by Brazil has one of the largest renewable energy programs globally with a high blend of biomass-based fuels in transportation fuel. Brazil is a pioneer in developing biofuel technologies and has the most advanced infrastructure for blending ethanol fuel in vehicles. Ethanol fuel (E100) has been commercially produced and sold in Brazil for vehicle fuel since the 1970s to reduce dependence on crude oil imports. The country utilizes sugarcane-based ethanol as a primary biofuel which is mixed in gasoline blends up to 27% (E27 blend). Brazil is also investing in research and development of advanced biofuel technologies including cellulosic ethanol and biodiesel from sugarcane residues and vegetable oils.
The Brazil Biofuels Market is estimated to be valued at US$ 8.22 Billion in 2023 and is expected to exhibit a CAGR of 9.6% over the forecast period 2023 to 2030, as highlighted in a new report published by CoherentMI.
Market Key Trends:
Sugarcane ethanol remains the dominant biofuel produced and consumed in Brazil, accounting for over 90% of the total biofuel production. However, the country is diversifying into cellulosic ethanol and biodiesel production to boost energy security goals. Investments are being made in demonstration and commercial scale facilities that produce advanced biofuels from agricultural residues and waste materials. Stringent regulations and blending mandates are also incentivizing alternative feedstock research. There is a growing focus on sustainability certification programs to promote certified low carbon fuels and ensure ethical agricultural practices. Brazil plays a leading role globally in the development of sustainable bioeconomy and aims to consolidate its position as a major exporter of renewable fuels.
Porter’s Analysis:
Threat of new entrants: The Brazil biofuels market has moderate threat from new entrants due to established distribution channels and expertise required.
Bargaining power of buyers: Buyers have high bargaining power due to presence of substitutes and undifferentiated products.
Bargaining power of suppliers: A few large multinational suppliers exist with significant influence on market.
Threat of new substitutes: Threat from alternative fuels like electricity is moderate due to infrastructure and production constraints.
Competitive rivalry: Intense competition exists between key players to dominate market share.
Brazil Biofuels Market Segmentation:
- By Feedstock
- Sugarcane
- Corn
- Vegetable Oils
- Others
- By Fuel Type
- Ethanol
- Biodiesel
- Biogas
- Others
- By Application
- Transportation
- Power Generation
- Others
- By Technology
- First Generation
- Second Generation
- Third Generation
Key Takeaways:
The Brazil Biofuels Market Size is expected to witness high growth. The Brazil Biofuels Market is estimated to be valued at US$ 8.22 Billion in 2023 and is expected to exhibit a CAGR of 9.6% over the forecast period 2023 to 2030.
Regional Analysis: South and Southeast regions are the fastest growing markets due to supportive government policies and expanding production facilities in these areas.
Key Players: Key players operating in the Brazil biofuels market are Petrobras, Archer Daniels Midland Company, Green Plains, Bunge, Wilmar International. The Brazil biofuels market Size for 2024 is US$ 8.22 Bn as per the given data. The market is forecast to grow at a CAGR of 9.6% during the forecast period of 2023 to 2030.
*Note:
1.Source: CoherentMI, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.
