Brazil Ethanol Market

Corn-Based Ethanol is the Largest Segment Driving the Growth of 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 a type of alcohol produced through fermentation of sugarcane or corn. It is used as fuel or fuel additive to gasoline. Major advantages of using ethanol blended fuel includes reduce greenhouse gas emissions, lessen dependence on imported oil and promotion of agricultural commodities like sugarcane and corn.

Market key trends:

One of the key trends in Brazil ethanol market is rising demand for corn-based ethanol. Corn is increasingly being used as feedstock for ethanol production owing to higher yields compared to sugarcane. Additionally, lower production costs and availability of advanced technologies for extracting ethanol from corn makes it preferred choice. The use of corn allows ethanol producers in Brazil to expand their production capacity and meet growing fuel ethanol needs. This is expected to drive significant growth of corn-based ethanol segment in the country over the forecast period.


SWOT Analysis

Strength: Brazil is the second largest producer of ethanol in the world due to favorable climatic conditions and availability of large sugarcane fields. It has a well-established infrastructure and technology for ethanol production.
Weakness: Dependency on sugarcane cultivation makes the market susceptible to changes in sugarcane production and prices. Transportation of ethanol over long distances within the country increases costs.
Opportunity: Growing demand for clean energy provides opportunities to expand ethanol exports. Shift towards flex-fuel vehicles will drive the need for higher ethanol blending.
Threats: Fluctuations in crude oil prices impact the competitiveness of ethanol. Spread of crop diseases and adverse weather conditions pose risks to sugarcane cultivation.

Key Takeaways

The Brazil Ethanol Market Size is expected to witness high growth, exhibiting a CAGR of 6.3% over the forecast period, due to increasing blend targets for gasoline and growing flex-fuel vehicle parc. The country aims to achieve E25 nationwide by 2023, which will propel ethanol consumption.

Regional analysis: Brazil dominates the global ethanol production, accounting for over 40% of the world’s supply. The Southeast region, led by the state of Sao Paulo, is the highest producer, owing to abundant sugarcane cultivation. The Northeast region is also emerging as a major producer, supported by conducive climate and government incentives for new distilleries.

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 Alegle, 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. The top players are focusing on capacity expansions and consolidations to benefit from economies of scale.

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