India Ethanol Market (2020-2026) | Growth, Outlook, Share, Industry, Trends, Revenue, Size, Value, Analysis, Forecast, Segmentation & COVID-19 IMPACT

India Ethanol Market | Country-Wise Share and Competition Analysis

In the year 2021, the UK  was the largest exporter in terms of value, followed by Germany. It has registered a growth of 56.19% over the previous year. While Germany registered a growth of 55.8% as compared to the previous year. In the year 2017, the UK was the largest exporter followed by Germany. In terms of the Herfindahl Index, which measures the competitiveness of countries exporting, India has a Herfindahl index of 2355 in 2017 which signifies moderately concentrated also in 2021 it registered a Herfindahl index of  1475 which signifies high competitiveness in the market.

India Ethanol Market - Export Market Opportunities

Topics Covered in the India Ethanol Market

India Ethanol Market report thoroughly covers the market by purity, by sources, and by applications. The market outlook report provides an unbiased and detailed analysis of the ongoing market trends, opportunities/high growth areas, and market drivers which would help the stakeholders to devise and align their market strategies according to the current and future market dynamics.

Latest (2023) Development of the India Ethanol Market

India Ethanol Market has been witnessing significant growth backed by some ongoing promising developments such as the rising ethanol demand from certain sectors, including, food & beverages, pharmaceutical, and personal care products. Additionally, Indian Oil Corporation Limited signed an agreement, in June 2021, with Praj Industries to establish three compressed biogas and one second-generation ethanol manufacturing unit in Gujarat, this is one of the most prominent projects creating a favorable impact on the India Ethanol Market growth. Furthermore, recently declared by Bharat Petroleum Corporation Limited to invest to increase the ethanol production capacity to serve and meet the demand of both domestic and international markets is estimated to be another significant project that will surge the growth of the India Ethanol industry in the coming years. 

India Ethanol Market Synopsis

India Ethanol Market is expected to register growth during the forecast period on account of the increasing consumption and production of alcoholic beverages along with the growing usage of ethanol as fuel in automotive. The growing environmental concerns and rising adoption of ethanol at gasoline stations coupled with the increasing number of gasoline stations are some of the major factors driving the demand for the ethanol market in India. Moreover, the changing taste and preferences of people, changing life, and the rising automobile industry would propel the growth of the ethanol market in India. Aiming to develop a wide ethanol industry in the country to cater to domestic needs and contribute to economic growth is one of the major drivers that will ensure massive growth of the market in the coming years.

According to 6Wresearch, the India Ethanol Market size is expected to grow at a massive rate during the forecast period 2020-2026. The market is growing considerably due to the rise in the potential growth of the chemical and food & beverage industry. With the rising financial incentives, farmers have increased ethanol production to improve their livelihoods, this factor is creating a positive impact on the India Ethanol industry. Additionally, Ethanol blended fuel use has been increasing rapidly to improve air quality by decreasing the pollutants like matter and nitrogen oxides. This is one of the leading factors increasing the use of ethanol and leaving a favorable impact on the market growth. The rising investment in ethanol production technologies, which include effective & efficient processing methods leads to cost-effective and eco-friendly production. The technology can help produce large quantity ethanol to cater the industrial needs and is estimated to leave a favorable impact on market growth. 

Drivers of the India Ethanol Market

• Agricultural Surplus: India has abundant sugarcane, which helps produce volume ethanol, as a result, it will help manage demand & supply imbalance in the country and contribute to a massive growth of the ethanol market in the country over the coming years.
• Job Creation: the growing ethanol production demand in the country, leads to creating job opportunities for the rural area. As farmers contain the agriculture surplus required to produce ethanol.

Challenges of the India Ethanol Market

The availability of required feedstocks that are sugarcane and grains is limited which limits ethanol production and is unable to cater the domestic needs. Also, the high competition in using these feedstocks for food and fuel production can cause inflation. Additionally, the limited infrastructure to store, produce, and distribute is another challenge that can hinder ethanol production, in turn, this can affect the market growth. 

Government Policies & Schemes Introduced in the India Ethanol Market

India Ethanol Market is estimated to surge in the foreseeable future underpinned by the rising government efforts in increasing ethanol-based fuel to reduce GHG levels in the country.  The Indian government has introduced certain policies such as providing financial incentives and creating a favorable regulatory environment by encouraging the use of renewably sourced fuels (ethanol) in various sectors like agriculture and automotive. This factor is estimated to bolster the ethanol demand, as a result, the market will augment significantly during the forecast period. Also, the Indian government encourages increasing the ethanol production capacity in the country to reduce the dependency on imported crude oil and to decrease the carbon footprint by using ethanol-based fuels. 

COVID-19 Impact on the India Ethanol Market

The pandemic had a profound impact on the India Ethanol Market which is a part of the Asia Pacific ethanol market. COVID-19 caused a major lockdown in the country which led to a shutdown of industrial operations, including construction coupled with the low consumption rate of gasoline due to the travel restrictions. This decreased the ethanol demand and further hindered the market growth by declining the market shares and revenues.

Key Players in the India Ethanol Market

Some are the major players functioning efficiently and effectively to shape the market growth including:

• Bharat Petroleum Corporation Limited has been strongly serving the end sectors in the country by producing and distributing standard-quality ethanol.
• Indian Oil Corporation Limited has a prominent presence in the country, which produces a quality range of ethanol.
• Reliance Industries Ltd. is another one of the leading companies in the country that offers fuel-grade and food-grade ethanol to their customers.
  

Market Analysis by Purity

Based on the purity, denatured ethanol is likely to dominate the India Ethanol Market share, driven by the government's strict policies, which have mandated to blend of ethanol with gasoline and reducing the dependency on fossil fuels to attain a sustainable environment.

Market Analysis by Application

According to Ravi Bhandari, Research Head, 6Wresearch, all applications are driving the demand for ethanol in the country, however, recently, fuel and fuel additives experiencing quite high growth and boosting the India ethanol market share influenced by various factors, like, rising government initiatives to reduce carbon emission, reduce dependency on fossil fuels, and increasing use of renewable sourced fuels and energy generation component.

Market Analysis by Sources

Based on sources, while sugar and molasses-based ethanol have traditionally been used as the major source of ethanol production, nevertheless, the rising demand for other sources as well including, Grained Based and Second Generation increases sustainability and decrease food crop competition. 

Key attractiveness of the report

• COVID-19 Impact on the Market.
• 10 Years Market Numbers.
• Historical Data Starting from 2016 to 2019.
• Base Year: 2019.
• Forecast Data until 2026.
• Key Performance Indicators Impacting the Market.
• Major Upcoming Developments and Projects.

Key Highlights of the Report:

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• India Ethanol Market Overview
• India Ethanol Market Outlook
• India Ethanol Market Forecast
• Historical Data of India Ethanol Market Revenues and Volumes, for the Period 2016-2026.
• Market Size & Forecast of India Ethanol Market Revenues and Volumes, until 2026.
• Historical Data of India Ethanol Market Revenues and Volumes, by purity, for the Period 2016-2026.
• Market Size & Forecast of India Ethanol Market Revenues and Volumes, by purity, until 2026.
• Historical Data of India Ethanol Market Revenues and Volumes, by Source, for the Period 2016-2026.
• Market Size & Forecast of India Ethanol Market Revenues and Volumes, by source, until 2026.
• Historical Data of India Ethanol Market Revenues and Volumes, by application, for the Period 2016-2026.
• Market Size & Forecast of India Ethanol Market Revenues and Volumes, by application, until 2026.
• Market Drivers and Restraints
• India Ethanol Market Price Trends
• India Ethanol Market Trends and Industry Life Cycle
• Porter’s Five Force Analysis
• Market Opportunity Assessment
• India Ethanol Market Share, By Players
• India Ethanol Market Overview on Competitive Benchmarking
• Company Profiles
• Key Strategic Recommendations

Markets Covered

The India Ethanol Market report provides a detailed analysis of the following market segments:

By Purity

• Denatured
• Non-Denatured

By Source

• Sugar & molasses Based
• Second Generation
• Grain Based

By Application

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