Europe Ethanol Market

Europe Ethanol Market, By Type (Ethanol 95%, Absolute Ethanol, Denatured Ethanol, Bioethanol); By Source (Biobased, Synthetic); By End Use Industry (Automotive, Cosmetics & Personal Care, Construction, Agriculture); By Country (Germany, United Kingdom, Italy, France, Spain, Belgium, Russia, The Netherlands, Rest of Europe), Trend Analysis, Competitive Landscape & Forecast, 2019–2031

  • Published Date: May 2025
  • Report ID: BWC25246
  • Available Format: PDF
  • Page: 280

Report Overview

A spurring demand for ethanol in the automative and transportation sector, the rising popularity of renewable energy, and global decarbonization goals are expected to boost the growth of Europe Ethanol Market during the forecast period between 2025 and 2031.

Europe Ethanol Market – Industry Trends & Forecast Report, 2031

Europe Ethanol Market size was estimated at USD 27.58 billion in 2024. During the forecast period between 2025 and 2031, Europe Ethanol Market size is projected to grow at a CAGR of 5.6% reaching a value of USD 40.38 billion by 2031. Prominent drivers of the market include stringent environmental regulations and a shift towards renewable energy sources. The light commercial vehicle segment plays a significant role, with increased use of ethanol-blended fuels to meet emission reduction targets and improve fuel efficiency. Government policies and incentives further drive this adoption. In conclusion, Europe’s fuel ethanol market is poised for growth, supported by regulatory frameworks and the rising demand for cleaner fuels in commercial transportation, ensuring a greener and more sustainable energy landscape.

Europe Ethanol Market

Ethanol – Overview

Ethanol, a versatile and widely used alcohol (C₂H₅OH), plays a critical role across multiple industries due to its unique properties. As a polar solvent, it effectively dissolves both water-soluble and organic compounds, making it indispensable in pharmaceuticals, cosmetics, and chemical manufacturing. In the fuel sector, ethanol is a cornerstone of renewable energy strategies, particularly in Europe, where strict EU policies like the Renewable Energy Directive (RED II) mandate its blending with gasoline to reduce transport emissions and meet decarbonization targets. It also plays a role in food preservation and alcoholic beverage production. However, innovations in bioethanol production and regulatory support continue to drive its adoption, positioning ethanol as a vital component in the transition to sustainable industrial and energy systems.

Europe Ethanol Market

Growth Drivers

Rising Adoption of Ethanol as Sustainable and Low-Carbon Fuel Option

The growth of renewable energy mandates is a critical driver for Europe Ethanol Market, primarily due to the rise in ethanol adoption as a sustainable and low-carbon fuel option is driven by global decarbonization goals. Governments worldwide, particularly in the EU and India, are implementing policies like the Renewable Energy Directive (RED II) and the Ethanol Blending Program (EBP) to reduce fossil fuel dependence and curb emissions. Ethanol’s compatibility with existing internal combustion engines and infrastructure makes it a practical near-term solution, with blends like E10 and E85 gaining traction in markets.

Challenges

Volatility in Raw Material Prices and Supply Chain Risks

Ethanol Production mostly relies on agricultural commodities, such as corn, wheat, and maize, whose prices fluctuate depending on weather conditions, global demand and geopolitical events. Fluctuating raw material prices could have an impact on profitability and competitiveness of ethanol production, reducing producers’ margin and even causing supply disruptions. Consequently, fluctuations in raw material prices could affect the growth of Europe Ethanol Market.

Impact of Escalating Geopolitical Tensions on Europe Ethanol Market

Escalating geopolitical tensions could impact Europe Ethanol Market through supply chain disruptions, price volatility, and trade policy realignments. Trade tensions, where production and trade are already under strain, leave the market vulnerable to supply disruptions, particularly if conflicts disrupt Black Sea logistics or trigger export restrictions. Certification delays for U.S. ethanol, compounded by regulatory divergences, could further tighten supply, while volatile energy markets may squeeze producer margins by inflating input costs.

Europe Ethanol Market

Segmental Coverage

Europe Ethanol Market – By Type

By type, Europe Ethanol Market is segmented into Ethanol 95%, Absolute Ethanol, Denatured Ethanol, Bioethanol. Ethanol 95% (95% purity) is widely used in industrial processes and fuel blending due to its balance of cost-effectiveness and solvent properties. Absolute ethanol (over 99% purity) is critical in pharmaceuticals for drug formulations and cosmetics for its sterile, water-free composition, ensuring product safety and stability. Each type addresses specific industry needs, from high-purity medical-grade applications to scalable, sustainable fuel solutions.

Europe Ethanol Market Size

Europe Ethanol Market – By Source

Based on Source, Europe Ethanol Market is segmented into Biobased and Synthetic. Each segment is driven by distinct industry demands. Biobased approach not only complies with EU renewable energy directives but also minimizes carbon footprints by replacing fossil-derived inputs. In contrast, synthetic ethanol, derived from petrochemical sources like ethylene hydration, occupies a minor share of the market, primarily serving niche industrial applications where biobased alternatives are less feasible.

Europe Ethanol Market - By End Use Industry

The end use industry segmentation of Europe Ethanol Market consists of Automotive, Cosmetics & Personal Care, Construction, and Agriculture. The automotive industry stands as the primary consumer, where ethanol-blended fuels like E10 and E85 are integral to reducing greenhouse gas emissions and meeting EU renewable energy mandates.

Europe Ethanol Market – By Country

Geographically, Europe Ethanol Market is segmented into Germany, United Kingdom, Italy, France, Spain, Belgium, Russia, The Netherlands, and Rest of Europe. The geographic segmentation of Europe’s ethanol market reflects distinct production hubs, consumption patterns, and import dependencies. France, Germany, Belgium, and the UK collectively account for a significant share of installed production capacity, with France leading as the largest fuel ethanol producer and Germany as the top consumer, driven by automotive sector demand and renewable energy mandates.

Europe Ethanol Market Demand

Competitive Landscape

Major players operating in the highly competitive Europe Ethanol Market include INEOS, Cargill Incorporated, SABIC, Bunge Limited, ADM, Sasol Limited, LyondellBasell Industries Holdings B.V., Mitsubishi Chemical Corporation, Braskem, Valero Marketing and Supply Company, Raízen, CropEnergies AG, Kemin Industries, The Andersons, Inc., and Balrampur Chini Mills Limited. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

  • In February 2023 - Kemin Industries established FermSAVER, a tea-extract product utilized for yeast fermentation for ethanol production, to be part of its developing Kemin Bio Solutions portfolio.

Scope of the Report

Attributes

Details

Years Considered

Historical Data – 2019–2024

Base Year – 2024

Estimated Year – 2025

Forecast Period – 2025–2031

Facts Covered

Revenue in USD billion

Market Coverage

Germany, United Kingdom, Italy, France, Spain, Belgium, Russia, The Netherlands, Rest of Europe

Product/ Service Segmentation

Type, Source, End Use Industry, Country

Key Players

INEOS, Cargill Incorporated, SABIC, Bunge Limited, ADM, Sasol Limited, LyondellBasell Industries Holdings B.V., Mitsubishi Chemical Corporation, Braskem, Valero Marketing and Supply Company, Raízen, CropEnergies AG, Kemin Industries, The Andersons, Inc., Balrampur Chini Mills Limited

`

By Type

  • Ethanol 95%

  • Absolute Ethanol

  • Denatured Ethanol

  • Bioethanol

By Source

  • Biobased

  • Synthetic

By End Use Industry

  • Automotive

  • Cosmetics & Personal Care

  • Construction

  • Agriculture

By Country

  • Germany

  • United Kingdom

  • Italy

  • France

  • Spain

  • Belgium

  • Russia

  • The Netherlands

  • Rest of Europe

  1. Research Framework
    1. Research Objective
    2. Product Overview
    3. Market Segmentation
  2. Executive Summary
  3. Europe Ethanol Market Insights
    1. DROC Analysis
      1. Growth Drivers
        1. Increasing Usage in the Automotive Industry
        2. Increasing Government Initiatives
        3. Technological Advancements
      2. Restraints
        1. Volatility in raw material availability
        2. Regulatory & Certification Challenges
      3. Opportunities
        1. Renewable energy transition and decarbonization of the transportation sector
        2. Growing demand for sustainable aviation fuels (SAF) in the aviation sector
      4. Challenges
        1. Need for expansion and compatibility of existing fueling infrastructure
    2. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
  4. Europe Ethanol Market: Value Chain Analysis
  5. Europe Ethanol Market: Regulatory Framework
  6. Europe Ethanol Market: Marketing Strategies
  7. Europe Ethanol Market: Pricing Analysis
  8. Europe Ethanol Market: Geography Analysis
    1. Europe Ethanol Market, Geographical Analysis, 2024
    2. Europe Ethanol Market Attractiveness Analysis, 2024–2031
  9. Europe Ethanol Market Overview
    1. Market Size & Forecast, 2019–2031
        1. By Value (USD Billion)
    2. Market Share & Forecast
      1.  By Type
        1. Ethanol 95%
        2. Absolute Ethanol
        3. Denatured Ethanol
        4. Bioethanol
      2. By Source
        1. Biobased
        2. Synthetic
      3. By End Use Industry
        1. Automotive
        2. Cosmetics & Personal Care
        3. Construction
        4. Agriculture
      4. By Country
          1. Germany
          2. United Kingdom
          3. Italy
          4. France
          5. Spain
          6. Belgium
          7. Russia
          8. The Netherlands
          9. Rest of Europe
          10.  
  10. Europe Ethanol Market
    1. Market Size & Forecast, 2019–2031
      1. By Value (USD Billion)
    2. Market Share & Forecast
        1. By Type
        2. By Source
        3. By End Use Industry
        4. By Country
        5. Germany Ethanol Market
          1. By Type
          2. By Source
          3. By End Use Industry
        6. United Kingdom Ethanol Market
          1. By Type
          2. By Source
          3. By End Use Industry
        7. Italy Ethanol Market
          1. By Type
          2. By Source
          3. By End Use Industry
        8. France Ethanol Market
          1. By Type
          2. By Source
          3. By End Use Industry
        9. Spain Ethanol Market
          1. By Type
          2. By Source
          3. By End Use Industry
        10. Belgium Ethanol Market
          1. By Type
          2. By Source
          3. By End Use Industry
        11. Russia
          1. By Type
          2. By Source
          3. By End Use Industry
        12. The Netherlands Ethanol Market
          1. By Type
          2. By Source
          3. By End Use Industry
          4.  
        13. Rest of Europe
          1. By Type
          2. By Source
          3. By End Use Industry

 

  1. Competitive Landscape
    1. List of Key Players and Their Offering
    2. Company Share Analysis, 2024
    3. Competitive Benchmarking, By Operating Parameters
    4. Key Strategic Developments (Mergers, Acquisitions, Partnerships)
  2. Impact of Escalating Geopolitical Tensions on Europe Ethanol Market
  3. Company Profiles (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
    1. INEOS
    2. Cargill, Incorporated
    3. SABIC
    4. Bunge Limited
    5. ADM
    6. Sasol Limited
    7. LyondellBasell Industries Holdings B.V.
    8. Mitsubishi Chemical Corporation
    9. Braskem
    10. Valero Marketing and Supply Company
    11. Raízen
    12. CropEnergies AG
    13. Kemin Industries
    14. The Andersons, Inc.
    15. Balrampur Chini Mills Limited
    16. Others
  4. Key Strategic Recommendations
  5. Research Methodology
    1.    Qualitative Research
      1.  Primary & Secondary Research
    2.    Quantitative Research
    3.    Market Breakdown & Data Triangulation
      1.  Secondary Research
      2.  Primary Research
    4.    Breakdown of Primary Research Respondents, By Country
    5.    Assumptions & Limitations

*Financial information of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable

 

 

List of Figures

 

Figure 1       Europe Ethanol Market Segmentation

Figure 2       Europe Ethanol Market Share (%), By Offerings, 2024

Figure 3       Europe Ethanol Market Size, By Value (USD Billion)

Figure 4       Porter’s Five Forces Analysis

Figure 5       Europe Ethanol Market Value Chain Analysis

Figure 6       Europe Ethanol Market: Marketing Channels

Figure 7       Europe Ethanol Market, By Value (USD Million), 2019-2031

Figure 8       Europe Ethanol Market Share (%), By Type, By Value (USD Million), 2019-2031

Figure 9       Europe Ethanol Market, By Source, By Value (USD Billion), 2019-2031

Figure 10     Europe Ethanol Market, By End Use Industry, By Value (USD Billion), 2019-2031

Figure 11     Europe Ethanol Market Share (%), By Country, By Value (USD Billion), 2019-2031

Figure 12     Europe Ethanol Market Size, By Value (USD Billion), 2019–2031

Figure 13     Europe Ethanol Market Share, By Type, By Value (USD Billion), 2019–2031

Figure 14     Europe Ethanol Market Share, By Source, By Value (USD Billion), 2019–2031

Figure 15     Europe Ethanol Market Share, By End Use Industry, By Value (USD Billion), 2019–2031

Figure 16     Europe Ethanol Market Share, By Country, By Value (USD Billion), 2019–2031

Figure 17     Germany Ethanol Market Size, By Value (USD Billion), 2019–2031

Figure 18     Germany Ethanol Market Share, By Type, By Value (USD Billion), 2019–2031

Figure 19     Germany Ethanol Market Share, By Source, By Value (USD Billion), 2019–2031

Figure 20     Germany Ethanol Market Share, By End Use Industry, By Value (USD Billion), 2019–2031

Figure 21     United Kingdom Ethanol Market Size, By Value (USD Billion), 2019–2031

Figure 22     United Kingdom Ethanol Market Share, By Type, By Value (USD Billion), 2019–2031

Figure 23     United Kingdom Ethanol Market Share, By Source, By Value (USD Billion), 2019–2031

Figure 24     United Kingdom Ethanol Market Share, By End Use Industry, By Value (USD Billion), 2019–2031

Figure 25     Italy Ethanol Market Size, By Value (USD Billion), 2019–2031

Figure 26     Italy Ethanol Market Share, By Type, By Value (USD Billion), 2019–2031

Figure 27     Italy Ethanol Market Share, By Source, By Value (USD Billion), 2019–2031

Figure 28     Italy Ethanol Market Share, By End Use Industry, By Value (USD Billion), 2019–2031

Figure 29     France Ethanol Market Size, By Value (USD Billion), 2019–2031

Figure 30     France Ethanol Market Share, By Type, By Value (USD Billion), 2019–2031

Figure 31     France Ethanol Market Share, By Source, By Value (USD Billion), 2019–2031

Figure 32     France Ethanol Market Share, By End Use Industry, By Value (USD Billion), 2019–2031

Figure 33     Spain Ethanol Market Size, By Value (USD Billion), 2019–2031

Figure 34     Spain Ethanol Market Share, By Type, By Value (USD Billion), 2019–2031

Figure 35     Spain Ethanol Market Share, By Source, By Value (USD Billion), 2019–2031

Figure 36     Spain Ethanol Market Share, By End Use Industry, By Value (USD Billion), 2019–2031

Figure 37     Belgium Ethanol Market Size, By Value (USD Billion), 2019–2031

Figure 38     Belgium Ethanol Market Share, By Type, By Value (USD Billion), 2019–2031

Figure 39     Belgium Ethanol Market Share, By Source, By Value (USD Billion), 2019–2031

Figure 40     Belgium Ethanol Market Share, By End Use Industry, By Value (USD Billion), 2019–2031

Figure 41     Russia Ethanol Market Size, By Value (USD Billion), 2019–2031

Figure 42     Russia Ethanol Market Share, By Type, By Value (USD Billion), 2019–2031

Figure 43     Russia Ethanol Market Share, By Source, By Value (USD Billion), 2019–2031

Figure 44     Russia Ethanol Market Share, By End Use Industry, By Value (USD Billion), 2019–2031

Figure 45     The Netherlands Ethanol Market Size, By Value (USD Billion), 2019–2031

Figure 46     The Netherlands Ethanol Market Share, By Type, By Value (USD Billion), 2019–2031

Figure 47     The Netherlands Ethanol Market Share, By Source, By Value (USD Billion), 2019–2031

Figure 48     The Netherlands Ethanol Market Share, By End Use Industry, By Value (USD Billion), 2019–2031

Figure 49     Rest of Europe Ethanol Market Size, By Value (USD Billion), 2019–2031

Figure 50     Rest of Europe Ethanol Market Share, By Type, By Value (USD Billion), 2019–2031

Figure 51     Rest of Europe Ethanol Market Share, By Source, By Value (USD Billion), 2019–2031

Figure 52     Rest of Europe Ethanol Market Share, By End Use Industry, By Value (USD Billion), 2019–2031

 

List of Tables

 

Table 1        Europe Ethanol Market Size, By Value (USD Billion), 2019–2031

Table 2        Europe Ethanol Market Size, By Type, By Value (USD Billion), 2019–2031

Table 3        Europe Ethanol Market Size, By Source, By Value (USD Billion), 2019–2031

Table 4        Europe Ethanol Market Size, By End Use Industry, By Value (USD Billion), 2019–2031

Table 5        Europe Ethanol Market Size, By Value (USD Billion), 2019–2031

Table 6        Europe Ethanol Market Size, By Country, By Value (USD Billion), 2019–2031

Table 7        Germany Ethanol Market Size, By Value (USD Billion), 2019–2031

Table 8        Germany Ethanol Market Size, By Type, By Value (USD Billion), 2019–2031

Table 9        Germany Ethanol Market Size, By Source, By Value (USD Billion), 2019–2031

Table 10      Germany Ethanol Market Size, By End Use Industry, By Value (USD Billion), 2019–2031

Table 11      United Kingdom Ethanol Market Size, By Value (USD Billion), 2019–2031

Table 12      United Kingdom Ethanol Market Size, By Type, By Value (USD Billion), 2019–2031

Table 13      United Kingdom Ethanol Market Size, By Source, By Value (USD Billion), 2019–2031

Table 14      United Kingdom Ethanol Market Size, By End Use Industry, By Value (USD Billion), 2019–2031

Table 15      Italy Ethanol Market Size, By Value (USD Billion), 2019–2031

Table 16      Italy Ethanol Market Size, By Type, By Value (USD Billion), 2019–2031

Table 17      Italy Ethanol Market Size, By Source, By Value (USD Billion), 2019–2031

Table 18      Italy Ethanol Market Size, By End Use Industry, By Value (USD Billion), 2019–2031

Table 19      France Ethanol Market Size, By Value (USD Billion), 2019–2031

Table 20      France Ethanol Market Size, By Type, By Value (USD Billion), 2019–2031

Table 21      France Ethanol Market Size, By Source, By Value (USD Billion), 2019–2031

Table 22      France Ethanol Market Size, By End Use Industry, By Value (USD Billion), 2019–2031

Table 23      Spain Ethanol Market Size, By Value (USD Billion), 2019–2031

Table 24      Spain Ethanol Market Size, By Type, By Value (USD Billion), 2019–2031

Table 25      Spain Ethanol Market Size, By Source, By Value (USD Billion), 2019–2031

Table 26      Spain Ethanol Market Size, By End Use Industry, By Value (USD Billion), 2019–2031

Table 27      Belgium Ethanol Market Size, By Value (USD Billion), 2019–2031

Table 28      Belgium Ethanol Market Size, By Type, By Value (USD Billion), 2019–2031

Table 29      Belgium Ethanol Market Size, By Source, By Value (USD Billion), 2019–2031

Table 30      Belgium Ethanol Market Size, By End Use Industry, By Value (USD Billion), 2019–2031

Table 31      Russia Ethanol Market Size, By Value (USD Billion), 2019–2031

Table 32      Russia Ethanol Market Size, By Type, By Value (USD Billion), 2019–2031

Table 33      Russia Ethanol Market Size, By Source, By Value (USD Billion), 2019–2031

Table 34      Russia Ethanol Market Size, By End Use Industry, By Value (USD Billion), 2019–2031

Table 35      The Netherlands Ethanol Market Size, By Value (USD Billion), 2019–2031

Table 36      The Netherlands Ethanol Market Size, By Type, By Value (USD Billion), 2019–2031

Table 37      The Netherlands Ethanol Market Size, By Source, By Value (USD Billion), 2019–2031

Table 38      The Netherlands Ethanol Market Size, By End Use Industry, By Value (USD Billion), 2019–2031

Table 39      Rest of Europe Ethanol Market Size, By Value (USD Billion), 2019–2031

Table 40      Rest of Europe Ethanol Market Size, By Type, By Value (USD Billion), 2019–2031

Table 41      Rest of Europe Ethanol Market Size, By Source, By Value (USD Billion), 2019–2031

Table 42      Rest of Europe Ethanol Market Size, By End Use Industry, By Value (USD Billion), 2019–2031

Team 43      INEOS Company Overview

Team 44      INEOS Financial Overview

Team 45      Cargill, Incorporated Company Overview

Team 46      Cargill, Incorporated Financial Overview

Team 47      SABIC Company Overview

Team 48      SABIC Financial Overview

Team 49      Bunge Limited Company Overview

Team 50      Bunge Limited Financial Overview

Team 51      ADM Company Overview

Team 52      ADM Financial Overview

Team 53      Sasol Limited Company Overview

Team 54      Sasol Limited Financial Overview

Team 55      LyondellBasell Industries Holdings B.V. Company Overview

Team 56      LyondellBasell Industries Holdings B.V. Financial Overview

Team 57      Mitsubishi Chemical Corporation Company Overview

Team 58      Mitsubishi Chemical Corporation Financial Overview

Team 59      Braskem Company Overview

Team 60      Braskem Financial Overview

Team 61      Valero Marketing and Supply Company Overview

Team 62      Valero Marketing and Supply Company Financial Overview

Team 63      Raízen Company Overview

Team 64      Raízen Financial Overview

Team 65      Crop Energies AG Company Overview

Team 66      Crop Energies AG Financial Overview

Team 67      Kemin Industries Company Overview

Team 68      Kemin Industries Financial Overview

Team 69      The Andersons, Inc. Company Overview

Team 70      The Andersons, Inc. Financial Overview

Team 71      Balrampur Chini Mills Limited Company Overview

Team 72      Balrampur Chini Mills Limited Financial Overview

Market Segmentation

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Frequently Asked Questions (FAQs):

Ans: Europe Ethanol Market size was estimated at USD 27.58 billion in 2024.
Ans: Europe Ethanol Market is expected to grow at a CAGR of 5.6% during the forecast period between 2025 and 2031.
Ans: Europe Ethanol Market size is forecast to reach a value of USD 40.38 billion by 2031.
Ans: Renewable Energy Policies, Transport Sector Demand, Environmental Regulations trends are expected to drive Europe Ethanol Market.
Ans: Key players operating in Europe Ethanol Market include INEOS, Cargill Incorporated, SABIC, Bunge Limited, ADM, Sasol Limited, LyondellBasell Industries Holdings B.V., Mitsubishi Chemical Corporation, Braskem, Valero Marketing and Supply Company, Raízen, CropEnergies AG, Kemin Industries, The Andersons, Inc., and Balrampur Chini Mills Limited.
Ans: Ethanol 95% segment holds a major share in Europe Ethanol Market by Type.
Ans: Biobased segment is expected to grow at the highest CAGR in Europe Ethanol Market by Source during the forecast period between 2025 and 2031.
Ans: France accounts for a significant market share in Europe Ethanol Market.