Japan Bioethanol Market Size, Share, and COVID-19 Impact Analysis, By Feedstock (Starch-Based, Sugar-Based, and Others), By Blend (E10, E20 & E25, E70 & E75, E85, and Others), By Application (Transportation Fuel, Power Generation, Cosmetics, Pharmaceutical, and Others), and Japan Bioethanol Market Insights, Industry Trend, Forecasts to 2035

Japan Bioethanol Market Insights Forecasts to 2035

• The Japan Bioethanol Market Size Was Estimated at USD 253.4 Million in 2024
• The Market Size is Expected to Grow at a CAGR of around 6.58% from 2025 to 2035
• The Japan Bioethanol Market Size is Expected to Reach USD 510.7 Million by 2035

According to a Research Report Published by Spherical Insights & Consulting, The Japan Bioethanol Market is anticipated to Reach USD 510.7 Million by 2035, Growing at a CAGR of 6.58% from 2025 to 2035. The Japan bioethanol market is growing as a result of a number of major factors, namely government support, growing environmental consciousness, and growing demand for biofuels in the transport industry.

Market Overview

The Japan Bioethanol Market Size refers to focused on ethanol, usually produced from biomass feedstocks like corn, sugarcane, agriculture residues, and industrial waste, mainly as a cleaner fuel additive (e.g., ETBE or low-blend gasoline), and, in growing measure, for use in pharmaceuticals, cosmetics, disinfectants, and bioplastics. Strengths are strong R&D in fermentation and enzymes, pilot production in waste-derived ethanol, and limited domestic small-scale capacity (six biorefineries). Opportunities are in second-generation ethanol from non-food biomass, diversification of feedstocks (cellulosic materials, algae), growth in non-fuel applications, and scope for expanding rates of ethanol blending. Markets are driven by Japans greenhouse gas reduction commitments (26–30% below 2013 levels by 2030), renewable-energy targets (24% by 2030), and energy security initiatives. Clean-fuel preferences and consumer environmental sensitivity serve to further drive take-up. Government programs, removal of import tariff on bio-ETBE, blending requirements, waste-based feedstock subsidies, advanced biofuel research and development, and aviation fuel pilots support expansion.

Report Coverage

This research report categorizes the market for the Japan bioethanol market based on various segments and regions and forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the Japan bioethanol market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the Japan bioethanol market.

Driving Factors

The propelling drivers for Japans bioethanol market are the nations objectives of decreasing greenhouse gas emissions, improving energy security, and complying with renewable energy targets. Environmental awareness and cleaner fuel demand encourage ethanol blending in the transport sector. The development of biomass conversion technologies and government incentives for R&D of biofuels add to market growth. Moreover, Japans initiatives to diversify energy sources and minimize dependence on fossil fuel imports further drive the expansion of the bioethanol market.

Restraining Factors

The Japan bioethanol market is constrained by the high cost of domestic production due to costly feedstocks, land, and processing versus imported ethanol. Unavailability of feedstocks, bottlenecks in infrastructure, and rivalry from EVs, hydrogen, and other alternatives also constrain the growth.

Market Segmentation

The Japan bioethanol market share is classified into feedstock, blend, and application.

• The starch-based segment held the largest market share in 2024 and is expected to grow at a significant CAGR during the forecast period.

The Japan bioethanol market is segmented by feedstock into starch-based, sugar-based, and others. Among these, the starch-based segment held the largest market share in 2024 and is expected to grow at a significant CAGR during the forecast period. This is due to the plentiful availability of corn in major bioethanol-producing areas. The high starch content in corn means that efficient and low-cost bioethanol production is possible, and therefore, this feedstock has excellent growth opportunities.

• The E10 segment held the largest market share in 2024 and is expected to grow at a significant CAGR during the forecast period.

The Japan bioethanol market is segmented by blend into E10, E20 & E25, E70 & E75, E85, and others. Among these, the E10 segment held the largest market share in 2024 and is expected to grow at a significant CAGR during the forecast period. This is owing to their convenience makes it an easily accessible choice for consumers worldwide. Secondly, numerous nations have introduced mandates or incentives to use E10, pushing its adoption for the attainment of renewable energy requirements and the reduction of greenhouse gas emissions.

• The transportation fuel segment held a significant share in 2024 and is expected to grow at a significant CAGR during the forecast period.

The Japan bioethanol market is segmented by application into transportation fuel, power generation, cosmetics, pharmaceutical, and others. Among these, the transportation fuel segment held a significant share in 2024 and is expected to grow at a significant CAGR during the forecast period. This is attributed to its pervasive utilization as a gasoline blend, especially as mandated or encouraged blends such as E10, in most countries. The huge amount of gasoline consumed worldwide, combined with the growing demand for bioethanol blends to achieve renewable energy specifications and lower greenhouse gas emissions, positions transportation fuel as the most widespread use of bioethanol.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations or companies involved within the Japan bioethanol 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.

List of Key Companies

• Sumitomo Corporation
• Nippon Paper Industries
• Archer Daniels Midland (ADM)
• Sekisui Chemical and INCJ
• Clariant
• Green Earth Institute
• ENEOS Corporation
• Idemitsu Kosan Co., Ltd.
• Daicel Corporation
• Asahi Kasei Corporation
• Valero Energy
• Others

Recent Developments:

• In February 2025, Nippon Paper Industries, Sumitomo Corp, and Green Earth Institute plan to launch Morisora Bio Refinery LLC, to manufacture and sell bioethanol and biochemicals from wood biomass. Building on its expertise in pulping and papermaking, Nippon Paper seeks to dominate Japans biomass industry by quickly building facilities and a strong wood biomass-based ethanol supply chain.

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 Japan, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the Japan bioethanol market based on the below-mentioned segments:

Japan Bioethanol Market, By Feedstock

• Starch-Based
• Sugar-Based
• Others

Japan Bioethanol Market, By Blend

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

Japan Bioethanol Market, By Application

• Transportation Fuel
• Power Generation
• Cosmetics
• Pharmaceutical
• Others