Avantika Saraogi, a representative from Balrampur Chini Mills, has recently highlighted the burgeoning significance of ethanol production in the industry's business strategy. During an interview with CNBC TV18, she revealed that the ethanol program is causing a revitalizing shift in the industry's revenue stream. With expectations of approximately 33% of the industry's revenue originating from the ethanol sector, it's clear that ethanol production is emerging as a crucial axis of the industry.
Ethanol Market's Projected Expansion
Analysts anticipate that the ethanol market will exhibit a compound annual growth rate (CAGR) of 4.6% over the next decade. Starting from a base of US$ 114.02 billion in 2023, the market is slated to burgeon to US$ 178.78 billion by 2033. This substantial growth is fueled by the escalating use of ethanol as a biofuel. Ethanol production can be achieved using both petrochemical and natural feedstocks, adding to its versatility and appeal.
Driving Factors behind the Market Expansion
Several factors are contributing to the expansion of the ethanol market. The surge in the use of ethanol-based hand sanitizers due to the COVID-19 outbreak has given a significant boost to the market. In addition, stringent environmental restrictions advocating the usage of biofuels have underpinned the production of ethanol. As the market grows, both foreign and domestic businesses are jockeying for a larger market share in the highly competitive ethanol industry.
Evolution of Production Tactics
Key ethanol manufacturers are adapting their production tactics in response to the rising demand for ethanol. For example, Kemin Industries introduced FermSAVER, a tea-extract product used in yeast fermentation for ethanol generation, in February 2023. This was part of its expanding Kemin Bio Solutions line. In January 2022, ADM joined forces with Wolf Carbon Solutions to expedite the decarbonization of ethanol production. These evolving strategies signify the industry's commitment to meeting the increasing demand while also addressing environmental concerns.
Recently, a U.S. Grains Council delegation, including members from Eco Engineers, Valero Renewables, and the U.S. Grains Council itself, visited India. They met with marketing companies, Indian ethanol producers, ethanol importers, and farmers, emphasizing the global interest in the burgeoning Indian ethanol market.