Saudi Arabia Bioethanol Market Overview, 2029

Being one of the largest oil producers in the world, Saudi Arabia has heavily depended on fossil fuels to meet its energy needs. It has realized the need to diversify its energy portfolio and reduce its reliance on nonrenewable sources of energy. With this realization, Saudi Arabia has started to harness bioethanol as a greener and more sustainable option compared to traditional fossil-based fuels. Diversifying the energy mix toward bioethanol is part of the greater vision of the country. Among the major challenges facing the Saudi Arabian bioethanol market is the limited water supply. Bioethanol production, especially from conventional feedstocks like corn and sugarcane, is highly water-intensive. Saudi Arabia has investigated using nonconventional feedstocks that require limited water; these crops can be grown in the country's arid environment. In 2017, Saudi Aramco announced a joint venture with U.S.-based biofuel producer Biojet Corporation to open a bioethanol facility in the kingdom. The facility is projected to be on line by 2025 and will make bioethanol from nonfood feedstocks as part of the kingdom's goal to increase the share of renewables in the energy mix. Although the bioethanol market in Saudi Arabia is still in its early years, it has taken major strides so far. The government has invested in promoting bioethanol production and use, looking into alternative feedstock crops and state-of-the-art technologies that just go on to show the commitment of the nation toward a sustainable future. This nascent market will be extremely significant in the coming years for shaping the energy landscape of Saudi Arabia, economic growth, and environmental accomplishment. Bio-ethanol is of great importance to Saudi Arabia since this will be the strategy towards the diversification of energy supply and cessation of overdependence on oil. The Kingdom has traditionally depended on oil and gas for its energy requirements, but the increased global emphasis on renewable energy and sustainability is leading the authorities to look into other forms of energy, including bio-ethanol. According to the research report "Saudi Arabia Bio-Ethanol Market Overview, 2029," published by Bonafide Research, the Saudi Arabia Bio-Ethanol market is expected to reach a market size of more than USD more than 200 Million by 2029. Such an extension would be great news for the country's energy landscape and its environmental objectives; growth in the production and consumption of bioethanol would diversify the sources of energy, reducing dependency on fossil fuels and making a great contribution to global efforts in combating climate change. The heightened awareness of climate change and environmental degradation globally has led to an increased demand for sustainable and eco-friendly alternatives to the traditional fossil fuels from which bioethanol has been found to be a befitting solution. Again, this is tied to the current wave of research and development regarding the production of bioethanol that has led to great improvements, particularly in the field of using alternative feedstocks, thereby making bioethanol possible to produce in a more efficient and sustainable way, leading to its cost-effectiveness and competitiveness with traditional fuels. There are several major trends in the development of the Saudi Arabia bio-ethanol market. The limited arable land and water resources, the country has been keen on developing bioethanol production technologies using alternative feedstocks, and this is expected to continue, with researchers and companies further optimizing the use of locally available resources such as date palm waste and salicornia. Partnerships and collaborations of the local and international stakeholders—research institutions, companies, and governments—ensure further innovation in the market and help in the growth process by letting the experience and technology exchange place in the most effective way. As Saudi Arabia pursues its renewable energy goals, increasing attention is being paid to integrating different renewable energy sectors, including bioethanol, solar, and wind energy, to create synergies and efficiencies that will push the growth and development of the bioethanol market even further. The bio-ethanol market in Saudi Arabia will see a fast surge over the coming years, majorly through the substantial support from the government, considerations for environmental concerns, developments in production technologies, and continuous trends toward alternative feedstocks and collaborations. The growth will help the country in its efforts at energy diversification and in meeting its commitment to sustainability and renewable energy, thereby giving support to Saudi Arabia in its journey through the global renewable energy landscape.

The market can be divided into starch-based, sugar-based, cellulose-based and other feed stocks. Every kind of feedstock has its advantages, issues, and effects on the bio-ethanol market. Starch-based bio-ethanol was one of the factors Saudi Arabia took into account in the process of choosing the most suitable feed stock for its bio-ethanol production. The country does not have rich resources of starch feedstock, such as corn or wheat. The kind of feedstock can be imported from other areas in the world. Still, the issue of the feedstock being imported focuses on the environmental effects and economical viability of the produced starch-based ethanol in Saudi Arabia, so the country has been trying to find other kinds of feedstock that would be suitable to local circumstances. Sugar-based bio-ethanol is another kind of feedstock that was considered by Saudi Arabia. Although the country is not rich in sugar feedstock resources such as sugar cane and sugar beet, it has taken into account the potential of using date palm waste as a sugar-based feedstock for bio-ethanol production. The date palm tree is one of the most abundant and underutilized resources in Saudi Arabia. The cellulose-based feedstock is one of the promising feedstock options for Saudi Arabia since the country has many cellulosic materials, such as agricultural waste, wood chips, and dedicated energy plants. Even though cellulose-based bio-ethanol is more complicated and costly to produce than starch or sugar-based bio-ethanol production, it delivers a good number of advantages, such as a fall in emission of greenhouse gases, enhanced energy security, and the possibility of developing new economic opportunities in rural areas. Saudi Arabia has been investing in the development of advanced bio-ethanol production that is more efficient and cost-effective, with the aim of making it a viable and sustainable source of energy for the nation. However, Saudi Arabia's involvement in the bio-ethanol market is not limited to feedstock selection and production. Other than this, the country focuses on the development of advanced biofuels, particularly on bio-jet and bio-diesel, from different feedstocks, such as algae and waste. This would open up an entirely new dimension of diversification of energy sources and perhaps a new horizon of economic development in the country, contributing to the emerging paradigm of a low-carbon economy. The Saudi Arabia bio-ethanol market can be officially end-user-based, depending on their application and requirements of bio-ethanol. Some of the important sectors in Saudi Arabia include automotive and transportation, alcoholic beverages, cosmetics, pharmaceutical, and others. Automotive and transportation is the leading end-user segment in Saudi Arabia. Bio-ethanol is principally used as a biofuel by blending with gasoline to create an eco-friendly alternative to fossil fuels. The Government of Saudi Arabia is also promoting the use of biofuels to curb GHG emissions and dependence on fossil fuels. It is a known fact that Saudi Arabia is the strictest country in the world against the production and consumption of alcoholic drinks. However, due to the limited production of some kinds of alcoholic beverages, there is also a small demand for ethanol, though this is quite minor relative to the other end-users. The prime concentration of the Saudi Arabia bio-ethanol market is hence on the other sectors that have more growth potential. The cosmetics sector represents an important application of bio-ethanol in Saudi Arabia. Ethanol is used as a solvent, preservative, and denaturant in various cosmetic products, such as perfumes, lotions, and makeup. Increasing demand for cosmetics due to the rising population and disposable incomes will positively impact the bio-ethanol market in Saudi Arabia. The pharmaceutical sector also uses bio-ethanol in the form of a solvent used in drug production and as a component in hand sanitizers. The expanding pharmaceutical sector, supported by the government's focus on healthcare and rising healthcare expenditure, will further propel bio-ethanol demand in the country. Bio-ethanol is also employed for the processing of food and beverages and for the preparation of fertilizers and pesticides. While these segments are not as crucial as the automotive and cosmetics, nevertheless they contribute to the entire demand for bio-ethanol in Saudi Arabia. The country's increasing focus on curbing greenhouse gas emissions, reducing dependence on fossil fuel, and ensuring sustainable development is poised to accelerate the demand for bio-ethanol in end-use industries across the country. Consumer awareness is a crucial factor in propelling the growth of the Saudi Arabian bio-ethanol market in the end-use segments mentioned below. With increased awareness about the benefits of using bio-ethanol concerning the environment, human health, and sustainability, consumers are increasingly opting for bio-ethanol products and as a replacement for fossil fuels. In the automotive industry, increased awareness about greenhouse gas emissions and vehicular air pollution has propelled the demand for alternative cleaner fuel products like bio-ethanol. The implementation of appropriate government policies for promoting biofuels, development of production technologies, and strong investments in bio-ethanol infrastructure. The lead to the greater adoption of bio-ethanol-blended vehicles, or those which are particularly manufactured to run on bio-ethanol. As consumers become more ingredient-conscious in the cosmetics and pharmaceuticals sectors, the demand for natural, organic, and eco-friendly products grows in the general market. Being a plant-derived and renewable material, bio-ethanol gains popularity as a raw material in these industries. Increased awareness about green and sustainable products, stringent government regulations on the use of synthetic chemicals, and a global shift in the industry towards environmental-friendly solutions have already impacted the adoption of bio-ethanol in these industries. Consumer awareness also influences the food and beverages, fertilizers, and pesticides sectors. With consumers being proactive about using sustainable and eco-friendly products, the companies in these sectors have also switched to bio-ethanol and other such renewable materials in the production of consumer goods.

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Manmayi Raval

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Considered in this report • Historic year: 2018 • Base year: 2023 • Estimated year: 2024 • Forecast year: 2029 Aspects covered in this report • Bioethanol Outlook with its value and forecast along with its segments • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation By Feedstock • Starch Based • Sugar Based • Cellulose Based • Others

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By End-Use Industry • Automotive and Transportation • Alcoholic Beverages • Cosmetics • Pharmaceuticals • Other By Blent • E5 • E10 • E15 TO E70 • E75 TO E85 • Others The approach of the report: This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the bioethanol industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.