Saudi Arabia Ethanol Market

Saudi Arabia Ethanol Market Overview:

The Saudi Arabia ethanol market size reached USD 646.11 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 1,032.57 Million by 2033, exhibiting a growth rate (CAGR) of 4.8% during 2025-2033. Rising demand for bio-based chemicals, increasing industrial solvent usage, and government efforts toward fuel diversification are some of the factors contributing to Saudi Arabia ethanol market share. Growth in pharmaceuticals and cosmetics, along with supportive regulatory frameworks and expanding manufacturing sectors, further bolsters market development.

Saudi Arabia Ethanol Market Trends:

Industrial Demand Drives Ethanol Imports Amid Limited Domestic Production

In Saudi Arabia, the ethanol market is witnessing rising demand across the pharmaceutical, personal care, and chemical manufacturing sectors. However, the country lacks significant ethanol production capacity due to water scarcity and limited availability of feedstock like sugarcane and corn. This has led to a reliance on imports, particularly from the US and Brazil, to meet industrial needs. Ethanol’s role as a solvent and disinfectant in personal care products has been crucial, especially after the pandemic-led hygiene awareness. In parallel, the chemical industry’s growing use of ethanol in downstream products like ethyl acetate and acetic acid supports import growth. There is no major government push for bioethanol blending in fuels, limiting ethanol’s uptake in the energy sector. Pricing remains vulnerable to global commodity shifts, logistics, and regulatory constraints on hazardous chemical transport. While local demand grows steadily, the market’s dependence on imports poses long-term supply stability and pricing concerns. These factors are intensifying the Saudi Arabia ethanol market growth.

Emphasis on Safety Tech in Heavy-Duty Transport

Ethanol is slowly gaining attention in Saudi Arabia as part of broader sustainability efforts under Vision 2030. Though the country remains largely hydrocarbon-dependent, ethanol-based alternatives are being evaluated in niche energy and materials applications. Interest in second-generation bioethanol made from non-edible biomass aligns with the Kingdom’s circular economy goals. Research partnerships and pilot projects are emerging at universities and tech parks to explore ethanol from agricultural residues and municipal waste. Government bodies are exploring potential ethanol blends in transport fuels, though implementation remains in the early stages. Industrial players are also experimenting with ethanol-based green solvents in coatings and cleaning products to reduce VOC emissions. However, economic feasibility, limited biomass availability, and lack of infrastructure for large-scale production remain key barriers. While current ethanol use is still concentrated in pharmaceutical and personal care segments, sustainability-driven investments may redefine ethanol’s market role in the coming decade, provided cost-effective local production pathways emerge.

Saudi Arabia 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 levels 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

The report has provided a detailed breakup and analysis of the market based on the purity. 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:

• Northern and Central Region
• Western Region
• Eastern Region
• Southern Region

The report has also provided a comprehensive analysis of all the major regional markets, which include Northern and Central Region, Western Region, Eastern Region, and Southern Region.

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.

Saudi Arabia Ethanol Market News:

• In May 2025, Saudi Arabia explored downstream diversification through joint refinery and petrochemical ventures with India, including two planned integrated complexes. Such petrochemical expansions align with Saudi Arabia's broader strategy to support alternative fuel development and reduce crude dependency. These projects could potentially contribute to future ethanol value chain growth, supporting domestic consumption or exports, depending on the final product slate of the upcoming facilities.

Saudi Arabia Ethanol Market Report Coverage:

Key Questions Answered in This Report:

• How has the Saudi Arabia ethanol market performed so far and how will it perform in the coming years?
• What is the breakup of the Saudi Arabia ethanol market on the basis of type?
• What is the breakup of the Saudi Arabia ethanol market on the basis of raw material?
• What is the breakup of the Saudi Arabia ethanol market on the basis of purity?
• What is the breakup of the Saudi Arabia ethanol market on the basis of application?
• What is the breakup of the Saudi Arabia ethanol market on the basis of region?
• What are the various stages in the value chain of the Saudi Arabia ethanol market? 
• What are the key driving factors and challenges in the Saudi Arabia ethanol?
• What is the structure of the Saudi Arabia ethanol market and who are the key players?
• What is the degree of competition in the Saudi Arabia 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 Saudi Arabia ethanol market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Saudi Arabia 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 Saudi Arabia 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.