Market Dynamics:
The Brazil ethanol market is driven by increasing demand for green fuels to replace fossil fuels. Under the RenovaBio program launched in 2017, oil companies are mandated to blend increasing volumes of sugarcane ethanol to at least 27% nationally by 2030, up from roughly 25% currently. Additionally, growing adoption of flex-fuel light vehicles that can operate on any blend of gasoline and ethanol up to 100% ethanol is further boosting market revenues. Around 90% of new light vehicles sold in Brazil are flex-fuel compatible. Moreover, robust sugarcane production in the country facilitated by suitable climate and soils is complementing ethanol demand. However, erratic weather patterns due to climate change pose risks of diminished yields, which could hamper market growth.

Key Takeaways:

The Brazil Ethanol Market Size is expected to witness high growth, exhibiting CAGR of 6.3% over the forecast period, due to increasing preference for cleaner and renewable fuels. Brazil is the largest producer and exporter of ethanol globally, driven by the availability of sugarcane in large quantities.

For More Insights, Read: https://techcatalyst26.weebly.com/blog/brazil-ethanol-market-is-estimated-to-witness-high-growth-owing-to-consolidated-sugar-and-ethanol-industry