Saudi Arabia Ethanol Market Size to Surpass USD 1,041.5 Million by 2034 at 4.90% CAGR

Saudi Arabia Ethanol Market Overview
Market Size in 2025: USD 677.1 Million
Market Forecast in 2034: USD 1,041.5 Million
Market Growth Rate 2026-2034: 4.90%

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, 2026-2034", the Saudi Arabia ethanol market size was valued at USD 677.1 Million in 2025 and is projected to reach USD 1,041.5 Million by 2034, growing at a compound annual growth rate of 4.90% from 2026-2034.

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How AI is Reshaping the Future of Saudi Arabia Ethanol Market

● AI is supercharging ethanol production in Saudi Arabia by tweaking fermentation processes with machine learning, cranking up yields by as much as 63% and slashing energy use for more efficient, sustainable operations that keep plants running smoother.

● Through Vision 2030, the government's pumping $14.9 billion into AI, offering grants and incubators that help ethanol makers adopt smart tech, making their setups more resilient and cost-effective in a competitive market.

● Local innovators are using AI models to convert date palm waste into viable ethanol feedstocks, backed by government initiatives, easing resource strains and opening up greener paths for production without relying on traditional sources.

● AI analytics are a game-changer for ethanol importers, spotting supply chain hiccups in real time and cutting inventory risks, which helps stabilize costs and ensures steady flow in Saudi Arabia's growing market.

● Deals between SDAIA and private firms are embedding AI into ethanol workflows, boosting overall productivity by double digits and giving companies like Sipchem an edge in efficiency and innovation.

Saudi Arabia Ethanol Market Trends & Drivers:

Saudi Arabia's ethanol market is picking up steam thanks to Vision 2030, which is pushing hard for sustainable energy and less oil dependence. The government is backing this with big initiatives like the National Renewable Energy Program, aiming to weave ethanol into fuel blends and green chemicals. Bioethanol already grabs 64% of the market, fueled by research turning farm waste and city trash into fuel-think partnerships between universities and tech parks innovating local production. The Ministry of Energy even rolled out a bioethanol blending mandate for 15% in fuels back in August 2025, spiking demand right away. On top of that, SABIC teamed up with global biotech firms in June 2025 to pilot ethanol from ag waste, cutting costs and emissions while building a solid supply chain. These moves aren't just talk; they're creating jobs, boosting local manufacturing, and helping Saudi hit its green goals with real-world projects like waste-to-fuel plants that keep things circular and efficient. It's all about smart diversification that pays off now.

The pharmaceuticals and healthcare sectors are fueling ethanol demand as Saudi Arabia builds out its medical infrastructure. High-purity ethanol is essential for drug synthesis, extractions, and sterilization processes, with the government allocating SAR 214 billion to healthcare, spurring new plants like SPIMACO's facility in Qassim for oncology drugs that rely heavily on it. Fuel applications claim 41% of ethanol use, but pharma follows closely amid localization drives under Vision 2030 that curb imports. Aramco's investments in biorefineries are boosting capacity for pharma-grade supplies, supporting the sector's expansion to meet rising needs. This translates to bustling factories, well-equipped hospitals, and a robust economy where ethanol ensures clean, efficient operations serving millions daily-it's growth with tangible health impacts.

Personal care and cosmetics are exploding ethanol use too, with folks loving sanitizers, lotions, and organic beauty stuff amid rising hygiene smarts. Denatured ethanol dominates at 71%, perfect for these non-drink products in paints, cleaners, and skincare-think the boom post-pandemic keeping demand high in hotels and homes. Northern and Central regions lead with 37% share, thanks to Riyadh's mega projects like Qiddiya pulling in factories and 9.6 million people needing daily hygiene goods. Brands are going natural, so bioethanol fits right in for eco-friendly formulas, backed by Vision 2030's consumer shift. Sadara and Sipchem showed the way years back by cranking out 100,000 kg for sanitizers during crises, proving local muscle. Now, with AI optimizing plants to cut downtime 30%, supply's reliable and prices stable, letting the beauty industry thrive without hiccups-it's practical growth meeting everyday needs head-on.

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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

● October 2025: Saudi Aramco invests $200 million in AI biorefineries, increasing ethanol capacity by 25% while reducing emissions 15% for greener production.

● August 2025: Ministry of Energy mandates 15% bioethanol blending in fuels, sharply raising demand and advancing sustainable transport goals.

● June 2025: SABIC partners with biotech firms on waste-to-ethanol pilots, cutting costs 20% via innovative local feedstock tech.

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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