Bio-alcohols Market Overview
Bio-alcohols Market size is forecast to reach $16 billion by 2026, after growing at a
CAGR of 8.4% during 2021-2026. The market for bio-alcohols such as bioethanol,
biomethanol, biobutanol is predicted to expand at a quicker rate as
non-renewable resources become scarcer and crude oil prices fluctuate. The growing
demand for cars as a result of population growth has fueled demand for biofuels
in emerging economies, as well as creating the potential for the bio-alcohol
industry. When compared to traditional fuels, bio-alcohol is environmentally
beneficial, renewable, and helps to reduce carbon footprint. Bio-alcohols are
long-lasting compounds made from cellulose or sugar fermentation. Bio-alcohol
producers use biomass as a feedstock to create their products. Cellulosic
biomass is becoming more widely used in industries as a result of advancements
in technology, which is projected to promote the expansion of the bio-alcohol
market. These technologies must be made available globally in order to drive
the growth of the bio-alcohol market.
COVID-19 Impact
The rapid spread
of the COVID-19 pandemic has resulted in a surge in demand for hand sanitizers
for disinfection purposes all across the world. This, combined with positive
measures by numerous governing authorities to encourage the practice of hand
sanitization at regular intervals has prompted important players to invest in
the rising manufacture of bioethanol-based hand sanitizers and disinfectants. Other
factors driving market growth include the increasing use of these items in the
creation of organic cosmetics and the widespread use of these goods in
pharmaceutical manufacture.
Report Coverage
Key Takeaways
- The rise of the bio-alcohols market in Asia-Pacific is fueled by expansion in the automotive industry, rising energy demand, and stable economic expansion.
- Bio alcohol's benefits over conventional fuels are causing a steady increase in demand. Bio-alcohol, like all bio-based fuels, is renewable and has a far lower carbon footprint than crude-oil-based fuels.
- However, food grain consumption as feedstock is expected to stifle market expansion in the next years as the world's population grows. The market for bio-alcohols is likely to benefit from the unpredictable price of crude oil, which is a prominent trend.
Figure: Asia Pacific Bio-alcohols Market Revenue, 2020-2026 (US$ billion)
Bio-alcohols Market Segment Analysis – By Product
Bio-ethanol held the largest share in
the global Bio-alcohols market in 2020 and is expected to maintain its
dominance throughout the forecast period. Bio-ethanol is a higher-octane fuel
that can also be utilized for energy-related applications like power
generation. Its use in vehicles, buses, airplanes, the medical industry, and
fuel cells is expected to boost the market growth. Blending bio-ethanol with
gasoline can extend the life of depleting oil sources and offer greater global
fuel security. Bio-ethanol is also in high demand due to its biodegradability
and lower toxicity than fossil fuels. As a result of the aforementioned considerations,
bio-ethanol is expected to dominate the market under consideration over the
forecast period.
Bio-alcohols Market Segment Analysis – By End-Use Industry
Transportation held the largest share
in the Bio-alcohols market in 2020 and is growing at a CAGR of 8.6% during the
forecast period, owing to a boom in the automotive industry. The impending
depletion of fossil fuels, as well as the mounting pollution problems that
their consumption is causing, is a major driver of the global bio alcohol
market. The usage of bio alcohol will help to manage the greenhouse impact to a
large extent, lowering the carbon footprint of various places. Aside from that,
bio alcohols have a high power potential, making them a highly practical class
of fuels for large-scale application.
Bio-alcohols Market Segment Analysis – By Geography
Asia Pacific dominated the Bio-alcohols market in 2020 with a share of 35%, owing to the ongoing growth in the end-user industries such as construction, and electronics. The region has a huge population and is seeing a steady growth in demand for high-performance items as the middle class's income rises. China, India, and Indonesia, among other countries in the region, are heavily investing in construction and infrastructure projects. For instance, in 2019, China proposed a $142 billion investment in 26 infrastructure projects. According to the International Trade Administration, the Chinese construction industry is expected to expand at a rate of 5% per year in real terms between 2019 and 2023. (ITA). Furthermore, the European Construction 2020 Action Plan's aim was to encourage favorable investment conditions. In addition, the government's initiatives such as “Housing for All” is flourishing the residential and commercial building sectors. Furthermore, China is the world's largest producer of electronic goods. Smartphones, televisions, wires, cables, portable computer devices, gaming systems, and other personal electronic gadgets grew at the fastest rate in the electronics market. The manufacturing of electronics in China is expected to increase as the middle-class population's disposable income will be risiing and demand for electronic items rises in nations that import electronic items from China. The demand in the market under consideration is likely to rise as the electronics sector grows.
Bio-alcohols Market Drivers
Environmentally Favorable Aspects of Bio-Alcohols
Carbon
dioxide emissions and the greenhouse effect are the most serious environmental
issues. With such issues, the need for bio-alcohol is increasing, with various
forms such as bio-ethanol, biobutanol, and biomethanol being used in a variety
of industries. Bio-alcohol is becoming more popular in the transportation
industry as a substitute for gasoline. Because it has less reactivity in the
atmosphere and is a high-octane fuel alternative to gasoline, bio-ethanol is
the market leader. Bioethanol is preferred in the power generation business
since it reduces oxidation problems. Biomethanol is the second-largest segment,
owing to an increase in bio-methanol production from waste or biomass. Biomethanol
is unaffected by the composition of gasoline. As a result, it is frequently
preferred in applications such as vehicles, buses, and the medical industry.
Furthermore, due to its lack of compatibility with conventional automotive
engines, the Biobutanol industry is predicted to grow rapidly. These alcohols
emit substantially cleaner exhaust gases, and their application cuts net
greenhouse gas emissions by more than 37.1 percent. Throughout the forecast
period, all of these environmentally favorable aspects are expected to drive
the bio alcohol market.
Bio-alcohols Market Challenges
Rising Price of Bio Alcohols
The
disadvantages of bio alcohol, such as the need for arable land, the release of
a large amount of carbon dioxide during the production process of bioethanol,
and rising pricing, are likely to stymie the bio alcohol industry. This is
because some farmers are concerned that, due to the lucrative prices of
bioethanol, they may sacrifice food crops for biofuel production, rising
global food costs. Thus, these challenges may limit the market growth.
Bio-alcohols Market Landscape
Technology launches, acquisitions
and R&D activities are key strategies adopted by players in the Bio-alcohols
Market. Major players in the Bio-alcohols market includes BASF SE, Asahi Kasei
Corporation, INVISTA, Evonik Industries AG, and Toray Industries, Inc., among
others.
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LIST OF TABLES
1.Global Global Bio-Alcohol Market, By Type Market 2023-2030 ($M)1.1 Bioethanol Market 2023-2030 ($M) - Global Industry Research
1.1.1 Key Market Trends, Growth Factor And Opportunity Market 2023-2030 ($M)
1.2 Biomethanol Market 2023-2030 ($M) - Global Industry Research
1.3 Biobutanol Market 2023-2030 ($M) - Global Industry Research
1.4 Bdo Market 2023-2030 ($M) - Global Industry Research
2.Global Global Bio-Alcohol Market, By Raw Material Market 2023-2030 ($M)
2.1 By Type Market 2023-2030 ($M) - Global Industry Research
2.2 Grain Market 2023-2030 ($M) - Global Industry Research
2.3 Sugarcane Market 2023-2030 ($M) - Global Industry Research
2.4 Industrial Beet Market 2023-2030 ($M) - Global Industry Research
2.5 Biomass Market 2023-2030 ($M) - Global Industry Research
3.Global Global Bio-Alcohol Market, By Type Market 2023-2030 (Volume/Units)
3.1 Bioethanol Market 2023-2030 (Volume/Units) - Global Industry Research
3.1.1 Key Market Trends, Growth Factor And Opportunity Market 2023-2030 (Volume/Units)
3.2 Biomethanol Market 2023-2030 (Volume/Units) - Global Industry Research
3.3 Biobutanol Market 2023-2030 (Volume/Units) - Global Industry Research
3.4 Bdo Market 2023-2030 (Volume/Units) - Global Industry Research
4.Global Global Bio-Alcohol Market, By Raw Material Market 2023-2030 (Volume/Units)
4.1 By Type Market 2023-2030 (Volume/Units) - Global Industry Research
4.2 Grain Market 2023-2030 (Volume/Units) - Global Industry Research
4.3 Sugarcane Market 2023-2030 (Volume/Units) - Global Industry Research
4.4 Industrial Beet Market 2023-2030 (Volume/Units) - Global Industry Research
4.5 Biomass Market 2023-2030 (Volume/Units) - Global Industry Research
5.North America Global Bio-Alcohol Market, By Type Market 2023-2030 ($M)
5.1 Bioethanol Market 2023-2030 ($M) - Regional Industry Research
5.1.1 Key Market Trends, Growth Factor And Opportunity Market 2023-2030 ($M)
5.2 Biomethanol Market 2023-2030 ($M) - Regional Industry Research
5.3 Biobutanol Market 2023-2030 ($M) - Regional Industry Research
5.4 Bdo Market 2023-2030 ($M) - Regional Industry Research
6.North America Global Bio-Alcohol Market, By Raw Material Market 2023-2030 ($M)
6.1 By Type Market 2023-2030 ($M) - Regional Industry Research
6.2 Grain Market 2023-2030 ($M) - Regional Industry Research
6.3 Sugarcane Market 2023-2030 ($M) - Regional Industry Research
6.4 Industrial Beet Market 2023-2030 ($M) - Regional Industry Research
6.5 Biomass Market 2023-2030 ($M) - Regional Industry Research
7.South America Global Bio-Alcohol Market, By Type Market 2023-2030 ($M)
7.1 Bioethanol Market 2023-2030 ($M) - Regional Industry Research
7.1.1 Key Market Trends, Growth Factor And Opportunity Market 2023-2030 ($M)
7.2 Biomethanol Market 2023-2030 ($M) - Regional Industry Research
7.3 Biobutanol Market 2023-2030 ($M) - Regional Industry Research
7.4 Bdo Market 2023-2030 ($M) - Regional Industry Research
8.South America Global Bio-Alcohol Market, By Raw Material Market 2023-2030 ($M)
8.1 By Type Market 2023-2030 ($M) - Regional Industry Research
8.2 Grain Market 2023-2030 ($M) - Regional Industry Research
8.3 Sugarcane Market 2023-2030 ($M) - Regional Industry Research
8.4 Industrial Beet Market 2023-2030 ($M) - Regional Industry Research
8.5 Biomass Market 2023-2030 ($M) - Regional Industry Research
9.Europe Global Bio-Alcohol Market, By Type Market 2023-2030 ($M)
9.1 Bioethanol Market 2023-2030 ($M) - Regional Industry Research
9.1.1 Key Market Trends, Growth Factor And Opportunity Market 2023-2030 ($M)
9.2 Biomethanol Market 2023-2030 ($M) - Regional Industry Research
9.3 Biobutanol Market 2023-2030 ($M) - Regional Industry Research
9.4 Bdo Market 2023-2030 ($M) - Regional Industry Research
10.Europe Global Bio-Alcohol Market, By Raw Material Market 2023-2030 ($M)
10.1 By Type Market 2023-2030 ($M) - Regional Industry Research
10.2 Grain Market 2023-2030 ($M) - Regional Industry Research
10.3 Sugarcane Market 2023-2030 ($M) - Regional Industry Research
10.4 Industrial Beet Market 2023-2030 ($M) - Regional Industry Research
10.5 Biomass Market 2023-2030 ($M) - Regional Industry Research
11.APAC Global Bio-Alcohol Market, By Type Market 2023-2030 ($M)
11.1 Bioethanol Market 2023-2030 ($M) - Regional Industry Research
11.1.1 Key Market Trends, Growth Factor And Opportunity Market 2023-2030 ($M)
11.2 Biomethanol Market 2023-2030 ($M) - Regional Industry Research
11.3 Biobutanol Market 2023-2030 ($M) - Regional Industry Research
11.4 Bdo Market 2023-2030 ($M) - Regional Industry Research
12.APAC Global Bio-Alcohol Market, By Raw Material Market 2023-2030 ($M)
12.1 By Type Market 2023-2030 ($M) - Regional Industry Research
12.2 Grain Market 2023-2030 ($M) - Regional Industry Research
12.3 Sugarcane Market 2023-2030 ($M) - Regional Industry Research
12.4 Industrial Beet Market 2023-2030 ($M) - Regional Industry Research
12.5 Biomass Market 2023-2030 ($M) - Regional Industry Research
13.MENA Global Bio-Alcohol Market, By Type Market 2023-2030 ($M)
13.1 Bioethanol Market 2023-2030 ($M) - Regional Industry Research
13.1.1 Key Market Trends, Growth Factor And Opportunity Market 2023-2030 ($M)
13.2 Biomethanol Market 2023-2030 ($M) - Regional Industry Research
13.3 Biobutanol Market 2023-2030 ($M) - Regional Industry Research
13.4 Bdo Market 2023-2030 ($M) - Regional Industry Research
14.MENA Global Bio-Alcohol Market, By Raw Material Market 2023-2030 ($M)
14.1 By Type Market 2023-2030 ($M) - Regional Industry Research
14.2 Grain Market 2023-2030 ($M) - Regional Industry Research
14.3 Sugarcane Market 2023-2030 ($M) - Regional Industry Research
14.4 Industrial Beet Market 2023-2030 ($M) - Regional Industry Research
14.5 Biomass Market 2023-2030 ($M) - Regional Industry Research
LIST OF FIGURES
1.US Bio-alcohols Market Revenue, 2023-2030 ($M)2.Canada Bio-alcohols Market Revenue, 2023-2030 ($M)
3.Mexico Bio-alcohols Market Revenue, 2023-2030 ($M)
4.Brazil Bio-alcohols Market Revenue, 2023-2030 ($M)
5.Argentina Bio-alcohols Market Revenue, 2023-2030 ($M)
6.Peru Bio-alcohols Market Revenue, 2023-2030 ($M)
7.Colombia Bio-alcohols Market Revenue, 2023-2030 ($M)
8.Chile Bio-alcohols Market Revenue, 2023-2030 ($M)
9.Rest of South America Bio-alcohols Market Revenue, 2023-2030 ($M)
10.UK Bio-alcohols Market Revenue, 2023-2030 ($M)
11.Germany Bio-alcohols Market Revenue, 2023-2030 ($M)
12.France Bio-alcohols Market Revenue, 2023-2030 ($M)
13.Italy Bio-alcohols Market Revenue, 2023-2030 ($M)
14.Spain Bio-alcohols Market Revenue, 2023-2030 ($M)
15.Rest of Europe Bio-alcohols Market Revenue, 2023-2030 ($M)
16.China Bio-alcohols Market Revenue, 2023-2030 ($M)
17.India Bio-alcohols Market Revenue, 2023-2030 ($M)
18.Japan Bio-alcohols Market Revenue, 2023-2030 ($M)
19.South Korea Bio-alcohols Market Revenue, 2023-2030 ($M)
20.South Africa Bio-alcohols Market Revenue, 2023-2030 ($M)
21.North America Bio-alcohols By Application
22.South America Bio-alcohols By Application
23.Europe Bio-alcohols By Application
24.APAC Bio-alcohols By Application
25.MENA Bio-alcohols By Application
26.Key Strategy And Development, Sales /Revenue, 2015-2018 ($Mn/$Bn)
27.Bioamber Inc, Sales /Revenue, 2015-2018 ($Mn/$Bn)
28.Bp Biofuels, Sales /Revenue, 2015-2018 ($Mn/$Bn)
29.Cargill Inc, Sales /Revenue, 2015-2018 ($Mn/$Bn)
30.Cool Planet Energy System Inc, Sales /Revenue, 2015-2018 ($Mn/$Bn)
31.E. I. Du Pont De Nemours And Company, Sales /Revenue, 2015-2018 ($Mn/$Bn)
32.Genomatica Inc, Sales /Revenue, 2015-2018 ($Mn/$Bn)
33.Mitsubishi Chemical Corp, Sales /Revenue, 2015-2018 ($Mn/$Bn)
34.Myriant Corporation, Sales /Revenue, 2015-2018 ($Mn/$Bn)
35.Raizen S A, Sales /Revenue, 2015-2018 ($Mn/$Bn)