The world ethanol market is projected to reach 27.7 billion gallons by the end of 2012 according to a new report, “Biofuels – A Global Strategic Business Report,” conducted by Global Industry Analysts. The growth, says the report, is due to skyrocketing crude prices, continued concerns over environmental pollution and the switch to biofuels. In addition, worldwide emission standards, biofuels subsidies and tax incentives have also had a positive impact on growth.
In the U.S., growth is being fostered by the goal of increasing domestic fuel production along with attention on the lowering of carbon emissions. Other aids to growth in the U.S., according to the report, is the increased purchases of flex-fuel vehicles (FFVs) and the approval and sale of E15 for vehicles produce in 2011 or newer.
Today, the U.S. and Brazil (as well as South America) dominate production with 50 percent of world sugarcane produced going into the production of ethanol. Together, South America and the U.S. produced 66.5 percent of total volume sales in 2008 with 90 percent of ethanol demand in South America coming from Brazil. Ethanol consumption in Brazil is expected to reach 7.45 billion gallons by 2015. Sales of ethanol in Canada, one of the fastest growing markets worldwide, are expected to rise by approximately 208.25 million gallons between the period 2008 to 2012. The report predicts that markets to watch are India and China.
Globally, volume consumption of ethanol is estimated to grow by about 7,597 million gallons between the period 2008 to 2012. Asia-Pacific dominates the global food & beverage end-use market with a 64.2% share estimated in the year 2008. The solvent end-use market in the United States is projected to consume over 230 million gallons of ethanol by the year 2015. In Europe, Germany and France collectively account for 35.5% of the regional ethanol market as estimated in 2008.
All the major global ethanol players are featured in the report along with all the major biodiesel players around the world. The report provides a comprehensive review of market trends, driver, issues, and challenges in the biofuels global market. It also discusses climates in key regional markets. Also provided in the report is an enumeration of recent mergers, acquisitions, and other strategic industry activities.