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.

Fuel ethanol consumption in the United States was around 14.2 billion gallons in 2023, an increase compared to the previous year. Since 2000, the amount of fuel ethanol consumed primarily within the transportation sector has increased nearly tenfold, reaching its peak in 2019. Texas is the leading fuel ethanol consuming U.S. state.

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.

China Transaction Price: Fuel Ethanol: Beijing data was reported at 6,500.000 RMB/Ton in Aug 2015. This stayed constant from the previous number of 6,500.000 RMB/Ton for Jul 2015. China Transaction Price: Fuel Ethanol: Beijing data is updated monthly, averaging 4,650.000 RMB/Ton from Jan 2003 (Median) to Aug 2015, with 127 observations. The data reached an all-time high of 7,600.000 RMB/Ton in Aug 2006 and a record low of 4,200.000 RMB/Ton in Apr 2003. China Transaction Price: Fuel Ethanol: Beijing data remains active status in CEIC and is reported by Price Monitoring Center, NDRC. The data is categorized under China Premium Database’s Price – Table CN.PH: Ethanol Price: 36 City.

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.

In 2024, the price for ethanol fuel sales in Colombia averaged 15.78 thousand Colombian pesos per gallon, the highest price reported during the period in consideration. That year, figures more than doubled the record low average price recorded in 2019, at some 7.65 thousand Colombian pesos per gallon. In most Colombian departments, ethanol fuel is to be added to commercialized gasoline at a minimum mandated blend of six percent.

Fuel Ethanol Market Outlook

The global fuel ethanol market size was valued at USD 89 billion in 2023 and is projected to reach USD 148 billion by 2032, expanding at a compound annual growth rate (CAGR) of 6.1% during the forecast period. This impressive growth is driven by the increasing demand for cleaner and renewable fuel alternatives, stringent environmental regulations, and the rising focus on reducing greenhouse gas emissions. As countries strive to meet their sustainability goals and reduce reliance on fossil fuels, fuel ethanol has emerged as a key player in the energy transition.

One of the primary growth factors propelling the fuel ethanol market is the escalating demand for sustainable and eco-friendly energy sources. Governments around the world are implementing policies to reduce carbon footprints and promote the use of biofuels. For instance, mandates for blending ethanol with gasoline are becoming more stringent, thereby boosting the demand for fuel ethanol. Moreover, advancements in bioethanol production technologies are enhancing yield and efficiency, making it a more viable option for widespread adoption. This transition not only helps in decreasing the dependency on oil imports but also supports agricultural economies, providing an additional income stream for farmers.

Another significant factor contributing to the market’s growth is the burgeoning automotive sector, particularly the increase in the production of flex-fuel vehicles. These vehicles can run on higher ethanol blends, such as E85, which comprises 85% ethanol. The automotive industry's shift towards producing eco-friendly vehicles is complemented by consumer awareness about the environmental benefits of ethanol-blended fuels. Additionally, ethanol’s high octane number improves engine performance and fuel efficiency, making it an attractive alternative for both manufacturers and consumers.

Moreover, fuel ethanol’s role in power generation and industrial applications is expanding. Ethanol is increasingly being used in combined heat and power (CHP) systems for its cleaner-burning properties compared to fossil fuels. In industrial settings, ethanol is used as a solvent and in the production of various chemicals, further driving its demand. The versatility of ethanol as a fuel and industrial input underscores its growing significance in the global energy landscape.

Source Analysis

The fuel ethanol market is segmented by source into corn, sugarcane, wheat, barley, and others. Corn is the most dominant source of fuel ethanol, particularly in the United States, which is the leading producer of corn-based ethanol. The abundance of corn, coupled with established processing infrastructure, makes it the preferred choice for ethanol production. Corn-based ethanol production is supported by government subsidies and research funding, which further fosters its growth. However, the reliance on corn has raised concerns about food versus fuel, igniting debates over the allocation of agricultural resources.

Sugarcane is another significant source, with Brazil being the largest producer of sugarcane ethanol. The efficiency of sugarcane in producing ethanol is higher compared to corn, leading to a lower carbon footprint. Sugarcane ethanol production is also bolstered by Brazil’s favorable climatic conditions and government policies promoting biofuel usage. The success of sugarcane ethanol in Brazil serves as a model for other tropical and subtropical countries looking to diversify their energy mix.

Wheat and barley are emerging sources of ethanol, particularly in regions where these grains are abundantly available. These sources are gaining traction in Europe and Australia, where agricultural policies and environmental regulations favor the use of alternative biofuels. The production of ethanol from wheat and barley involves similar processes to that of corn and sugarcane, though the yield and efficiency may vary. Research and development efforts are focused on optimizing these processes to make wheat and barley ethanol more competitive.

Other sources of ethanol include various biomass feedstocks and agricultural residues. These sources are part of the second-generation bioethanol production, which aims to use non-food crops and waste materials, thereby addressing the food versus fuel debate. Innovations in enzyme technology and fermentation processes are enhancing the feasibility of converting lignocellulosic biomass into ethanol. This segment is expected to witness significant growth as technologies mature and production costs decrease.

Brazil BR: Wholesale Fuel Price: Ethanol: Average data was reported at 2.398 BRL/l in Aug 2020. This records an increase from the previous number of 2.365 BRL/l for Jul 2020. Brazil BR: Wholesale Fuel Price: Ethanol: Average data is updated monthly, averaging 1.603 BRL/l from Jul 2001 (Median) to Aug 2020, with 230 observations. The data reached an all-time high of 2.931 BRL/l in Feb 2020 and a record low of 0.689 BRL/l in Aug 2002. Brazil BR: Wholesale Fuel Price: Ethanol: Average 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.PF009: Distributor Fuel Price: Brazil: Monthly (Discontinued). 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.

Brazil BR: Consumer Fuel Price: Ethanol: Average data was reported at 4.350 BRL/l in Mar 2025. This records a decrease from the previous number of 4.380 BRL/l for Feb 2025. Brazil BR: Consumer Fuel Price: Ethanol: Average data is updated monthly, averaging 2.011 BRL/l from Jul 2001 (Median) to Mar 2025, with 284 observations. The data reached an all-time high of 5.370 BRL/l in Nov 2021 and a record low of 0.912 BRL/l in Aug 2002. Brazil BR: Consumer Fuel Price: Ethanol: Average 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.

China Transaction Price: Fuel Ethanol: Shenyang data was reported at 5,900.000 RMB/Ton in Nov 2019. This records a decrease from the previous number of 6,300.000 RMB/Ton for Oct 2019. China Transaction Price: Fuel Ethanol: Shenyang data is updated monthly, averaging 5,650.000 RMB/Ton from Jan 2003 (Median) to Nov 2019, with 187 observations. The data reached an all-time high of 7,400.000 RMB/Ton in Feb 2016 and a record low of 3,966.670 RMB/Ton in Jul 2003. China Transaction Price: Fuel Ethanol: Shenyang data remains active status in CEIC and is reported by Price Monitoring Center, NDRC. The data is categorized under China Premium Database’s Price – Table CN.PA: Price Monitoring Center, NDRC: Transaction Price: Production Material: Fuel.

China Transaction Price: Fuel Ethanol: Dalian data was reported at 5,800.000 RMB/Ton in Nov 2019. This records a decrease from the previous number of 6,000.000 RMB/Ton for Oct 2019. China Transaction Price: Fuel Ethanol: Dalian data is updated monthly, averaging 5,800.000 RMB/Ton from Feb 2003 (Median) to Nov 2019, with 193 observations. The data reached an all-time high of 7,000.000 RMB/Ton in Aug 2009 and a record low of 4,000.000 RMB/Ton in Aug 2004. China Transaction Price: Fuel Ethanol: Dalian data remains active status in CEIC and is reported by Price Monitoring Center, NDRC. The data is categorized under China Premium Database’s Price – Table CN.PA: Price Monitoring Center, NDRC: Transaction Price: Production Material: Fuel.

This is a MD iMAP hosted service layer. Find more information at http://imap.maryland.gov. Through a nationwide network of local coalitions - Clean Cities provides project assistance to help stakeholders in the public and private sectors deploy alternative and renewable fuels - idle-reduction measures - fuel economy improvements - and emerging transportation technologies. Department of Energy collects this data as part of the Projects undertaken by Clean Cities coalitions and stakeholders to ensure customers access to clean alternative energy. This data can be found at the Department of Energy Alternative Fuels Data Center Web Feature Service: http://www.afdc.energy.gov/locator/stations/Clean Cities is the deployment arm of the U.S. Department of Energy's (DOE) Vehicle Technologies Office. Last Updated: 06/2013 Feature Service Layer Link: https://mdgeodata.md.gov/imap/rest/services/Transportation/MD_AlternativeFuel/FeatureServer ADDITIONAL LICENSE TERMS: The Spatial Data and the information therein (collectively "the Data") is provided "as is" without warranty of any kind either expressed implied or statutory. The user assumes the entire risk as to quality and performance of the Data. No guarantee of accuracy is granted nor is any responsibility for reliance thereon assumed. In no event shall the State of Maryland be liable for direct indirect incidental consequential or special damages of any kind. The State of Maryland does not accept liability for any damages or misrepresentation caused by inaccuracies in the Data or as a result to changes to the Data nor is there responsibility assumed to maintain the Data in any manner or form. The Data can be freely distributed as long as the metadata entry is not modified or deleted. Any data derived from the Data must acknowledge the State of Maryland in the metadata.

In 2021, the supply of ethanol fuel worldwide was *** million barrels per day and this is expected to remain on a positive trend throughout the upcoming years. By 2045, the global supply of ethanol fuel is expected to reach *** million barrels per day.

The forecast for the global Fuel Ethanol market predicts substantial growth, with market size projected to soar to USD 179.31 Billion by 2033, a significant increase from the USD 100.70 Billion recorded in 2024. This expansion reflects an impressive compound annual growth rate (CAGR) of 6.62% anticipated between 2025 and 2033.

The Global Fuel Ethanol market size to cross USD 179.31 Billion by 203

China Transaction Price: Fuel Ethanol: Shenzhen data was reported at 6,027.000 RMB/Ton in Nov 2019. This records a decrease from the previous number of 6,035.000 RMB/Ton for Oct 2019. China Transaction Price: Fuel Ethanol: Shenzhen data is updated monthly, averaging 6,517.500 RMB/Ton from May 2005 (Median) to Nov 2019, with 174 observations. The data reached an all-time high of 7,500.000 RMB/Ton in Nov 2011 and a record low of 4,900.000 RMB/Ton in Sep 2006. China Transaction Price: Fuel Ethanol: Shenzhen data remains active status in CEIC and is reported by Price Monitoring Center, NDRC. The data is categorized under China Premium Database’s Price – Table CN.PH: Ethanol Price: 36 City.

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...

North America Fuel Ethanol market size will be USD 115383.44 35406.20 million in 2024 and will grow at a compound annual growth rate (CAGR) of 5.2% from 2024 to 2031. North America has emerged as a prominent participant, and its sales revenue is estimated to reach USD 54864.7 Million by 2031. This growth is mainly attributed to the region's Government mandates for biofuel blending and renewable energy incentives

China Transaction Price: Fuel Ethanol: Chongqing data was reported at 4,832.000 RMB/Ton in Nov 2019. This records an increase from the previous number of 4,830.000 RMB/Ton for Oct 2019. China Transaction Price: Fuel Ethanol: Chongqing data is updated monthly, averaging 5,383.330 RMB/Ton from Jan 2003 (Median) to Nov 2019, with 174 observations. The data reached an all-time high of 7,280.000 RMB/Ton in Nov 2012 and a record low of 2,000.000 RMB/Ton in Jan 2003. China Transaction Price: Fuel Ethanol: Chongqing data remains active status in CEIC and is reported by Price Monitoring Center, NDRC. The data is categorized under China Premium Database’s Price – Table CN.PH: Ethanol Price: 36 City.

The percentage of ethanol blended fuel used by the State Fleet in the financial years 2011-12; 2012-13, 2013-14, 2014-15 and 2015-16;

United States Light Duty Vehicle Stock: Cars: Alternative Fuel: Ethanol Flex Fuel ICE data was reported at 3.778 Unit mn in 2024. This records a decrease from the previous number of 4.224 Unit mn for 2023. United States Light Duty Vehicle Stock: Cars: Alternative Fuel: Ethanol Flex Fuel ICE data is updated yearly, averaging 3.648 Unit mn from Dec 2007 (Median) to 2024, with 18 observations. The data reached an all-time high of 4.943 Unit mn in 2019 and a record low of 0.994 Unit mn in 2007. United States Light Duty Vehicle Stock: Cars: Alternative Fuel: Ethanol Flex Fuel ICE data remains active status in CEIC and is reported by U.S. Energy Information Administration. The data is categorized under Global Database’s United States – Table US.RA012: Light Duty Vehicle Stock.