2013, Cargill Inc. expanded its operation in Germany by setting up a new ethanol plant in Barby. The new plant is aimed at producing ethanol for Europe’s alcoholic beverage, pharmaceutical, and cosmetic industries.