Saudi Arabia Ethanol Market Size Projected to Reach USD 1,032.57 Million by 2033, At 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 AI is Reshaping the Future of Saudi Arabia Ethanol Market

● AI-driven process optimization in Saudi ethanol plants improves yield by up to 20%, reducing feedstock waste and boosting production efficiency.

● Government initiatives support AI integration in biofuel projects, accelerating sustainable energy goals and regulatory compliance under Vision 2030.

● Use of AI-based predictive maintenance in ethanol refineries cuts downtime by 30%, ensuring continuous and cost-efficient operations.

● Advanced AI algorithms enable precise monitoring of fermentation and distillation, enhancing product quality and consistency for pharmaceutical-grade ethanol.

● AI-powered supply chain analytics optimize logistics and inventory management, lowering operational costs and improving delivery times across Saudi ethanol markets.

How Vision 2030 is Transforming Saudi Arabia Ethanol Industry

Vision 2030 is transforming Saudi Arabia's ethanol market by driving investments in sustainable biofuel production and biotechnology. The government supports expanding refining capacity, aiming to triple local ethanol production to 36 million liters annually, reducing import reliance. Renewable energy projects and circular economy initiatives encourage ethanol production from agricultural residues and non-edible biomass. Large clean energy deals worth $8.3 billion promote bioethanol applications as part of broader sustainability goals. These efforts align ethanol with Saudi Arabia's vision to diversify energy sources and enhance environmental sustainability across industries.

Saudi Arabia Ethanol Market Trends & Drivers:

Saudi Arabia's ethanol market is growing due to strong government backing aligned with Vision 2030's sustainability goals. The government supports local bioethanol production to reduce import dependency, targeting an increase to 36 million liters annually. Investments emphasize producing ethanol from agricultural waste and non-food biomass, promoting circular economy initiatives. Strategic partnerships with international and domestic firms aim to enhance refining capabilities. These efforts provide supply security for sectors like pharmaceuticals, beverages, and fuel blending, while fostering a green industrial ecosystem that aligns with the Kingdom's environmental targets and resource diversification strategy.​

The increasing demand for clean and renewable fuels is a key market driver. Saudi Arabia's push to incorporate bioethanol into transportation fuel blends is supported by legislation encouraging sustainable fuel use. Bioethanol reduces greenhouse gas emissions compared to traditional fuels, helping the Kingdom meet its climate commitments under national and international frameworks. Industrial-scale ethanol plants leverage advanced biotechnology to improve yield and cost efficiency, attracting major investors. This growth is further driven by rising global ethanol demand, with Saudi exporters well positioned to supply regional markets that are seeking green alternatives.​

Technological advancements in bioethanol production and supply chain integration are critical trends shaping the market. The adoption of AI and IoT technologies in feedstock processing optimizes resource use and lowers production costs. New pilot projects integrate ethanol production with waste management, turning agricultural and industrial residues into valuable biofuel. Innovative logistics solutions enhance ethanol distribution efficiency across the Kingdom. Moreover, the development of specialized biorefineries focused on producing higher purity ethanol for pharmaceutical and cosmetic applications expands market segments and improves product value, solidifying ethanol's role in Saudi Arabia's future green economy.

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Saudi Arabia Ethanol Industry Segmentation:

The report has segmented the market into the following categories:

Type Insights:

● Bio Ethanol
vSynthetic 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

● Oct 2025: Saudi Aramco invests $200 million in next-gen AI-driven ethanol biorefineries, enhancing production capacity by 25% and reducing carbon emissions by 15%.

● Aug 2025: Ministry of Energy launches bioethanol blending mandate targeting 15% use in fuels, boosting local ethanol demand and sustainability efforts.

● Jun 2025: SABIC partners with global biotech firms to pilot renewable ethanol production from agricultural waste, aiming for cost-effective biofuel alternatives.

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.

About Us:

IMARC Group is a global management consulting firm that helps the world's most ambitious changemakers to create a lasting impact. The company provide a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.

About Us:

IMARC Group is a global management consulting firm that helps the world's most ambitious changemakers to create a lasting impact. The company provide a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.

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