Australia: Ethanol Market 2024

Ethanol Market Size in Australia

The Australian ethanol market rose rapidly to $X in 2022, surging by 6.1% against the previous year. In general, the total consumption indicated a noticeable expansion from 2012 to 2022: its value increased at an average annual rate of +3.7% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, consumption decreased by -5.3% against 2020 indices. Over the period under review, the market reached the maximum level at $X in 2020; however, from 2021 to 2022, consumption remained at a lower figure.

Ethanol Production in Australia

In value terms, ethanol production rose slightly to $X in 2022 estimated in export price. Overall, the total production indicated a notable expansion from 2012 to 2022: its value increased at an average annual rate of +4.0% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, production decreased by -2.7% against 2020 indices. The most prominent rate of growth was recorded in 2018 when the production volume increased by 20% against the previous year. Over the period under review, production hit record highs at $X in 2020; however, from 2021 to 2022, production failed to regain momentum.

Ethanol Exports

Exports from Australia

In 2022, shipments abroad of ethyl alcohol decreased by -18.9% to X litres for the first time since 2018, thus ending a three-year rising trend. In general, exports, however, saw a measured increase. The pace of growth appeared the most rapid in 2015 with an increase of 495%. The exports peaked at X litres in 2016; however, from 2017 to 2022, the exports stood at a somewhat lower figure.

In value terms, ethanol exports fell to $X in 2022. Overall, exports, however, showed a buoyant increase. The most prominent rate of growth was recorded in 2015 with an increase of 340%. The exports peaked at $X in 2021, and then dropped in the following year.

Exports by Country

The Philippines (X litres) was the main destination for ethanol exports from Australia, with a 48% share of total exports. Moreover, ethanol exports to the Philippines exceeded the volume sent to the second major destination, Taiwan (Chinese) (X litres), twofold. Malaysia (X litres) ranked third in terms of total exports with an 8.4% share.

From 2012 to 2022, the average annual rate of growth in terms of volume to the Philippines amounted to -1.5%. Exports to the other major destinations recorded the following average annual rates of exports growth: Taiwan (Chinese) (+26.8% per year) and Malaysia (+67.5% per year).

In value terms, the Philippines ($X) remains the key foreign market for ethyl alcohol exports from Australia, comprising 47% of total exports. The second position in the ranking was held by Taiwan (Chinese) ($X), with a 19% share of total exports. It was followed by Malaysia, with a 9.1% share.

From 2012 to 2022, the average annual growth rate of value to the Philippines totaled +2.6%. Exports to the other major destinations recorded the following average annual rates of exports growth: Taiwan (Chinese) (+30.1% per year) and Malaysia (+64.0% per year).

Export Prices by Country

The average ethanol export price stood at $X per litre in 2022, increasing by 16% against the previous year. Over the period under review, export price indicated a perceptible increase from 2012 to 2022: its price increased at an average annual rate of +3.3% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, ethanol export price increased by +96.5% against 2016 indices. The pace of growth appeared the most rapid in 2018 an increase of 46% against the previous year. Over the period under review, the average export prices hit record highs in 2022 and is likely to see steady growth in the near future.

Average prices varied noticeably for the major export markets. In 2022, amid the top suppliers, the countries with the highest prices were Malaysia ($X per litre) and Thailand ($X per litre), while the average price for exports to the Philippines ($X per litre) and Japan ($X per litre) were amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was recorded for supplies to the Philippines (+4.1%), while the prices for the other major destinations experienced more modest paces of growth.

Ethanol Imports

Imports into Australia

In 2022, purchases abroad of ethyl alcohol decreased by -13.1% to X litres, falling for the third year in a row after four years of growth. Over the period under review, imports continue to indicate a relatively flat trend pattern. The growth pace was the most rapid in 2019 with an increase of 368%. As a result, imports reached the peak of X litres. From 2020 to 2022, the growth of imports remained at a lower figure.

In value terms, ethanol imports rose notably to $X in 2022. In general, imports, however, enjoyed a moderate expansion. The growth pace was the most rapid in 2019 with an increase of 348%. Over the period under review, imports hit record highs at $X in 2020; however, from 2021 to 2022, imports stood at a somewhat lower figure.

Imports by Country

In 2022, the United States (X litres) constituted the largest supplier of ethanol to Australia, accounting for a 73% share of total imports. Moreover, ethanol imports from the United States exceeded the figures recorded by the second-largest supplier, New Zealand (X litres), fourfold. The third position in this ranking was held by South Korea (X litres), with a 4% share.

From 2012 to 2022, the average annual growth rate of volume from the United States amounted to +9.5%. The remaining supplying countries recorded the following average annual rates of imports growth: New Zealand (+26.3% per year) and South Korea (+11,414.7% per year).

In value terms, the United States ($X) constituted the largest supplier of ethyl alcohol to Australia, comprising 59% of total imports. The second position in the ranking was held by South Korea ($X), with a 22% share of total imports. It was followed by New Zealand, with a 13% share.

From 2012 to 2022, the average annual rate of growth in terms of value from the United States amounted to +13.7%. The remaining supplying countries recorded the following average annual rates of imports growth: South Korea (+2,092.3% per year) and New Zealand (+22.4% per year).

Import Prices by Country

In 2022, the average ethanol import price amounted to $X per litre, picking up by 26% against the previous year. Overall, import price indicated a moderate increase from 2012 to 2022: its price increased at an average annual rate of +4.1% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, ethanol import price increased by +83.8% against 2019 indices. The most prominent rate of growth was recorded in 2020 when the average import price increased by 59%. The import price peaked in 2022 and is likely to continue growth in the near future.

There were significant differences in the average prices amongst the major supplying countries. In 2022, amid the top importers, the country with the highest price was South Korea ($X per litre), while the price for Colombia ($X per litre) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Colombia (+11.3%), while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox Platform

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