In 2023, the European Union's fuel ethanol production was estimated to be roughly 5.3 billion liters. This figure is forecast to increase to 5.4 billion liters in 2024.

Ethanol increased 0.06 USD/GAL or 3.25% since the beginning of 2025, 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 March of 2025.

The European Union imported an estimate of 1.2 billion liters of ethanol fuel in 2023. There was a notable jump in import volume between 2021 and 2022. The latter year had seen a huge jump in conventional motor fuel prices due to the Russia-Ukraine war, with many crop feedstock supplies also affected.

Discover the latest trends in the European Union's ethyl alcohol market as demand continues to rise. Forecasted to see steady growth in both volume and value terms over the next decade.

During the last quarter of 2024, the ethanol prices in the USA reached 467 USD/MT in December. As per the ethanol price chart, price fluctuations occurred in the market, with early increases fueled by robust exports and demand. Due to industrial consumption and blending activities, prices remained constant in October. However, a price decline in December was brought on by surplus supply and growing stockpiles.

Explore IMARC’s newly published report, titled “Ethanol Prices, Trend, Chart, Demand, Market Analysis, News, Historical and Forecast Data Report 2025 Edition,” offers an in-depth analysis of ethanol pricing, covering an analysis of global and regional market trends and the critical factors driving these price movements.

Learn about the expected growth in the European Union's ethyl alcohol market over the next decade driven by increasing demand. Market performance is forecast to decelerate with a projected increase in volume to 9.9B litres and value to $11B by 2035.

Graph and download economic data for Harmonized Index of Consumer Prices: Spirits for Euro Area (EA11-1999, EA12-2001, EA13-2007, EA15-2008, EA16-2009, EA17-2011, EA18-2014, EA19-2015, EA20-2023) (CP0211EZCCM086NEST) from Jan 1996 to Feb 2025 about spirits, alcohol, beverages, harmonized, Euro Area, Europe, CPI, price index, indexes, and price.

The Report Covers Europe Bioethanol Companies and the market is Segmented by Feedstock Type (Sugarcane, Corn, Wheat, and Other Feedstocks), Application (Fuel, Industrial, and Food and Beverages), and Geography (Germany, UK, France, Spain, Italy, and Rest of Europe).

The average ethanol import price in the EU surged to $1,076 per ton in 2021.

In 2018, alcoholic beverages were most expensive in Iceland. Compared to European Union (EU-28), which was set at 100 points as the baseline for the index, Iceland scored 267.8 points on the price level index. The country in the European Union with the most expensive alcohol was Finland at 181.6 index points. The country also levied the highest excise duty on alcoholic products.

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.

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.

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 slowdowns. Lockdowns and travel restrictions led to lower gasoline consumption, which in turn reduced the need for ethanol blending. Additionally, disruptions in supply chains and decreased agricultural output affected production levels. The market faced financial strain from lower ethanol prices and reduced profitability. However, as economies began to recover and transportation demand increased, the market started to rebound, with renewed emphasis on renewable energy and policy support aiding in its recovery and growth. Introduction of the Fuel Ethanol Market

The fuel ethanol market involves the production and distribution of ethanol, a biofuel derived from crops like corn and sugarcane, used to blend with gasoline. This market aims to reduce greenhouse gas emissi...

The average for 2021 based on 27 countries was 97.83 index points. The highest value was in Finland: 183.3 index points and the lowest value was in Hungary: 69.81 index points. The indicator is available from 2017 to 2021. Below is a chart for all countries where data are available.

Graph and download economic data for Harmonized Index of Consumer Prices: Food Including Alcohol and Tobacco for European Union (27 Countries from 2020) (FOOD00EU272020M086NEST) from Dec 2000 to Feb 2025 about tobacco, alcohol, EU, harmonized, Europe, food, CPI, price index, indexes, and price.

Discover the latest trends in the European Union ethyl alcohol market with a forecasted increase in consumption over the next decade. Market performance is predicted to grow steadily, reaching 9.9 billion litres by 2035.

Graph and download economic data for Harmonized Index of Consumer Prices: Wine for Euro Area (19 Countries) (CP0212EZ19M086NEST) from Dec 1999 to Feb 2025 about wine, alcohol, beverages, harmonized, Euro Area, Europe, CPI, price index, indexes, and price.

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Cellulosic Ethanol Market Size 2024-2028

The cellulosic ethanol market size is forecast to increase by USD 9.61 billion at a CAGR of 67.86% between 2023 and 2028.

The market is experiencing significant growth due to several key trends and drivers. Rising food security concerns and the need to reduce greenhouse gas emissions are major factors propelling the market forward. Compliance with environmental regulations, particularly in the transportation sector, is also driving demand for cellulosic ethanol as a sustainable alternative to traditional fossil fuels.
Additionally, the recent fall in crude oil prices has not deterred the market's growth, as cellulosic ethanol offers cost competitiveness in the long run due to its renewable and abundant feedstock sources. Overall, these factors are expected to continue fueling the market's expansion in the coming years.

What will be the Cellulosic Ethanol Market Size During the Forecast Period?

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Cellulosic ethanol, derived from cellulosic biomass, is a renewable fuel sourced from plant material that does not contain significant amounts of sugar or starch. The production of cellulosic ethanol involves biomass conversion through processes such as biomass pretreatment, enzymatic hydrolysis, and fermentation. Biomass conversion efficiency is a critical factor in the economics of biorefineries, which also rely on biorefinery optimization and technology to minimize carbon footprint reduction and maximize energy sustainability.
Additionally, pretreatment methods, including physical, chemical, and biological methods, are used to break down cellulose degradation and make the cellulosic feedstock accessible for hydrolysis. Ethanol extraction and distribution are essential components of the cellulosic ethanol value chain. The use of cellulosic ethanol contributes to climate change mitigation, energy security, and sustainable agriculture, making it a promising renewable energy source and alternative to fossil fuels. Biorefinery economics and renewable fuel standards play a significant role in the market growth of cellulosic ethanol.

How is this market segmented and which is the largest segment?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Feedstock

  Energy crops
  Agricultural residues
  Organic MSW
  Forest residues


Application

  Detergent
  Gasoline


Geography

  North America

    Canada
    US


  APAC

    China


  Europe

    Germany


  South America

    Brazil


  Middle East and Africa

By Feedstock Insights

The energy crops segment is estimated to witness significant growth during the forecast period.

The Bioenergy industry is witnessing a significant shift towards advanced biofuels as alternative fuel sources to mitigate climate change and ensure energy sustainability. The Biofuels production sector, specifically cellulosic ethanol, is gaining traction due to its potential to reduce greenhouse gas emissions and improve energy security. Cellulosic ethanol is derived from cellulosic biomass, which includes lignocellulosic feedstock such as energy crops and agricultural waste. Herbaceous energy crops, including Arundo donax, Andropogon gerardii, Miscanthus giganteus, Panicum virgatum, elephant grass, and sweet sorghum, are commonly used for cellulosic ethanol production.

Additionally, woody energy crops, such as poplar, sweetgum, silver maple, black locust, eucalyptus, and willow, can also be utilized, with by-products from the paper and pulp industry serving as potential feedstocks. The production of cellulosic ethanol involves several processes, including biomass pretreatment, enzymatic hydrolysis, fermentation, ethanol extraction, and distribution. Biorefinery optimization and technology play a crucial role in enhancing biomass conversion efficiency and reducing carbon footprint. The Renewable Fuel Standards mandate the use of sustainable fuel, making cellulosic ethanol an essential component of the transportation fuels sector. Sustainable agriculture practices ensure the availability of a consistent and reliable feedstock supply, contributing to the overall sustainability and economic viability of the market.

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The energy crops segment was valued at USD 56.10 million in 2018 and showed a gradual increase during the forecast period.

Regional Analysis

APAC is estimated to contribute 34% to the growth of the global market during the forecast period.

Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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Discover the latest trends in the European Union ethyl alcohol market, as demand continues to rise. Forecasted to see a steady increase in both volume and value over the next decade.

Graph and download economic data for Consumer Price Index: Harmonised Prices: All Items Less Food, Energy, Tobacco, Alcohol: Total for the Euro Area (19 Countries) (CPHPLA01EZM661N) from Jan 1996 to Jan 2023 about tobacco, alcohol, core, harmonized, Euro Area, Europe, all items, CPI, inflation, price index, indexes, and price.

According to Cognitive Market Research, the global Sweet Sorghum Ethanol market size will be USD 3154.2 million in 2024. It will expand at a compound annual growth rate (CAGR) of 5.00% 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 1261.68 million in 2024 and will grow at a compound annual growth rate (CAGR) of 3.2% from 2024 to 2031. Europe accounted for a market share of over 30% of the global revenue with a market size of USD 946.26 million. Asia Pacific held a market share of around 23% of the global revenue with a market size of USD 725.47 million in 2024 and will grow at a compound annual growth rate (CAGR) of 7.0% from 2024 to 2031. Latin America had a market share of more than 5% of the global revenue with a market size of USD 157.71 million in 2024 and will grow at a compound annual growth rate (CAGR) of 4.4% 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 63.08 million in 2024 and will grow at a compound annual growth rate (CAGR) of 4.7% from 2024 to 2031. The Grain Product held the highest Sweet Sorghum Ethanol market revenue share in 2024. Market Dynamics of Sweet Sorghum Ethanol Market Key Drivers for Sweet Sorghum Ethanol Market Increasing global demand for renewable energy sources to Increase the Demand Globally Increasing global demand for renewable energy sources is significantly driving the Sweet Sorghum Ethanol Market. As countries seek to reduce greenhouse gas emissions and shift away from fossil fuels, renewable energy solutions like biofuels are becoming more crucial. Sweet sorghum ethanol, derived from a non-food crop, offers a sustainable alternative to traditional gasoline, contributing to lower carbon emissions. Its high yield and adaptability to various climates further enhance its appeal. Additionally, governments and organizations are increasingly supporting biofuel initiatives through subsidies and incentives, boosting investment and development in the sector. This growing emphasis on renewable energy aligns with global sustainability goals, thereby expanding the market for sweet sorghum ethanol. Growing awareness of environmental issues to Propel Market Growth Growing awareness of environmental issues is a key driver for the Sweet Sorghum Ethanol Market. As public consciousness about climate change and environmental degradation rises, there is increased demand for sustainable and eco-friendly energy solutions. Sweet sorghum ethanol, being a biofuel derived from a renewable source, helps reduce reliance on fossil fuels and lower greenhouse gas emissions. Its production process also contributes to reduced soil erosion and improved carbon sequestration. This awareness has prompted both consumers and policymakers to support greener alternatives, leading to higher adoption rates of biofuels. Government initiatives, incentives, and environmental regulations further bolster this shift, driving growth in the sweet sorghum ethanol market as a viable solution for mitigating environmental impact. Restraint Factor for the Sweet Sorghum Ethanol Market High Production Costs to Limit the Sales High production costs are a significant restraint for the Sweet Sorghum Ethanol Market. The process of producing ethanol from sweet sorghum involves several stages, including cultivation, harvesting, and processing, each of which requires substantial investment. Advanced technology and infrastructure are needed for efficient extraction and fermentation, driving up capital and operational expenses. Additionally, the initial costs for setting up production facilities and maintaining them can be prohibitively high. These expenses often result in higher prices for sweet sorghum ethanol compared to conventional fuels. This cost disparity can limit its competitiveness in the market and slow its adoption. The financial burden on producers and the subsequent impact on consumer prices inhibit the growth of the sweet sorghum ethanol market. Impact of Covid-19 on the Sweet Sorghum Ethanol Market The COVID-19 pandemic significantly impacted the Sweet Sorghum Ethanol Market. Lockdowns and restrictions disrupted supply chains, leading to delays in harvesting and processing sweet sorghum. Reduced workforce availability and logistical challenges further hindered production. The pandemic also caused a decline in fuel demand due to decreased transportation and...

EU DK: HICP: All Items: excl Energy, Food, Alcohol & Tobacco data was reported at 116.300 2005=100 in Oct 2018. This records an increase from the previous number of 116.000 2005=100 for Sep 2018. EU DK: HICP: All Items: excl Energy, Food, Alcohol & Tobacco data is updated monthly, averaging 102.550 2005=100 from Jan 1996 (Median) to Oct 2018, with 274 observations. The data reached an all-time high of 117.100 2005=100 in Jul 2018 and a record low of 84.000 2005=100 in Jan 1996. EU DK: HICP: All Items: excl Energy, Food, Alcohol & Tobacco data remains active status in CEIC and is reported by Eurostat. The data is categorized under Global Database’s Denmark – Table DK.Eurostat: Harmonized Index of Consumer Price: 2005=100.