China Ethanol Market Size, Share, By Type (Extra Neutral Ethanol (EN), Neutral Ethanol, Bioethanol, and Others), By Application (Fuel Blending, Alcoholic Beverages Production, Solvents and Chemical Intermediates, Disinfectants and Sanitizers, and Others), and China Ethanol Market Industry Trend, Forecasts to 2035

China Ethanol Market Insights Forecasts to 2035

• China Ethanol Market Size 2024: USD 12.09 Billion
• China Ethanol Market Size 2035: USD 25.60 Billion
• China Ethanol Market CAGR 2024: 7.06%
• China Ethanol Market Segments: Type and Application. 

The ethanol sector in China includes the manufacture, supply and utilization of ethanol as an additive to fuels, as well as for producing industrial chemicals, drugs pharmaceuticals and alcoholic beverages. Ethanol production primarily takes place through the fermentation of corn or cassava, and is subject to significant regulation by the government of China due to ethanol's link with energy security, rural income creation, greenhouse gas and air pollution reduction caused by burning traditional fossil fuel sources. The growth rate of this sector is primarily driven by fuel blending policies aimed at producing high quality clean fuels, increasing vehicle ownership by Chinese citizens, and reducing the amount of oil imports by the nation. In addition to these factors, the continued expansion of bio refining, agricultural assistance programmes, and the demand for biodiesel or bio fuel from both chemical and pharmaceutical companies are anticipated to continue providing a stable source of overall demand as China works to increase the availability of bio based lower carbon transportation fuels.

The ethanol market is being advanced by the Chinese government via E10 blending mandates, producer subsidies, tax incentives, and guaranteed procurement of grain for biofuels in multiple provinces. In addition to the ethanol market, the policies also provide support for the construction of new biorefineries, including rural income programs and cleaner fuels for transportation. All three components are intended to reduce the excess of corn stocks, while also reducing emissions and reducing the country's need for imported oil.

There are many key trends in the China ethanol market that include expanding E10 programs for fuel blending; significant support from the government subsidies tax incentives and increased capital investments in the biorefinery segment. Partnerships with various feedstocks are being explored to increase industrial demand, while aligning with carbon reduction and cleaner fuel programs to support an increase in the production and consumption of ethanol.

Market Dynamics of the China Ethanol Market:

The China ethanol market gets driven through government policies which support E10 fuel blending together with producer subsidies and tax incentives. The increase in vehicle ownership together with bio refinery investments and the availability of corn and cassava feedstock and the rising chemical and pharmaceutical industry demand, all contribute to production and consumption growth.

The China ethanol market faces operational challenges because of excessive production expenses and restricted feedstock supplies in specific areas and the availability of imported fuels. The combination of insufficient blending and distribution systems together with changing corn prices, creates obstacles which hinders widespread implementation and steady development of the market.

The China ethanol market offers opportunities through expansion of E10 and E20 blending programs, investment in new bio-refineries, use of alternative feedstocks, and growing demand from chemicals and pharmaceuticals, supporting cleaner fuels, energy security, and rural income growth.

Market Segmentation

The China ethanol market share is classified into type and application.

By Type:

The China ethanol market is divided by type into extra neutral ethanol (EN), neutral ethanol, bioethanol, and others.  Among these, the bioethanol segment dominated the share in 2024 and is anticipated to grow at a remarkable CAGR during the forecast period. This growth is driven by China's aggressive, government backed push for renewable energy, stringent emission regulations, and the rapid expansion of E10 fuel blending mandates, reducing dependence on fossil fuels.

By Application:

The China ethanol market is divided by application into fuel blending, alcoholic beverages production, solvents and chemical intermediates, disinfectants and sanitizers, and others. Among these, the fuel blending segment is projected to hold the largest share during the forecast period. The fuel blending segment leads because government policies promote ethanol as a cleaner fuel alternative, including E10 mandates. Growing vehicle numbers, the need to reduce oil imports, and efforts to lower emissions further drive demand, making fuel blending the primary application for ethanol in China.

Competitive Analysis:

The report offers the appropriate analysis of the key organisations/companies involved within the China ethanol market, along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

Top Key Companies in China Ethanol Market:

• Jilin Fuel Ethanol Co Ltd.
• Henan Tianguan Group Co Ltd
• Cofco Bio Energy Heilongjiang Co td
• Guangxi COFCO Bio Energy Co Ltd
• Anhui BBCA Biochemical Co Ltd
• Shandong Longlive Bio Technology Co Ltd
• Shandong Jinyu Bio Technology Co Ltd
• Jiangsu Lianhai Bio Technology Co Ltd
• Hubei Tianhe Bio Energy Co Ltd
• China Resources Alcohol Corporation (CRAC)
• Others

Recent Developments in China Ethanol Market:

In October 2025, China launched green liquid fuel pilot projects featuring ethanol, aiming to promote sustainable transportation, reduce emissions, and support cleaner fuel adoption, while encouraging domestic bio-refineries to expand production and adopt advanced ethanol technologies.

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Market Segment

This study forecasts revenue at the China, regional, and country levels from 2020 to 2035.Spherical Insights has segmented the China ethanol market based on the below-mentioned segments:

China Ethanol Market, By Type

• Into Extra Neutral Ethanol (EN)
• Neutral Ethanol
• Bioethanol
• Others

China Ethanol Market, By Application

• Fuel Blending
• Alcoholic Beverages Production
• Solvents and Chemical Intermediates
• Disinfectants and Sanitizers
• Others