Report Overview

India Ethanol Market - Industry Trends & Forecast Report, 2029

India ethanol market size was estimated at USD 2.27 billion in 2022. During the forecast period between 2023 and 2029, India ethanol market size is projected to grow at a CAGR of 9.16% reaching a value of USD 4.15 billion by 2029. The rising demand for biofuels is expected to lead to growth in the India ethanol market. The country is gradually embracing the usage of ethanol-based fuels and electric cars, which will fuel market expansion in India. A major trend in the nation is the expansion of the agricultural sector and the use of feedstock for the production of ethanol. To increase output and support the schemes and plans that will lead to the expansion of the India ethanol market During the forecast period, the government is actively investing in the sector.

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.

Growth Drivers

Favorable Government Measures

The automobile industry worldwide is swiftly moving towards an all-electric future, and just a few years ago, India proposed a 100% EV objective by 2030. Nevertheless, that has now been revised to a more realistic 2040. Surprisingly, despite the EV aim, ethanol flex-fuel cars are being seriously considered, and India's minister for road transport and highways is actively lobbying for the cause. Ethanol-blended gasoline is not new to India; for over a decade, Petrol has been combined with ethanol, albeit at trace amounts of 2–3%. As modest quantities of ethanol - approximately 10% - have no negative impact on modern internal combustion engines (ICEs), ethanol blending was used to reduce India's heavy burden due to humongous crude oil import bill. The doping threshold has risen to about 10% recently, with the government aiming to raise it to 20% by 2025.

According to projections of petrol use and a 20% ethanol mix, India will require 1,016 crore liters of ethanol by 2025, much less than India's expected supply of 1,500 crore liters. The public sector oil marketing corporations under the administrative jurisdiction of the Ministry of Petroleum and Natural Gas are also investing Rs. 14,000 crore in the construction of 12 second generation (2G) bio-refineries. Besides bagasse, which is sugarcane waste left behind after juice extraction, 2G ethanol is made from agricultural leftovers, such as rice and wheat straw, maize cobs, and even empty fruit branches. As a result, the proposed 2G ethanol facilities are expected to enhance ethanol output using agricultural waste.

Impact of COVID-19 on India Ethanol Market

Due to stringent lockdown measures imposed to stop the transmission of novel corona virus, 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 epidemic hit the nation. 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

Segmental Coverage

India Ethanol Market - By Source

Based on source, India ethanol market is divided into Sugar & Molasses-based, Grain-based, and Second Generation segments. In terms of volume, the grain-based segment dominates market. Ample availability of corn and maize and development of efficient technologies across the nation have encouraged the category growth. Grain-based ethanol is predominantly created via the dry milling technique and 1 bushel of corn may produce 2.86 gallons of denatured ethanol. As producers address issues related to yields and demand saturation, corn production is expected to slow down globally. One of the main methods for producing ethanol nationwide is presently sugar mills. National acceptance of molasses-derived ethanol is growing, and developing nations are setting the pace.

India Ethanol Market - By Purity

Based on purity, India ethanol market is split into Denatured and Undenatured segments. The denatured ethanol segment 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.

India Ethanol Market - By Application

Based on purity, India ethanol market is divided into Industrial Solvents, Fuel & Fuel Additives, Beverages, Disinfectant, Personal Care, and other segments. The fuel and fuel additives segment leads the India ethanol market by application. Rising demand for automotive fuel and changing regulations aimed at reducing air pollution is driving up demand for the product, which is used in the production of gasoline additives to improve fuel efficiency.

As it is widely used in major end-use industries, industrial solvent is one of the steadily growing applications. Rising demand from the pharmaceutical and paints and coatings industries is expected to boost overall demand. The application segment's future growth is heavily reliant on macroeconomic factors such as government policies and federal bank provisions.

India Ethanol Market - By Region

Geographically, the India ethanol market is divided into North India, South India, East India, West India. Because of rising fuel consumption and increased industrial activity, South India is expected to grow the fastest CAGR from 2023 to 2029. The region's diverse industries, combined with steadily growing economies, are expected to boost market growth. Fuel and industrial solvents are the major application segments expected to drive the market in the region.

Competitive Landscape

Major companies in India ethanol market include United Breweries, Aventine Renewable Energy, AB Miller, Archer Daniels Midland Company, Kirin, Pure Energy Inc., and Cargill Corporation. The key strategies used by these market leaders are new product launches, mergers & acquisitions, and alliances. To grow their market share, these companies are also focusing on investing in innovations, collaborations, and expansions.

Scope of the Report

By Source

• • Sugar & Molasses Based

  • Grain Based

  • Second Generation

By Purity

• • Denatured

  • Undenatured

By Application

• • Industrial Solvents

  • Fuel & Fuel Additives

  • Beverages

  • Disinfectant

  • Personal Care

  • Others

By Region

• • North India

  • South India

  • East India

  • West India

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. India Ethanol Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Increasing Usage of Ethanol as Biofuel
         2. Growing Consumption of Alcoholic Beverages
      2. Restraints
         1. Stringent Environmental Regulation
      3. Opportunities
         1. Increasing Production of Ethanol
      4. Challenges
         1. Impact on Supply Chain Due to Covid
   3. Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. India Ethanol Market Overview
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Source
         1. Sugar & Molasses Based
         2. Grain Based
         3. Second Generation
      2. By Purity
         1. Denatured
         2. Undenatured
      3. By Application
         1. Industrial Solvents
         2. Fuel & Fuel Additives
         3. Beverages
         4. Disinfectant
         5. Personal Care
         6. Others
      4. By Region
         1. North India
         2. South India
         3. East India
         4. West India
5. North India Ethanol Market
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Source
      2. By Purity
      3. By Application
6. South India Ethanol Market
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Source
      2. By Purity
      3. By Application
7. East India Ethanol Market
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Source
      2. By Purity
      3. By Application
8. West India Ethanol Market
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Source
      2. By Purity
      3. By Application
9. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. India Ethanol Market Company Market Share Analysis, 2022
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
10. Impact of Covid-19 on India Ethanol Market
11. Company Profile (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
    1. United Breweries
    2. Aventine Renewable Energy
    3. AB Miller
    4. Archer Daniels Midland Company
    5. Kirin
    6. Pure Energy Inc.
    7. Cargill Corporation
    8. Other Prominent Players
12. Key Strategic Recommendations
13. Research Methodology
    1.    Qualitative Research
       1.  Primary & Secondary Research
    2.    Quantitative Research
    3.    Market Breakdown & Data Triangulation
       1.  Secondary Research
       2.  Primary Research
    4.    Breakdown of Primary Research Respondents, By Region
    5.    Assumptions & Limitations

*Financial information in case of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable

List of Figures

Figure 1       India Ethanol Market Segmentation

Figure 2       India Ethanol Market Value Chain Analysis

Figure 3       Company Market Share Analysis, 2022

Figure 4       India Ethanol Market Size, By Value (USD Million), 2019–2029

Figure 5       India Ethanol Market Share, By Source, By Value, 2019–2029

Figure 6       India Ethanol Market Share, By Purity, By Value, 2019–2029

Figure 7       India Ethanol Market Share, By Application, By Value, 2019–2029

Figure 8       India Ethanol Market Share, By Region, By Value, 2019–2029

Figure 9       North India Ethanol Market Size, By Value (USD Million), 2019–2029

Figure 10     North India Ethanol Market Share, By Source, By Value, 2019–2029

Figure 11     North India Ethanol Market Share, By Purity, By Value, 2019–2029

Figure 12     North India Ethanol Market Share, By Application, By Value, 2019–2029

Figure 13     South India Ethanol Market Size, By Value (USD Million), 2019–2029

Figure 14     South India Ethanol Market Share, By Source, By Value, 2019–2029

Figure 15     South India Ethanol Market Share, By Purity, By Value, 2019–2029

Figure 16     South India Ethanol Market Share, By Application , By Value, 2019–2029

Figure 17     East India Ethanol Market Size, By Value (USD Million), 2019–2029

Figure 18     East India Ethanol Market Share, By Source, By Value, 2019–2029

Figure 19     East India Ethanol Market Share, By Purity, By Value, 2019–2029

Figure 20     East India Ethanol Market Share, By Application , By Value, 2019–2029

Figure 21     West India Ethanol Market Size, By Value (USD Million), 2019–2029

Figure 22     West India Ethanol Market Share, By Source, By Value, 2019–2029

Figure 23     West India Ethanol Market Share, By Purity, By Value, 2019–2029

Figure 24     West India Ethanol Market Share, By Application, By Value, 2019–2029

List of Tables

Table 1        India Ethanol Market Size, By Value (USD Million), 2019–2029

Table 2        India Ethanol Market Size, By Source, By Value, 2019–2029

Table 3        India Ethanol Market Size, By Purity, By Value, 2019–2029

Table 4        India Ethanol Market Size, By Application, By Value, 2019–2029

Table 5        India Ethanol Market Size, By Region, By Value, 2019–2029

Table 6        North India Ethanol Market Size, By Value (USD Million), 2019–2029

Table 7        North India Ethanol Market Size, By Source, By Value, 2019–2029

Table 8        North India Ethanol Market Size, By Purity, By Value, 2019–2029

Table 9        North India Ethanol Market Size, By Application, By Value, 2019–2029

Table 10      South India Ethanol Market Size, By Value (USD Million), 2019–2029

Table 11      South India Ethanol Market Size, By Source, By Value, 2019–2029

Table 12      South India Ethanol Market Size, By Purity, By Value, 2019–2029

Table 13      South India Ethanol Market Size, By Application, By Value, 2019–2029

Table 14      East India Ethanol Market Size, By Value (USD Million), 2019–2029

Table 15      East India Ethanol Market Size, By Source, By Value, 2019–2029

Table 16      East India Ethanol Market Size, By Purity, By Value, 2019–2029

Table 17      East India Ethanol Market Size, By Application , By Value, 2019–2029

Table 18      West India Ethanol Market Size, By Value (USD Million), 2019–2029

Table 19      West India Ethanol Market Size, By Source, By Value, 2019–2029

Table 20      West India Ethanol Market Size, By Purity, By Value, 2019–2029

Table 21      West India Ethanol Market Size, By Application, By Value, 2019–2029

Table 22      United Breweries Company Overview

Table 23      United Breweries Financial Overview

Table 24      Aventine Renewable Energy Company Overview

Table 25      Aventine Renewable Energy Financial Overview

Table 26      AB Miller Company Overview

Table 27      AB Miller Financial Overview

Table 28      Archer Daniels Midland Company - Company Overview

Table 29      Archer Daniels Midland Company Financial Overview

Table 30      Kirin Company Overview

Table 31      Kirin Financial Overview

Table 32      Pure Energy Inc. Company Overview

Table 33      Pure Energy Inc. Financial Overview

Table 34      Cargill Corporation Company Overview

Table 35      Cargill Corporation Financial Overview