Australia Ethanol Market

Australia Ethanol Market Overview:

The Australia ethanol market size reached USD 2.01 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 3.57 Billion by ​2033​, exhibiting a growth rate (CAGR) of 5.90% during 2025-2033. The market is expanding due to rising demand for low-carbon fuels, government support for bioenergy strategies, and increased adoption of waste-to-fuel technologies. These developments are encouraging domestic production growth and broader fuel diversification, positively impacting the Australia ethanol market share across key applications.

Australia Ethanol Market Trends:

Policy Push for Bioenergy Security

Australia’s ethanol market has started to gain momentum through policy-led support for bioenergy development. Growing concerns about energy reliability, geopolitical instability, and environmental sustainability have pushed the Government to prioritize ethanol as a central part of its national strategy. Ethanol, especially when derived from sugar, plays a dual role in contributing to food security and reducing fossil fuel reliance. Policymakers now view ethanol not just as a fuel additive, but as a building block for a wider bioeconomy that includes sustainable aviation fuels, biodiesel, power generation, and even industrial applications. This renewed focus is also driving attention toward agricultural integration and rural investment. In March 2025, the Australian Government introduced the ‘Feeding Australia’ strategy to enhance food and bioenergy security. This initiative placed sugar at the core of domestic biofuel plans, formally recognizing it as a key ethanol feedstock and aligning it with future-ready fuel systems. By strengthening links between agriculture and energy, the strategy is expected to boost local ethanol production, reduce import dependency, and create more stable pricing conditions for producers. It also indicates long-term government commitment to building a resilient, low-emissions fuel system where ethanol serves multiple end-uses within Australia’s evolving energy framework.

Technological Integration in Fuel Conversion

A growing emphasis on waste-to-fuel innovation is shaping the evolution of Australia’s ethanol market. Ethanol production, traditionally dependent on sugar or grain-based feedstocks, is now being transformed by technologies that utilize non-food waste streams. This advancement expands both the supply base and application scope of ethanol, positioning it as a transition fuel in aviation and other sectors. Strategic partnerships, particularly those combining carbon recycling with fuel conversion, are unlocking commercial opportunities while addressing environmental concerns such as emissions and landfill waste. The market is responding to this by investing in scalable solutions that turn waste into value-added fuel products. In August 2024, LanzaTech and LanzaJet joined forces with Wagner Sustainable Fuels to deploy the CirculAir platform at the Brisbane SAF refinery. The system converted waste carbon into ethanol, which was then processed into Sustainable Aviation Fuel (SAF), offering a local, renewable alternative to imported jet fuels. This development showcased ethanol’s versatility and role in future-ready aviation fuel supply chains. It also demonstrated the potential for ethanol to become a cornerstone of Australia’s circular economy by supporting closed-loop, low-carbon fuel production. As more such initiatives emerge, ethanol is expected to play a broader role across sectors beyond road transport, further supporting the Australia ethanol market growth.

Australia Ethanol Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country and regional level for 2025-2033. Our report has categorized the market based on type, raw material, purity, and application.

Type Insights:

• Bio Ethanol
• Synthetic Ethanol

The report has provided a detailed breakup and analysis of the market based on the type. This includes bio ethanol and synthetic ethanol.

Raw Material Insights:

• Sugar and Molasses
• Cassava
• Rice
• Algal Biomass
• Ethylene
• Lignocellulosic Biomass

A detailed breakup and analysis of the market based on the raw material have also been provided in the report. This includes sugar and molasses, cassava, rice, algal biomass, ethylene, and lignocellulosic biomass.

Purity Insights:

• Denatured
• Undenatured

A detailed breakup and analysis of the market based on the purity have also been provided in the report. This includes denatured and undenatured.

Application Insights:

• Fuel and Fuel Additives
• Beverages
• Industrial Solvents
• Personal Care
• Disinfectants
• Others

A detailed breakup and analysis of the market based on the application have also been provided in the report. This includes fuel and fuel additives, beverages, industrial solvents, personal care, disinfectants, and others.

Regional Insights:

• Australia Capital Territory and New South Wales
• Victoria and Tasmania
• Queensland
• Northern Territory and Southern Australia
• Western Australia 

The report has also provided a comprehensive analysis of all the major regional markets, which include Australia Capital Territory and New South Wales, Victoria and Tasmania, Queensland, Northern Territory & Southern Australia, and Western Australia.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Australia Ethanol Market News:

• April 2025: Technip Energies secured a FEED contract for Jet Zero’s Project Ulysses in Townsville, Australia. The project planned to use Australian bioethanol to produce 102 Million liters of SAF annually, boosting domestic ethanol demand and supporting biofuel-driven market growth in aviation.
• August 2024: LanzaTech and LanzaJet partnered with Wagner Sustainable Fuels to equip Brisbane’s SAF refinery with the CirculAir platform. This project converted waste carbon into ethanol, later transformed into SAF, strengthening Australia’s ethanol utilization and supporting the growth of domestic sustainable fuel production.

Australia Ethanol Market Report Coverage:

Key Questions Answered in This Report:

• How has the Australia ethanol market performed so far and how will it perform in the coming years?
• What is the breakup of the Australia ethanol market on the basis of type?
• What is the breakup of the Australia ethanol market on the basis of raw material?
• What is the breakup of the Australia ethanol market on the basis of purity?
• What is the breakup of the Australia ethanol market on the basis of application?
• What is the breakup of the Australia ethanol market on the basis of region?
• What are the various stages in the value chain of the Australia ethanol market? 
• What are the key driving factors and challenges in the Australia ethanol market?
• What is the structure of the Australia ethanol market and who are the key players?
• What is the degree of competition in the Australia ethanol market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Australia ethanol market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Australia ethanol market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Australia ethanol industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.