India Ethanol market stood at USD2805.38 million in 2021 and is expected to grow at a CAGR of 12.68% during the forecast period. This can be attributed to the factors like administrative support, and government policies like the new ethanol blending program (EBP) which makes it compulsory for oil manufacturing companies (OMCs) to blend 10% ethanol in petrol by the end of 2022 and 20% by 2025. Moreover, blending with gasoline over conventional unblended petrol also drives the ethanol market. Apart from that ethanol’s demand is increasing extensively as a solvent for the manufacturing of varnishes and perfumes, in the preparation of essences and flavorings, and as a surface disinfectant, the demand for which was at peak during Covid time as it was used in hand sanitizers.
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Favorable Policies by Government
The government has set a target for blending 10% ethanol by 2022 and 20% of it by 2025, in gasoline which will save at least. New policies like the National biofuels policy, 2021, and Ethanol Blended Petrol (EBP) program are seen to be the principal driver of the demand expansion of ethanol in India.
The EBP program aims to address environmental concerns, reduce oil import bills and provide remunerative income to farmers. At present, the ethanol blending level in petrol is around 8.5%. Under the EBP program, the government of India has reintroduced the administered price mechanism for ethanol procurement. This in turn allows ethanol production from multiple feedstocks such as heavy molasses, sugarcane juice, sugar, sugar syrup, damaged food grains, maize, and surplus rice stocks with Food Corporation of India (FCI).
Increasing use of biodegradable plastics, with growing awareness among the public towards ill-effects of conventional plastic waste is the major growth driver of the Biodegradable plastics industry. The rising trend of environmentally friendly materials for packaging has also influenced the market growth of biodegradable plastics. These factors also contribute one step towards a Sustainable future with reduced environmental impact.
Surplus Raw Material Availability Fuels the Market Growth
To increase the production of fuel-grade ethanol and to achieve blending targets, the Government of India has allowed the use of maize and rice for the production of ethanol. This in turn will not only facilitate the diversion of excess sugar to ethanol manufacturing but also will help the farmers in diversifying their crops to cultivate crops that require less water intake such as maize/corn. This would enhance the production of ethanol from various feedstocks thereby, help in achieving blending targets of ethanol with petrol. This in turn would reduce dependency on crude oil.
Low-Cost Alternative Fuel and Availability of Huge Arable Land
Ethanol is an eco-friendly source of fuel that not only produces lesser pollution but also is quite affordable and easily available as compared to unblended gasoline. As it is mostly a product of molasses, grains, and processed corn, ethanol also reduces the pressure to drill in environmentally sensitive places. Ethanol production also supports farmers and creates domestic jobs and because ethanol is produced from domestically grown crops, it reduces India’s dependence on foreign oil.
Assistance from Automobile Sector
The Automobile Industry has agreed with the government to produce Flex Fuel Vehicles which will be capable of running on E85 which is up to 85% Ethanol blended gasoline, gradually decreasing the import of crude oil and contributing to the nation’s energy Independence. Apart the government has announced that all new vehicles will be E20 compliant from 2023, which will further contribute to the market growth.
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Market Segmentation
The India ethanol market is segmented based on type, raw material, purity, application, and regional distribution. Based on type, the market is further fragmented into Bioethanol and Synthetic Ethanol, based on raw material, the market is segmented into Sugar & Molasses Based, Grain Based, Algal Biomass, Lignocellulosic Biomass, and based on purity, it is fragmented into Denatured and Undenatured, and on basis of application, into Fuel & Fuel Additives, Industrial Solvents, Beverages, Disinfectant, Personal Care, Others. Based on region, the West region dominated the market in FY2021 with an overall share of 33.53% on account of well-established refineries of oil marketing companies which holds a major portion of the demand for ethanol.
Company Profiles
India Glycols Limited., Balrampur Chini Mills Limited, Shri Renuka Sugars Limited, Triveni Engineering and Industries Limited, Godavari Biorefineries Limited, Dalmia Bharat Sugar and Industries Limited, Bajaj Hindustan Sugars Limited., Simbhaoli Sugars Limited., East India Distilleries Parry Limited, Mawana Sugars Limited are among the major market players in the India platform that lead the market growth of the India Ethanol market.
| Attribute | Details |
| The market size value in 2021 | USD 2805.38 Million |
| Revenue Forecast in 2027 | USD 5638.56 Million |
| Growth Rate | 12.68% |
| Base Year | 2021 |
| Historical Years | 2017 – 2020 |
| Estimated Year | 2022E |
| Forecast Period | 2023F– 2027F |
| Quantitative Units | Revenue in USD Million and CAGR for 2017-2021 and 2022-2027 |
| Report Coverage | Revenue forecast, company share, competitive landscape, growth factors, and trends |
| Segments Covered | · Type· Raw Material· Purity· Application |
| Regional Scope | West, South, North and East |
| Key Companies Profiled | India Glycols Limited., Balrampur Chini Mills Limited, Shri Renuka Sugars Limited, Triveni Engineering and Industries Limited, Godavari Biorefineries Limited, Dalmia Bharat Sugar and Industries Limited, Bajaj Hindustan Sugars Limited., Simbhaoli Sugars Limited., East India Distilleries Parry Limited, Mawana Sugars Limited |
| Customization Scope | 10% free report customization with purchase. Addition or alteration to country, regional & segment scope. |
| Pricing and Purchase Options | Avail customized purchase options to meet your exact research needs. Explore purchase options |
| Delivery Format | PDF and Excel through Email (We can also provide the editable version of the report in PPT/pdf format on special request) |
Report Scope:
In this report, India ethanol market has been segmented into following categories, in addition to the industry trends which have also been detailed below:
- India Ethanol Market, By Type:
o Sugar & Molasses based
o Grain based
o Lignocellulosic Biomass
o Algal Biomass
- India Ethanol Market, By Purity:
o Denatured
o Undenatured
- India Ethanol Market, By Application:
o Fuel & Fuel Additives
o Industrial Solvents
o Disinfectant
o Personal Care
o Beverages
o Others
- India Ethanol Market, By Region:
o West
o South
o North
o East
Competitive Landscape
Company Profiles: Detailed analysis of the major companies present in India Ethanol market.
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Table of Content
- Product Overview
- Research Methodology
- Executive Summary
- Impact of COVID-19 on India Ethanol Market
- Voice of Customer
5.1. Brand Awareness
5.2. Preference, By Raw Material
5.3. Preference, By Purity
5.4. Demand, By Application
- India Ethanol Market Outlook
6.1. Market Size & Forecast
6.1.1. By Value & Volume
6.2. Market Share & Forecast
6.2.1. By Type (Synthetic Ethanol v/s Bioethanol)
6.2.2. By Raw Material (Sugar & Molasses Based, Grain Based, Algal Biomass, Lignocellulosic Biomass)
6.2.3. By Purity (Denatured v/s Undenatured)
6.2.4. By Application (Fuel & Fuel Additives, Industrial Solvents, Disinfectant, Personal Care, Beverages, Others)
6.2.5. By Region
6.2.5.1. By State (Top 3 States)
6.2.6. By Company (FY2021)
6.3. Product Market Map
- India Bioethanol Market Outlook
7.1. Market Size & Forecast
7.1.1.By Value & Volume
7.2. Market Share & Forecast
7.2.1. By Raw Material
7.2.2. By Purity
7.2.3. By Application
- India Synthetic Ethanol Market Outlook
8.1. Market Size & Forecast
8.1.1.By Value & Volume
8.2. Market Share & Forecast
8.2.1. By Raw Material
8.2.2. By Purity
8.2.3. By Application
- Market Dynamics
9.1. Drivers
9.2. Challenges
- Market Trends & Developments
- Policy & Regulatory Landscape
- India Economic Profile
- Competitive Landscape
13.1. Competition Outlook
13.2. Company Profiles
13.2.1. India Glycols Limited.
13.2.2. Balrampur Chini Mills Limited
13.2.3. Shri Renuka Sugars Limited
13.2.4. Triveni Engineering and Industries Limited
13.2.5. Godavari Biorefineries Limited
13.2.6. Dalmia Bharat Sugar and Industries Limited
13.2.7. Bajaj Hindustan Sugars Limited.
13.2.8. Simbhaoli Sugars Limited.
13.2.9. East India Distilleries Parry Limited
13.2.10. Mawana Sugars Limited
- Strategic Recommendations
- About us & Disclaimer
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