Procurement Market Intelligence Report
Ethanol
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Ethanol Global Overview
Definition
Summary
Ethanol, also known as denatured ethyl alcohol, is commonly used as an additive in a wide range of industrial and consumer products and gasoline mixtures, such as antiseptics and chemical solvents, as well as fuel additives. Manufacturers produce ethanol by fermentation, distillation, and dehydration processes, then sell the product directly through their own distribution channels or through wholesalers, distributors, and retailers. Buyers include manufacturers of personal care products, cleaning products, explosives, and fuels.
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Global Ethanol Procurement Trends
Discover the top international trends affecting procurement in the global Ethanol market.
Warning Trends
Tariffs on fuel additives, lubricants, and anti-corrosive materials to increase costs in the sector
- On August 1, the Trump Administration finalized sweeping tariffs on most major US import partners, in addition to the already announced 25.0% and 35.0% tariffs on Mexico and Canada, and a 10.0% tariff on energy imports from Canada. According to the Energy Information Administration, Canada and Mexico account for 71.2% of US crude oil imports, 35.7% of US petroleum product imports, and 99.6% of US natural gas imports.
- These tariffs will increase both the cost of importing fuel additives, lubricants, and anti-corrosive materials and the cost of sourcing primary inputs necessary for making these products, affecting both international and domestic suppliers. However, reduced oil and gas demand tied to higher tariffs and a possible economic slowdown may counteract some of the tariff price increases in this market.
- Tariffs on steel and aluminum and falling oil prices are also increasing vendor risk for upstream suppliers in the sector; according to the New York Times, tariffs on steel have pushed up the cost of new oil and gas wells by 10.0% to 20.0%. According to S&P Global, oil country tubular goods, made from steel, are anticipated to rise 15.0% in price with the increase in tariffs, and because these expenses account for 8.0% to 10.0% of drilling and completion costs, the fuel additives, lubricants, and anti-corrosive materials supply chain will see increased risk of disruption.
Neutral
Crude oil prices dip, but natural gas and fuel prices remain volatile in 2025
- Oil prices have been falling with the introduction of higher tariffs and the predicted decline in global demand. The OPEC+ group of countries also announced they would be unwinding production cuts and increasing their collective output target for May by 411,000 barrels per day.
- Trade wars, ongoing conflict between Hamas and Israel, and general unrest in the Middle East are causing uncertainty surrounding oil prices, which has led to volatility in prices. In the third week of May 2025, crude oil prices hit $63.67 per barrel, but volatility remains as geopolitical concerns remain.
- Natural gas prices rallied early in 2025 with colder-than-usual temperatures in the United States and high demand, topping out at $4.68/MMBtu in March. Prices have since fallen with the onset of trade wars and weakening demand projections to $3.64/MMBtu in the third week of May 2025.
- The national average of gasoline prices has been rising slightly due to refinery maintenance/outages and blending issues, hitting a national average of $3.15 per gallon in the third week of May 2025. However, gasoline futures have been volatile, falling due to fears of oversupply and deepening concerns about weakening demand with tariffs, but rising after trade deals.
Inflation climbs above 3.0% for the first time in seven months
- In January, the Consumer Price Index (CPI) 12-month inflation rate, the most commonly used measure of inflation, rose by 0.1% to 3.0%, the highest it has been since June 2024.
- This uptick in inflation follows cuts to interest rates which may have added to consumer demand, fueling higher consumer prices.
- Additionally, the threat of impending tariff hikes has driven preemptive stockpiling by importers, adding to demand and price growth across a range of industries in the United States.
- While inflation is still low relative to previous years, sustained recent increases in inflation and the potential effects of tariffs, such as the recently implemented 10.0% on all Chinese goods, mean prices are still rising at a faster-than-normal pace.
Global Ethanol Market - Suppliers by Region
| Country/Region | Number of Suppliers |
|---|---|
| #1 Europe | 6,595 |
| #2 India | 5,430 |
| #3 Oceania & Southeast Asia | 5,235 |
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Geography Drilldown - US
Average Cost of Ethanol
United States
2026 Market Pricing$1.45 to $X.XX
per gallonAverage Price
Prices in the Ethanol market range from $1.45 to $X.XX, depending on Feedstock, Purity, Specialization and Purchase Volume. For example, lower prices are associated with Corn ($1.45 to $3.00 per gallon), whereas higher prices are associated with Soybean ($1.75 to $3.83 per gallon).
Need the scoop on international price trends?
Between our Europe and Canada collections, we provide price data for 350 markets so you can instantly compare prices across borders. Or, use our custom research services for intel on prices in any region across the globe.
Ethanol Category Price Trends
Pricing trends are indicated by the compound annual growth rate (CAGR) during a set period of time. For the Ethanol market, prices in the US have declined -5.0% from 2022 to 2025. Subscribers can access price trend forecasts, price driver projections and forward-looking cost structure data. Learn more
United States (2022-2025)
United States (2025-2028)
Compound Annual Growth Rate
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Cost Analysis - Total Cost of Ownership for Ethanol
Total cost of ownership is Low in the Ethanol market. The average cost of ownership differs depending on the contract but generally includes costs negotiated before the contract begins, costs billed during the contract period and unforeseen costs. For example, unforeseen costs in the form of Duties & Taxes may raise the total cost of ownership unexpectedly.
Negotiated Before
Transportation
Billed During
Storage
Unforeseen
Duties & Taxes
Buyer Power in Procurement Negotiations
In 2026, buyer power amounts to -0.6 in the United States. Buyer power is most positively impacted by Recent Developments. It is most negatively impacted by Product Specialization. Subscribers can access details on eight other factors that impact buyer power. Learn more
United States
Buyer power forecasts: your glimpse into the future
Develop strategies for the upcoming year and identify unforeseen opportunities for buying now
- Actionable "Buy Now" and "Buy Later" insights
- Near-real-time updates to current and forecast Buyer Power Scores
- Methodology and weightings for Buyer Power Score Components
Supply Chain Risk
The average level of supply chain risk is assessed as Medium, which has a negative impact on buyer power. The level of supply chain risk is affected by industry volatility, barriers to entry, competition, import penetration, regulation and industry financial risk. Buyers in this market can mitigate procurement and supply chain management risks by monitoring risk levels for individual first and second tier suppliers:
1st
Tier Suppliers
- Industrial Machinery & Equipment Wholesalers
- Corn Farmers
- Chemical Wholesalers
2nd
Tier Suppliers
- Iron & Steel Manufacturers
- Fertilizer Manufacturers
- Organic Chemical Manufacturers
Biggest Ethanol Suppliers in the US by Revenue
The largest Ethanol vendors by revenue in the US are Illinois Corn Processing, Llc, Abengoa Bioenergy SA and Valero Energy Corp. Subscribers can sort and filter by market share concentration, profit level and other factors. Learn more
| Supplier | Operational Size | Headquarters | Number of Employees | Market Share (%) | Market Share Performance (3yr trend) | Total Revenue ($ million) | Profit Level (%) | Risk Level |
|---|---|---|---|---|---|---|---|---|
| Valero Energy Corp | Global | SAN ANTONIO, TX | 1,001-10,000 | 10-15 | ||||
| Archer-Daniels-Midland Co | Global | CHICAGO, IL | >10,000 | 10-15 | ||||
| Poet LLC | International | Sioux Falls, SD | 1,001-10,000 | 15-20 | ||||
| Green Plains Inc. | National | OMAHA | 501-1,000 | 5-10 | ||||
| Alto Ingredients, Inc. | National | SACRAMENTO, CA | 251-500 | 5-10 | ||||
| Chs Inc. | Global | Inver Grove Heights, MN | >10,000 | < 5 | ||||
| Cargill, Incorporated | Global | Minneapolis, MN | >10,000 | < 5 | ||||
| Abengoa Bioenergy SA | Global | Seville, ES | >10,000 | < 5 | ||||
| Absolute Energy Llc | Regional | St. Ansgar, IA | 51-100 | < 5 | ||||
Looking for a list of suppliers by country?
Subscribers can access vendor information on Canadian and European suppliers, too. We also offer custom research services to help with vendor sourcing anywhere in the world.
Profit Analysis
The average profit margin across vendors in the Ethanol market is 4.4% and steady. Profit levels shift depending on suppliers' spend on wages, purchases and overhead. The highest cost component for vendors is Purchases. The cost trend for this component is stagnating, when considering movement between 2025 and 2026. To understand cost forecasts for 2027 and uncover the implications on profit, start your subscription. Learn more
Vendor & Supply Chain Analysis
The average vendor presents a high level of risk, primarily due to frequently changing regulations and significant exposure to supply chain disruptions.
The top four suppliers (by market share) are estimated to provide between 30.0% and 45.0% of market revenue, bringing the market share concentration to a moderate level. Moderate concentration indicates that despite some dominant suppliers, competition among vendors persists.
This market's supply chain presents high risk due to the presence of steel and chemical manufacturers.
The United States is a net exporter of ethanol, meaning it exports more than it imports. US buyers should try to find a supplier in closer proximity to minimize lead times and costs.
Supplier Information
Archer-Daniels-Midland Co
Archer-Daniels-Midland Co is a public company operating globally in the manufacturing sector. The company's offerings include ethanol, biodiesel and farm products warehousing. Founded in 1923, the company is currently headquartered in Chicago, Illinois, United States of America with an estimated 42001 employees.... Subscribe to learn more
Valero Energy Corp
Valero Energy Corp./TX is a global manufacturer and marketer of petroleum-based and low-carbon liquid transportation fuels and petrochemical products. It owns and operates petroleum refineries in California, Louisiana, Oklahoma, Tennessee, and Texas; Quebec City, Canada; and Pembroke, United Kingdom; as well... Subscribe to learn more
Poet LLC
Poet LLC is a private company operating internationally in the manufacturing sector. The company's offerings include ethanol. Founded in 1987, the company is currently headquartered in Sioux Falls, South Dakota, United States of America with an estimated 5500 employees. Subscribe to learn more
Alto Ingredients, Inc.
Alto Ingredients, Inc. is a public company operating nationally in the manufacturing sector. The company's offerings include ethanol. Founded in 2003, the company is currently headquartered in SACRAMENTO, California, United States of America with an estimated 439 employees. Subscribe to learn more
Green Plains Inc.
Green Plains Inc. is a biorefining company that develops and leverages agricultural, food, and industrial biotechnology systems. It organizes its business into three segments: the Ethanol Production segment, which produces ethanol, distillers grains, Ultra-High Protein, and renewable corn oil at its biorefineries... Subscribe to learn more
Abengoa Bioenergy SA
Abengoa Bioenergy SA is a private company operating in the manufacturing sector. The company's offerings include ethanol. Founded in 2014, the company is currently headquartered in United States of America. Subscribe to learn more
Absolute Energy Llc
Absolute Energy Llc is a private company operating regionally in the manufacturing sector. The company's offerings include ethanol. Founded in 2005, the company is currently headquartered in St. Ansgar, Iowa, United States of America with an estimated 75 employees. Subscribe to learn more
Cargill, Incorporated
Cargill, Incorporated is a private company operating globally in the manufacturing and professional, scientific & technical services sectors. The company's offerings include ethanol, biodiesel, ice & snow surface treatments, farm products warehousing and scientific research & development services. Founded... Subscribe to learn more
Chs Inc.
Chs Inc. is a public company operating globally in the mining and manufacturing sectors. The company's offerings include ethanol and propane. Founded in 1931, the company is currently headquartered in Inver Grove Heights, Minnesota, United States of America with an estimated 10014 employees. Subscribe to learn more
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Procurement Management KPIs for the Ethanol Market
Managing vendor performance throughout the contract period is easier when tracking specific key performance indicators (KPIs). For example, buyers should monitor On-Time Delivery (OTD) and Order Accuracy. Buyers may experience better performance throughout their contracts if they establish service level agreements (SLAs) based on Delivery and other factors.
| KPI | Level of Importance (1-5) | Measurements | Key Considerations |
|---|---|---|---|
| On-Time Delivery (OTD) |
|
Number of deliveries Number of on-time deliveries |
The on-time delivery rate represents the percentage of orders that are delivered according to schedule. Buyers should prioritize suppliers with higher on-time delivery rates, which indicates reliability, given the homogeneous nature of market products. |
| Order Accuracy |
|
Number of accurate orders Number of orders |
Order accuracy represents the share of orders that are accurately processed, produced, and delivered. Because buyers can procure the same products from almost any supplier, buyers should ensure that the selected supplier maintains a high rate of order accuracy. |
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Questions to Ask During Procurement Negotiations
How can I gain leverage during negotiations?
Cost Containment
What percentage of your revenue during the past three years was dedicated to inventory purchases?
How have you improved your cost structure during the past three years?
Inventory Control
What is your annual ethanol production capacity?
How much of your annual production is diverted to export markets?
Shipping
Do you partner with other suppliers to ensure timely and cost-effective delivery?
How do you ensure timely and accurate shipping?
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Ethanol RFP Guidelines
What should my RFP include?
Organizational Overview
Buyers should describe their operations. A description should include contact information and location information.
Buyers should describe how they intend to use ethanol.
Statement Of Need
Buyers must describe the entire scope of work for the contract, including all products and services covered by the agreement.
Buyers should state the chemical composition and order volume for the ethanol they wish to purchase.
Project Budget
Buyers should state the total value of the contract.
Buyers should state the frequency of payments.
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Our Reports include:
- Opportunity assessment
- Market dynamics
- Recent developments
- Positive and warning trends
- Buyer power levers
- Price environment and market pricing
- Geographic wage rates
- Global market updates
- Total cost of ownership
- Cost structure benchmarks and analysis
- Supply chain and vendors
- Global supplier breakdown
- Market share concentration
- Regulation and business requirements
- Vendor management and KPIs
- Sourcing strategy guidance
