India Ethanol Market Size to Surpass US$ 6.83 Billion by 2030 | Exhibiting a CAGR of 15.9%

India Ethanol Market

India Ethanol Market is Estimated to Witness High Growth Owing to Government Support.

India Ethanol Market size is expected to reach US$ 6.83 Billion by 2030, from US$ 2.43 Billion in 2023, at a CAGR of 15.9% during the forecast period.”

— CoherentMI

BURLINGAME, CA 94010, UNITED STATES, December 28, 2023 /EINPresswire.com/ -- The business intelligence report on India Ethanol Market Outlook 2023-2030 defines the major trends determining this domain’s growth concerning the competitive and geographical landscape. Moreover, the study covers the challenges that impede industry development and offers insights into untapped opportunities that will spur business expansion during the forecast period 2023-2030.

Ethanol is a clear liquid produced by fermenting and distilling plant materials. It is widely used as fuel and feedstock for producing chemicals in India.

Market Dynamics:

The India ethanol market is expected to witness significant growth over the forecast period owing to growing government support in the form of mandatory blending targets. The Government of India has implemented an ethanol blending program wherein oil marketing companies are mandated to blend ethanol with gasoline. This is aimed at reducing import dependence for crude oil as well as improving agricultural incomes by utilizing surplus grains for ethanol production. Currently, the blending target stands at 10% by 2022-23 up from 5% in 2019-20. Several incentives are offered to distilleries for ethanol production capacity additions. Furthermore, growing demand for biofuels to meet environmental targets related to reduction in vehicular emissions will continue to drive the market.

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India Ethanol Market Driver:

Increasing production and blending of ethanol in gasoline

India aims to achieve 20% blending of ethanol in petrol by 2030 to curb pollution and reduce import dependence for oil requirements. The government has continuously increased the ethanol blending target from 5% currently to 10% by 2022 and 20% by 2030. Various government policies and schemes supporting production of ethanol from surplus food grains and agricultural residues is driving increasing production capacity of ethanol in the country. Distilleries are investing in expanding and modernizing production facilities to cater growing ethanol demand from oil marketing companies. Higher blending targets also mean stable demand and assured offtake for ethanol producers.

Favorable government policies promoting use of biofuels

National Biofuel Policy 2018 focuses on waste-to-wealth and providing alternative fuels. Schemes like interest subvention, higher purchase price for ethanol are allowing farmers to earn more and distilleries to build profitable businesses. Mandating oil companies to achieve ethanol blending targets or face penalties is ensuring volumes are absorbed from domestic producers. Subsidies for setting up second generation ethanol plants using agricultural waste and crop residues is driving investment in advanced technologies. These progressive policies of government will be a major driver for ethanol industry growth in coming years.

India Ethanol Market Restrain:

High production cost of ethanol in India

Setting up integrated ethanol plants with planting and harvesting facilities requires large capital investments. Dependency on agricultural commodities as feedstock also exposes producers to price volatility risks. Unavailability of advanced technologies for second generation ethanol is keeping costs higher compared to imports. Transportation and logistical challenges in moving ethanol to blending terminals also increases delivered costs for oil marketing companies. Unless technology and process efficiencies improve to lower costs, it will be a challenge for India's ethanol industry to compete with global prices in long run. This is currently a major restrain for achieving higher blending targets economically.

India Ethanol Market Opportunity:

Adoption of second generation technologies

While India's ethanol production currently majorly depends on grain-based first generation technologies, growing emphasis on advanced second generation technologies present a big opportunity. Technologies that utilize agricultural waste and non-food biomass from sources like sugar cane trash, wheat straw, corn stover have potential to address high feedstock costs and sustainability challenges. This provides scope for Indian firms to collaborate and adopt most suitable international technologies customized for domestic conditions. Successful demonstration of commercial scale second generation plants will attract investments in advanced biorefineries and develop sustainable bioenergy value chains. It can significantly boost ethanol output, create rural jobs and provide a major boost to biofuels sector.

India Ethanol Market Trend:

Emergence of dedicated energy crops for ethanol production

With government support for research and cultivation of alternative feedstocks, cellulosic and lignocellulosic crops specifically grown for biofuel production are gaining momentum. Crops like energy cane that have high fiber content and yields are being evaluated for their commercial viability. State run agencies are promoting cultivation of such crops in unused wastelands involving farmers. If yields and costs can match grains, it will provide year-round availability of low cost feedstock. Dedicated energy farms model will attract investors and help ethanol industry maintain steady production. This emerging trend has potential to address feedstock shortages and make ethanol industry globally competitive on cost in long term.

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Major Players are Covered in this report:

▪️ Praj Industries
▪️ Triveni Engineering & Industries Ltd
▪️ Shree Renuka Sugars
▪️ Balrampur Chini Mills Ltd.
▪️ Bajaj Hindusthan Sugar Ltd.

India Ethanol Market Segmentation:

By Source
- Molasses
- Sugar Cane Juice
- Grains
- Others
By End Use
- Fuel
- Industrial Solvents
- Beverages
- Cosmetics
- Pharmaceuticals
- Automotive
- Others
By Grade:
- Denatured Alcohol
- Undenatured Alcohol
- Rectified Spirit
- Specially Denatured Alcohol
- Fuel Ethanol
By Blending:
- E5
- E10
- E15
- E20
- E25
- E70
- E85
- E95
By Application Method:
- Starch-based
- Sugar-based
- Cellulosic

Important Features of the reports:

:- Detailed analysis of the India Ethanol market
:- Fluctuating market dynamics of the industry
:- Detailed market segmentation
:- Historical, current and projected market size in terms of volume and value
:- Recent industry trends and developments
:- Competitive landscape of the India Ethanol Market
:- Strategies of key players and product offerings
:- Potential and niche segments/regions exhibiting promising growth
:- A neutral perspective towards India Ethanol market performance

Reason to Buy:

[1] Save and reduce time carrying out entry-level research by identifying the growth, size, leading players, and segments in the India Ethanol Market.
[2] Highlights key business priorities to guide the companies to reform their business strategies and establish themselves in the wide geography.
[3] The key findings and recommendations highlight crucial progressive industry trends in the India Ethanol Market, thereby allowing players to develop effective long-term strategies to garner their market revenue.
[4] Develop/modify business expansion plans by using substantial growth offerings in developed and emerging markets.
[5] Scrutinize in-depth global market trends and outlook coupled with the factors driving the market, as well as those restraining the growth to a certain extent.
[6] Enhance the decision-making process by understanding the strategies that underpin commercial interest concerning products, segmentation, and industry verticals.

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