by The global Ethanol Derivatives Market is estimated to be valued at US$ 10.2 Bn in 2023 and is expected to exhibit a CAGR of 5.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Ethanol derivatives are compounds that are synthesized from ethanol through various chemical processes. Ethanol derivatives find wide application as chemical intermediates in industries such as pharmaceuticals, solvents, rubber, and plastics. They offer advantages such as excellent solvency, low toxicity, high Biodegradability. Rising consumption of transportation fuel along with strict environmental norms have boosted the demand for biofuel blending such as ethanol blending in gasoline. This in turn is expected to drive the growth of ethanol derivatives market over the forecast period.
Market key trends:
One of the key trends in ethanol derivatives market is growing production of sustainable ethanol. Major players are focusing on sustainable production of ethanol from lignocellulosic feedstock such as agricultural residues and waste woods. This is expected to reduce the competition for agricultural land and water resources with food crops. For instance, POET-DSM Advanced Biofuels LLC opened Project LIBERTY, the first commercial-scale cellulosic ethanol plant using corncobs in Emmetsburg, Iowa in 2018.
Another trend is increasing applications of ethanol derivatives in industrial solvents. Properties of ethanol derivatives such as high solvency, low toxicity and ease of blending have increased their demand as solvents in industries such as paints & coatings, pharmaceuticals and personal care products. Growing paints & coatings industry especially in Asia Pacific and Central & South America is expected to present lucrative growth opportunities.
Porter’s Analysis
Threat of new entrants: Low capital requirement and availability of raw materials pose moderate threat of new entrants in the ethanol derivatives market.
Bargaining power of buyers: Large number of global buyers results in higher bargaining power of buyers in the ethanol derivatives market.
Bargaining power of suppliers: Key suppliers including corn farmers and petrochemical companies have moderate level of bargaining power due to availability of alternates.
Threat of new substitutes: Emergence of bio-based propylene glycol and other biofuels pose threat of substitution to ethanol derivatives.
Competitive rivalry: Presence of many global and regional players increases the competitive rivalry in the ethanol derivatives market.
Key Takeaways
The Global Ethanol Derivatives Market Size is expected to witness high growth, exhibiting CAGR of 5.5% over the forecast period, due to increasing demand from industrial and fuel sectors.
The market size for 2023 is estimated to be US$ 10.2 Bn. Regional analysis indicates that North America dominates the global ethanol derivatives market currently owing to high demand from fuel and industrial sectors in the US and Canada. Asia Pacific is expected to be the fastest growing market in the coming years supported by increasing consumption in China and India.
Key players operating in the ethanol derivatives market are Archer Daniels Midland Company, Green Plains Inc., POET LLC, Valero Energy Corporation, Cargill, Incorporated, Pacific Ethanol Inc., Flint Hills, Resources, The Andersons, Inc., Greenfield Global, LyondellBasell Industries N.V. POET and Valero Energy Corporation have strong presence across major regions due to their extensive production facilities and sales networks.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
