Under the pump: Falling demand from local petrol refiners has reduced industry revenue

The Ethanol Fuel Production industry is running on fumes. The industry has struggled to maintain market share over the past five years as the cost competitiveness of ethanol-blended fuel (EBF) has been squeezed by lower world crude oil prices and falling demand from local petroleum refiners. Government subsidies have been the principal factor supporting the industry. For much of the past decade, local ethanol producers were paid a Federal Government rebate to fully compensate the fuel excise under the Ethanol Production Grants Program. This program ceased at the end of 2014-15, and the government subsequently introduced a special excise regime for the industry. The excise started at 0.0 cents per litre (cpl) on ethanol produced in 2015-16, and will climb by 2.5...read more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • The industry has struggled to grow its presence in the local motor fuel market
  • Profit margins squeezed by lower pump prices and weak demand conditions
  • The Federal Government’s special excise on EBF production will increase to a peak in 2020-21
  • Industry Report - Industry Locations Chapter

    The industry produces ethanol for national distribution from three plants, located in New South Wales and Queensland. Producers in these states benefit from state government support in the mandatory requirement for the sale of ethanol-blended fuel at retail outlets. These states also have substantial quantities of commonly used feedstock for ethanol fuel, notably by-products from wheat and sugar production. The Manildra and Wilmar feedstock is sourced from bulky and perishable waste products and their ethanol plants are located close to waste-product facilities. Manildra Milling produces ethanol from wheat feedstock in Nowra, NSW. The company's Nowra plant is expected to account for two-thirds of the volume of domestic production. The...purchase to read more.

    Additional Insights for the Ethanol Fuel Production Industry

    IBISWorld has determined the most important Key Success Factors for the Ethanol Fuel Production are:

  • Ability to negotiate successfully with regulator
  • Ability to pass on cost increases
  • Upstream vertical integration (ownership links)
  • IBISWorld analysts also discuss how external factors such as Number of motor vehicles and Demand from petroleum refining and petroleum fuel manufacturing in the Ethanol Fuel Production industry impact industry performance..

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    What's in this report

    What is the Ethanol Fuel Production Industry?

    Industry operators produce ethanol fuel. The industry concentrates on non-potable ethanol (ethyl alcohol) that is used as a motor fuel, mainly as a biofuel additive for gasoline.

    Industry Products
  • Ethanol distilled from starch
  • Ethanol distilled from sorghum
  • Ethanol distilled from sugar by-products
  • Industry Activities
  • Ethanol fuel production
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Number of motor vehicles
  • Demand from petroleum refining and petroleum fuel manufacturing
  • Greenhouse gas emissions
  • World price of crude oil

  • Current Performance
  • Ethanol production and demand
  • Cost of feedstock
  • Government subsidisation
  • Chart: Revenue Growth

  • Industry Outlook
  • Revenue and production growth
  • Biofuel mandates
  • Profitability remains tight
  • Future opportunities
  • Table: Ethanol Fuel Production Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Ethanol Fuel Production Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Petroleum Refining and Petroleum Fuel Manufacturing
  • Basic Inorganic Chemical Manufacturing
  • Petroleum Product Wholesaling

  • Key Selling Industries
  • Flour and Grain Mill Product Manufacturing
  • Grain Growing
  • Sugar Manufacturing

  • Products & Services
  • Ethanol distilled from starch
  • Ethanol distilled from sorghum
  • Ethanol distilled from sugar by-products
  • Chart: Ethanol Fuel Production Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Petroleum refiners and petroleum fuel manufacturers
  • Petroleum product wholesalers
  • Chart: Major Market Segmentation for the Ethanol Fuel Production Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Ethanol Fuel Production

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Ethanol Fuel Production Industry

  • Industry Globalization
    Manildra Milling Pty Ltd, United Petroleum Australia Pty Ltd, Wilmar Sugar Australia Limited,
  • Table: Manildra Milling Pty Ltd - financial performance
  • Table: United Petroleum Australia Pty Ltd - financial performance
  • Table: Wilmar Sugar Australia Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Ethanol Fuel Production Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Ethanol Fuel Production Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)
  • Wages (2010-2024)
  • Purchases (2010-2024)
  • Profit (2010-2024)
  • Depreciation (2010-2024)
  • Rent (2010-2024)
  • Utilities (2010-2024)
  • Other (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Ethanol-Blended Fuel (Ebf)
  • Petroleum that has been blended with ethanol for use in motor vehicles. Blends include E10 (10% ethanol) and E85 (70% to 85% ethanol).
  • Feedstock
  • Raw materials used in the ethanol distillation process.
  • Premium Unleaded Petrol (Pulp)
  • Petrol with a high research octane number, which is a measure of the efficiency of use in engines.
  • Regular Unleaded Petrol (Rulp)
  • Standard fuel used in motor vehicles.
  • What Our Customers Say

    Why buy this report?

    The Ethanol Fuel Production market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Ethanol Fuel Production:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Ethanol Fuel Production market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Ethanol Fuel Production, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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