by The Ethanol Derivatives Market is estimated to be valued at US$ 10.2 Bn in 2023 and is expected to exhibit a CAGR of 5.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Ethanol derivatives are products derived from ethanol through chemical reactions and processes. Key ethanol derivatives include ethyl acetate, ethylene glycol, polyvinyl alcohol, polyethylene, polypropylene, and solvents. They are used across industries like food & beverage, paints & coatings, plastics & polymers, personal care & cosmetics, and pharmaceutical. Increasing applications of ethanol derivatives in both edible and industrial applications are expected to drive the market.
Market Dynamics:
The ethanol derivatives market is primarily driven by the growing demand from end-use industries such as food & beverage, textiles, personal care, plastics & polymers, paints & coatings, and others. Ethanol is an important raw material for production of food and beverage ingredients, including flavorings, extracts, vinegar and distilled spirits. Growing consumption of these products globally is augmenting the demand for ethanol-based derivatives. Additionally, increasing use of plastics made from bio-based polymers such as polyethylene (PE) and polypropylene (PP) made from ethanol is also fueling the market growth. These polymers are used in production of various consumer goods as they are biodegradable and environment friendly.
While higher production cost of ethanol derivatives as compared to petrochemical-based alternatives acts as a major challenge, the market players are expected to leverage opportunities in increasing use of bio-based solutions in end-use industries to gain competitive edge in the long run.
Segment Analysis
Ethanol derivatives market is dominated by the industrial derivatives sub-segment which holds around 60% share of the total market. Ethanol derivatives such as ethyl acetate, ethylene, and ethanol itself have wide industrial applications in paints, adhesives, solvents, chemical intermediates and automotive fuel. This leads to consistent demand from various end-use industries which makes the industrial derivatives sub-segment the dominating one in the market.
PEST Analysis
Political: Ethanol derivatives market is positively impacted by supportive government policies and regulatory mandates regarding use of biofuels especially in developed regions like North America and Europe.
Economic: Growth of end-use industries like personal care, food & beverages, paints & coatings drives the demand. With rising per capita incomes globally, consumption of end products is increasing rapidly.
Social: Increasing health awareness and focus on sustainability are key social factors driving the growth. Ethanol byproducts are replacing gasoline additive MTBE which is suspected to contaminate water supplies.
Technological: New technologies for large-scale production of ethanol from cellulosic sources and its various derivatives are helping improve yields, lower costs and drive further adoption.
Key Takeaways
The Global Ethanol Derivatives Market Size is expected to witness high growth, exhibiting CAGR of 5.5% over the forecast period, due to increasing demand from end-use industries like industrial solvents and automotive.
North America dominates the global market with over 40% share currently led by the US, owing to extensive use of corn-based ethanol as motor fuel and presence of leading producers. Asia Pacific region is expected to be the fastest growing market for ethanol derivatives during the forecast period, driven by expanding end-use industries in China and India.
Key players operating in the ethanol derivatives market are Archer Daniels Midland Company, Green Plains Inc., POET LLC, Valero Energy Corporation, Cargill, Incorporated, Pacific Ethanol Inc., Flint Hills, Resources, The Andersons, Inc., Greenfield Global, LyondellBasell Industries N.V. These companies are focusing on capacity expansion as well as developing innovative and sustainable production methods to cater to the growing demand.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
