The Brazil biofuels market is estimated to be valued at US$ 8.22 Bn in 2023 and is expected to exhibit a CAGR of 9.6% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Key Market Takeaways
:The Brazil biofuels market size was valued at USD 8.22 Bn in 2023 and is anticipated to witness a CAGR of 9.6% during the forecast period. The robust expansion of the flex-fuel vehicle fleet and the priority given to biofuels in the country's energy security policy supports market growth.
- On the basis of feedstock, the sugarcane segment holds the largest share, owing to Brazil's dominant position as the largest sugarcane producer globally.
- By fuel type, the ethanol segment dominates due to its widespread use as a transportation fuel in flex-fuel vehicles.
- By application, transportation fuel accounts for over 90% of biofuel consumption due to the flex-fuel technology revolution in the country.
- In terms of technology, first generation technology leads the market as sugarcane-based ethanol production is a mature process.
- Regionally, the southeast region dominates biofuel production due to being home to the highest concentration of sugarcane fields.
Brazil Biofuels Market Report Coverage
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Report Coverage
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Details
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Market Revenue in 2023
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USD 8.22 Billion
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Estimated Value by 2030
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USD 15.62 Billion
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Growth Rate
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Poised to grow at a CAGR of 9.6%
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Historical Data
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2018–2022
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Forecast Period
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2023–2030
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Forecast Units
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Value (USD Million/Billion)
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Report Coverage
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Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
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Segments Covered
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By Feedstock, By Fuel Type, By Application, By Technology
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Geographies Covered
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Brazil
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Growth Drivers
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• Favorable Government Policies and Incentives Promoting Biofuel Adoption in Brazil
• Growing Environmental Concerns and Focus on Reducing Greenhouse Gas Emissions
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Restraints & Challenges
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• High Biofuel Production Costs compared to Fossil Fuels
• Ambiguities in Government Policies |
Market Dynamics
:Brazil is the second largest producer and consumer of ethanol in the world. The country produces ethanol primarily from sugarcane. Increasing demand for renewable sources of energy and focus on reducing carbon emissions are the major factors driving the growth of the Brazil biofuels market.
The country mandates blending of gasoline with 27% hydrous ethanol. This blending requirement ensures constant demand and consumption of ethanol in the country. This reassures positive growth prospects of the Brazil biofuels market.
Market Trends
:- One of the key trends in the Brazil biofuels market is increasing production of advanced biofuels from non-food feedstock. Rising ethanol production has increased availability of sugarcane bagasse and straw residues. Companies are investing in technologies to convert agricultural residues into cellulosic ethanol and other advanced biofuels.
- Another trend is growing adoption of biodiesel. The country aims to achieve B5 mandates nationwide to curb fossil fuel dependency and carbon footprint from the transport sector. Local producers such as Cargill and Bunge are expanding production capacities and distribution networks for biodiesel to cater to this growing demand.
Market Opportunities
:- Sugarcane accounts for over 95% of the total feedstock used in the Brazilian biofuels market. Sugarcane's high sugar content makes it suitable for ethanol production. The availability of vast sugarcane fields presents a major market opportunity for biofuel companies in Brazil.
- Brazil has one of the largest flex-fuel vehicle fleets in the world that can operate on any blend of gasoline and hydrous ethanol (E100). Currently over 90% of new vehicles sold in Brazil are flex-fuel. This provides a built-in market for hydrous ethanol as transportation fuel. With rising disposable incomes, rapid urbanization, and increasing vehicle ownership, the demand for transportation fuel is projected to grow substantially in Brazil.
Competitor Insights
Key players in the Brazil biofuels market include:
- Cargill, Biosev
- Usina Coruripe
- Usina Santa Adélia
- Usina São Martinho
- Raízen
- GranBio
- BSBIOS
- Ipiranga
- Usina Batatais
- Usina São Francisco
- Usina São José
- Usina Alta Mogiana
- Usina Colorado
- Usina Costa Pinto
- Usina Cerradinho
- Petrobras
- ADM
- Louis Dreyfus Company
- Bunge
Recent Developments
:- In August 2024, Brazil committed $1.1 billion in financing to boost local SAF production, with major players like Raízen SA and Petrobras advancing in the sector.
- In November 2022, Raízen announced a significant investment of R$6 billion to build five new second-generation ethanol (E2G) plants over the next five years, following an agreement with Shell to supply 3.3 billion liters of ethanol over a decade.
Market Segmentation:
By Feedstock
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- Sugarcane
- Corn
- Vegetable Oils
- Others
By Fuel Type
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- Ethanol
- Biodiesel
- Biogas
- Others
By Application
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- Transportation
- Power Generation
- Others
By Technology
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- First Generation
- Second Generation
- Third Generation