Ethanol traded flat at 1.74 USD/Gal on July 31, 2025. Over the past month, Ethanol's price has risen 1.31%, but it is still 1.69% 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 August 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 July 2025? North American Ethanol Price Index increased by 1% over Q1 2025 but eventually had a downward trend throughout Q2, with quarterly average valued at USD 593/MT, 99% FOB Texas, as the market weakened despite initial-quarter strength.

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Graph and download economic data for Producer Price Index by Commodity: Chemicals and Allied Products: Ethanol (Ethyl Alcohol) (WPU06140341) from Dec 1973 to Jun 2025 about alcohol, chemicals, commodities, PPI, inflation, price index, indexes, price, and USA.

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 50.2 U.S. dollars per barrel in 2024. This annual average was lower than in the previous two years, after rising to a high of 70.75 per barrel in 2022.

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...

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

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.

The ethanol market is anticipated to increase from US$ 114.02 billion in 2023 to US$ 178.78 billion in 2033, with a CAGR of 4.6% between 2023 and 2033. Previously, the ethanol business saw a CAGR of 3.9% from 2018 to 2022.

Attribute	Details
CAGR	3.9%
Market Size - 2018	US$ 93.54 billion
Market Size - 2022	US$ 109.01 billion

Attribute	Details
CAGR	4.6%
Market Size - 2023	US$ 114.02 billion
Market Size - 2033	US$ 178.78 billion

Category- Wise Outlook

Category	Feedstock
Leading Segment	Sugarcane
Market Share	35.00%

Category	Application
Leading Segment	Automobiles and Transportation
Market Share	27.00%

Regional Outlook

Country	China
Market CAGR (From 2023 to 2033)	5.00%

Country	India
Market CAGR (From 2023 to 2033)	5.50%

Country	United Kingdom
Market CAGR (From 2023 to 2033)	4.00%

Countries	Market Share (2023)
United States	15.20%
Germany	4.50%
Japan	5.40%
Australia	1.80%

In 2024, the Indian ethanol market decreased by -6.9% to $1.8B, falling for the second year in a row after seven years of growth. In general, consumption showed a measured expansion. Over the period under review, the market reached the maximum level at $2B in 2022; however, from 2023 to 2024, consumption failed to regain momentum.

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...

United States - Producer Price Index by Commodity: Chemicals and Allied Products: Ethanol (Ethyl Alcohol) was 233.76500 Index 1982=100 in June 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 August of 2025.

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

The cellulosic ethanol market size was USD 4.5 billion in 2024 and is estimated to reach USD 46.6 billion by the end of 2037, expanding at a CAGR of 19.7% during the forecast period, i.e., 2025-2037. North America’s industry is poised to hold a 37.4% share by the end of 2037.

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The U.S. ethanol market was estimated at $48.1B in 2024, rising by 3.6% against the previous year. In general, the total consumption indicated a perceptible increase from 2012 to 2024: its value increased at an average annual rate of +3.2% over the last twelve years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2024 figures, consumption increased by +103.7% against 2016 indices.

The Brazilian ethanol market reduced sharply to $20.2B in 2024, with a decrease of -20% against the previous year. In general, the total consumption indicated a temperate expansion from 2012 to 2024: its value increased at an average annual rate of +3.5% over the last twelve years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Ethanol consumption peaked at $25.2B in 2023, and then shrank remarkably in the following year.

The Bio Ethanol Market size is expected to reach a valuation of USD 154.2 billion in 2033 growing at a CAGR of 7.00%. The Bio Ethanol Market research report classifies market by share, trend, demand, forecast and based on segmentation.