Ethanol fell to 1.74 USD/Gal on July 29, 2025, down 1.28% from the previous day. Over the past month, Ethanol's price has risen 3.42%, but it is still 1.28% 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.

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).

The European Union imported an estimate of *** 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.

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.

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).

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.

The European Union's ethyl alcohol market is poised for continued growth over the next decade, driven by increasing demand. Market performance is expected to slow down slightly, with a projected volume of 10B litres and a value of $10.4B by 2035.

The East European ethanol market rose sharply to $1.5B in 2024, picking up by 5.5% against the previous year. The total consumption indicated a notable expansion from 2012 to 2024: its value increased at an average annual rate of +2.1% over the last twelve years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2024 figures, consumption decreased by -15.6% against 2022 indices. As a result, consumption reached the peak level of $1.8B.

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...

The global fuel ethanol market, valued at $80 billion in 2025, is projected to experience steady growth, driven by increasing demand for renewable energy sources and stringent government regulations aimed at reducing greenhouse gas emissions from the transportation sector. The market's 3.2% CAGR from 2025 to 2033 indicates a continuous, albeit moderate, expansion. Key drivers include the growing adoption of flexible fuel vehicles (FFVs) capable of running on ethanol blends, coupled with rising fuel prices and concerns over energy security. Government incentives and subsidies for ethanol production further stimulate market growth, especially in regions like North America and South America, where extensive corn and sugarcane cultivation provides a readily available feedstock. However, the market faces constraints including the competition from other biofuels like biodiesel, land-use concerns related to large-scale ethanol production, and fluctuating agricultural commodity prices that can impact ethanol's cost-competitiveness. The market segmentation reveals significant opportunities in cellulosic ethanol, which utilizes non-food biomass, offering a more sustainable and potentially cost-effective alternative to starch- and sugar-based ethanol in the long term. Major players such as Archer Daniels Midland, Cargill, and Valero Energy Corporation are strategically positioned to capitalize on these trends through technological advancements, supply chain optimization, and strategic partnerships. The diverse applications of fuel ethanol across conventional and flexible fuel vehicles continue to shape market dynamics. Regional variations in market share will largely be influenced by government policies, feedstock availability, and the degree of FFV adoption. North America and South America are expected to maintain significant market shares due to established ethanol production infrastructure and substantial agricultural capacities. While Europe and Asia Pacific are showing growth potential, regulatory frameworks and infrastructure development play critical roles in their adoption rates. The shift toward sustainable and environmentally friendly transportation fuels coupled with technological advancements aimed at improving ethanol's efficiency and reducing its production costs will be crucial in determining the overall market trajectory over the forecast period. The market is likely to witness increased consolidation among key players as companies seek to expand their production capacity and market reach.

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 biofuel ethanol market is experiencing robust growth, driven by increasing concerns about climate change and energy security. Government regulations promoting renewable energy sources, coupled with rising gasoline prices and fluctuating crude oil markets, are significant catalysts. The market is segmented by application (transportation, power generation, industrial, others) and feedstock type (maize, wheat, industrial beet, sugarcane, others). Transportation currently dominates the application segment, fueled by mandates for biofuel blending in gasoline. However, the power generation sector shows significant potential for future expansion, as ethanol's use in combined heat and power systems gains traction. Technological advancements are improving ethanol production efficiency and reducing costs, making it a more competitive fuel source. While sugarcane and maize remain the dominant feedstocks, there's a growing interest in exploring alternative sources like industrial beet and wheat to enhance sustainability and reduce reliance on food crops. The market faces challenges, including land-use change concerns, competition from other biofuels, and potential volatility in feedstock prices. However, ongoing research into cellulosic ethanol and other advanced biofuel technologies promises to mitigate some of these constraints. Geographically, North America and Europe currently hold substantial market share, but Asia-Pacific is expected to witness significant growth due to increasing vehicle ownership and supportive government policies. The competitive landscape features a mix of large multinational corporations and smaller regional players. Major companies like Archer Daniels Midland Company, BP PLC, and Tereos are actively investing in expanding their ethanol production capacity and exploring new technologies. The market's future will depend on the continued development and adoption of sustainable and cost-effective ethanol production methods, along with supportive government policies that incentivize renewable fuel adoption. The forecast period (2025-2033) anticipates a sustained, albeit potentially fluctuating, growth trajectory, influenced by evolving global energy dynamics and environmental regulations. The market's overall health is positive, indicating significant future investment and expansion opportunities for established and emerging players alike. Specific growth rates will depend on evolving government mandates, technological innovation, and feedstock availability.

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.

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

Graph and download economic data for Harmonized Index of Consumer Prices: Overall Index Excluding Alcohol and Tobacco for European Union (00XALCEUCCM086NEST) from Dec 2000 to May 2025 about tobacco, alcohol, EU, harmonized, Europe, CPI, price index, indexes, and price.

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 Jun 2025 about spirits, alcohol, beverages, harmonized, Euro Area, Europe, CPI, price index, indexes, and price.

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.

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.

Graph and download economic data for Harmonized Index of Consumer Prices: Food Including Alcohol and Tobacco for European Union (FOOD00EUCCM086NEST) from Jan 1996 to Jun 2025 about tobacco, alcohol, EU, harmonized, Europe, food, CPI, price index, indexes, and price.

The global ethanol market, valued at approximately $XX million in 2025, is projected to experience robust growth, exhibiting a Compound Annual Growth Rate (CAGR) exceeding 5% from 2025 to 2033. This expansion is driven by several key factors. The increasing demand for biofuels, spurred by stricter environmental regulations and a global push towards renewable energy sources, is a significant catalyst. Furthermore, the expanding food and beverage industry, utilizing ethanol as a crucial ingredient in various products, contributes substantially to market growth. The pharmaceutical and cosmetic sectors also rely on ethanol as a solvent and preservative, further fueling market demand. While the market faces certain restraints, such as price volatility linked to feedstock costs and potential competition from alternative biofuels, the overall outlook remains positive. The diverse applications of ethanol across various end-user industries ensure sustained market momentum throughout the forecast period. Significant regional variations exist, with Asia Pacific, particularly China and India, anticipated to demonstrate strong growth due to rising consumption and production capacities. North America, while a major player, may witness a slightly slower growth rate compared to the Asia-Pacific region. The competitive landscape is characterized by a mix of established players and emerging companies, fostering innovation and potentially leading to further market consolidation. The market segmentation reveals substantial opportunities. The Food Grade segment holds a significant market share due to wide applications in food processing and beverage production. Industrial-grade ethanol enjoys robust demand across various industrial processes. Pharmaceutical and lab-grade ethanol command premium pricing due to their high purity requirements. Within end-user industries, the automotive and transportation sector's reliance on ethanol-blended fuels contributes significantly to market volume. The food and beverage sector continues to dominate, while the pharmaceutical and cosmetic industries offer niche growth opportunities. Future market trends indicate a growing focus on sustainable ethanol production methods, incorporating advanced technologies to minimize environmental impact and enhance overall efficiency. Further diversification into new applications, coupled with targeted geographic expansion, especially in developing economies, will shape the future trajectory of the ethanol market. Recent developments include: February 2023: Kemin Industries introduced FermSAVER, a tea-extract product used in yeast fermentation for ethanol production, as part of its expanding Kemin Bio Solutions portfolio., January 2022: ADM, a global provider of nutrition, agricultural origination, and processing solutions, announced a partnership with Wolf Carbon Solutions to advance the decarbonization of ethanol production.. Key drivers for this market are: Increasing Usage in the Automotive Industry, Increasing Government Initiatives. Potential restraints include: Increasing Usage in the Automotive Industry, Increasing Government Initiatives. Notable trends are: Automotive and Transportation Segment to Dominate the Market.