South Korea Bioethanol Market Size, Share, Trends and Forecast by Type, Fuel Blend, Generation, End Use Industry, and Region, 2026-2034

South Korea Bioethanol Market Overview:

The South Korea bioethanol market size reached USD 215.93 Million in 2025. The market is projected to reach USD 358.32 Million by 2034, exhibiting a growth rate (CAGR) of 5.79% during 2026-2034. The market is driven by supportive government policies, the growing transportation demand, and advancements in production technology. Strong regulatory backing, rising adoption of cleaner fuels, and continuous innovation in biofuel processing are driving efficiency, sustainability, and competitiveness within the nation’s renewable energy landscape, thereby influencing the South Korea bioethanol market share.

South Korea Bioethanol Market Trends:

Government Policies Promoting Renewable Energy Adoption

National energy policies are increasingly centered on reducing fossil fuel dependence and accelerating the adoption of biofuels across transportation, aviation, and industrial sectors. Regulatory frameworks supporting renewable blending mandates and greenhouse gas reduction targets are encouraging large-scale investment in production capacity, logistics infrastructure, and technological innovation. A significant policy milestone was announced in 2025, when South Korea introduced mandatory Sustainable Aviation Fuel (SAF) blending for international flights starting in 2027, with initial requirements set at 1% and a progressive increase to 10% by 2035. From 2028 onward, airlines will be required to use SAF for 90% of their annual refueling, reflecting the government’s commitment to integrating bio-based fuels into national energy and transportation systems. These directives complement broader carbon neutrality objectives while encouraging domestic innovation and research partnerships in renewable energy technologies. Incentives, tax reliefs, and grants for advanced biofuel development further strengthen the market’s foundation. Collectively, these measures demonstrate South Korea’s comprehensive strategy to diversify its energy portfolio, ensure long-term fuel security, and solidify bioethanol’s role as a cornerstone of the country’s sustainable and climate-resilient energy transition.

Expansion of Transportation and Automotive Sector

The transportation and automotive sectors are supporting the South Korea bioethanol market growth by rising the demand for cleaner fuel alternatives and promoting the integration of bioethanol-blended fuels to reduce emissions and enhance energy efficiency. As one of the largest energy-utilizing industries, transportation continues to rely heavily on conventional fuels, encouraging policymakers and private stakeholders to pursue cleaner, renewable alternatives. The continuous rise in vehicle ownership, coupled with the rapid expansion of logistics and public transit networks, is driving the need for sustainable fuel solutions that can complement existing infrastructure. Bioethanol-blended fuels are increasingly being recognized for their ability to enhance combustion performance while simultaneously lowering carbon emissions. Automotive manufacturers are developing engine systems capable of accommodating higher biofuel blends, ensuring greater compatibility with evolving environmental standards. In addition, the expansion of biofuel distribution channels and refueling infrastructure supports the broader goal of achieving transport decarbonization. As South Korea transitions toward eco-friendly mobility, bioethanol represents a practical and scalable bridge between traditional fuel systems and the emerging renewable energy landscape, reinforcing national efforts toward sustainable economic and environmental progress.

Advancements in Bioethanol Production Technologies

Technological progress in manufacturing methods is fundamental to the growth and competitiveness of the South Korean bioethanol sector. The utilization of advanced fermentation methods, enzymatic breakdown, and lignocellulosic transformation is significantly enhancing yield efficiency while lowering production expenses. Innovative biotechnology allows for the utilization of alternative feedstocks like agricultural byproducts, forest remnants, and organic waste, enhancing resource efficiency and sustainability. Apart from this, automation, digital oversight, and artificial intelligence (AI) are being incorporated into manufacturing processes, enabling enhanced energy efficiency, better microbial function, and reliable quality control. Ongoing studies and partnerships between educational institutions, technology creators, and industry players are accelerating the shift towards advanced biofuels that provide greater energy yields and reduced ecological effects. Moreover, improvements in purification, waste recycling, and energy recovery are boosting process sustainability and economic feasibility. Through prioritizing technological advancement and process improvement, South Korea is enhancing its ability to yield high-quality, affordable, and eco-friendly bioethanol, establishing itself as a regional frontrunner in renewable fuel technology and sustainable industrial development.

South Korea Bioethanol 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 2026-2034. Our report has categorized the market based on type, fuel blend, generation, and end use industry.

Type Insights:

• Sugarcane-based Ethanol
• Cellulosic Ethanol
• Starch-based Ethanol
• Others

The report has provided a detailed breakup and analysis of the market based on the type. This includes sugarcane-based ethanol, cellulosic ethanol, starch-based ethanol, and others.

Fuel Blend Insights:

• E10
• E20 and E25
• E70 and E75
• E85
• Others

A detailed breakup and analysis of the market based on the fuel blend have also been provided in the report. This includes E10, E20 and E25, E70 and E75, E85, and others.

Generation Insights:

• First Generation
• Second Generation
• Third Generation

The report has provided a detailed breakup and analysis of the market based on the generation. This includes first generation, second generation, and third generation.

End Use Industry Insights:

• Automotive and Transportation
• Power Generation
• Pharmaceutical
• Food and Beverage
• Cosmetics and Personal Care
• Others

A detailed breakup and analysis of the market based on the End Use Industry have also been provided in the report. This includes automotive and transportation, power generation, pharmaceutical, food and beverage, cosmetics and personal care, and others.

Regional Insights:

• Seoul Capital Area
• Yeongnam (Southeastern Region)
• Honam (Southwestern Region)
• Hoseo (Central Region)
• Others

The report has also provided a comprehensive analysis of all the major regional markets, which include Seoul Capital Area, Yeongnam (Southeastern Region), Honam (Southwestern Region), Hoseo (Central Region), and others.

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.

South Korea Bioethanol Market Report Coverage:

Key Questions Answered in This Report:

• How has the South Korea bioethanol market performed so far and how will it perform in the coming years?
• What is the breakup of the South Korea bioethanol market on the basis of type?
• What is the breakup of the South Korea bioethanol market on the basis of fuel blend?
• What is the breakup of the South Korea bioethanol market on the basis of generation?
• What is the breakup of the South Korea bioethanol market on the basis of end use industry?
• What is the breakup of the South Korea bioethanol market on the basis of region?
• What are the various stages in the value chain of the South Korea bioethanol market?
• What are the key driving factors and challenges in the South Korea bioethanol market?
• What is the structure of the South Korea bioethanol market and who are the key players?
• What is the degree of competition in the South Korea bioethanol 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 South Korea bioethanol market from 2020-2034.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the South Korea bioethanol 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 South Korea bioethanol 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.