
Study Period | 2020 - 2030 |
Base Year For Estimation | 2024 |
Forecast Data Period | 2025 - 2030 |
Market Volume (2025) | 48.16 Million cubic meters |
Market Volume (2030) | 57.18 Million cubic meters |
CAGR | 3.49 % |
Market Concentration | Medium |
Major Players![]() *Disclaimer: Major Players sorted in no particular order |
Brazil Biofuel Market Analysis
The Brazil Biofuel Market size is estimated at 48.16 million cubic meters in 2025, and is expected to reach 57.18 million cubic meters by 2030, at a CAGR of 3.49% during the forecast period (2025-2030).
Brazil's biofuel industry continues to demonstrate robust advancement in diversifying its energy portfolio and strengthening its position as a global leader in renewable fuels. According to the International Energy Agency (IEA), biofuels represented 25% of transport fuels in Brazil as of 2022, significantly higher than in other countries worldwide. The industry's infrastructure has expanded considerably, with 57 authorized biodiesel production plants operational across the country. This extensive network of production facilities has enabled Brazil to maintain its position as the second-largest producer of biofuels globally, next to the United States, showcasing the country's commitment to sustainable energy solutions.
The industry is witnessing a significant shift in feedstock utilization and production methods, particularly in the ethanol sector. Corn-based ethanol production has gained substantial momentum, reaching 4.5 billion liters in 2022, marking a significant increase in alternative fuel feedstock usage. This diversification strategy has helped reduce dependence on traditional sugarcane-based production, creating a more resilient supply chain. The trend toward feedstock diversification is further supported by technological advancements in processing capabilities and improved yield efficiencies.
The integration of biofuels into Brazil's broader energy matrix has shown remarkable progress, particularly in the power generation sector. According to the Operador Nacional do Sistema Elétrico, approximately 85% of electricity came from renewable sources in 2022, with biomass contributing significantly to this mix. This integration demonstrates the versatility of biofuels beyond transportation applications and highlights their role in Brazil's comprehensive energy strategy. The industry is also witnessing increased collaboration between domestic and international stakeholders, as evidenced by the January 2023 launch of the Virtual Center of Excellence by the Brazilian Sugarcane Industry Association (UNICA) and the Society of Indian Automobile Manufacturers (SIAM).
The market is experiencing a notable shift toward advanced biofuel technologies and research initiatives. In January 2023, a significant partnership between Equinor and the Brazilian Center for Research in Energy and Materials (CNPEM) was established to develop bio hydrocarbons and drop-in biofuels from agroforestry residues. This collaboration, with an investment of approximately BRL 8.5 million, represents the industry's movement toward more sophisticated and sustainable production methods. The development of advanced biofuels, including sustainable aviation fuel (SAF) and green diesel, is opening new market opportunities and positioning Brazil as a pioneer in next-generation biofuel technologies.
Brazil Biofuel Market Trends
SUPPORTIVE GOVERNMENT POLICIES AND INVESTMENTS FOR THE PRODUCTION OF BIOFUEL
Brazil has implemented comprehensive policy frameworks and incentive programs to stimulate biodiesel and bioethanol production and consumption, positioning itself as a global leader in renewable transportation fuel. The National Biofuels Policy (RenovaBio), signed into law in December 2017, remains a cornerstone initiative that promotes the expansion of biofuel production while supporting Brazil's commitments under the Paris Agreement. As of January 2023, the country maintains one of the highest biofuel blend mandates globally, with a 27% bioethanol requirement for gasoline and a 10% biodiesel blend mandate, demonstrating the government's strong commitment to green fuel adoption. The RenovaBio policy has also introduced an innovative carbon credit system called CBIO (Biofuel Decarbonization Credit), where each credit represents one metric ton of carbon dioxide equivalent not released into the atmosphere, creating a market-driven incentive for producers to increase production while reducing emissions.
The supportive policy environment has attracted significant investments in Brazil's biofuel sector, particularly in advanced production facilities. In 2023, Brazil BioFuels (BBF) announced plans to invest BRL 2.2 billion (USD 410 million) in a biorefinery in Manaus, Amazonas state, which will produce renewable diesel and sustainable aviation fuel with a capacity of 500 million liters annually. Additionally, major developments include ICM and Agribrasil's agreement to develop a greenfield dry-mill grain ethanol production facility in Mato Grosso, designed to produce over 260 million liters of anhydrous ethanol yearly. The Brazilian government has further strengthened its commitment through the Brazilian Biodiesel Production and Use Program (PNPB), which focuses on promoting social inclusion of family farmers while expanding biodiesel production capacity. These coordinated policy efforts and investments have helped establish Brazil as the world's second-largest producer of biofuels, with a robust infrastructure supporting both production and distribution.
Segment Analysis: Type
Ethanol Segment in Brazil Biofuel Market
Ethanol continues to dominate the Brazil biofuel market, holding approximately 82% market share in 2024. This significant market position is primarily driven by Brazil's extensive sugarcane-based bioethanol production infrastructure and the country's well-established flex-fuel vehicle ecosystem. The segment's strength is further reinforced by government policies supporting ethanol blending, with the current mandate requiring 27% ethanol content in gasoline. Brazil's ethanol production capabilities are substantial, with major producers like Raizen SA, BP Bunge Bioenergia, and Atvos Agroindustrial operating multiple production facilities across the country. The segment has also seen diversification in feedstock, with corn-based bioethanol production gaining prominence, particularly in the Center-West region of Brazil.

Biodiesel Segment in Brazil Biofuel Market
The biodiesel segment is experiencing robust growth in the Brazil biofuel market, driven by increasing demand from the heavy-duty vehicle sector and supportive government policies. The segment's expansion is supported by significant investments in production capacity, with companies like Brasil BioFuels and BSBIOS expanding their operations. The government's commitment to reducing greenhouse gas emissions and promoting sustainable transportation fuels has created a favorable environment for biodiesel growth. The segment has also benefited from technological advancements in production processes and the development of new feedstock sources, particularly in the use of palm oil and other vegetable oils. The increasing focus on sustainable aviation fuel (SAF) and renewable diesel is expected to further drive growth in this segment.
Remaining Segments in Brazil Biofuel Market
The other types segment in the Brazil biofuel market includes emerging alternatives such as hydrogenation-derived renewable diesel (HDRD) and second-generation ethanol (E2G). These advanced biofuels represent the next wave of innovation in the market, offering improved environmental performance and expanded feedstock options. The segment is gaining traction through investments in research and development, particularly in cellulosic biofuel production from agricultural waste and lignocellulosic biomass. Companies like Raizen are actively developing second-generation ethanol facilities, while others are exploring new technologies for sustainable aviation fuel production, indicating the growing importance of these alternative biofuels in Brazil's energy transition strategy.
Segment Analysis: Feedstock
Sugar Crop Segment in Brazil Biofuel Market
The Sugar Crop, primarily sugarcane, dominates the Brazil biofuel market with approximately 75% market share in 2024, establishing itself as the cornerstone of the country's biofuel production. This dominance is particularly evident in the ethanol sector, where sugarcane-based production demonstrates superior environmental benefits, generating approximately 89% fewer greenhouse gas emissions compared to conventional gasoline. The segment's strength is further reinforced by Brazil's extensive sugarcane cultivation infrastructure and the versatility of sugarcane as a feedstock, enabling the production of various types of ethanol including anhydrous ethanol for fuel blending and hydrous ethanol for direct vehicle use. The segment's robust position is supported by 319 sugarcane ethanol production units certified under the RenovaBio program, highlighting the mature and well-established nature of sugarcane-based biofuel production in Brazil.
Coarse Grain Segment in Brazil Biofuel Market
The Coarse Grain segment, primarily driven by corn-based ethanol production, is experiencing the most rapid growth in the Brazil biofuel market for the period 2024-2029. This remarkable growth trajectory is supported by significant investments in corn ethanol production facilities, particularly in Brazil's Center-West region. The segment's expansion is further bolstered by the presence of 18 corn ethanol plants with a combined capacity of 5,000 liters of ethanol production per annum, including both corn-only plants and flex plants capable of producing ethanol from both sugarcane and corn. The growth is particularly notable in states like Mato Grosso, Goias, and Mato Grosso do Sul, where favorable conditions for corn cultivation and strategic infrastructure development support the segment's expansion.
Remaining Segments in Feedstock Market
The remaining segments in Brazil's biofuel feedstock market include Vegetable Oil and Other Feedstocks, each playing distinct roles in the country's biofuel production landscape. The Vegetable Oil segment, dominated by soybean oil, is crucial for biodiesel production and benefits from Brazil's position as a major global soybean producer. The Other Feedstocks segment encompasses various sources including animal fats, used cooking oil, and emerging feedstocks like Jatropha and castor oil, contributing to the diversification of Brazil's biofuel feedstock portfolio. These segments are particularly important for meeting specific market needs and supporting Brazil's commitment to sustainable and diverse liquid biofuel production methods.
Brazil Biofuel Industry Overview
Top Companies in Brazil Biofuel Market
The Brazil biofuel market is characterized by significant product innovation and operational advancement among key players like Raizen SA, BP Bunge Bioenergia, Atvos, Brasil BioFuels, and BSBios. Companies are increasingly focusing on developing second-generation biofuels and sustainable aviation fuels, demonstrating a strong commitment to technological advancement. Strategic partnerships with automotive manufacturers and international energy companies have become commonplace, enabling enhanced production capabilities and market reach. Operational agility is evident through the establishment of flexible production facilities capable of processing multiple feedstock types, while expansion strategies primarily revolve around constructing new plants and modernizing existing facilities. The industry has witnessed substantial investments in supply chain optimization, particularly in logistics and storage infrastructure, complemented by digitalization initiatives to improve operational efficiency.
Dynamic Market Structure with Strong Local Players
The Brazilian biofuel market exhibits a unique structure dominated by large domestic conglomerates with significant agricultural holdings, alongside strategic partnerships with global energy majors. Local players maintain a competitive advantage through their established sugarcane operations and extensive distribution networks, while international companies contribute technical expertise and global market access. The market demonstrates moderate consolidation, with major players controlling substantial production capacity, yet maintaining room for specialized producers focusing on specific biofuel segments or regional markets.
The industry has experienced notable merger and acquisition activity, particularly in the integration of agricultural operations with biofuel production facilities. Joint ventures between Brazilian companies and international energy corporations have become increasingly common, fostering technology transfer and market expansion. Strategic alliances focus on combining local feedstock access and production capabilities with global distribution networks and advanced processing technologies. This collaborative approach has resulted in a market structure that balances domestic expertise with international best practices, while maintaining strong local ownership and control.
Innovation and Sustainability Drive Future Success
Success in the Brazilian biofuel market increasingly depends on companies' ability to innovate across the value chain while maintaining strong sustainability credentials. Incumbent players must focus on developing advanced biofuel technologies, particularly in second-generation ethanol and sustainable aviation fuel, while optimizing their existing production processes. Building strong relationships with automotive manufacturers and expanding into new applications beyond traditional transportation fuel markets have become crucial strategies. Companies must also invest in research and development to improve conversion efficiencies and reduce production costs while maintaining compliance with evolving environmental standards.
For emerging players and market contenders, success lies in identifying and exploiting niche market segments while building strategic partnerships for feedstock security and distribution. The ability to navigate regulatory requirements, particularly regarding carbon credits and sustainability certifications, will be crucial for market participation. Companies must also consider vertical integration opportunities to secure feedstock supply and optimize production costs. The increasing focus on environmental sustainability and carbon reduction in transportation creates opportunities for innovative solutions and new market entrants, while regulatory support through programs like RenovaBio provides a stable framework for market development.
Brazil Biofuel Market Leaders
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Brasil Bio fuels
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BP Bunge Bioenergia SA
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Atvos Agroindustrial Investimentos S/A
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Raizen S.A.
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Humberg Agribrasil Comercio e Exportacao de Graos SA
- *Disclaimer: Major Players sorted in no particular order

Brazil Biofuel Market News
- 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.
Brazil Biofuel Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Scope of the Study
- 1.2 Study Assumptions and Market Definition
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
- 4.1 Introduction
- 4.2 Biofuel Production Forecast in Million Cubic Meters, till 2028
- 4.3 Recent Trends and Developments
- 4.4 Government Policies and Regulations
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4.5 Market Dynamics
- 4.5.1 Drivers
- 4.5.2 Restraints
- 4.6 Supply Chain Analysis
- 4.7 PESTLE Analysis
5. MARKET SEGMENTATION
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5.1 Type
- 5.1.1 Biodiesel
- 5.1.2 Ethanol
- 5.1.3 Other Types
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5.2 Feedstock (Qualitative Analysis Only)
- 5.2.1 Coarse Grain
- 5.2.2 Sugar Crop
- 5.2.3 Vegetable Oil
- 5.2.4 Other Feedstocks
6. COMPETITIVE LANDSCAPE
- 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Strategies Adopted by Leading Players
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6.3 Company Profiles
- 6.3.1 Humberg Agribrasil Comercio e Exportacao de Graos SA
- 6.3.2 Brasil Bio Fuels
- 6.3.3 BP Bunge Bioenergia SA
- 6.3.4 Atvos Agroindustrial Investimentos SA
- 6.3.5 Raizen SA
- 6.3.6 Abengoa Bioenergia Brasil SA
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Brazil Biofuel Industry Segmentation
Biofuels like ethanol and biodiesel are transportation fuels derived from agriculture, forestry, and other organic feedstock. Biofuels are either used on their own, in neat-ethanol engines or blended with conventional fuel in different percentages, which can be used in conventional engines without any modifications.
The Brazil biofuel market is segmented by type and feedstock. By type, the market is segmented into biodiesel, ethanol, and other types. By feedstock, the market is segmented into coarse grain, sugar crop, vegetable oil, and other feedstocks. For each segment, the production forecasts have been done based on million cubic meters (MCM).
Type | Biodiesel |
Ethanol | |
Other Types | |
Feedstock (Qualitative Analysis Only) | Coarse Grain |
Sugar Crop | |
Vegetable Oil | |
Other Feedstocks |
Brazil Biofuel Market Research FAQs
How big is the Brazil Biofuel Market?
The Brazil Biofuel Market size is expected to reach 48.16 million cubic meters in 2025 and grow at a CAGR of 3.49% to reach 57.18 million cubic meters by 2030.
What is the current Brazil Biofuel Market size?
In 2025, the Brazil Biofuel Market size is expected to reach 48.16 million cubic meters.
Who are the key players in Brazil Biofuel Market?
Brasil Bio fuels, BP Bunge Bioenergia SA, Atvos Agroindustrial Investimentos S/A, Raizen S.A. and Humberg Agribrasil Comercio e Exportacao de Graos SA are the major companies operating in the Brazil Biofuel Market.
What years does this Brazil Biofuel Market cover, and what was the market size in 2024?
In 2024, the Brazil Biofuel Market size was estimated at 46.48 million cubic meters. The report covers the Brazil Biofuel Market historical market size for years: 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Brazil Biofuel Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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Brazil Biofuel Market Research
Mordor Intelligence provides a comprehensive analysis of the Brazil biofuel industry, utilizing our extensive expertise in renewable energy research. Our detailed report examines the full range of fuel technologies, including biodiesel, bioethanol, and biogas production systems. The analysis covers emerging trends in the development of sustainable aviation fuel, innovations in alternative fuel, and the increasing significance of biomethane in Brazil's energy matrix. From traditional biomass fuel applications to advanced algae biofuel research, our report offers detailed insights into both established and emerging technologies.
Stakeholders gain valuable intelligence on various segments, such as liquid biofuel, solid biofuel, and gaseous biofuel markets. The report, available as an easy-to-download PDF, explores developments in renewable diesel technology, cellulosic biofuel production, and advanced biofuel systems. Our analysis encompasses the entire value chain, from sourcing organic fuel to manufacturing synthetic biofuel, while examining the potential of renewable transportation fuel solutions. The comprehensive coverage includes detailed assessments of green fuel initiatives and renewable fuel programs, providing stakeholders with actionable insights for strategic decision-making in Brazil's evolving biofuel landscape.