February 16, 2025
Brazil Ethanol Market

Sustainable Transportation Fuel Alternatives To Drive Growth Of The Brazil Ethanol Market

The Brazil Ethanol Market is estimated to be valued at US$ 18.18 Bn in 2023 and is expected to exhibit a CAGR of 6.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Ethanol is an alternative transportation fuel derived from the fermentation of sugarcane and corn. In Brazil, sugarcane is the major feedstock used for ethanol production. Brazil is the second largest producer of ethanol globally. Ethanol provides advantages over gasoline such as reducing greenhouse gas emissions and vehicular pollution. It increases fuel efficiency and enhances performance. Ethanol is an important fuel for the transportation sector in Brazil and its production and consumption are encouraged by the government through incentives and policies to achieve energy security and sustainability goals.

Market key trends:

One of the key trends in the Brazil ethanol market is the focus on second-generation ethanol production from agricultural residues and biomass waste. Companies are investing in R&D to develop efficient technologies for cellulosic ethanol production which does not compete with food production. This will further improve the sustainability credentials of ethanol. Another trend is the growing flex-fuel vehicle fleet that can operate on any blend of gasoline and ethanol up to 100% ethanol (E100). As of 2022, over 90% of new light vehicles sold in the country were flex-fuel. This large installed base provides a built-in market for ethanol consumption. Automakers are also exploring the potential of electric vehicles running on ethanol in the long term to promote the usage of renewable fuels.

Porter’s Analysis

Threat of new entrants: Low barriers to entry like capital requirements or technology make the threat of new entrants high. However, established players hold significant competitive advantages in economies of scale and brand recognition.

Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of substitute products. However, switching costs are low.

Bargaining power of suppliers: Suppliers of raw materials like sugarcane have significant bargaining power over buyers due to limited availability of alternative suppliers.

Threat of new substitutes: Potential threat from new alternative biofuels is moderate as switching requires changes in infrastructure.

Competitive rivalry: Intense competition exists among existing players to gain market share.

Key Takeaways

The Brazil Ethanol Market Size is expected to witness high growth, exhibiting CAGR of 6.3% over the forecast period, due to increasing consumption of biofuels for transportation and utilization in gasoline blending programs. The market size for 2023 is US$ 18.18 Bn.

Regional analysis: The Brazil region currently dominates the market, accounting for over 60% of the overall shares, due to the highest production of sugarcane. States like Sao Paulo and Parana are the major producers.

Key players operating in the Brazil Ethanol Market are Raízen, Biosev, Copersucar, São Martinho, Usina Sierra Alta, GranBio, Usina São Francisco, Usina Batatais, Usina Alto Alegre, BP Bunge Bioenergia, Usina Caeté, Usina Cerradinho, Usina Colombo, Usina Pedra, Usina Santa Adélia, Usina São Luiz, Usina Jalles Machado, Usina Bonfim, Usina CaarapÃ3, Usina Da Pedra. Key players are focusing on capacity expansion and mergers & acquisitions to strengthen their position in the market.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it

Ravina
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Ravina Pandya,  Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. With an MBA in E-commerce, she has an expertise in SEO-optimized content that resonates with industry professionals.

Ravina Pandya

Ravina Pandya,  Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. With an MBA in E-commerce, she has an expertise in SEO-optimized content that resonates with industry professionals.

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