The report covers Biofuel Companies in Brazil and it is segmented by Type (Biodiesel, Ethanol, and Other Types) and Feedstock (Coarse Grain, Sugar Crop, Vegetable Oil, and Other Feedstocks). The report offers the production forecasts in million cubic meters (MCM) for all the above segments.

In 2024, the production of biofuels in Brazil reached at ********barrels of oil equivalent per day, the highest value during the period under consideration. Brazil is the second largest biofuel producer worldwide, ranking only behind the U.S. What are biofuels and where do they come from? The most common types of liquid biofuels are biodiesel and ethanol. Contrary to fossil fuels, these fuels are produced from renewable sources, such as food crops, vegetable oils, and animal fats. In the case of Brazil, for example, ethanol is produced mainly out of sugarcane, while in the U.S. corn is the main crop utilized. When it comes to biodiesel production, soybean oil is by far the main feedstock used in Brazil. The biofuels market in Brazil As in many South American countries, biofuel consumption in Brazil is closely associated with that of conventional fuels, as legislation requires the addition of a minimum percentage of ethanol to commercial gasoline and biodiesel in commercial diesel (although mandated blends vary country by country). In addition, nearly **** million cubic meters of ethanol fuel were sold directly to consumers in 2020. With the majority of cars in Brazil being of the so-called flex variety – meaning they can run on any blend of ethanol and gasoline – the former is frequently the most economically advantageous alternative.

The size of the Brazil Biofuel Market was valued at USD XX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of 3.49% during the forecast period. Recent developments include: In March 2022, ICM and Agribrasil signed an agreement to develop a greenfield dry-mill grain ethanol production facility in Mato Grosso, Brazil. The facility is expected to utilize ICM's process technologies, including patented Selective Milling Technology (SMT) for milling optimization, Base Tricanter System (BTS) for corn oil recovery, and patented Fiber Separation Technology (FST) for fiber removal before fermentation. These technologies are expected to allow Agribrasil to maximize its ethanol and corn oil production efficiently. The plant's design is also expected to feature a distributed control system (DCS), allowing operators to automate production levels., In November 2021, Brasil Biofuels (BBF), a Brazilian palm oil producer, announced plans to build Brazil's first hydrotreated vegetable oil (HVO) plant after entering a supply agreement with Brazil's most prominent fuel distributor Vibra Energia. The plant, installed in the Manaus free-trade zone in Amazonas state, will start operating in January 2025 with a production capacity of around 500 million liters per year.. Key drivers for this market are: 4., Uninterrupted and Reliable Power Supply and Heavy Deployment of DG (diesel generator) Set4.; Improvement in Technology of Diesel Generator. Potential restraints include: 4., The Growing Trend of Renewable Power Generation. Notable trends are: Ethanol Likely to Dominate the Market.

Brazil Biofuel Market size was valued at USD 21.7 Billion in 2024 and is projected to reach USD 41.7 Billion by 2032, growing at a CAGR of 8.5% from 2026 to 2032.

Brazil Biofuel Market: Definition/Overview

Biofuel is fuel made from renewable biological sources such as plants, algae, or organic waste. In Brazil, biofuels largely consist of ethanol derived from sugarcane and biodiesel made from vegetable oils, animal fats, or another biomass. Brazil leads the world in biofuel production, particularly ethanol, thanks to its favorable climate for sugarcane cultivation and advanced production technologies. The country’s biofuel is an important part of its energy mix, providing a sustainable alternative to fossil fuels while lowering greenhouse gas emissions.

The global biofuels production market was valued at nearly 120 billion U.S. dollars in 2023. Figures are projected to continuously increase until 2030 when the biofuels market is forecast to amount to more than 175 billion U.S. dollars. More information on the global biofuels production market can be found here. Largest biofuel producers Biofuels are especially prevalent in the transportation sector and have been marketed as a renewable alternative to petroleum-based motor fuels such as gasoline and diesel. Ethanol and biodiesel are the most common biofuel types, which are won from distilling and refining feedstocks such as crops, vegetable oils, and cooking fats. Although biofuel adoption has increased, they are usually blended with gasoline and diesel in order for them to work in regular combustion engines. The United States is the leading biofuel producing country in the world, followed by Brazil and Indonesia. Biofuels production to exceed 200bn liters Both ethanol and biodiesel production is forecast to increase in the coming years. In 2024, a biofuel production forecast suggests worldwide output could edge close to 200 billion liters per annum.

Brazil sustainable biofuels market valued at USD 15 billion, driven by renewable energy demand, government policies like RenovaBio, and agricultural resources for ethanol and biodiesel production.

The Brazilian solid biofuel market expanded modestly to $4.4B in 2024, growing by 3% against the previous year. Over the period under review, the total consumption indicated a measured increase from 2012 to 2024: its value increased at an average annual rate of +2.4% over the last twelve years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2024 figures, consumption decreased by -1.0% against 2022 indices.

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Biofuels Market Size 2025-2029

The biofuels market size is forecast to increase by USD 32.6 billion at a CAGR of 3.8% between 2024 and 2029.

The market is experiencing significant growth due to the increasing adoption of renewable energy sources as a response to reducing greenhouse gas emissions. Key biofuels include those derived from corn, sugarcane, vegetable oil, and biomass. This shift towards sustainable energy solutions is being fueled by both environmental concerns and regulatory mandates. However, market expansion is not without challenges. Fluctuations in oil prices pose a significant threat to the competitiveness of biofuels, as they can impact the cost-effectiveness of production. Additionally, regulatory hurdles impact adoption, particularly in regards to the approval and implementation of new biofuel technologies and standards.
Supply chain inconsistencies, including the availability and cost of raw materials, also temper growth potential. Companies seeking to capitalize on market opportunities must navigate these challenges effectively, focusing on innovation, cost reduction, and regulatory compliance. By doing so, they can position themselves as leaders in the rapidly evolving biofuels landscape.

What will be the Size of the Biofuels Market during the forecast period?

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The market is experiencing dynamic shifts driven by environmental concerns, regulatory frameworks, and technological advancements. Biofuel environmental impact is a critical factor influencing consumer awareness and public perception. Regulatory environments, such as renewable fuel mandates, shape the market landscape and drive investment opportunities in advanced biofuels like cellulosic ethanol. Biofuel lifecycle analysis and sustainability are key considerations for biofuel certification and consumer acceptance. Sustainable aviation fuel and drop-in fuels are gaining traction due to their reduced carbon footprint and compatibility with existing infrastructure. Biomass conversion and feedstock supply chain are essential components of the biofuel industry, with innovation ecosystems fostering breakthroughs in biofuel technology and biomass utilization.
Biofuel adoption rates are influenced by cost competitiveness and blending ratios, while infrastructure development and industry consolidation shape market penetration. Biofuel standards and certification play a crucial role in ensuring transparency and trust in the market. Social impact assessments and continuous innovation are essential for addressing challenges and seizing opportunities in the evolving biofuels landscape. Biofuels are derived from renewable sources, including plants, algae, and organic waste, and are utilized to fuel various vehicles, such as cars, trucks, ships, and airplanes. The market's expansion is driven by environmental regulations, the need for GHG reductions, and energy security concerns. Key biofuels include ethanol, biodiesel, renewable diesel, hydrogenated oil, biojet, and sustainable aviation fuel. Feedstocks for biofuel production include vegetable oil, molasses, coarse grain, sugar crops, and biomass, among others.

How is this Biofuels Industry segmented?

The biofuels industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Application

  Transportation
  Aviation
  Heating
  Energy generation
  Others


Product

  Ethanol
  Biodiesel


Material

  Starch crops and sugar crops
  Agricultural residues
  Oil crops
  Waste oils and fats
  Algae and non-food crops


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    UK


  APAC

    China
    India
    Indonesia


  South America

    Argentina
    Brazil


  Rest of World (ROW)

By Application Insights

The transportation segment is estimated to witness significant growth during the forecast period.

The transportation market has witnessed substantial expansion in the last decade, fueled by growing concerns over climate change, the imperative to decrease greenhouse gas emissions, and the pursuit of energy security. Governments worldwide have enacted regulations and policies to encourage biofuel adoption, contributing to market growth. Biofuels, derived from renewable sources such as plants, algae, and organic waste, are used to power various vehicles, including automobiles, heavy-duty trucks, ships, and aircraft. These alternative fuels offer improved fuel efficiency, reduced carbon emissions, and contribute to a low-carbon economy and circular economy. Biofuel production processes include the conversion of waste biomass into bioethanol, biodiesel, renewable diesel, biojet fuel, and other advanced biofuels.

The industrial sector and agricultural sector are significant con

The biofuels production market in Latin America was valued at close to 28 billion U.S. dollars in 2023 and is expected to be worth more than 30 billion U.S. dollars by 2025. More information on the biofuels production market can be found here.

In Brazil Algae-based Biofuels Market is projected to grow from USD 0.9 billion in 2025 to USD 4.8 billion by 2031, at a CAGR of 32.1%

In 2024, the Brazilian biodiesel market decreased by -4.9% to $7.2B, falling for the second consecutive year after nine years of growth. Overall, consumption enjoyed resilient growth. Over the period under review, the market reached the maximum level at $8.6B in 2022; however, from 2023 to 2024, consumption stood at a somewhat lower figure.

Brazil Ethanol Production data was reported at 27,254,441.000 l th in 2017. This records a decrease from the previous number of 30,232,435.000 l th for 2016. Brazil Ethanol Production data is updated yearly, averaging 12,751,811.000 l th from Aug 1981 (Median) to 2017, with 37 observations. The data reached an all-time high of 30,232,435.000 l th in 2016 and a record low of 3,706,375.000 l th in 1981. Brazil Ethanol Production data remains active status in CEIC and is reported by Sugarcane Industry Producers Union. The data is categorized under Brazil Premium Database’s Biofuel Sector – Table BR.RZB007: Biofuel Production: Ethanol.

The United States was the leading biofuel producer in the world in 2024, with production amounting to 1,917 petajoules. Brazil and Indonesia ranked second and third, with figures at roughly 1,143 and 459 petajoules, respectively. By comparison, Germany's biofuel production reached around 149 petajoules that year, placing the country amongst the top five countries in biofuel production, and the leading producer in Europe. Biofuel production in the U.S. Biofuels are characterized by fuels that obtain their energy through the process of biological carbon fixation. These hydrocarbons are made by or from living organisms in a relatively short period of time - in comparison to the formation of fossil fuels which requires millions of years. The United States is by far the largest producer of biofuel in the world, accounting for nearly 38.8 percent of global biofuel production in 2023. The country is a major producer of biodiesel, with that year's production amounting to 1.7 billion gallons. Global biofuel production has gradually increased from 180 thousand barrels of oil equivalent per day in 2000 to nearly one million barrels of oil equivalent per day in 2023. Biofuels are commonly used as part of mixtures with fossil fuel sources or as additives. One of the largest consumers of biofuels in the U.S. is the national army. Many vehicles can be fueled using blends containing up to 10 percent ethanol. In the beginning of the 20th century, many Ford T models were fueled with ethanol. Biofuels can also be generated through the consumption or conversion of biomass material. This conversion can occur thermally, chemically, or biochemically. Biomass consumption in the United States totaled 4,975 trillion British thermal units in 2023.

In Brazil, the share of biofuels in the transportation fuel demand was ** percent in 2023. That same year, the total transportation fuel demand in Brazil amounted to *** billion liters. Brazil is the second-largest country in terms of biofuel consumption.

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Lignocellulosic Feedstock-Based Biofuel Market Size 2024-2028

The lignocellulosic feedstock-based biofuel market size is forecast to increase by USD 33.65 billion, at a CAGR of 50.35% between 2023 and 2028.

The market is driven by the increasing ethanol blending rate targets, which necessitate the exploration of alternative feedstocks beyond traditional corn and sugarcane. However, the market faces significant challenges. The non-cropland affecting nature of lignocellulosic feedstock, which includes agricultural residues and energy crops, poses a challenge in terms of availability and sustainability. Additionally, the complex and costly conversion process for lignocellulosic biomass into biofuels remains a significant hurdle.
Companies seeking to capitalize on this market must navigate these challenges by focusing on innovation in feedstock sourcing and conversion technologies. Success in this market requires a strategic approach to supply chain management and cost optimization, ensuring a sustainable and cost-effective production process.

What will be the Size of the Lignocellulosic Feedstock-Based Biofuel Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2018-2022 and forecasts 2024-2028 - in the full report.
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The market continues to evolve, driven by advancements in enzymatic hydrolysis and separation technologies. Agricultural residues, such as sugarcane bagasse and corn stover, are increasingly utilized as feedstocks due to their availability and fuel efficiency. However, scale-up challenges persist, necessitating supply chain optimization and improved feedstock logistics. Energy crops and anaerobic digestion offer alternative sources of lignocellulosic biomass, while waste management initiatives provide a sustainable solution for reducing carbon footprint. Investment incentives and sustainability metrics play a crucial role in ensuring economic viability, as process optimization and the reduction of water usage become key priorities. Food waste and government subsidies also contribute to the market's dynamism, with the potential to significantly increase biomass yield.

Policy regulations and market penetration strategies continue to shape the industry, with a focus on commercialization of cellulosic ethanol and the exploration of new conversion technologies, such as acid hydrolysis and thermal pretreatment. The ongoing quest for higher conversion efficiency and lower carbon footprint drives innovation in the sector, with a growing emphasis on life cycle assessment and greenhouse gas emissions reduction. Storage and transportation solutions are also essential for ensuring the competitiveness of lignocellulosic biofuels in the marketplace. Market players continue to explore commercialization strategies, with wood chips and municipal solid waste emerging as promising feedstocks. The integration of advanced technologies, such as mechanical pretreatment and process optimization, is essential for addressing the complexities of lignocellulosic biomass conversion and ensuring long-term market growth.

How is this Lignocellulosic Feedstock-Based Biofuel Industry segmented?

The lignocellulosic feedstock-based biofuel industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Conversion Process

  Biochemical
  Thermochemical


Application

  Automotive
  Aviation
  Others


Geography

  North America

    US
    Canada


  Europe

    Germany


  APAC

    China


  South America

    Brazil


  Rest of World (ROW)

By Conversion Process Insights

The biochemical segment is estimated to witness significant growth during the forecast period.

The market is witnessing significant growth due to the increasing focus on sustainable energy sources and the availability of abundant agricultural residues and energy crops. The biochemical segment dominates this market, driven by the emphasis on research and development in the conversion process. This process involves three primary steps: pretreatment of feedstocks, enzymatic hydrolysis, and fermentation, followed by the recovery of end-products. Feedstocks undergo physical or chemical pretreatment to disrupt their fibrous structure, allowing for the separation of hemicelluloses from lignin and cellulose chains. Enzymatic hydrolysis then breaks down the cellulose into simple sugars, which are fermented into biofuels. Scale-up challenges persist due to the complex nature of the conversion process and the need for efficient separation technologies.

Supply chain optimization is crucial for economic viability, with feedstock logistics and water usage being key considerations. Sugarcane bagasse and corn stover are common feedst

Historically, ethanol production in Brazil used nearly exclusively sugar cane as feedstock. In crop year 2018/19, for example, more than ** billion liters were produced in the country using this crop. Nonetheless, corn (which is the main feedstock used in the U.S.) has been slowly gaining space in the Brazilian market. In the 2021/22 crop year, fuel ethanol production from corn was forecast to reach *** billion liters, more than four times the volume reported three years earlier. Brazil is the second largest fuel ethanol producer worldwide, ranking only behind the U.S.

The United States is the leading producer of fuel ethanol in the world. In 2024, the U.S. produced an estimated 16.1 billion gallons of the biofuel. The U.S. is also the overall leading biofuel producer in the world. Ethanol is a grain alcohol that can be blended with gasoline and used in regular motor vehicles at a concentration of up to ten percent. Brazil is the world's second-largest producing country, with an output of 8.8 billion gallons that same year. Brazil – the leading biofuel market The most common ethanol fuel production type in Brazil is hydrous ethanol, which is the highest concentration grade of ethanol achieved through distillation. Brazil is one of the largest markets for biofuels worldwide, with specifically designed flexible-fuel vehicles available that run on fuels with a greater ethanol content than regular motor vehicles. As a result, the adoption rate of fuel ethanol has been a lot higher compared with other countries, with flexible-fuel vehicles being the most common type of light vehicles across Brazil. Largest ethanol refiners in the U.S. Poet Biorefining is the largest U.S. ethanol producer by capacity. As of 2024, the South Dakota-based biofuel refiner had an annual production capacity of 2.7 billion gallons. The company was founded in 1986 and boasts over thirty locations largely across the U.S. Midwest.

Sustainable Development goals set out at the United Nations with broad support include targets relating to food security, energy access, and the environment. Some national policies have turned to renewable fuels to achieve energy and environmental goals, with biofuel use mandates applied in countries that account for significant market shares. However, the context in which the development goals were set and these biofuel policies put in place might differ from current and future conditions. The scope for biofuel expansion might be restrained by technical limits on blending rates, slower future growth in transportation energy demand after the pandemic, and the interactions with feedstock and other agricultural commodity markets, which could take different forms given larger biofuel volumes and other changes. Considering the expected policies and broader context, this study provides a 10-year outlook for biofuel use, production, feedstock demands, and other related variables with a primary focus on the United States and Brazil. We find scope for increasing biofuel use in both countries, particularly for biomass-based diesel, in the projection period and growing displacement of petroleum product-related greenhouse gas emissions, which is consistent with sustainable development goal seven.

The advanced biofuels market will see outlandish growth during the period 2025 to 2035 with government policies being the driving force towards technological advancements. The market of 2024 was far in excess of USD 19.4 billion and, being calculated in value terms, can grow with the said 8.6% compound annual rate to cover the period under forecast.

Metric	Value
Market Size in 2025	USD 20.1 Billion
Projected Market Size in 2035	USD 45.8 Billion
CAGR (2025 to 2035)	8.6%

Country-wise outlook

Country	CAGR (2025 to 2035)
USA	8.0%

Country	CAGR (2025 to 2035)
Germany	8.6%

Country	CAGR (2025 to 2035)
Brazil	8.6%

Country	CAGR (2025 to 2035)
China	8.2%

Country	CAGR (2025 to 2035)
India	8.4%

Country	CAGR (2025 to 2035)
Canada	8.3%

Country	CAGR (2025 to 2035)
Japan	8.3%

Country	CAGR (2025 to 2035)
South Korea	8.5%

The dominance of certain regions underpins the Brazilian FFV market. The state of São Paulo (and the Southeast region broadly) leads adoption because it is a major hub for sugarcane ethanol production, has dense fueling infrastructure (many E100/ethanol pumps), favorable state tax regimes, and strong OEM presence. In addition, cities like Brasília, Rio de Janeiro, and Minas Gerais benefit from proximity to biofuel logistic corridors, enabling more competitive ethanol availability. The Brazil flex fuel vehicle market is valued at USD 18.67 billion in 2024. This valuation reflects the scale of vehicles, components, and supporting infrastructure dedicated to FFVs, driven by Brazil’s deep ethanol industry, mature biofuel policies, and consumer preference for fuel cost flexibility. Brazil Flex Fuel Vehicle Market Overview and Size