Bio-Alcohols market will expand at a rapid pace due to the rise in non-renewable resource scarcity and fluctuating crude oil prices. Increasing the need for vehicles with a rise in population has fuelled the requirement for Bio-fuels in developing economies together with developing prospects for the global market. It is renewable, eco-friendly, and assists in decreasing carbon impression in contrast to conventional fuels.
Bio-alcohols are sustainable chemicals derived from the fermentation of sugar or cellulose. Bio-alcohol manufacturers are utilizing feedstock such as biomass to manufacture bio-alcohols. With technological progressions, cellulosic biomass is growing its usage in sectors which is likely to complement the market growth.
Bio-Alcohol Market – Key Trends
High accessibility and low price of biomass are anticipated to offer a substantial amount of feedstock for the bio alcohol production in the long term. Investment and feedstock cost impacts the economy of scale as over 75% of the bio alcohol manufacturing is depending on feedstock. Increasing conversion of biomass to ethanol as a substitute to grain and sugar surplus is dependent on food market situations. This, consecutively, offers significant prospects for the usage of biomass in the global market in approaching years.
The prominent environmental problem is carbon-di-oxide emission and greenhouse effect. With such issues, the requirement for bio-alcohol is rising with usages of its several types such as bio-methanol, bio-butanol, bio-ethanol across sectors. Bio-alcohol is witnessing increasing demand in the transportation sector as it is a substitute for gasoline.
Researchers at Rutgers University, New Jersey, recently discovered a new procedure that can significantly lessen the price of manufacturing biofuels such as ethanol from plant waste.
Bio-Alcohol Market – Growth Restraints
The disadvantages of bio alcohol such as the need for arable land, amid the manufacturing process of bioethanol, a tremendous amount of carbon dioxide is expelled, in addition to increased prices will hamper sales of the bio alcohol market. Furthermore, there is a concern that because of the lucrative costs of bioethanol a few farmers might sacrifice food crops for biofuel manufacturing which would increase food cost across nations.
COVID-19 Impact on Bio-Alcohol Market
The COVID-19 outbreak is sending shockwaves across the global economy. The influence is mainly critical in oil product markets, since restrictions on local and regional movement and international travel avert people and goods from going out freely, which takes a hefty toll on transportation.
Limitation on social contact and movements has spread nearly as fast as the virus itself, e.g. lowering trade and shipping activities and disrupting industrial manufacturing. With more nations increases their quarantine and lockdown measure diesel & gasoline demand is slated to drop.
The probable outlook is a rise in intra-market travel as customers might opt to holiday domestically instead of the more expensive preference of international travel.
Bio-Alcohol Market – Region-wise Analysis
Europe has become the biggest consumer and producer of bio-alcohols trailed by North America. This is due to strict government regulations concerning sustainable eco-friendly environment and carbon emission. Automobile sectors in the U.S and Germany are majorly stressing on bio-based fuels to boost fuel proficiency. The U.S accounts for the second position due to regulations by the government in aiding loan guarantees to those producers that are employing efficient bio-based chemicals for manufacturing. Other emerging nations such as India and China will witness a stable development due to still preference non-conventional resources. A rise in the usage of bio-ethanol to sustain fast industrialization is fuelling the South America market.
Bio-Alcohol Market – Competitive Analysis
The prominent manufacturers in the global bio alcohol market include E.I. du Pont de Nemours & Co., Mitsubishi Chemical Corporation, BASF SE, Cool Planet Energy Solutions, Harvest Power, Inc., and Fulcrum Bioenergy, Inc.
Mergers and acquisitions will help the manufacturers to meet the increasing requirement for biomethane or renewable natural gas that consecutively is estimated to accelerate the market development over the assessment period.
Glacial Lakes Energy, a South Dakota-based firm took over two functioning ethanol plants from Advanced BioEnergy in South Dakota. With the $47.5 Mn acquisition, the company now possesses four units in the region.
Attis Industries, a Georgia-based company agreed with Sunoco's non-operating ethanol plant in Fulton. Moreover, Sunoco agreed for a decade off taking agreement with Attis.
Federated Cooperatives took over Terra Grain Fuels' operating ethanol unit in Belle Plaine. FederThe company will be continuing to operate the 40-Mn-gallon plant.
Global Bio-Alcohol Market: Market Segmentation
On the basis of type, the global bio-alcohol market is categorised into:
Based on application, the global bio-alcohol market is categorized into:
Based on raw materials, the global bio-alcohol market is categorized into
Global Bio-Alcohol Market: Key Players (this is an indicative list – full list of key players available upon request)
Regions and Countries Analyzed in the Report
The report is a compilation of first-hand information, qualitative and quantitative assessment by industry analysts, inputs from industry experts and industry participants across the value chain. The report provides in-depth analysis of parent market trends, macro-economic indicators and governing factors along with market attractiveness as per segments. The report also maps the qualitative impact of various market factors on market segments and geographies.