Saudi Arabia Ethanol Market Size to Hit $USD 1,032.57 Million by 2033 | With a CAGR of 4.8%

Saudi Arabia Ethanol Market Overview

Market Size in 2024: USD 646.11 Million
Market Size in 2033: USD 1,032.57 Million
Market Growth Rate 2025-2033: 4.8%

According to IMARC Group's latest research publication, "Saudi Arabia Ethanol Market Size, Share, Trends and Forecast by Type, Raw Material, Purity, Application, and Region, 2025-2033", 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.

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How Digital Technology Reshaping the Future of Saudi Arabia Ethanol Market

● Vision 2030 sustainability initiatives are driving government investment in renewable energy, with five solar plants (3,751 MW capacity) launched in 2024, increasing focus on biofuel alternatives including ethanol production.

● Advanced biotechnology investments are enhancing agricultural efficiency for ethanol feedstock production, with the Saudi Arabia biotechnology market projected to reach USD 11.6 billion by 2033.

● Digital platforms and IoT integration in agriculture are optimizing crop yields for ethanol raw materials, reducing production costs and improving supply chain efficiency.

● Clean energy power purchase agreements worth $8.3 billion signed by ACWA Power and Aramco subsidiaries are supporting sustainable ethanol production infrastructure development.

● AI-powered research partnerships at universities and tech parks are exploring second-generation bioethanol from agricultural residues and municipal waste, aligning with circular economy goals.

Saudi Arabia Ethanol Market Trends & Drivers:

● The increasing demand for biofuels and alternative renewable energy sources is a primary driver of the Saudi Arabian ethanol market. The government is actively diversifying the energy mix to reduce reliance on conventional fossil fuels as part of Vision 2030. Saudi Arabia launched five solar power plants in 2024 with 3,751 MW capacity, increasing total installed solar capacity to 6,151 MW. These initiatives create enhanced focus on ethanol production as the country prioritizes energy sustainability and environmental compliance.

● Government policies are strongly supporting sustainable fuel production through programs designed to reduce carbon emissions. Under Vision 2030, the government encourages alternative energy development, including ethanol, through subsidies for production facilities and research incentives. Multiple Saudi firms including ACWA Power and Aramco subsidiaries signed clean energy agreements worth $8.3 billion in 2025, creating favorable conditions for sustainable ethanol production and attracting domestic and international investment.

● Growing investments in agriculture and biotechnology are significantly boosting the ethanol market. The government emphasizes enhancing agricultural efficiency and sustainability, crucial for biofuel production. Biotechnological advances are improving crop yields for ethanol manufacturing from sugarcane, corn, and organic waste, reducing import dependency and encouraging local production. IMARC Group projects the Saudi Arabia biotechnology market will reach USD 11.6 billion by 2033, supporting increased ethanol production capabilities.

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Saudi Arabia Ethanol Industry Segmentation:

The report has segmented the market into the following categories:

Type Insights:

● Bio Ethanol
● Synthetic Ethanol

Raw Material Insights:

● Sugar and Molasses
● Cassava
● Rice
● Algal Biomass
● Ethylene
● Lignocellulosic Biomass

Purity Insights:

● Denatured
● Undenatured

Application Insights:

● Fuel and Fuel Additives
● Beverages
● Industrial Solvents
● Personal Care
● Disinfectants
● Others

Regional Insights:

● Northern and Central Region
● Western Region
● Eastern Region
● Southern Region

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players.

Recent News and Developments in Saudi Arabia Ethanol Market

● September 2025: Saudi Arabia announces new biotechnology research initiatives focusing on second-generation bioethanol production from agricultural waste and municipal biomass.

● August 2025: Government unveils expanded renewable energy framework under Vision 2030, with specific incentives for sustainable biofuel production including ethanol manufacturing.

● July 2025: Multiple clean energy partnerships signed between Saudi companies and international technology providers to develop advanced ethanol production facilities.

Note: If you require specific details, data, or insights that are not currently included in the scope of this report, we are happy to accommodate your request. As part of our customization service, we will gather and provide the additional information you need, tailored to your specific requirements. Please let us know your exact needs, and we will ensure the report is updated accordingly to meet your expectations.

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