Ethanol fell to 1.74 USD/Gal on July 11, 2025, down 0.29% from the previous day. Over the past month, Ethanol's price has risen 4.83%, but it is still 9.64% lower than a year ago, 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 July of 2025.

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 Ethanol in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East Africa).

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).

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.

According to Cognitive Market Research, the global Ethanol market size will be USD 72624.8 million in 2025. It is expected to expand at a compound annual growth rate (CAGR) of 5.50% from 2025 to 2033.

North America held the major market share for more than 40% of the global revenue with a market size of USD 26871.18 million in 2025 and will grow at a compound annual growth rate (CAGR) of 3.3% from 2025 to 2033.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD 21061.19 million.
APAC held a market share of around 23% of the global revenue with a market size of USD 17429.95 million in 2025 and will grow at a compound annual growth rate (CAGR) of 7.5% from 2025 to 2033.
South America has a market share of more than 5% of the global revenue with a market size of USD 2759.74 million in 2025 and will grow at a compound annual growth rate (CAGR) of 4.5% from 2025 to 2033.
The Middle East had a market share of around 2% of the global revenue and was estimated at a market size of USD 2904.99 million in 2025. and will grow at a compound annual growth rate (CAGR) of 4.8% from 2025 to 2033.
Africa had a market share of around 1% of the global revenue and was estimated at a market size of USD 1597.75 million in 2025. and will grow at a compound annual growth rate (CAGR) of 5.2% from 2025 to 2033.
Industrial Solvents is the fastest growing segment of the Ethanol industry

Market Dynamics of Ethanol Market

Key Drivers for Ethanol Market

Growing Demand for Biofuels and Renewable Energy to Boost Market Growth

The increased demand for biofuels and renewable energy is a significant driver of ethanol industry expansion. As countries work to reduce greenhouse gas emissions and their dependency on fossil fuels, ethanol —a clean, renewable, and biodegradable fuel —is gaining popularity worldwide. Ethanol is being rapidly blended into petrol to offer more sustainable fuel options, thereby promoting energy security and environmental goals. Governments around the world are implementing laws and mandates to promote the use of ethanol, particularly in transportation. Furthermore, the transition to low-carbon energy sources, in line with global climate targets, is driving investments in ethanol production infrastructure and technologies. This growing demand places ethanol as a critical component in the transition to a green energy future.

Expansion of the Automotive Sector to Boost Market Growth

The increase in the automobile sector is greatly boosting the ethanol market. As global vehicle ownership increases, particularly in emerging economies, there is a growing demand for sustainable and cleaner fuels, such as ethanol. Ethanol, which is often blended with gasoline, offers a renewable alternative that reduces greenhouse gas emissions and enhances engine performance. Governments worldwide are implementing regulations to promote the use of ethanol in transportation, further accelerating its adoption. Furthermore, advances in flex-fuel vehicle technology, which can run on greater ethanol mixes, are easing the shift. The convergence of automotive expansion and environmental sustainability aims establishes ethanol as a crucial participant in the future of transportation fuels.

Restraint Factor for the Ethanol Market

Fluctuating Feedstock Prices Will Limit Market Growth

Fluctuating feedstock prices have a substantial impact on the growth of the ethanol market. Ethanol production is heavily reliant on agricultural commodities such as corn, sugarcane, and wheat, whose prices are highly variable due to fluctuations in meteorological conditions, global demand-supply imbalances, and geopolitical conflicts. These price changes have a direct impact on production costs, profit margins, and market stability for ethanol producers. Furthermore, high feedstock prices may redirect resources away from ethanol production and into food supplies, exacerbating food security problems. This uncertainty discourages long-term investment and planning, especially in developing economies. As a result, unpredictable feedstock costs impede the worldwide ethanol industry's constant growth and competitiveness. Introduction of the Ethanol Market

Ethanol, also known as ethyl alcohol (C?H?OH), is a renewable, colourless, and volatile liquid created by the fermentation of sugar- and starch-based crops, such as corn, sugarcane, and wheat. It's commonly used a...

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.

Brazil BR: Consumer Fuel Price: Ethanol: Maximum data was reported at 6.490 BRL/l in Mar 2025. This stayed constant from the previous number of 6.490 BRL/l for Feb 2025. Brazil BR: Consumer Fuel Price: Ethanol: Maximum data is updated monthly, averaging 3.150 BRL/l from Jul 2001 (Median) to Mar 2025, with 284 observations. The data reached an all-time high of 7.989 BRL/l in Mar 2022 and a record low of 1.580 BRL/l in Jul 2001. Brazil BR: Consumer Fuel Price: Ethanol: Maximum data remains active status in CEIC and is reported by National Petroleum, Natural Gas and Biofuels Agency. The data is categorized under Global Database’s Brazil – Table BR.PF002: Consumer Fuel Price: Brazil: Monthly. Note:The Survey of Price and Margin Fuels Marketing covers gasoline, hydrated ethanol fuel, diesel oil without additive, compressed natural gas (CNG) and liquefied petroleum gas (LPG) which have been surveyed in 555 locations, about 10% municipalities in Brazil, in accordance with procedures established by the Brazilian National Agency of Petroleum, Natural Gas and Biofuels.The results of the Survey of Price and Margin Fuels Marketing contain selling price to the final consumer and purchasing price from the wholesaler of gasoline, hydrated ethanol fuel, diesel oil without additive, CNG and LPG observed in each municipality which has participated in the survey.

Rising need for renewable and sustainable energy sources is set to fuel worldwide sales of cellulosic ethanol from US$ 1.36 billion in 2024 to US$ 61.68 billion by 2034. The global cellulosic ethanol market is forecasted to register a CAGR of 46.4% across the forecast period (2024 to 2034).

Report Attributes	Details
Cellulosic Ethanol Market Size (2024E)	US$ 1.36 Billion
Forecasted Market Value (2034F)	US$ 61.68 Billion
Global Market Growth Rate (2024 to 2034)	46.4% CAGR
South Korea Market Value (2034F)	US$ 2.10 Billion
Energy Crop Feedstock Demand Growth (2024 to 2034)	46.7% CAGR
Key Companies Profiled	Novozymes Alliance Bio-Products Dow Beta Renewables SpA Aemetis, Inc. Enerkem Shandong Longlive Bio-Technology Poet-DSM Advanced Biofuels LLC BlueFire Renewables Inc. GranBio DuPont Biochemtex SpA Fiberight BP PLC Abengoa

Country-wise Analysis

Attribute	United States
Market Value (2024E)	US$ 179.9 Million
Growth Rate (2024 to 2034)	46% CAGR
Projected Value (2034F)	US$ 7.93 Billion

Attribute	Japan
Market Value (2024E)	US$ 109.3 Million
Growth Rate (2024 to 2034)	44.6% CAGR
Projected Value (2034F)	US$ 4.37 Billion

Category-wise Analysis

Attribute	Municipal Solid Waste
Segment Value (2024E)	US$ 349.2 Million
Growth Rate (2024 to 2034)	46% CAGR
Projected Value (2034F)	US$ 15.36 Billion

Attribute	Industrial Application
Segment Value (2024E)	US$ 945.2 Million
Growth Rate (2024 to 2034)	46.4% CAGR
Projected Value (2034F)	US$ 42.68 Billion

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.

The use of ethanol as a fuel additive became unprofitable in 2020, which threatens countries' plans to switch to environmentally friendly fuels, but the demand for alcohol-based disinfectants increased significantly.

The global Ethanol market study report provides detailed information on forecasts by current market dynamics and growth opportunities.

In 2024, the EU ethanol market decreased by -0.5% to $7.6B, falling for the second consecutive year after four years of growth. In general, consumption showed tangible growth. As a result, consumption attained the peak level of $7.6B; afterwards, it flattened through to 2024.

Global Ethanol Market reached US$ 102.5 Billion in 2023 and is expected to reach US$ 153.8 Billion by 2031

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

The global fuel ethanol market, valued at $80 million in 2025, is projected to experience steady growth, driven by increasing demand for renewable energy sources and government initiatives promoting biofuel adoption. A compound annual growth rate (CAGR) of 3.2% from 2025 to 2033 indicates a gradual but consistent expansion. Key growth drivers include stringent emission regulations aimed at reducing greenhouse gas emissions from the transportation sector, coupled with rising fuel prices and energy security concerns. The market segmentation reveals a significant contribution from conventional fuel vehicles, although flexible fuel vehicles are exhibiting strong growth potential, fueled by advancements in vehicle technology and increasing availability of E85 blends. Starch-based ethanol currently dominates the type segment, owing to its established production infrastructure and relatively lower production costs compared to cellulosic ethanol, though the latter is expected to witness considerable growth in the long term due to its sustainable nature and potential for reducing reliance on food crops. Geographic analysis shows a strong concentration of the market in North America, largely driven by the United States' well-established biofuel industry and supportive government policies. However, emerging economies in Asia-Pacific, particularly China and India, present significant growth opportunities as their transportation sectors expand and their focus on cleaner energy intensifies. Market restraints include the volatility of agricultural commodity prices, which affects the cost of ethanol production, and competition from other biofuels and alternative energy sources. Despite the positive outlook, the fuel ethanol market faces challenges. The competition from other renewable fuels like biodiesel and electricity requires continuous innovation and cost reduction strategies within the ethanol industry. Furthermore, land use changes associated with increased ethanol production need to be carefully managed to minimize environmental impact. Addressing these challenges through technological advancements, improved production efficiency, and sustainable sourcing practices will be crucial for sustaining the market's growth trajectory. The strategic partnerships between ethanol producers and automotive manufacturers will also play a significant role in promoting the wider adoption of fuel ethanol and in developing advanced biofuel technologies. The continued investment in research and development, focused on improving the efficiency and sustainability of cellulosic ethanol production, is critical for unlocking the full potential of this promising segment.

The global ethanol market is experiencing robust growth, driven by increasing demand for renewable fuels and the stringent emission regulations worldwide. While precise market size figures for 2025 aren't provided, assuming a conservative CAGR of 5% (a reasonable estimate given industry trends and considering fluctuations due to various factors like corn prices and government policies) and a hypothetical 2019 market size of $80 billion, the market value in 2025 would be approximately $102 billion. This growth is fueled by several factors: the rising adoption of flex-fuel vehicles, expanding government incentives for biofuel usage, and the growing awareness of the environmental benefits of ethanol as a cleaner alternative to fossil fuels. Significant growth is anticipated in regions like Asia-Pacific and South America, driven by rising disposable incomes and expanding vehicle fleets. The market is segmented by ethanol type (corn-based, cellulosic) and application (E10, E15, E85 blends), with corn-based ethanol currently dominating the market. However, the cellulosic ethanol segment is poised for substantial growth in the coming years due to advancements in technology and increasing investment in research and development. Despite this positive outlook, challenges remain, including volatility in raw material prices (like corn), competition from other biofuels, and concerns about land use and water consumption in ethanol production. The major players in this market, including Archer Daniels Midland, POET Biorefining, and Valero, are continuously investing in expanding their production capacities and exploring innovative technologies to enhance efficiency and sustainability. The forecast period (2025-2033) projects continued expansion, albeit potentially at a slightly moderated CAGR (e.g., 4-5%), reflecting the potential for market saturation in some regions and the ongoing need for technological advancements to make cellulosic ethanol more cost-competitive. Further market segmentation by region – North America (particularly the US), Europe, Asia Pacific, and South America – allows for a more granular understanding of growth trajectories and market dynamics within each region. The continued adoption of renewable energy mandates and government support for biofuels will be critical drivers shaping the future of the ethanol market.

The global absolute ethanol market is expected to grow in the forecast period of 2025-2034 at a CAGR of 4.10%.