Market Forecast By Purity (Denatured, Non-Denatured), By Sources (Sugar & Molasses Based, Grained Based, Second Generation) By Application (Industrial Solvent, Fuel & Fuel Additives, Beverages, Disinfectant, Personal Care, Others) And Competitive Landscape
|Product Code: ETC003103||Publication Date: Aug 2023||Updated Date: Aug 2023||Product Type: Report|
|Publisher: 6Wresearch||No. of Pages: 70||No. of Figures: 35||No. of Tables: 5|
India Ethanol Market registered a growth of 81.29% in value shipments in 2022 as compared to 2021 and an increase of 2.5% CAGR in 2022 over a period of 2017. In Ethanol Market India is becoming more competitive as the HHI index in 2022 was 1272 while in 2017 it was 2355. Herfindahl Index measures the competitiveness of exporting countries. The range lies from 0 to 10000, where a lower index number represents a larger number of players or exporting countries in the market while a large index number means less numbers of players or countries exporting in the market. India has reportedly relied more on domestic production to meet its growing demand in Ethanol Market.
India is unable to meet its increasing needs of this product with domestic production hence we see the trend is shifting towards import shipment to meet its demand The import factor of Ethanol Market in 2022 was 0.06 while in 2017 it was 0.03. United Kingdom, USA, Venezuela, Spain and Germany were among the top players of the market in 2022, where United Kingdom acquired the largest market share of 22.42% with a shipment value of 1.55 million USD in 2022 United Kingdom also offered the product below the average market price thus having a competitive advantage over others In 2017 United Kingdom had the largest market share of 44.1% with the shipment value of 1.45 million USD. The country was offering its product with an average price which is higher than the average market price offered in the country. Although United Kingdom offers its product above the market average price, it remained at the leadership position indicating the brand value it holds in the India Ethanol Market in 2017.
In the year 2021, the UK was the largest exporter in terms of value, followed by Germany. It has registered a growth of 56.19% over the previous year. While Germany registered a growth of 55.8% as compared to the previous year. In the year 2017, the UK was the largest exporter followed by Germany. In terms of the Herfindahl Index, which measures the competitiveness of countries exporting, India has a Herfindahl index of 2355 in 2017 which signifies moderately concentrated also in 2021 it registered a Herfindahl index of 1475 which signifies high competitiveness in the market.
India Ethanol Market report thoroughly covers the market by purity, by sources, and by applications. The market outlook report provides an unbiased and detailed analysis of the ongoing market trends, opportunities/high growth areas, and market drivers which would help the stakeholders to devise and align their market strategies according to the current and future market dynamics.
India Ethanol Market has been witnessing significant growth backed by some ongoing promising developments such as the rising ethanol demand from certain sectors, including, food & beverages, pharmaceutical, and personal care products. Additionally, Indian Oil Corporation Limited signed an agreement, in June 2021, with Praj Industries to establish three compressed biogas and one second-generation ethanol manufacturing unit in Gujarat, this is one of the most prominent projects creating a favorable impact on the India Ethanol Market growth. Furthermore, recently declared by Bharat Petroleum Corporation Limited to invest to increase the ethanol production capacity to serve and meet the demand of both domestic and international markets is estimated to be another significant project that will surge the growth of the India Ethanol industry in the coming years.
India Ethanol Market is expected to register growth during the forecast period on account of the increasing consumption and production of alcoholic beverages along with the growing usage of ethanol as fuel in automotive. The growing environmental concerns and rising adoption of ethanol at gasoline stations coupled with the increasing number of gasoline stations are some of the major factors driving the demand for the ethanol market in India. Moreover, the changing taste and preferences of people, changing life, and the rising automobile industry would propel the growth of the ethanol market in India. Aiming to develop a wide ethanol industry in the country to cater to domestic needs and contribute to economic growth is one of the major drivers that will ensure massive growth of the market in the coming years.
According to 6Wresearch, the India Ethanol Market size is expected to grow at a massive rate during the forecast period 2020-2026. The market is growing considerably due to the rise in the potential growth of the chemical and food & beverage industry. With the rising financial incentives, farmers have increased ethanol production to improve their livelihoods, this factor is creating a positive impact on the India Ethanol industry. Additionally, Ethanol blended fuel use has been increasing rapidly to improve air quality by decreasing the pollutants like matter and nitrogen oxides. This is one of the leading factors increasing the use of ethanol and leaving a favorable impact on the market growth. The rising investment in ethanol production technologies, which include effective & efficient processing methods leads to cost-effective and eco-friendly production. The technology can help produce large quantity ethanol to cater the industrial needs and is estimated to leave a favorable impact on market growth.
The availability of required feedstocks that are sugarcane and grains is limited which limits ethanol production and is unable to cater the domestic needs. Also, the high competition in using these feedstocks for food and fuel production can cause inflation. Additionally, the limited infrastructure to store, produce, and distribute is another challenge that can hinder ethanol production, in turn, this can affect the market growth.
India Ethanol Market is estimated to surge in the foreseeable future underpinned by the rising government efforts in increasing ethanol-based fuel to reduce GHG levels in the country. The Indian government has introduced certain policies such as providing financial incentives and creating a favorable regulatory environment by encouraging the use of renewably sourced fuels (ethanol) in various sectors like agriculture and automotive. This factor is estimated to bolster the ethanol demand, as a result, the market will augment significantly during the forecast period. Also, the Indian government encourages increasing the ethanol production capacity in the country to reduce the dependency on imported crude oil and to decrease the carbon footprint by using ethanol-based fuels.
The pandemic had a profound impact on the India Ethanol Market which is a part of the Asia Pacific ethanol market. COVID-19 caused a major lockdown in the country which led to a shutdown of industrial operations, including construction coupled with the low consumption rate of gasoline due to the travel restrictions. This decreased the ethanol demand and further hindered the market growth by declining the market shares and revenues.
Some are the major players functioning efficiently and effectively to shape the market growth including:
Based on the purity, denatured ethanol is likely to dominate the India Ethanol Market share, driven by the government's strict policies, which have mandated to blend of ethanol with gasoline and reducing the dependency on fossil fuels to attain a sustainable environment.
According to Ravi Bhandari, Research Head, 6Wresearch, all applications are driving the demand for ethanol in the country, however, recently, fuel and fuel additives experiencing quite high growth and boosting the India ethanol market share influenced by various factors, like, rising government initiatives to reduce carbon emission, reduce dependency on fossil fuels, and increasing use of renewable sourced fuels and energy generation component.
Based on sources, while sugar and molasses-based ethanol have traditionally been used as the major source of ethanol production, nevertheless, the rising demand for other sources as well including, Grained Based and Second Generation increases sustainability and decrease food crop competition.
The India Ethanol Market report provides a detailed analysis of the following market segments:
|1. Executive Summary|
|2.1 Report Description|
|2.2 Key Highlights|
|2.3 Market Scope & Segmentation|
|2.4 Research Methodology|
|3. India Ethanol Market Overview|
|3.1 India Ethanol Market Revenues and Volume, 2016-2026F|
|3.2 India Ethanol Market Revenue Share, By Purity, 2019 & 2026F|
|3.3 India Ethanol Market Revenue Share, By Source, 2019 & 2026F|
|3.4 India Ethanol Market Revenue Share, By Application, 2019 & 2026F|
|3.5 India Ethanol Market - Industry Life Cycle|
|3.6 India Ethanol Market - Porter’s Five Forces|
|4. India Ethanol Market Dynamics|
|4.1 Impact Analysis|
|4.2 Market Drivers|
|4.3 Market Restraints|
|5. India Ethanol Market Trends|
|6. India Ethanol Market Overview, by Source|
|6.1 India Sugar & Molasses Based Ethanol Market Revenues and Volume, 2016-2026F|
|6.2 India Grained Based Ethanol Market Revenues and Volume, 2016-2026F|
|6.3 India Second Generation Ethanol Market Revenues and Volume, 2016-2026F|
|7. India Ethanol Market Overview, by Purity|
|7.1 India Ethanol Market Revenue and Volumes, By Denatured, 2016-2026F|
|7.2 India Ethanol Market Revenue and Volumes, By Non-Denatured, 2016-2026F|
|8. India Ethanol Market Overview, by Application|
|8.1 India Ethanol Market Revenue and Volumes, By Industrial Solvent, 2016-2026F|
|8.2 India Ethanol Market Revenue and Volumes, By Fuel & Fuel Additives, 2016-2026F|
|8.3 India Ethanol Market Revenue and Volumes, By Beverages, 2016-2026F|
|8.4 India Ethanol Market Revenue and Volumes, By Disinfectant, 2016-2026F|
|8.5 India Ethanol Market Revenue and Volumes, By Personal Care, 2016-2026F|
|8.6 India Ethanol Market Revenue and Volumes, By Others, 2016-2026F|
|9. India Ethanol Market Key Performance Indicators|
|10. India Ethanol Market Opportunity Assessment|
|10.1 India Ethanol Market Opportunity Assessment, By Purity, 2026F|
|10.2 India Ethanol Market Opportunity Assessment, By Source, 2026F|
|10.3 India Ethanol Market Opportunity Assessment, By Application, 2026F|
|11. India Ethanol Market Competitive Landscape|
|11.1 India Ethanol Market By Companies, 2019|
|11.2 India Ethanol Market Competitive Benchmarking, By Operating Parameters|
|12. Company Profiles|
|13. Key Strategic Recommendations|