Global Ethanol Market - the U.S. Emerged as the World's Largest and Fastest-growing Supplier - Global Trade Magazine
  April 14th, 2020 | Written by

Global Ethanol Market – the U.S. Emerged as the World’s Largest and Fastest-growing Supplier

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  • From 2007 to 2018, the most notable rate of growth in terms of prices was attained by the Philippines.
  • In value terms, the U.S. ($2.8B) remains the largest ethanol supplier worldwide, comprising 32% of global exports.
  • In value terms, ethanol exports stood at $8.7B (IndexBox estimates) in 2018.

IndexBox has just published a new report: ‘World – Ethyl Alcohol – Market Analysis, Forecast, Size, Trends and Insights’. Here is a summary of the report’s key findings.

Global Ethyl Alcohol Trade 2007-2018

In 2018, the amount of ethyl alcohol exported worldwide amounted to 17B litres, going up by 24% against the previous year. In general, the total exports indicated prominent growth from 2007 to 2018: its volume increased at an average annual rate of +7.9% over the last eleven-year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2018 figures, ethanol exports increased by +79.8% against 2014 indices. The growth pace was the most rapid in 2011 with an increase of 47% against the previous year. The global exports peaked in 2018 and are likely to see steady growth in the near future.

In value terms, ethanol exports stood at $8.7B (IndexBox estimates) in 2018. In general, the total exports indicated a buoyant expansion from 2007 to 2018: its value increased at an average annual rate of +7.9% over the last eleven-year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2018 figures, ethanol exports increased by +21.6% against 2015 indices. The most prominent rate of growth was recorded in 2011 with an increase of 60% year-to-year. In that year, global ethanol exports reached their peak of $9.7B. From 2012 to 2018, the growth of global ethanol exports failed to regain its momentum.

Exports by Country

The U.S. was the largest exporter of ethyl alcohol exported in the world, with the volume of exports finishing at 7.8B litres, which was approx. 45% of total exports in 2018. It was distantly followed by Brazil (1.6B litres), the Netherlands (1.2B litres), France (0.9B litres) and Pakistan (0.8B litres), together generating a 27% share of total exports. Hungary (550M litres), Belgium (535M litres), the UK (449M litres), Germany (432M litres) and South Africa (278M litres) held a relatively small share of total exports.

The U.S. was also the fastest-growing in terms of the ethyl alcohol exports, with a CAGR of +25.6% from 2007 to 2018. At the same time, Hungary (+22.6%), the Netherlands (+10.9%), Pakistan (+10.6%), Germany (+9.4%), Belgium (+7.6%), the UK (+7.4%), France (+6.7%) and South Africa (+3.9%) displayed positive paces of growth.

By contrast, Brazil (-4.0%) illustrated a downward trend over the same period. The U.S. (+42 p.p.), the Netherlands (+4.9 p.p.), Pakistan (+3 p.p.), Hungary (+2.8 p.p.), France (+2.8 p.p.), Belgium (+1.7 p.p.) and Germany (+1.6 p.p.) significantly strengthened its position in terms of the global exports, while Brazil saw its share reduced by -5.3% from 2007 to 2018, respectively. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, the U.S. ($2.8B) remains the largest ethanol supplier worldwide, comprising 32% of global exports. The second position in the ranking was occupied by Brazil ($892M), with a 10% share of global exports. It was followed by the Netherlands, with a 9.4% share.

Imports by Country

In 2018, Brazil (2,270M litres), Canada (1,626M litres), Germany (1,321M litres), the U.S. (1,318M litres), the Netherlands (1,056M litres), Japan (875M litres), the UK (683M litres), India (571M litres), South Korea (422M litres), the Philippines (415M litres), the United Arab Emirates (383M litres) and France (271M litres) was the largest importer of ethyl alcohol imported in the world, committing 74% of total import.

From 2007 to 2018, the most notable rate of growth in terms of imports, amongst the main importing countries, was attained by Brazil, while imports for the other global leaders experienced more modest paces of growth.

In value terms, Germany ($832M), Brazil ($777M) and the U.S. ($705M) constituted the countries with the highest levels of imports in 2018, with a combined 28% share of global imports. The Netherlands, Canada, Japan, the UK, India, the Philippines, South Korea, France and the United Arab Emirates lagged somewhat behind, together comprising a further 40%.

The Philippines recorded the highest growth rate of the value of imports, in terms of the main importing countries over the period under review, while imports for the other global leaders experienced more modest paces of growth.

Import Prices by Country

The average ethanol import price stood at $0.5 per litre in 2018, waning by -13.1% against the previous year. Over the period under review, the ethanol import price continues to indicate a mild contraction. The growth pace was the most rapid in 2011 when the average import price increased by 19% y-o-y. The global import price peaked at $0.8 per litre in 2012; however, from 2013 to 2018, import prices remained at a lower figure.

Prices varied noticeably by the country of destination; the country with the highest price was France ($0.7 per litre), while Brazil ($0.3 per litre) was amongst the lowest.

From 2007 to 2018, the most notable rate of growth in terms of prices was attained by the Philippines, while the other global leaders experienced more modest paces of growth.

Source: IndexBox AI Platform