Market Size of Biofuels in Brazil (2017 – 2021)
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The Market value of Biofuels in Brazil reached $19,957.8 million in 2021
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During the same period, the industry witnessed a Market volume of 8,681.4 million gallons
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The industry recorded a historical decline (CAGR) of 4.8% between 2017 and 2021 in terms of value, while the underlying market volume grew (CAGR) by 2.5% between 2017 and 2021
Market Size of Biofuels in Brazil (2017 – 2021)
ncreasing demand for energy globally poses a threat to climate and the Paris Agreement’s goal of achieving a climate neutral world by 2050. The battle against climate change forces the countries to switch to low-carbon sources of energy such as biofuels. Fossil fuels, being one of the largest sources of greenhouse gas (GHG), are prompting companies to shift to the production of biofuels. For example, Shell has committed to reducing its carbon footprint by a fifth by 2035, which resulted in the company producing ethanol from sugarcane through Raízen.
Biofuels are derived from biomass, i.e., plant, animal waste, and algae, and are considered renewable sources since they can be replenished readily unlike oil, coal, and natural gas. Biofuels are segmented into biodiesel and ethanol. Biodiesel is manufactured from vegetable oils and animal fats, while ethanol is a form of alcohol produced from feedstock.
The global biofuel market is expected to grow as the world targets carbon neutrality by 2050. Brazil is one of the five dominant markets, along with United States, France, Colombia, and Germany. Brazil’s biofuel market is valued at $19,958 million, with a market consumption volume of 8,681 million gallons. The country’s market value declined at a CAGR of 4.8% during 2017–21, and the market volume also declined at a CAGR of 2.5% during this period.
Brazil’s market declined over the last two years due to COVID lockdowns, but it remains the significant player in the market. This has been aided by government mandates on biofuel usage, with Brazil using a fast-track legislation to speed up implementation of the RenovaBio program. This program aims to use biofuels to cut greenhouse gas emissions in the future and has also helped the Brazilian biofuel market to grow.
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