Geographical Regions with High Concentration in U.S. Ethanol Market

The Midwestern region of the U.S. accounts for the largest share of the country's ethanol production and consumption by value. States like Iowa, Illinois, Nebraska, Minnesota and Indiana have ideal agro-climatic conditions for growing corn on a huge scale. Over 80% of the nation's ethanol is produced within a 500 miles radius of these corn belt states. Abundant local availability of corn feedstock and proximity to major fuel distribution centers make the Midwestern region highly attractive for ethanol producers. Many leading ethanol companies have set up large production facilities servicing the fuel demand across the U.S. Mid-Atlantic and Northeast markets from the corn belt region.

Fastest Growing Region in the U.S. Ethanol Market

The Southern region of the U.S. comprising states like Texas, Louisiana, Georgia and Florida is emerging as the fastest growing market for ethanol in terms of value. This is due to rising fuel consumption led by surging population and economic growth momentum across Sunbelt states. New ethanol plants are being established in the region to cater to expanding in-state fuel needs as well as export opportunities to Latin America. The warm subtropical climate also allows production of alternate feedstocks like sorghum and sweet sorghum at lower costs compared to the Midwestern region. This is boosting investment in the Southern ethanol industry with increasing focus on diversifying feedstock options to boost competitiveness.

Get More Insights On U.S. Ethanol Market