Ethanol rose to 1.65 USD/Gal on June 26, 2025, up 1.54% from the previous day. Over the past month, Ethanol's price has fallen 9.12%, and is down 12.50% compared to the same time last year, according to trading on a contract for difference (CFD) that tracks the benchmark market for this commodity. Ethanol - values, historical data, forecasts and news - updated on June of 2025.

Get the latest insights on price movement and trend analysis of Ethanol in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East Africa).

Why did the Ethanol Price Change in May 2025? During the first quarter of 2025, the U.S. ethanol market witnessed a mix of bullish and bearish influences, leading to fluctuations in prices over the three-month period.

The world benchmark for fuel ethanol - U.S. Omaha wholesale price - stood at 64.50 U.S. dollars per hectoliter in 2023. This annual average was lower than in the previous two years, after rising to a high of $70.75 per hectoliter in 2022.

Get the latest insights on price movement and trend analysis of Bioethanol in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East Africa).

In 2024, a liter of commercial hydrous ethanol fuel in Brazil was sold at an average price of **** Brazilian reals. This represented an increase of roughly three percent in comparison to the previous year, when Brazil's average sale price of ethanol fuel reached **** Brazilian reals. Hydrous ethanol accounts for most of the ethanol production in Brazil.

Ethanol Price in India - 2023. Find the latest marketing data on the IndexBox platform.

According to Cognitive Market Research, the global Fuel Ethanol market size will be USD 88515.5 million in 2024. It will expand at a compound annual growth rate (CAGR) of 7.00% from 2024 to 2031.

North America held the major market share for more than 40% of the global revenue with a market size of USD 35405.20 million in 2024 and will grow at a compound annual growth rate (CAGR) of 5.2% from 2024 to 2031.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD 26554.65 million.
Asia Pacific held a market share of around 23% of the global revenue with a market size of USD 20358.57 million in 2024 and will grow at a compound annual growth rate (CAGR) of 9.0% from 2024 to 2031.
Latin America had a market share of more than 5% of the global revenue with a market size of USD 4425.78 million in 2024 and will grow at a compound annual growth rate (CAGR) of 6.4% from 2024 to 2031.
Middle East and Africa had a market share of around 2% of the global revenue and was estimated at a market size of USD 1770.31 million in 2024 and will grow at a compound annual growth rate (CAGR) of 6.7% from 2024 to 2031.
The Synthetic held the highest Fuel Ethanol market revenue share in 2024.

Market Dynamics of Fuel Ethanol Market

Key Drivers for Fuel Ethanol Market

Renewable Energy Goals to Increase the Demand Globally: Governments globally are championing renewable energy to cut greenhouse gas emissions and tackle climate change. Ethanol, a biofuel made from agricultural crops, supports these objectives by providing a cleaner alternative to fossil fuels. Many countries implement mandates or incentives to boost ethanol use, recognizing its role in reducing carbon footprints and enhancing energy sustainability. These policies aim to foster a shift towards greener energy sources, helping mitigate environmental impact and promote long-term ecological balance. Through such initiatives, ethanol becomes a key player in advancing global renewable energy goals.

Energy Security to Propel Market Growth: Reducing reliance on fossil fuels strengthens energy security by diversifying fuel sources and minimizing dependence on imported oil. Ethanol production plays a crucial role in this strategy by providing a renewable, domestically sourced alternative. By integrating ethanol into the energy mix, countries can decrease their vulnerability to volatile oil markets and geopolitical uncertainties. This shift not only promotes stability in energy supply but also supports local economies through agricultural and industrial investments. Enhanced energy security through ethanol contributes to a more resilient and self-sufficient energy infrastructure, ensuring a stable and sustainable energy future.

Key Restraint Factor for the Fuel Ethanol Market

Food vs. Fuel Debate to Limit the Sales: The food versus fuel debate centers on concerns that dedicating agricultural land to ethanol production may impact food security and drive up food prices. As land and crops are diverted from food production to biofuel use, it raises fears of reduced food supply and higher costs for consumers. This tension can constrain the growth of ethanol production, as policymakers balance the benefits of renewable energy against potential negative effects on food availability. Addressing these concerns requires innovative solutions to optimize land use and enhance crop yields, ensuring that both energy and food needs are met sustainably.

Key Trends for Fuel Ethanol Market

Transition to Second-Generation (Cellulosic) Ethanol: Recent advancements are facilitating the production of ethanol from non-food biomass, such as agricultural waste. These developments mitigate the food-versus-fuel dilemma and promote enhanced sustainability. Second-generation ethanol is attracting interest due to its long-term ecological advantages.

Strategic Alliances and Expansion of Global Trade: Nations are progressively establishing trade agreements for the import and export of ethanol. Brazil and the United States are prominent exporters, while the Asia-Pacific region and Europe serve as significant consumers. These international supply chains improve availability and contribute to price stability.

Impact of Covid-19 on the Fuel Ethanol Market

The COVID-19 pandemic significantly impacted the fuel ethanol market, causing a sharp decline in demand due to reduced transportation activity and economic slowdow...

In 2024, after seven years of growth, there was significant decline in the global ethanol market, when its value decreased by -5% to $87.1B. In general, the total consumption indicated a tangible increase from 2012 to 2024: its value increased at an average annual rate of +3.3% over the last twelve-year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period.

Access monthly energy price assessments for United States, featuring Ethanol. Coverage includes 10-year price history, current values, short-term forecasts, and market trends. Updated on the 3rd business day of each month, the data offers insights on prices, supply, demand, production, and trade. Available via PDF reports, Excel Add-In, Power BI, and API. Free preview available.

Access monthly energy price assessments for Poland, featuring Ethanol. Coverage includes 10-year price history, current values, short-term forecasts, and market trends. Updated on the 3rd business day of each month, the data offers insights on prices, supply, demand, production, and trade. Available via PDF reports, Excel Add-In, Power BI, and API. Free preview available.

The Ethanol Fuel Production industry consists of companies that concentrate on producing nonpotable ethanol, or ethyl alcohol, for use as motor fuel. Products are primarily used as a biofuel additive for gasoline. According to the United States Department of Energy, more than 98.0% of gas in the United States contains some ethanol. Ethanol fuel is a domestically produced alternative to traditional fuel, generally made from corn. The dry-milling process, which composes most ethanol plants in the US, involves converting corn to flour and fermenting it to form ethanol. This makes operations highly sensitive to commodity prices, such as the world price of crude oil and corn. The industry has encountered significantly volatile conditions attributed to heavy fluctuations in commodity prices, prompting significant changes in the price of ethanol. Amid the onset of the pandemic in 2020, the cost of ethanol fell considerably because of reduced demand, resulting in collapsing industry revenue that year. As the economy reopened in 2021, demand returned and the price of ethanol surged. Trends reversed in 2023 and 2024 as corn and ethanol prices plummeted. Still, the enormous rise in 2021 effectively offset all other declines, enabling the industry to boom overall. Ethanol Fuel Production industry revenue has been accelerating at a CAGR of 5.0% over the past five years and is expected to total $32.3 billion in 2024, when revenue will fall by an estimated 5.9%. Profit also increased because of higher industry selling prices and a drop in wages. The industry will fare worse going forward, with a slated contraction. This contraction can be attributed to declines in the price of crude oil and subsequent decreases in the price of ethanol. Since most of the industry's meteoric growth was due to price increases, not production, falling commodity prices will cause industry revenue to regress. Ethanol Fuel Production industry revenue is expected to inch downward at a CAGR of 0.4% to $31.6 billion over the five years to 2029.

Access monthly energy price assessments for Saudi Arabia, featuring Ethanol. Coverage includes 10-year price history, current values, short-term forecasts, and market trends. Updated on the 3rd business day of each month, the data offers insights on prices, supply, demand, production, and trade. Available via PDF reports, Excel Add-In, Power BI, and API. Free preview available.

Ethanol Price in the United States - 2023. Find the latest marketing data on the IndexBox platform.

Ethanol Price in Canada - 2023. Find the latest marketing data on the IndexBox platform.

United States - Producer Price Index by Commodity: Chemicals and Allied Products: Ethanol (Ethyl Alcohol) was 234.72000 Index 1982=100 in May of 2025, according to the United States Federal Reserve. Historically, United States - Producer Price Index by Commodity: Chemicals and Allied Products: Ethanol (Ethyl Alcohol) reached a record high of 368.47100 in December of 2021 and a record low of 29.00000 in December of 1973. Trading Economics provides the current actual value, an historical data chart and related indicators for United States - Producer Price Index by Commodity: Chemicals and Allied Products: Ethanol (Ethyl Alcohol) - last updated from the United States Federal Reserve on June of 2025.

Access monthly energy price assessments for Colombia, featuring Ethanol. Coverage includes 10-year price history, current values, short-term forecasts, and market trends. Updated on the 3rd business day of each month, the data offers insights on prices, supply, demand, production, and trade. Available via PDF reports, Excel Add-In, Power BI, and API. Free preview available.

Explore the fluctuating prices of corn ethanol, a biofuel derived from corn starch, influenced by corn market trends, government policies, crude oil prices, technological advancements, and global trade dynamics.

Ethanol prices in China dropped YoY in Q4 2024. Slight recovery expected in 2025 due to stable demand and rising feedstock costs.

Fuel Ethanol Market size was valued to be USD 95.48 Billion in the year 2023 and it is expected to reach USD 148.66 Billion in 2031, at a CAGR of 5.69% over the forecast period of 2024 to 2031.

Fuel ethanol is a renewable, domestically produced biofuel made from plant materials like corn, sugarcane, or cellulosic biomass that can be mixed with gasoline or used as an alternative fuel source. It is used as a gasoline additive to increase octane and improve vehicle emissions as it burns cleaner and cooler than pure gasoline, reducing air pollution and greenhouse gas emissions. The production of fuel ethanol involves the fermentation of sugars derived from plant materials, a process similar to brewing beer, followed by distillation to increase the alcohol concentration. Fuel ethanol has been promoted as a way to reduce dependence on imported oil, support domestic agriculture, and contribute to environmental sustainability by utilizing renewable resources and reducing harmful emissions from the transportation sector.

Government Policies and Mandates: The growth of the fuel ethanol market is being driven by government policies and mandates aimed at promoting the use of renewable fuels and reducing greenhouse gas emissions from the transportation sector. These policies, such as the Renewable Fuel Standard (RFS) in the United States and the Renewable Energy Directive (RED) in the European Union, mandate the blending of biofuels like ethanol with gasoline, creating a consistent demand for fuel ethanol. Concerns over Energy Security: The need to reduce dependence on imported oil is fueling the demand for domestically produced fuel ethanol as an alternative to gasoline derived from crude oil. Fuel ethanol is perceived as a means to enhance energy security by diversifying the transportation fuel mix and relying more on locally produced biofuels. Economic Benefits for Rural Communities: The production of fuel ethanol is creating economic opportunities in rural areas where feedstocks, such as corn and sugarcane, are grown and processed. This economic impact, including job creation and income generation, is driving support for the fuel ethanol industry from agricultural communities and policymakers. Technological Advancements: Continuous advancements in the production processes, feedstock utilization, and conversion technologies are improving the efficiency and cost-effectiveness of fuel ethanol production. These technological advancements, including the development of advanced biofuels from cellulosic biomass, are contributing to the growth of the fuel ethanol market. Environmental Considerations: Fuel ethanol is being promoted as a cleaner-burning alternative to gasoline, as it produces lower greenhouse gas emissions and reduces air pollution from the transportation sector. The perceived environmental benefits of fuel ethanol are driving its adoption as part of efforts to mitigate the impacts of climate change and improve air quality.