Global Synthetic Ethanol Market Insights Forecasts to 2033 

• The Global Synthetic Ethanol Market Size was Valued at USD 54,603.51 Million in 2023
• The Market Size is Expected to Grow at a CAGR of around 6.06% from 2023 to 2033
• The Worldwide Synthetic Ethanol Market Size is Expected to Reach USD 98,298.88 Million by 2033 
• Asia Pacific is Expected to Grow the fastest during the forecast period.   

The Global Synthetic Ethanol Market Size is anticipated to exceed USD 98,298.88 Million by 2033, growing at a CAGR of 6.06% from 2023 to 2033.

Market Overview

The production and distribution of synthetic ethanol, which is made from petrochemical feedstocks and mostly utilized as chemical derivatives, industrial solvents, and vehicle fuels, are included in the synthetic ethanol market. With an emphasis on renewable and environmentally friendly production methods, this market is prone to change. Additionally, the market for synthetic ethanol is expanding as a result of social responsibility initiatives taken by governments and businesses worldwide to reduce carbon emissions and the usage of fossil fuels. Synthetic ethanol has a smaller greenhouse gas emission impact than gasoline when combined with bioethanol. Companies like as Shell and BP have embraced research and development for more ecologically friendly ethanol. The integration of synthetic ethanol into green fuels and products is made possible by this approach, which also tackles the broader climate change targets.

Report Coverage

This research report categorizes the global synthetic ethanol market based on various segments and regions forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the global synthetic ethanol market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the global synthetic ethanol market.  

Driving Factors

The growing use of bioethanol blends, sustainable practices, and their application in medications and personal hygiene products are the new trends. Growing production capacities, advancements in production technology, and a focus on reducing carbon footprints are all driving market growth. Additionally, the market for synthetic ethanol has seen a number of recent strategic advancements. The market participants aim to increase their market share and boost their product offers and profitability by utilizing synergy. For instance, ADM, the leading global provider of cutting-edge solutions for manufacturing, agriculture, and nutrition, announced a collaboration with Wolf Carbon Solutions in January 2022 to further the decarbonization of ethanol. Furthermore, the use of pure synthetic ethanol as a solvent and preservative has increased in the pharmaceutical and cosmetic industries. Pharmaceutical-grade ethanol is becoming more and more popular due to its use in the manufacturing of medications and sanitizers. In an effort to meet this growing demand, industry participants like Honeywell and Eastman Chemical are expanding their production capabilities.

Restraints and Challenges

Commercial ethanol is made from synthetic fuels that contain carbon sources like methanol and ethylene. Political unrest and wars can cause feedstock costs to fluctuate abnormally high or low, which might impact production margins because raw materials are mostly dependent on the price of crude oil.

Market Segmentation

The global synthetic ethanol market share is classified into feedstock and application.

• The starch segment held a significant share in 2023 and is expected to grow at a significant CAGR during the forecast period.                               

Based on the feedstock, the global synthetic ethanol market is categorized as starch, sugar, cellulose based, and others. Among these, the starch segment accounted for a significant share in 2023 and is expected to grow at a significant CAGR during the forecast period. Starch, which is derived from corn, wheat, and related crops, is helpful when yeast produces synthetic ethanol, commonly referred to as natural fermentation. By increasing mass transfer, the effectiveness of no dormant enzyme hydrolysis of starch, or amylases immobilized on elution, they enhance the fermentation's operational performance.

• The fuel and fuel additives segment held a significant share in 2023 and is expected to grow at a significant CAGR during the forecast period.       

Based on the application, the global synthetic ethanol market is categorized as fuel and fuel additives, industrial solvents, beverages, disinfectant, personal care, and others. Among these, the fuel and fuel additives segment held a significant share in 2023 and is expected to grow at a significant CAGR during the forecast period. Synthetic ethanol is frequently added to gasoline as a fuel additive to increase octane values and reduce exhaust pollutants. The use of ethanol blends is increasing in this market sector in order to reduce environmental impact and adhere to clean fuels laws.

Regional Segment Analysis of the Global Synthetic ethanol Market

• North America (U.S., Canada, Mexico) 
• Europe (Germany, France, U.K., Italy, Spain, Rest of Europe)
• Asia Pacific (China, Japan, India, Rest of APAC)
• South America (Brazil and the Rest of South America) 
• The Middle East and Africa (UAE, South Africa, Rest of MEA)

North America is projected to hold a significant share of the global synthetic ethanol market over the forecast period.

North America is projected to hold a significant share of the global synthetic ethanol market over the forecast period. The market trends for synthetic ethanol in the North American region are mostly driven by factors such as the strict environmental regulations that promote the need for clean industrial fuel and its alternatives, which provide marketing opportunities. Significant advancements have also been made in the methods for producing these biochemicals sustainably and in the field of blending bioethanol.

Europe is expected to grow at the fastest CAGR growth of the global synthetic ethanol market during the forecast period. This is because of the availability of sound agricultural policies that support renewable fuels, steady ethanol production is instead the focus of the majority of attention in Europe. Increased use of sophisticated bioethanol production and new technologies for ethanol-based goods in cosmetics and medicines define the industry.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the global synthetic ethanol market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers and acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• 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.
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-Added Resellers (VARs) 

Recent Developments

• In February 2023, Kemin Industries expanded the Kemin Bio Solutions range with the introduction of FermSAVER, a tea-extract product used in yeast fermentation to make ethanol.

Market Segment

This study forecasts revenue at global, regional, and country levels from 2020 to 2033. Spherical Insights has segmented the global synthetic ethanol market based on the below-mentioned segments: 

Global Synthetic Ethanol Market, By Feedstock

• Starch
• Sugar
• Cellulose Based
• Others

Global Synthetic Ethanol Market, By Application

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

Global Synthetic Ethanol Market, By Regional

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East and Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of the Middle East and Africa