Market Trends of Biofuel from Sugar Crops Industry
This section covers the major market trends shaping the Biofuel from Sugar Crops Market according to our research experts:
Automotive Sector to Dominate the Market
- With up to 70% less emissions from automobiles, compared to conventional fuel automobiles, the market for biofuel in automotive sector is expected to grow rapidly in the forecast period, owing to growing consumer demand for greener vehicles, and favorable government policies.
- Reduced taxes on biofuel-based vehicles in countries such as Brazil and the USA have led to a rapid increase in sales and have paved a growing path for biofuel from sugar crops in automotive sector.
- Varying mandates by different governments on blended fossil fuels is considered to be the major driving factor for biofuel from sugar crops market. There have been an increasing number of countries mandating blended fuels in recent years, this trend is expected to grow in forecast period. As of January 2018, EU, 14 countries in Americas, 12 in Asia-Pacific, 11 countries in Africa and Indian Ocean, and 2 Non-EU countries have mandates or targets in place or under consideration.
- Therefore, the aforementioned factors, are expected to drive the market in forecast period, similar to the trend witnessed in recent years.
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South America to Dominate the Market
- South America has dominated the biofuel from sugar crops market in 2018 and is expected to continue its dominance in the coming years as well. The region has seen an unprecedented increase during the past few years and is expected to increase further during the forecast period.
- Brazil have mandated ethanol blending in fossil gasoline in 2006, As per the last mandate change in 2016, 27% ethanol is blended. This has created a huge demand for ethanol in the country. Also, there are tax benefits in place for automobile buyers, which has further helped the market to grow.
- Brazil produced over 34.45 billion liters of biofuel in 2019, out of which over 32 billion liters was produced from sugarcane, and 1.4 billion liters from corn. Estimated demand of ethanol in 2019 in the country was 33.93 billion liters for fuel and other uses, this is up by 2.19 billion liters from 2018.
- Argentina also have a mandate for 12% ethanol blending which has caused an increase of ethanol demand in the country. Argentina also changed it's tax structure in 2017, imposing carbon tax on fossil fuels and exempting biofuels either pure or in fuel mix.
- Moreover, there has been a constant rise in biofuel-based automobiles in recent years. Also, the drop in prices of blended fuels and rising concerns over greenhouse gases emissions, are expected to be the major driving factors for biofuel from sugar crops market during the forecast period.
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