The size, share, and present trends in the ethanol market
The global market for ethanol is expected to witness significant and robust growth due to an increase in demand from end-use industries such as food & beverage and fuels. Additionally, ethanol is a prominent alcoholic beverage and is found in beer, wine, cider, and spirits. The consumption of alcoholic beverages across the globe is expected to increase, especially in Europe and North America, which will drive the market for ethanol in the coming years. Along with this, changing lifestyles coupled with the increasing influence of western cultures across the globe is also acting as a driving force for the expansion of the ethanol market.
General Overview Of The Ethanol Industry Across The Globe
Growth and expansion in the global automobile industry are foreseen to be the key reason for the growth in the ethanol industry. Ethanol finds application as a fuel or as a fuel catalyst in automobiles. Additionally, an increase in the global disposable income alongside the global population boom is driving the sale of automobiles in the developing economies. The demand for more sophisticated and efficient fuel employs ethanol applications which makes the chemical important for many industrial and end-user requirements. Ethanol helps in the clean combustion of automobile fuels which makes it an important additive owing to the growing global environmental concerns. Due to this, major economies have been revising their fuel regulations and transforming them to foster the usage of ethanol in the manufacturing of biofuels.
Technological upgradations supported with inexpensive feedstock are also boosting the expansion of the global ethanol market. As an upcoming application of ethanol, it is treated with methanol to derive methylated spirits. Methylated spirits are actively used as chemical solvents and as burners in domestic setups for cooking and heating purposes. Many industries which treat ethanol with denatured alcohol understand that the resulting compound – methylated spirits is characteristically fatal and soporific and this has led policymakers to discourage the global ethanol trade. The ethanol market also faces challenges from the adoption of hybrid fuel engine in the coming decade.
Other propelling factors in the ethanol market include the increasing demand from fuel cells applications and an increase in the usage of commercial fuel cells which employ ethanol as a major additive. Commercial fuel cells also operate with methanol, hydrogen and reformed natural gas, however, low toxicity, cost-effectiveness and wide availability of ethanol in its purest form make it a popular choice among manufacturers of commercial fuel cells.
Rigorous research and development is done to come up with a more innovative and broader number of applications for direct usage of pure ethanol and to make it commercially more feasible and affordable. Ethanol finds applications in transportation and the textile industry. Its market is driven by a growing need for sustainable urbanization in sectors such as healthcare and agriculture to name a few.
