Ethanol Market To Reach $141.05 Billion By 2033 | CAGR: 4.6%

Ethanol Market Growth & Trends

The global ethanol market size is anticipated to reach USD 141.05 billion by 2033, according to a new report by Grand View Research, Inc. The market is projected to grow at a CAGR of 4.6% from 2026 to 2033. Increasing demand from fuel and industrial solvents applications is anticipated to remain a key factor favoring market growth.

The advent of second-generation ethanol is expected to bring about a revolution in the industry. The feedstocks used for production are cane trash, rice & wheat straw, corn cobs, cotton stalk, empty fruit bunches, and bagasse. With growing concerns regarding sustainability and tackling organic waste production of second-generation ethanol is expected to gain widespread acceptance. Although a large number of manufacturers have successfully run pilot experiments, there are still concerns surrounding the extraction of useful sugars that are locked in by lignin, cellulose, and hemicellulose in biomass and woody feedstock.

Disinfectants manufactured from ethanol are expected to gain prominence as they form an important component of personal hygiene. The changing consumer behavior and rising health awareness are expected to drive product consumption in this application segment. The growing cases of Hospital-Acquired Infections (HAIs) and rise in surgical procedures are expected to have a positive impact on product demand.

Europe is expected to be one of the major regional markets. The implementation of programs supporting the growth of the biofuels sector is expected to positively impact the eco-system. The European Commission has also started to incentivize farmers to produce feedstock, such as corn, maize, and sugarcane. The adoption of Fuel Quality Derivative aimed at increasing the concentration of ethanol in gasoline will also help augment product demand.

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Ethanol Market Report Highlights

• Sugar & molasses-based segment held the largest revenue share of over 58% in 2025. The sugar and molasses based segment is experiencing steady growth due to strong government support for biofuel blending and energy security objectives.

• Denatured segment held the revenue share of over 60.0% in 2025. The denatured ethanol segment under the purity category is witnessing strong growth driven by its widespread applicability across fuel blending and industrial uses.

• Fuel & its additives held the largest revenue share of over 66% in 2025. The fuel and its additives segment under the application category is a major growth driver for the market, supported by rising ethanol blending mandates in gasoline.

Ethanol Market Segmentation

Grand View Research has segmented the global ethanol market report on the basis of source, purity, application and region:

Ethanol Source Outlook (Volume, Billion Liters; Revenue, USD Million, 2021 - 2033)

• Sugar & Molasses-Based

• Grain-Based

• Second Generation

Ethanol Purity Outlook (Volume, Billion Liters; Revenue, USD Million, 2021 - 2033)

• Denatured

• Undenatured

Ethanol Application Outlook (Volume, Billion Liters; Revenue, USD Million, 2021 - 2033)

• Fuel & its Additives

• Industrial Solvents

• Beverages

• Disinfectants

• Personal Care

• Others

Ethanol Regional Outlook (Volume, Billion Liters; Revenue, USD Million, 2021 - 2033)

• North America

  • U.S.

  • Canada

  • Mexico

• Europe

  • Germany

  • UK

  • France

  • Italy

• Asia Pacific

  • China

  • India

  • Japan

  • South Korea

• Latin America

  • Brazil

  • Argentina

• Middle East & Africa

  • Saudi Arabia

  • UAE

  • South Africa

List Of Key Players in the Ethanol Market

• ADM

• POET LLC

• Valero Energy Corporation

• Green Plains Inc.

• Koch Industries

• Raizen Energia

• Cargill Inc

• Alto Ingredients Inc

• Tereos Participations

• CropEnergies AG