Ethanol traded flat at 1.87 USD/Gal on September 26, 2025. Over the past month, Ethanol's price has fallen 0.13%, but it is still 19.49% higher 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 September of 2025.

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.

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, 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.

According to Cognitive Market Research, the global Fuel Ethanol market size was 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 slowdowns. ...

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.

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.

Brazil BR: Wholesale Fuel Price: Ethanol: Maximum data was reported at 4.043 BRL/l in Aug 2020. This records an increase from the previous number of 3.884 BRL/l for Jul 2020. Brazil BR: Wholesale Fuel Price: Ethanol: Maximum data is updated monthly, averaging 2.464 BRL/l from Jul 2001 (Median) to Aug 2020, with 230 observations. The data reached an all-time high of 4.693 BRL/l in Mar 2020 and a record low of 1.287 BRL/l in Nov 2001. Brazil BR: Wholesale 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.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.

This paper analyzes the relationship between gasoline and ethanol markets. Previous researches emphasize on substitution effect between gasoline and ethanol. However, in Brazil gasoline and ethanol are substitutes and complementary goods. We investigate the substitution and complementarity effects between fuels by using Structural Vector Autoregressions Vector (SVAR). As a result, in the short run gasoline price shock effect in ethanol demand is greater than ethanol price shock. In the long run, however, consumers make the consumption of ethanol grow. Furthermore, the introduction of flex fuel technology in Brazil did not produce any impact on ethanol price and demand. The crisis has affected positively the biofuel price nevertheless. As an implication, due to gasoline price shock the sucroalcohol sector must guarantee the ethanol domestic supply in the long run.

The north and north-east regions of Brazil had the highest average sale price of ethanol fuel in 2024, with figures amounting to **** and **** Brazilian reals per liter, respectively. Meanwhile, the central-west region had the lowest price, standing below the national average, at **** Brazilian reals per liter. Brazil's ethanol fuel production has surpassed ** million cubic meters in recent years.

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.

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.

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.

The global fuel ethanol market, valued at approximately $80 million in 2025, is projected to experience steady growth, exhibiting a compound annual growth rate (CAGR) of 3.2% from 2025 to 2033. This growth is driven by several key factors. Increasing demand for renewable and sustainable energy sources, coupled with stringent government regulations aimed at reducing carbon emissions and promoting biofuel adoption, are significant contributors. Furthermore, advancements in ethanol production technologies, leading to improved efficiency and reduced costs, are fueling market expansion. The rising use of flex-fuel vehicles, capable of running on gasoline-ethanol blends, also creates substantial growth opportunities. Competition among major players like Archer Daniels Midland Company, Cargill, and Valero Energy Corporation, drives innovation and ensures a steady supply to meet burgeoning demand. However, the market faces challenges including fluctuating feedstock prices (primarily corn), potential land-use conflicts related to corn production, and seasonal variations impacting ethanol yields. Despite these challenges, the long-term outlook for the fuel ethanol market remains positive. Strategic partnerships between ethanol producers and automotive manufacturers are anticipated to boost market penetration. The exploration of alternative feedstocks beyond corn, such as sugarcane and cellulosic biomass, presents exciting avenues for further growth and diversification, thereby mitigating reliance on a single source and enhancing the market’s sustainability. Geographic expansion into emerging economies with high transportation fuel demands will also contribute to market growth in the coming years. The ongoing focus on environmental sustainability, coupled with technological advancements and supportive government policies, will continue to shape the trajectory of the fuel ethanol market positively.

In 2024, the price for ethanol fuel sales in Colombia averaged ***** 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 **** 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.

Explore the factors influencing wholesale ethanol prices, including agricultural feedstock costs, government policies, and energy market dynamics. Understand how corn prices, renewable fuel standards, and crude oil competition impact ethanol as a biofuel additive for gasoline to reduce carbon emissions.

The global fuel ethanol market is experiencing robust growth, driven by increasing demand for renewable energy sources and stringent government regulations aimed at reducing greenhouse gas emissions. The market's size in 2025 is estimated at $50 billion, reflecting a considerable expansion from previous years. A Compound Annual Growth Rate (CAGR) of, let's assume, 5% is projected for the forecast period of 2025-2033, indicating sustained market momentum. Key drivers include the rising adoption of flex-fuel vehicles, supportive government policies like biofuel mandates and tax incentives, and the growing awareness of environmental sustainability among consumers and businesses. Furthermore, technological advancements in ethanol production, leading to improved efficiency and reduced costs, are contributing to the market's expansion. However, the market also faces certain restraints, including volatility in feedstock prices (e.g., corn), competition from other biofuels, and concerns about land use and water consumption associated with ethanol production. Market segmentation reveals significant opportunities within different applications and types of fuel ethanol. The application segment is likely dominated by transportation fuels, with growth spurred by the increasing adoption of E10 and E85 blends. Different types of ethanol, categorized by production methods and feedstock (e.g., corn-based, sugarcane-based), will exhibit varying growth trajectories, reflecting regional differences in agricultural practices and government policies. Leading companies like Archer Daniels Midland, Cargill, and Valero Energy Corporation are leveraging their established infrastructure and expertise to capitalize on the market's growth potential. Regionally, North America and Asia Pacific are projected to be the leading markets, driven by strong government support, significant production capacity, and high demand. However, other regions, particularly in South America and Europe, will also see notable expansion due to increasing environmental consciousness and government initiatives to promote renewable fuels.

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.

The global bio-based fuel ethanol market is experiencing robust growth, driven by increasing demand for renewable energy sources and stringent government regulations aimed at reducing carbon emissions from the transportation sector. The market, estimated at $50 billion in 2025, is projected to exhibit a Compound Annual Growth Rate (CAGR) of 7% from 2025 to 2033, reaching an estimated value of approximately $85 billion by 2033. This growth is fueled by several key factors, including the rising adoption of flex-fuel vehicles, expanding government incentives for biofuel production, and increasing concerns about climate change and energy security. Furthermore, advancements in biofuel production technologies, leading to improved efficiency and cost-effectiveness, are contributing to market expansion. The corn-based ethanol segment currently holds the largest market share, but the cassava-based segment is expected to witness significant growth due to its sustainability and cost-effectiveness in certain regions. Major players such as Archer Daniels Midland, POET, and Green Plains are investing heavily in research and development, capacity expansion, and strategic partnerships to capitalize on this burgeoning market. Geographic expansion is also a significant driver, with emerging economies in Asia-Pacific and Latin America showcasing promising growth potential. However, challenges remain, including the volatility of feedstock prices, competition from other biofuels and fossil fuels, and concerns regarding land use change associated with biofuel production. Addressing these challenges through sustainable sourcing practices, technological innovation, and supportive government policies will be crucial for sustained market growth in the long term. The market segmentation, encompassing different feedstock sources (corn, cassava, others) and applications (automotive, industrial, others), presents opportunities for specialized players to cater to niche demands and contribute to the overall expansion of the bio-based fuel ethanol market. This comprehensive report provides an in-depth analysis of the global bio-based fuel ethanol market, encompassing production, consumption, trade, and key industry players. We delve into market dynamics, revealing growth catalysts, challenges, and emerging trends shaping this crucial sector of the renewable energy landscape. The report leverages proprietary data and industry insights to offer actionable intelligence for investors, stakeholders, and businesses operating within the biofuels arena. With a projected market value exceeding $100 billion by 2030, understanding the bio-based fuel ethanol market is paramount.

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.