The Brazil biofuel market is expected to rise at a CAGR of more than 4% during 2020 - 2025. Factors such as concerns about the environment, peak oil, energy security, fuel diversity, and sustainability are likely to drive the biofuel market in the country. Moreover, in 2018, The National Biofuels Policy of Brazil, the RenovaBio program, is expected to be implemented. Besides, Over forty biofuel plants have requested the certification process, which is scheduled to start at the end of 2019. This, in turn, the above factors are likely to propel the Brazil biofuel market during the forecast period. However, the initial cost of providing energy through biofuel is much higher than fossil fuels, which may act as a restraint on the market.
- Ethanol is likely to dominate the biofuel market owing to the massive production of Ethanol in the region. In 2019, Ethanol was the most critical biofuel in the brazil and witnessed an increment of 4% in the output.
- In 2019, Brazil announced the target of blending target for the transport sector. The region is witnessing significant growth in the investment for the infrastructure of biofuels and related markets. This, in turn, the above factors are likely to provide ample opportunity for the Biofuel market in the coming future.
- Increasing consumption and investment in the biodiesel industry are likely to propel Brazil's biofuel market.
Key Market Trends
Ethanol Is Likely To Dominate The Market
- BrazilŐs total ethanol production for 2019 is estimated at 34.45 billion liters, an increase of four percent compared to the revised figure for 2018. Total ethanol production from corn in 2019 is estimated at 1.4 billion liters, an increase of 609 million liters compared to 2018. Total cellulosic ethanol production is estimated at 45 million liters and represents an insignificant share of total ethanol production in Brazil.
- Moreover, in 2019, the total domestic demand for ethanol (fuel and other uses) is estimated at 33.93 billion liters, up 2.19 billion liters compared to the revised figure for 2018. BrazilŐs total ethanol exports are estimated at 1.8 billion liters, an increase of eleven percent compared to total exports in 2018 (1.62 billion liters).
- In 2018, European Union signs an FTA agreement with brazil for duty-free TRQ of 562 million liters of ethanol for industrial use per year, and an additional TRQ of 250 million liters at reduced tariff rates. Besides, under the new agreement, the value of annual exports of sugar and ethanol from Brazil to the EU could reach USD 521 million per year. This, in turn, is expected to drive the ethanol export and support the brazil biofuel market.
- According to Energy Research Enterprise (EPE) hydrous ethanol, will remain the most critical source of fuel to power light vehicles. Indeed, hydrous ethanol has steadily displaced gasoline a (pure gasoline) use in the total fuels pool and will continue to replace gasoline with the beginning of the Renovabio program at the end of 2019
- Therefore, with the increase in the demand for ethanol, the market of biofuels is expected to propel during the forecast period 2020 - 2025.
Increasing Consumption and Investment is Likely to Drive the Market
- Biodiesel production remains tightly regulated by the Brazilian government. Biodiesel production in 2018 increased to 5.35 billion liters, up 25% compared to 2017, due to the increase in diesel consumption and the increase of the biodiesel blend to ten percent in March 2018.
- Total Brazilian biodiesel production is estimated at 5.8 billion liters, an eight percent increase relative to 2018, based on the projected modest growth of the Brazilian economy and the rise of the biodiesel blend to eleven percent beginning in September 2019.
- Moreover, The brazil government is focusing on the current legislation for the biodiesel mandate, which projects an incremental increase of the blend to 15 percent by 2023, which is expected to drive the Brazil biofuel market.
- According to ANP, Brazil has 51 plants authorized to produce biodiesel with industrial capacity for 2019 is estimated at 8.5 billion liters per year. The government with few private players investing in the biodiesel industry for the increment of the capacity.
- This, in turn, factor mention above, is likely to boost the biodiesel market in the country, which is expected to support the growth of the Brazil biofuels market during the forecast period.
The Brazil biofuel market is fragmented. Some of the key players in this market include Royal Dutch Shell plc, BP plc, Bunge Limited, Odebrecht Agroindustrial S/A, Cosan S.A, Abengoa Bioenergia Brasil SA, and others.
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1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2 EXECUTIVE SUMMARY
3 RESEARCH METHODOLOGY
4 MARKET OVERVIEW
4.2 Market Size and Demand Forecast in million liters, until 2025
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.6 Supply-Chain Analysis
4.7 PESTLE Analysis
5 MARKET SEGMENTATION
5.2.1 Coarse Grain
5.2.2 Sugar Crop
5.2.3 Vegetable Oil
6 COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Royal Dutch shell plc
6.3.2 BP plc.
6.3.3 Bunge Limited
6.3.4 Odebrecht Agroindustrial S/A
6.3.5 Cosan S.A.
6.3.6 Abengoa Bioenergia Brasil SA
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
Secondary Research Information is collected from a number of publicly available as well as paid databases. Public sources involve publications by different associations and governments, annual reports and statements of companies, white papers and research publications by recognized industry experts and renowned academia etc. Paid data sources include third party authentic industry databases.
Once data collection is done through secondary research, primary interviews are conducted with different stakeholders across the value chain like manufacturers, distributors, ingredient/input suppliers, end customers and other key opinion leaders of the industry. Primary research is used both to validate the data points obtained from secondary research and to fill in the data gaps after secondary research.
The market engineering phase involves analyzing the data collected, market breakdown and forecasting. Macroeconomic indicators and bottom-up and top-down approaches are used to arrive at a complete set of data points that give way to valuable qualitative and quantitative insights. Each data point is verified by the process of data triangulation to validate the numbers and arrive at close estimates.
The market engineered data is verified and validated by a number of experts, both in-house and external.
REPORT WRITING/ PRESENTATION
After the data is curated by the mentioned highly sophisticated process, the analysts begin to write the report. Garnering insights from data and forecasts, insights are drawn to visualize the entire ecosystem in a single report.