India Bioethanol Market, By Source (Sugar & Molasses Based, Grain Based, Lignocellulosic Biomass), By Purity (Denatured v/s Undenatured), By Application (Fuel & Fuel Additives, Disinfectant, Industrial Solvents, Beverages, Personal Care, Others), By Region, Competition, Forecast & Opportunities, 2017-2027
India Bioethanol market is anticipated to grow at an impressive CAGR of 17.44% to reach at USD 10644.31 million by 2027. Bioethanol is a relatively low-cost alternative fuel that boasts less pollution and is readily available than unblended gasoline. As it is a product of molasses, grains and processed corn, Bioethanol also reduces the pressure to drill in environmentally sensitive places. Bioethanol production also supports farmers and creates domestic jobs as it is produced from domestically grown crops which helps in reducing dependence on foreign oil.
Though Bioethanol and other biofuels are often promoted as clean, low-cost alternatives to gasoline, sugarcane farming, which is mostly used as raw material for producing Bioethanol in India, still has a harmful impact on the environment as sugarcane is highly water intensive crop and its high cultivation is gradually leading to lowering of water table. Intensive use of fertilizers and pesticides used in farming also affect land productivity and soil’s water retention capacity.
Bioethanol demand has tripled in four years, but production capacity has only doubled. According to recent trends in the segment, Bioethanol production is witnessing steep rise due to mandatory blending of 20% Bioethanol in Gasoline by 2025 and 10% by 2022. Automobile companies are also looking forward to rollout of E20 material-compliant and E10 engine-tuned vehicles from April 2023.
Apart from its use as a fuel, Bioethanol’s demand is increasing extensively as a solvent in the manufacturing of varnishes and perfumes, and as surface disinfectant the demand for which was at peak during COVID-19 as it was used in manufacturing of hand sanitizers.
Favorable Policies by Government Drives the Market Growth
Government has set target of blending 10% Bioethanol till 2022 and 20% of it till 2025, in gasoline. New policies like National Policy on Biofuels, 2022 and Ethanol Blended Petrol (EBP) program are seen to be the principal driver for the demand expansion of Bioethanol in India. The EBP program aims to address environmental concerns, reduce oil import bill and provide remunerative income to farmers. Currently, Bioethanol blending level in petrol is around 8.5%. Under the EBP program the government has already reintroduced the administered price mechanism for Bioethanol procurement, allowing Bioethanol production from multiple feedstocks like heavy molasses, sugarcane juice, sugar, sugar syrup, damaged food grains, maize and surplus rice stocks with Food Corporation of India (FCI).
Surplus Raw Material Availability Fuels the Market Growth
To increase production of fuel grade Bioethanol and to achieve blending targets, the Government of India has allowed use of maize and rice with FCI for production of Bioethanol. Production of Bioethanol would not only facilitate diversion of excess sugar to Bioethanol but would also encourage farmers to diversify their crops to cultivate particularly maize/corn which requires less water. It would enhance production of Bioethanol from various feed stocks thereby, facilitate in achieving blending targets of Bioethanol with petrol and would reduce import dependency on crude oil.
The India Bioethanol market is segmented based on Source, Purity, Application and competitional landscape. Based on Source, the market is further fragmented into Sugar & Molasses Based, Grain Based, Lignocellulosic Biomass and based on purity, it is fragmented into Denatured and Undenatured, and on basis of application, into Fuel & Fuel Additives, Disinfectant, Industrial Solvents, Beverages, Personal Care and Others.
Bajaj Hindusthan Sugar Ltd., Triveni Engineering & Industries Ltd., Gulshan Polyols Ltd, Ankur Biochem Pvt. Ltd., India Glycols Ltd, Novozymes South Asia Private Limited, Danisco A/S, Jiangsu Boli Bioproducts Co., Limited are among the major market players in India Bioethanol market.
Years considered for this report:
Historical Years: 2017-2020
Base Year: 2021
Forecast Period: 2023F–2027F
In this report, India Bioethanol market has been segmented into following categories, in addition to the industry trends which have also been detailed below:
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