GCC: Ethanol Market 2024

Ethanol Market Size in GCC

In 2022, the GCC ethanol market decreased by -7.9% to $X, falling for the third year in a row after four years of growth. Overall, consumption, however, recorded a buoyant increase. The level of consumption peaked at $X in 2019; however, from 2020 to 2022, consumption remained at a lower figure.

Ethanol Production in GCC

In value terms, ethanol production dropped modestly to $X in 2022 estimated in export price. In general, production, however, recorded a remarkable increase. The pace of growth appeared the most rapid in 2016 when the production volume increased by 118%. Over the period under review, production attained the maximum level at $X in 2019; however, from 2020 to 2022, production failed to regain momentum.

Ethanol Exports

Exports in GCC

In 2022, approx. X litres of ethyl alcohol were exported in GCC; dropping by -14.1% compared with the previous year's figure. Overall, exports recorded a mild reduction. The pace of growth was the most pronounced in 2014 with an increase of 323% against the previous year. Over the period under review, the exports reached the maximum at X litres in 2015; however, from 2016 to 2022, the exports stood at a somewhat lower figure.

In value terms, ethanol exports shrank to $X in 2022. In general, exports continue to indicate a abrupt curtailment. The growth pace was the most rapid in 2014 when exports increased by 229% against the previous year. As a result, the exports attained the peak of $X. From 2015 to 2022, the growth of the exports failed to regain momentum.

Exports by Country

The United Arab Emirates prevails in exports structure, resulting at X litres, which was near 80% of total exports in 2022. Oman (X litres) took the second position in the ranking, followed by Saudi Arabia (X litres). All these countries together took near 16% share of total exports. Bahrain (X litres) held a little share of total exports.

The United Arab Emirates experienced a relatively flat trend pattern with regard to volume of exports of ethyl alcohol. At the same time, Bahrain (+16.5%) and Oman (+13.9%) displayed positive paces of growth. Moreover, Bahrain emerged as the fastest-growing exporter exported in GCC, with a CAGR of +16.5% from 2012-2022. By contrast, Saudi Arabia (-11.6%) illustrated a downward trend over the same period. From 2012 to 2022, the share of Oman, Bahrain and the United Arab Emirates increased by +7.3, +3.3 and +2.9 percentage points, respectively.

In value terms, the United Arab Emirates ($X) remains the largest ethanol supplier in GCC, comprising 89% of total exports. The second position in the ranking was held by Saudi Arabia ($X), with a 4.5% share of total exports. It was followed by Oman, with a 4.3% share.

In the United Arab Emirates, ethanol exports decreased by an average annual rate of -4.2% over the period from 2012-2022. In the other countries, the average annual rates were as follows: Saudi Arabia (-16.1% per year) and Oman (+7.0% per year).

Export Prices by Country

The export price in GCC stood at $X per litre in 2022, with an increase of 9.1% against the previous year. In general, the export price, however, saw a pronounced curtailment. The pace of growth appeared the most rapid in 2020 when the export price increased by 67% against the previous year. The level of export peaked at $X per litre in 2012; however, from 2013 to 2022, the export prices remained at a lower figure.

Prices varied noticeably by country of origin: amid the top suppliers, the country with the highest price was the United Arab Emirates ($X per litre), while Oman ($X per litre) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by the United Arab Emirates (-3.7%), while the other leaders experienced a decline in the export price figures.

Ethanol Imports

Imports in GCC

In 2022, purchases abroad of ethyl alcohol decreased by -27.8% to X litres, falling for the fourth year in a row after two years of growth. Over the period under review, imports showed a noticeable decrease. The pace of growth was the most pronounced in 2017 when imports increased by 66%. The volume of import peaked at X litres in 2018; however, from 2019 to 2022, imports stood at a somewhat lower figure.

In value terms, ethanol imports reduced dramatically to $X in 2022. In general, imports saw a deep setback. The most prominent rate of growth was recorded in 2014 with an increase of 50%. As a result, imports attained the peak of $X. From 2015 to 2022, the growth of imports remained at a lower figure.

Imports by Country

The United Arab Emirates dominates imports structure, amounting to X litres, which was near 94% of total imports in 2022. The following importers - Oman (X litres) and Kuwait (X litres) - together made up 4.7% of total imports.

From 2012 to 2022, average annual rates of growth with regard to ethanol imports into the United Arab Emirates stood at -3.5%. At the same time, Kuwait (+11.4%) and Oman (+6.3%) displayed positive paces of growth. Moreover, Kuwait emerged as the fastest-growing importer imported in GCC, with a CAGR of +11.4% from 2012-2022. While the share of the United Arab Emirates (+4.6 p.p.) and Oman (+1.9 p.p.) increased significantly, the shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, the United Arab Emirates ($X) constitutes the largest market for imported ethyl alcohol in GCC, comprising 73% of total imports. The second position in the ranking was taken by Oman ($X), with a 3.1% share of total imports.

From 2012 to 2022, the average annual rate of growth in terms of value in the United Arab Emirates stood at -6.6%. The remaining importing countries recorded the following average annual rates of imports growth: Oman (+4.0% per year) and Kuwait (+6.4% per year).

Import Prices by Country

The import price in GCC stood at $X per litre in 2022, surging by 12% against the previous year. Overall, the import price, however, showed a mild contraction. The most prominent rate of growth was recorded in 2020 when the import price increased by 66% against the previous year. Over the period under review, import prices hit record highs at $X per litre in 2012; however, from 2013 to 2022, import prices stood at a somewhat lower figure.

There were significant differences in the average prices amongst the major importing countries. In 2022, amid the top importers, the country with the highest price was Kuwait ($X per litre), while the United Arab Emirates ($X per litre) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Oman (-2.1%), while the other leaders experienced a decline in the import price figures.

Source: IndexBox Platform