Global ethanol market targets $105.8bn valuation amid rising biofuel mandates

The global ethanol market reached a valuation of $105.8 billion in 2025 and is projected to expand at a compound annual growth rate (CAGR) of 5.1% through 2030, according to new data released on Friday, 17 July. Increasing mandates for biofuel blending in the transport sector and rising industrial demand for bio-based chemicals are driving the current volume surge. Industrial Demand and Fuel Blending Mandates Corn-based ethanol remains the dominant feedstock, accounting for approximately 65% of global production. However, sugar-based ethanol from Brazil and cellulosic ethanol projects in North America are capturing increased market share as carbon intensity regulations tighten. In the UAE and wider Gulf region, logistics firms and chemical manufacturers are monitoring ethanol price volatility closely as regional energy diversification targets approach 2030 deadlines. The automotive sector accounts for 70% of total ethanol consumption. Major markets including India and Brazil have recently increased domestic blending requirements to 20% (E20), a move that has tightened global supply and pressured export prices out of the United States, the world's largest producer. Industrial applications in the pharmaceutical and personal care sectors comprise the remaining 30% of market demand. Regional Impact and Future Projections For UAE-based industrial players, the move toward ethanol-based solvents and sustainable aviation fuel (SAF) precursors represents a shift in procurement…