Fuel Ethanol Global Market Report 2026

Fuel ethanol, commonly known as ethyl alcohol, is an alcohol variant produced from sources such as corn, sugarcane, grains, and, occasionally, paper waste. It serves as the predominant form of alcohol in many alcoholic beverages, derived from the fermentation of a mash composed of grains or sugarcane. Beyond its role in alcoholic drinks, fuel ethanol is frequently blended with gasoline to enhance fuel oxygenation at gas stations. Moreover, ethanol fuel is utilized as a power source for automobiles.

The main fuel ethanol products are starch-based, sugar-based, and cellulosic-based fuel ethanol. Starch-based crops are processed in dry or wet mills to create ethanol. In the dry-milling process, corn is ground into flour and then fermented into ethanol with the help of byproducts such as distillers' grains and carbon dioxide. The starch-based ethanol is used to produce bioenergy. The various sources include synthetic and natural that are used in making fuel ethanol from raw materials such as fuel, maize, wheat, industrial beets, sugarcane, cereal and starch, and other raw materials. It is used in several applications, such as conventional vehicles and flexible fuel vehicles. It is used by various end-users, such as, automotive, oil and gas, and others.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs are influencing the fuel ethanol market by increasing costs of imported enzymes, processing equipment, fermentation technology, and agricultural inputs. North America and Brazil are most affected due to trade-related duties on ethanol and feedstocks, while Asia-Pacific faces pricing pressure on imported biofuel technologies. These tariffs are impacting trade flows and profit margins. At the same time, they are supporting domestic ethanol production, regional feedstock utilization, and investments in local bio-refinery infrastructure.

The fuel ethanol market research report is one of a series of new reports from The Business Research Company that provides fuel ethanol market statistics, including fuel ethanol industry global market size, regional shares, competitors with a fuel ethanol market share, detailed fuel ethanol market segments, market trends and opportunities, and any further data you may need to thrive in the fuel ethanol industry. This fuel ethanol market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The fuel ethanol market size has grown strongly in recent years. It will grow from $106.73 billion in 2025 to $114.33 billion in 2026 at a compound annual growth rate (CAGR) of 7.1%. The growth in the historic period can be attributed to government biofuel policies, expansion of corn and sugarcane cultivation, rising gasoline consumption, growth of fermentation technologies, availability of agricultural feedstocks.

The fuel ethanol market size is expected to see strong growth in the next few years. It will grow to $147.71 billion in 2030 at a compound annual growth rate (CAGR) of 6.6%. The growth in the forecast period can be attributed to increasing decarbonization targets, rising investments in second-generation biofuels, expansion of ethanol export markets, growing demand for renewable fuels, increasing focus on waste-to-fuel technologies. Major trends in the forecast period include increasing adoption of ethanol blending mandates, rising production of bio-based fuels, growing use of cellulosic ethanol, expansion of flexible fuel vehicle infrastructure, enhanced focus on energy security.

The expansion of the oil and gas industry is expected to propel the growth of the fuel ethanol market going forward. The oil and gas industry is a sector encompassing the exploration, extraction, refining, transportation, and marketing of petroleum products. Fuel ethanol has been utilized in the oil and gas industry primarily as a biofuel as it offers reduced greenhouse gas emissions, enhanced octane levels, improving combustion efficiency and reducing carbon monoxide and particulate emissions, and contribute to improved engine performance. For instance, in November 2023, according to the US Energy Information Administration, a US-based federal statistical system for gathering, processing, and disseminating energy data, there is an increase in U.S. crude oil output to 12.4 million b/d in 2023 from the record high of 11.7 million b/d in 2022. Therefore, the expansion of the oil and gas industry is driving the growth of the fuel ethanol market.

Major companies active in the fuel ethanol market are emphasizing the creation of advanced solutions, such as hybrid ethanol-powered vehicles, to boost fuel efficiency, cut carbon emissions, and support the transition to cleaner mobility. A hybrid ethanol-powered vehicle (e-HEV) is a hybrid system that can operate on various ethanol-gasoline mixtures (including E20, E85, or even pure ethanol, depending on configuration) while integrating an electric drivetrain. For example, in August 2023, Toyota Kirloskar Motor, an automobile manufacturer based in India, introduced a prototype of the world's first BS 6 (Stage II) electrified flex-fuel vehicle, developed using the well-known Innova Hycross platform. This vehicle merges a flex-fuel engine capable of running on higher ethanol blends with a strong-hybrid electric powertrain that uses a relatively small battery (approximately 1.3-1.5 kWh compared to the 40-60 kWh typically found in battery-electric vehicles), allowing a substantial amount of driving in electric mode. This improves fuel efficiency and lowers emissions without relying heavily on large battery packs. This innovation highlights how the fuel ethanol industry is progressing beyond basic ethanol-petrol blends toward advanced hybrid mobility technologies that combine renewable biofuels with electrification.

In September 2024, Gevo, a US-based biofuel company that specializes in the creation of bioethanol, acquired Red Trail Energy for an undisclosed amount. The acquisition is expected to enhance Gevo's ethanol production capabilities while expanding carbon capture and sequestration efforts. Red Trail Energy is a US-based refining, chemicals, polymers, and biofuels company that operates ethanol plants.

Major companies operating in the fuel ethanol market are Valero Energy Corporation, Aemetis, Inc., British Petroleum Company plc, Cargill, Incorporated, Archer Daniels Midland Company, Delta-T Corporation, Raizen S.A., Green Plains Inc., Renewable Energy Group, Inc., Flint Hills Resources, LP, CropEnergies AG, Abengoa Bioenergy S.A., Aventine Renewable Energy Holdings, Inc., Big River Resources LLC, Red Trail Energy LLC, Marquis Energy LLC, ICM, Inc., POET, LLC, Pacific Ethanol, Inc., BlueFire Renewables, LLC, Advanced BioEnergy LLC, White Energy, Inc., The Andersons Ethanol Group LLC, Glacial Lakes Energy LLC

North America was the largest region in the fuel ethanol market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the fuel ethanol market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

The countries covered in the fuel ethanol market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain

The fuel ethanol market consists of sales of gasoline, flex fuel, and ethanol blended petrol. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

Fuel Ethanol Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses fuel ethanol market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

Reasons to Purchase

• Gain a truly global perspective with the most comprehensive report available on this market covering 16 geographies.
• Assess the impact of key macro factors such as geopolitical conflicts, trade policies and tariffs, inflation and interest rate fluctuations, and evolving regulatory landscapes.
• Create regional and country strategies on the basis of local data and analysis.
• Identify growth segments for investment.
• Outperform competitors using forecast data and the drivers and trends shaping the market.
• Understand customers based on end user analysis.
• Benchmark performance against key competitors based on market share, innovation, and brand strength.
• Evaluate the total addressable market (TAM) and market attractiveness scoring to measure market potential.
• Suitable for supporting your internal and external presentations with reliable high-quality data and analysis
• Report will be updated with the latest data and delivered to you within 2-3 working days of order along with an Excel data sheet for easy data extraction and analysis.
• All data from the report will also be delivered in an excel dashboard format.

Where is the largest and fastest growing market for fuel ethanol ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The fuel ethanol market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market. This section also examines key products and services offered in the market, evaluates brand-level differentiation, compares product features, and highlights major innovation and product development trends.
• The supply chain analysis section provides an overview of the entire value chain, including key raw materials, resources, and supplier analysis. It also provides a list competitor at each level of the supply chain.
• The updated trends and strategies section analyses the shape of the market as it evolves and highlights emerging technology trends such as digital transformation, automation, sustainability initiatives, and AI-driven innovation. It suggests how companies can leverage these advancements to strengthen their market position and achieve competitive differentiation.
• The regulatory and investment landscape section provides an overview of the key regulatory frameworks, regularity bodies, associations, and government policies influencing the market. It also examines major investment flows, incentives, and funding trends shaping industry growth and innovation.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.
• The total addressable market (TAM) analysis section defines and estimates the market potential compares it with the current market size, and provides strategic insights and growth opportunities based on this evaluation.
• The market attractiveness scoring section evaluates the market based on a quantitative scoring framework that considers growth potential, competitive dynamics, strategic fit, and risk profile. It also provides interpretive insights and strategic implications for decision-makers.
• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth.
• Expanded geographical coverage includes Taiwan and Southeast Asia, reflecting recent supply chain realignments and manufacturing shifts in the region. This section analyzes how these markets are becoming increasingly important hubs in the global value chain.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The company scoring matrix section evaluates and ranks leading companies based on a multi-parameter framework that includes market share or revenues, product innovation, and brand recognition.

Scope

• Markets Covered:1) By Product: Starch-Based; Sugar-Based; Cellulosic
• 2) By Raw Material: Maize; Wheat; Industrial Beets; Sugarcane; Cereal And Starch; Other Raw Materials
• 3) By Application: Conventional Vehicles; Flexible Fuel Vehicles
• 4) By End-User: Automotive; Power Generation And Industrial Energy; Government And Pilot-Scale Fuel Programs
• Subsegments:
• 1) By Starch Based: Corn Ethanol; Wheat Ethanol; Barley Ethanol; Potato Ethanol
• 2) By Sugar Based: Cane Ethanol; Beet Ethanol; Molasses Ethanol
• 3) By Cellulosic: Agricultural Residues; Forestry Residues; Dedicated Energy Crops; Municipal Solid Waste
• Companies Mentioned: Valero Energy Corporation; Aemetis, Inc.; British Petroleum Company plc; Cargill, Incorporated; Archer Daniels Midland Company; Delta-T Corporation; Raizen S.A.; Green Plains Inc.; Renewable Energy Group, Inc.; Flint Hills Resources, LP; CropEnergies AG; Abengoa Bioenergy S.A.; Aventine Renewable Energy Holdings, Inc.; Big River Resources LLC; Red Trail Energy LLC; Marquis Energy LLC; ICM, Inc.; POET, LLC; Pacific Ethanol, Inc.; BlueFire Renewables, LLC; Advanced BioEnergy LLC; White Energy, Inc.; The Andersons Ethanol Group LLC; Glacial Lakes Energy LLC
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Taiwan; Russia; South Korea; UK; USA; Canada; Italy; Spain
• Regions: Asia-Pacific; South East Asia; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time Series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data Segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
• Delivery Format: Word, PDF or Interactive Report
• + Excel Dashboard
• Added Benefits
• Bi-Annual Data Update
• Customisation
• Expert Consultant Support

Added Benefits available all on all list-price licence purchases, to be claimed at time of purchase. Customisations within report scope and limited to 20% of content and consultant support time limited to 8 hours.