June 22, 2024
India Ethanol Market

India Ethanol Market is Estimated to Witness Growth owing to Increasing Production of Ethanol from Molasses, B-Heavy and Sugarcane Juice

Ethanol is gaining popularity as a biofuel and feedstock in India owing to its benefits of being environment-friendly and cheap compared to fossil fuels. The increasing production of ethanol from molasses, B-heavy and sugarcane juice is driving the growth of India’s ethanol market.

Ethanol is an alcohol produced by fermentation of sugars that can be used as a biofuel or additive for gasoline. In India, ethanol is majorly blended with gasoline to reduce vehicular pollution, crude oil imports and boost agriculture sector. It provides a clean source of energy and allows the use of indigenously produced agricultural products for fuel needs. The government of India has implemented various policies and schemes such as Ethanol Blended with Petrol (EBP) Programme to promote ethanol production and blending in the country.

India Ethanol Market Size is estimated to be valued at US$ 2.43 Bn in 2024 and is expected to exhibit a CAGR of 15% over the forecast period 2024-2031.

Key Takeaways

Key players operating in the India Ethanol market are Piccadily Sugar & Allied Industries Ltd., Thiru Arooran Sugars Ltd., Ugar Sugar Works Ltd., Dhampure Speciality Sugars Ltd., Praj Industries, Triveni Engineering & Industries Ltd, E.I.D. Parry (India) Ltd., DCM Shriram Ltd., Mawana Sugars Ltd., Uttam Sugar Mills Ltd., Kothari Sugars And Chemicals Ltd., Avadh Sugar & Energy Ltd., The Ugar Sugar Works Ltd., Dwarikesh Sugar Industries Ltd., K.M.Sugar Mills Ltd., Shree Renuka Sugars, Balrampur Chini Mills Ltd., Bajaj Hindusthan Sugar Ltd., Dalmia Bharat Sugar and Industries Ltd., Dhampur Sugar Mills Ltd.

The key opportunities in the India ethanol market include increasing production of ethanol from alternative feedstocks likes B-heavy molasses and sugar cane juice, development of 2G ethanol plants, investment in R&D for new ethanol production technologies. Further, government policies like mandatory blending of ethanol with gasoline present lucrative growth opportunities.

The global expansion of the India ethanol market is driven by growing export opportunities for ethanol to countries across Europe and Southeast Asia. Indian companies are focusing on developing port infrastructure to boost ethanol exports globally.

Market Drivers

The major driver for the India ethanol market is the expanding EBP program. It aims to achieve 20% blending of gasoline with ethanol by 2025 which will boost ethanol demand exponentially. This is expected to create a huge gap between ethanol supply and demand providing opportunities for capacity expansion and new plant installations. Furthermore, the program encourages diversification of feedstock for increased ethanol production thereby promoting self-sufficiency in ethanol supply.

PEST Analysis

Political: The government of India has taken several initiatives like mandatory blending of fuel-grade ethanol with petrol and allowing distilleries to produce fuel-grade ethanol from varied feedstocks like sugarcane juice, sugar, B-heavy molasses, grain and damaged food grains to promote the production and usage of biofuels like ethanol in the country.

Economic: Growth in the automotive sector and rising disposable income levels have been driving the demand for petrol over the past few years, thereby increasing the overall gasoline consumption in the country. This presents a huge potential for the blending of fuel-grade ethanol with gasoline.

Social: Rising environmental awareness among consumers regarding the need to reduce carbon footprint is encouraging the adoption of green fuels like ethanol blended petrol. initiatives by the government to promote ethanol as an environment friendly fuel are also positively impacting the social acceptance of ethanol blended petrol.

Technological: Manufacturers are investing in advanced technologies like continuous fermentation and simultaneous saccharification and fermentation to enhance ethanol yields from various feedstocks and lower production costs. Ethanol plants equipped with advanced technologies can maximize resource utilization.

Geographical regions where market is concentrated in terms of value: Northern region states like Uttar Pradesh, Bihar, Haryana and Punjab contribute majorly to the overall ethanol market in India. This is because the northern states are the major producers of sugarcane juice which serves as the primary raw material for fuel-grade ethanol production.

Fastest growing region for the market: Southern states like Karnataka, Tamil Nadu and Andhra Pradesh are expected to witness healthy growth in demand for ethanol over the coming years. Setting up of new distilleries, increase in crushing capacities of existing ethanol plants and ability to use varied feedstocks like damaged food grains and corn are supporting ethanol production growth in the southern region.

What Are The Key Data Covered In This India Ethanol Market Report?

:- Market CAGR throughout the predicted period

:- Comprehensive information on the aspects that will drive the India Ethanol’s growth between 2024 and 2031.

:- Accurate calculation of the size of the India Ethanol and its contribution to the market, with emphasis on the parent market

:- Realistic forecasts of future trends and changes in consumer behaviour

:- India Ethanol Industry Growth in North America, APAC, Europe, South America, the Middle East, and Africa

:- A complete examination of the market’s competitive landscape, as well as extensive information on vendors

:- Detailed examination of the factors that will impede the expansion of India Ethanol vendors

FAQ’s

Q.1 What are the main factors influencing the India Ethanol?

Q.2 Which companies are the major sources in this industry?

Q.3 What are the market’s opportunities, risks, and general structure?

Q.4 Which of the top India Ethanol companies compare in terms of sales, revenue, and prices?

Q.5 Which businesses serve as the India Ethanol’s distributors, traders, and dealers?

Q.6 How are market types and applications and deals, revenue, and value explored?

Q.7 What does a business area’s assessment of agreements, income, and value implicate?

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it