by Ethanol derivatives are products of ethanol that are widely used as chemical and fuel additives due to their distinct properties. Some common ethanol derivatives include ethyl acrylate, ethyl acetate, ethylene vinyl acetate, and polyvinyl acetate. These derivatives find applications in industries such as automotive, textile, construction, packaging and personal care due to their properties such as low freezing point, biodegradability, and biofuel capability. With growing environmental concerns and shifting preference towards sustainable products, the demand for ethanol derivatives is increasing.
The global Ethanol Derivatives Market Share 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 key trends
Rising investments in R&D activities focused on developing new applications of ethanol derivatives are expected to be a major trend driving the growth of this market. For instance, researchers are exploring possibilities of using ethanol-based derivatives in manufacturing biodegradable plastics and developing green solvents as an alternative to hazardous chemicals. Growing automotive sector especially in developing regions is also boosting the use of ethyl tert-butyl ether (ETBE), an ether produced from ethanol and isobutylene, as a gasoline additive. Stringent regulations regarding emission standards coupled with depleting fossil fuel reserves are prompting automakers to increase the blending rate of biofuels such as ETBE. Such trends are expected to support the increasing utilization of ethanol derivatives over the forecast period.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate because the ethanol derivatives market requires high capital investment for setting up production facilities and competition is strong among existing players.
Bargaining power of buyers: The bargaining power of buyers is moderate because there are numerous buyers in different end-use industries and buyers can negotiate on price.
Bargaining power of suppliers: The bargaining power of suppliers is low as raw materials such as corn, cellulosic biomass, and sugarcane are abundantly available from numerous small and domestic suppliers.
Threat of new substitutes: The threat of new substitutes is low due to the lack of cost-effective substitutes and well-established consumer preference for ethanol derivatives.
Competitive rivalry: High as the market is dominated by a few large players.
Key Takeaways
The global Ethanol Derivatives Market Size is expected to witness high growth, exhibiting a CAGR of 5.5% over the forecast period, due to increasing demand from industrial and fuel applications.
Regional analysis: North America is currently the largest ethanol derivatives market, followed by Europe and Asia Pacific. Asia Pacific is expected to be the fastest growing market during the forecast period due to rising demand from China, India, and other developing nations in the region.
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. Key players are focusing on capacity expansion and backward integration to gain a competitive edge in the market.
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1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
