Bio Alcohol Market
The market for Bio Alcohol was estimated at $12.2 billion in 2023; it is anticipated to increase to $22.8 billion by 2030, with projections indicating growth to around $35.6 billion by 2035.
Report Summary
Market Data
Methodology
Table of Contents
Global Bio Alcohol Market Outlook
Revenue, 2023
$12.2B
Forecast, 2033
$29.8B
CAGR, 2024 - 2033
9.3%
The Bio Alcohol industry revenue is expected to be around $14.6 billion in 2024 and expected to showcase growth with 9.3% CAGR between 2024 and 2033. Bio alcohols are becoming increasingly popular as an option in various industries because of their renewable sources and lower carbon footprint when compared to traditional fossil fuels. In the year 2023 the bio alcohol market was valued at around USD 12.2 billion and is projected to reach USD 22.8 billion by the year 2030 and potentially even hit USD 35.6 billion by the year 2035 with a Compound Annual Growth Rate (CAGR) of 9.3%. This growth is primarily fueled by the transition to environmentally friendly fuels and the rising use of bio alcohols in sectors, like automotive and pharmaceutical industries.
Bio alcohols are substances created by fermenting organic materials like sugarcane corn and agricultural leftovers They're often utilized as eco friendly raw material in medicines and beauty items. The varieties comprise bioethanol, biobutanol and biomethanol; each bringing unique advantages in cutting down greenhouse gas releases and offering a sustainable fuel alternative, for different uses
Market Key Insights
- The Bio Alcohol market is projected to grow from $12.2 billion in 2023 to $29.8 billion in 2033. This represents a CAGR of 9.3%, reflecting rising demand across Fuel, Pharmaceuticals and Personal Care.
- POET, Green Plains, Amyris are among the leading players in this market, shaping its competitive landscape.
- U.S. and Brazil are the top markets within the Bio Alcohol market and are expected to observe the growth CAGR of 6.8% to 9.8% between 2023 and 2030.
- Emerging markets including Indonesia, Argentina and South Africa are expected to observe highest growth with CAGR ranging between 8.9% to 11.6%.
- Transition like Shift Towards Waste-to-Fuel Technologies is expected to add $1 billion to the Bio Alcohol market growth by 2030.
- The Bio Alcohol market is set to add $17.5 billion between 2023 and 2033, with manufacturer targeting Corn & Agricultural Waste Source projected to gain a larger market share.
- With Rising demand for sustainable fuels, and Growing application in pharmaceuticals and personal care, Bio Alcohol market to expand 143% between 2023 and 2033.
Opportunities in the Bio Alcohol
Enhancements in manufacturing methods such as fermentation have also the potential to lower expenses and increase the availability of bio alcohol.
Growth Opportunities in North America and Asia-Pacific
In North America the bio alcohol market is thriving due to the demand for biofuels in the automotive sector supported by government policies. Key industry players such, as POET and Green Plains are concentrating on expanding bioethanol production to fulfill these requirements.
The demand for bio alcohol is rapidly increasing in the Asia Pacific region with a focus in countries like China and India due to the expansion of automotive uses leading companies such, as Cargill to improve their bio alcohol production to meet this growing demand.
Market Dynamics and Supply Chain
01
Driver: Rising Demand for Sustainable Fuels, and Supportive Government Policies
The growing push to cut down carbon emissions is also fueling the interest in bio alcohols as a substitute, for traditional fossil fuels. Countries, around the world are also introducing measures and rewards to encourage the adoption of biofuels in a bid to support the growth of the bio alcohol sector.
Bio based alcohols are also becoming more prevalent in friendly products, within the pharmaceutical and personal care sectors.
02
Restraint: High Production Costs, and High Production Costs
Producing bio alcohol requires methods and specific materials which result in increased expenses when compared to traditional fuels.
Producing bio alcohol requires methods and specific materials which result in increased expenses when compared to traditional fuels.
03
Opportunity: Expansion in Emerging Markets and Integration with Circular Economy
Developing countries are incorporating bio alcohols into their plans for alternate energy as a way to open up new avenues for growth.
Using farm waste to create bio alcohol supports the concept of a circular economy and provides both environmental and financial advantages.
04
Challenge: Competition from Electric Vehicles
The growing popularity of EVs is challenging biofuels in the transportation industry and could affect the demand for bio alcohol.
Supply Chain Landscape
1
Raw Material Supplier
CargillArcher Daniels MidlandBunge
2
Producer
POETGreen PlainsAmyris
3
Distributor
BrenntagUnivar SolutionsIMCD Group
4
End-User
AutomotivePharmaceuticalsFood & Beverages
1
Raw Material Supplier
CargillArcher Daniels MidlandBunge
2
Producer
POETGreen PlainsAmyris
3
Distributor
BrenntagUnivar SolutionsIMCD Group
4
End-User
AutomotivePharmaceuticalsFood & Beverages
Use Cases of Bio Alcohol in Fuel & Pharmaceuticals
Fuel : Bio based alcohols such as bioethanol have become choices for blending into automotive fuels to lower emissions and enhance fuel economy performance in vehicles. Prominent companies like POET and Green Plains are leading producers of bioethanol for fuel uses, in the market.
Pharmaceuticals : Bio based alcohols are commonly used as solvents and intermediate substances, in the pharmaceutical industry to support friendly manufacturing processes Bioamber Inc and Gevo are well known for offering eco friendly solvents to the pharmaceutical sector
Personal Care : In the realm of personal care products bio alcohols serve as eco-friendly solvents and preservatives presenting a sustainable option, for ingredients. Amyris stands out in the field of bio alcohols used in beauty products by offering substitutes for chemicals.
Food & Beverages : Bio alcohols such as ethanol are commonly utilized as food enhancers and preservatives to promote eco-friendly food production practices in the industry sector; for instance Cargill manufactures bio ethanol for consumption, in the food and beverage industry sector.
Recent Developments
The latest advancements in the alcohol sector demonstrate its increasing significance in eco friendly industries. POET did expansion of its bioethanol plant corresponds with the growing need in sectors; Amyris introduced new bio derived alcohols to meet the demand from personal care industry.
September 2023 : POET upgraded its bioethanol manufacturing plant to keep up with the increasing need, in the industry.
June 2023 : Amyris unveiled a collection of plant derived alcohols tailored for the personal care sector.
April 2023 : Cargill expanded its bioethanol production capabilities for use, in food grade applications.
Impact of Industry Transitions on the Bio Alcohol Market
As a core segment of the Bio-Based C&M industry,
the Bio Alcohol market develops in line with broader industry shifts.
Over recent years, transitions such as Shift Towards Waste-to-Fuel Technologies and Expansion of Bioethanol in Automotive Sector have redefined priorities
across the Bio-Based C&M sector,
influencing how the Bio Alcohol market evolves in terms of demand, applications and competitive dynamics.
These transitions highlight the structural changes shaping long-term growth opportunities.
01
Shift Towards Waste-to-Fuel Technologies
The focus is shifting towards transforming waste into bio alcohols to lessen the dependence, on crops and support sustainability objectives.
02
Expansion of Bioethanol in Automotive Sector
Bioethanols excellent compatibility as a fuel additive has led to its growing use in the sector. Particularly in nations, with favorable policies supporting biofuels.