Transparency Market Research Report Added "Ethanol Market" to its database
Albany, NY -- (SBWIRE) -- 10/17/2014 -- Over the last five years, the global ethanol market has witnessed immense growth. This growth story will continue, with the ethanol market expected to witness double-digit compounded annual growth rate until 2020.
Ethanol is a flammable alcohol, which is highly volatile and colorless. It is extensively used in applications such as alcoholic beverages, pharmaceuticals, fuel, chemical feedstock, and others. This substance is obtained by distilling petrochemical derivatives as raw materials that are rich in carbon. This is done by fermenting the raw materials. Besides the aforementioned applications, ethanol is also widely seen in recreational and psychoactive drugs worldwide.
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However, a majority of the ethanol used worldwide is consumed by the alcoholic beverages industry, such as wine, ale, beer, cider, spirits, and others.
However, the ethanol market has recently caught the attention of the alternative fuels industry because it can also be used to fuel automobiles, especially in the backdrop of dipping reserves of conventional sources of energy. The automobile market has been on an upswing – especially in the developing countries – as consumers here are becoming increasingly affluent. As compared to crude oil, which has been a traditional source of fuel, ethanol is low on carbon emissions and is more cost-effective. Other factors that work against the crude oil industry – and in favor of the ethanol market – are the rising cost of crude oil and its volatile supply. Thus, the market conditions are just right for ethanol to gain a stronger foothold in the alternative fuels market.
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Where should your investment dollars in the ethanol market flow?
Ethanol is one of the key ingredients in alcoholic beverage manufacturing. As the worldwide demand for such beverages sees an upswing, the demand for ethanol too, will continue to rise. Thus, a myriad of opportunities exist for suppliers of ethanol to breweries and distilleries – especially in developed countries. In developing countries, consumers are showing a greater inclination towards high-purity beverages with ethanol as a key ingredient. This has happened largely because of the higher disposable incomes and lifestyle changes that are being witnessed here. However, investors also need to consider the fact that raw material prices in the alcoholic beverages industry are rising, and alcoholic beverages now have more substitutes than ever before.
In the automobile sector, a different trend seems to be unfolding. While the demand for alternative fuels does remain high, ethanol as an alternative fuel will likely not match up to the demand for electric and hybrid vehicles.
A key impediment to the growth of the ethanol industry also could be the demanding government regulations that need to be adhered to.
Opportunities of producing ethanol from crops that are rich in carbon (sugar crops and corn) are worth being tapped. These are abundantly available in developing, agrarian economies, and thus players with interests in rural areas could make the most of these opportunities.
Remarkable innovations are fast becoming a key characteristic of the ethanol market globally, which will be fuelled by technological innovation.
A geographical overview of the ethanol market
The largest consumer of ethanol is North America. Here, the ethanol market is healthy because of a high demand for crude oil alternatives. The American government is in favor of promoting ethanol so as to reduce the country’s dependence on conventional fuels. This aspect will prove beneficial to the market in America. In terms of consumption, the markets in Asia Pacific rank second globally. Here, the key drivers are a rising demand for vehicles (and thus, fuel) and a growing culture of alcoholic beverage consumption. Europe, on the other hand, is the largest consumer of alcoholic beverages in the world, driving the global ethanol market to a large extent.