India Ethanol Market Size Booming at Significant CAGR of 9.2% to Reach USD 4.2 Billion by 2029
India ethanol market is flourishing due to growing interest in using ethanol as a biofuel, rapid increase in the consumption of alcoholic beverages, and enhanced ethanol production.
BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, estimated the India Ethanol Market size at USD 2.27 billion in 2022. During the forecast period between 2023 and 2029, BlueWeave expects India ethanol market size to grow at an impressive CAGR of 9.16% reaching a value of USD 4.15 billion by 2029. Rising biofuel demand is expected to drive growth in the India ethanol market. The country is gradually adopting ethanol-based fuels and electric vehicles, which will fuel market expansion in India. The expansion of the agricultural sector and the use of feedstock for the production of ethanol is a major trend in the country to boost output and support schemes and plans that will lead to the expansion of the Indian ethanol market. The government is actively investing in the sector during the forecast period.
India Ethanol Market - Overview
Ethanol (C2H5OH) is the intoxicating agent in alcoholic drinks. This colorless and flammable liquid is made through the fermentation and distillation processes. Ethanol is a popular alcoholic beverage that can be found in beer, cider, wine, and spirits. As a result, factors such as changing lifestyles and increasing adoption of Western culture are likely to drive Ethanol demand in the country. Ethanol is also utilized as the primary fuel source or as an addition in engines that run on fossil fuels, such as gasoline. Ethanol-powered or flex-fuel vehicles are designed to run on a blend of ethanol and gasoline. These vehicles have a fuel system capable of adjusting to different fuel mixtures, allowing the driver to use either gasoline or a blend of gasoline and ethanol. The most common blend in flex-fuel vehicles is E10, a mixture of 10% ethanol and 90% gasoline. However, some flex-fuel vehicles can also run on higher blends, such as E85, a mixture of 85% ethanol and 15% gasoline.
India Ethanol Market – By Purity
Based on purity, India ethanol market is divided into Denatured and Undenatured segments. Denatured alcohol is expected to be a faster growing segment in terms of volume, owing to rising demand from the fuel and household chemicals industries. To achieve the desired properties, it can be combined with other chemicals. It is primarily used in cleaning and sanitizing formulations for indoor and outdoor environments. Denatured alcohol is derived primarily from natural sources such as corn starch and grains, making it suitable for household use. Other major growth drivers include increased awareness of indoor hygiene and the harmful effects of synthetic ingredients.
Impact of COVID-19 on India Ethanol Market
Due to lockdown measures implemented to stop the transmission of coronavirus, the COVID-19 outbreak caused an unprecedented drop in fuel demand, which hurt transportation and logistics. Despite the decline in fuel demand, participants in the ethanol market continued to seize opportunities as demand for hand sanitizers topped records for the first time since the pandemic hit the country. Ethanol is a necessary component in the creation of alcohol-based hand sanitizers and has been suggested by the WHO as a potential viral deactivator. Due to the rapid surge in domestic ethanol demand in Q4 FY20, several sugar mills, including the All India Distiller Association (AIDA) and the Indian Sugar Mills Association (ISMA), increased the volume of ethanol they produced.
India ethanol market is fiercely competitive. Prominent players in the market include United Breweries, Aventine Renewable Energy, AB Miller, Archer Daniels Midland Company, Kirin, Pure Energy Inc., and Cargill Corporation. These companies use various strategies, including increasing investments in their R&D activities, mergers, and acquisitions, joint ventures, collaborations, licensing agreements, and new product and service releases to further strengthen their position in the India ethanol market.
The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of India Ethanol Market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in India Ethanol Market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.
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