Malaysia Ethanol Market Synopsis

Malaysia ethanol market is projected to grow during the forecast period. This growth is attributed to the government's efforts to promote renewable energy and reduce the country's carbon footprint. The ethanol market in Malaysia has been segmented based on end-users, type, and region. The major end-users of ethanol are transport, food & beverage, chemical, and others. The type of ethanol consumed in Malaysia is denatured alcohol. Ethanol is mainly produced from sugarcane and corn. The Malaysia Ethanol market is a part of Asia Pacific Ethanol market and global ethanol market.

According to 6Wresearch, the Malaysia Ethanol market size is likely to witness growth during 2022-28. This growth is attributed to the government’s policy initiatives such as the introduction of the Negotiated Voluntary Agreement Scheme (NVAS) and amendments to the Alcohol Control Act 2007. Additionally, ethanol is a renewable fuel that can be used in various automotive applications, including gasoline and diesel vehicles. The market for ethanol is expected to grow owing to rising demand from Asia Pacific region, which is projected to reach USD 24.8 billion by 2021. This rise in demand is driven by increasing concerns about climate change and emissions, coupled with stringent regulations pertaining to vehicular emissions.

Market Analysis By Regulatory Framework

The Malaysian government has been supportive of the growth of the ethanol industry. The country plans to increase its production capacity from 2 million liters per year to 4 million liters by 2020. This expansion is expected to be driven by increasing demand for biofuels from the automotive sector and the government's efforts to reduce greenhouse gas emissions. Additionally, the government has set a target of generating 100 million liters of ethanol by 2020, and 200 million liters by 2025. In order to meet these targets, several projects have been initiated, such as the construction of an ethanol refinery in Pahang and a bioethanol plant in Johor Bahru. The growing demand for ethanol is also attributed to the rising fuel prices. This increase has led to an increase in the use of alternative fuels such as ethanol, which has a lower carbon footprint than gasoline.

Market Analysis By Distribution Channel

ADM, SABMiller, and other large alcohol producers are key participants in the Malaysian ethanol market. ADM is the market leader with majority of the market share. The company's subsidiary, Bunge Ltd., has a leading share in the domestic production of ethanol. SABMiller operates two ethanol plants in Malaysia- one in Sepang and another in Kedah- as well as a joint venture plant with China National Petroleum Corporation. Other major players include InBev, Heineken International, AB InBev, Pernod Ricard Malaysia, and Diageo Malaysia. Additionally, the Malaysian government has been supportive of the growth of the ethanol industry. The country plans to increase its production capacity from 2 million liters per year to 4 million liters by 2020. This expansion is expected to be driven by increasing demand for biofuels from the automotive sector and the government's efforts to reduce greenhouse gas emissions.

COVID-19 Influence on the Malaysia Ethanol Market

The occurrence of Covid-19 pandemic has resulted in a stoppage in past. However, the market has recuperated gradually. Currently, the market has tremondous growth opportunities. This growth is mainly due to the increasing demand for biofuels in the country and the government's initiatives to promote renewable energy sources. However, there are several challenges that the ethanol market faces including limited infrastructure and high costs associated with production. Furthermore, competition from imported ethanol products is also causing some Challenges for domestic producers.

Key Attractiveness of the Report

• COVID-19 Influence on the Market Dynamics.
• 10 Years of Market Data.
• Historical Numbers from 2018 to 2021.
• Base Year: 2021
• Market Forecast Data Until 2028
• Key Performance Indicators Influencing the Market.
• Key Developments and Projects.

Key Highlights of the report

• Malaysia Ethanol Market Overview
• Malaysia Ethanol Market Outlook
• Malaysia Ethanol Market Forecast
• Historical Data of Malaysia Ethanol Market Revenues and Volumes, for the Period 2018-2021.
• Market Size & Forecast of Malaysia Ethanol Market Revenues and Volumes, until 2028.
• Historical Data of Malaysia Ethanol Market Revenues and Volumes, by purity, for the Period 2018-2021.
• Market Size & Forecast of Malaysia Ethanol Market Revenues and Volumes, by purity, until 2028.
• Historical Data of Malaysia Ethanol Market Revenues and Volumes, by Source, for the Period 2018-2021.
• Market Size & Forecast of Malaysia Ethanol Market Revenues and Volumes, by source, until 2028.
• Historical Data of Malaysia Ethanol Market Revenues and Volumes, by application, for the Period 2018-2021.
• Market Size & Forecast of Malaysia Ethanol Market Revenues and Volumes, by application, until 2028.
• Market Drivers and Restraints
• Malaysia Ethanol Market Price Trends
• Malaysia Ethanol Market Trends and Industry Life Cycle
• Porter’s Five Force Analysis
• Market Opportunity Assessment
• Malaysia Ethanol Market Share, By Players
• Malaysia Ethanol Market Overview on Competitive Benchmarking
• Company Profiles
• Key Strategic Recommendations

Markets Covered

The report delivers a widespread study of the subsequent 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

Frequently Enquired Queries Regarding the Market Study: FAQs

1). Which source accounts for the maximum market share in the Malaysia Ethanol Market?

The sugar & molasses based accounts for the maximum market share in the Malaysia Ethanol market.

2). Does the report include the impression of COVID-19?

Yes, the report includes the stimulus of COVID-19.

3). Which application is predictable to register the highest growth rate?

The fuel and fuel additives application is projected to record the highest share in future.

4). What are the critical factors which are increasing the market demand?                                               

The growth of the market is attributed to the government's efforts to promote renewable energy and reduce the country's carbon footprint.

5). What are the major challenges in the Malaysia Ethanol Market?                                     

One of the major challenge is increasing competition from other regional markets, as well as environmental concern.