Biofuel from Sugar Crops Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Biofuel from Sugar Crops Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The biofuel from sugar crops market is expected to grow at a CAGR of over 4% during the forecast period of 2020 – 2025. Factors such as rising environmental concerns over greenhouse gases emissions from conventional fuels, and superior economic prospects over conventional fuels are expected to be major drivers driving the market. The rising demand for clean energy over concerns of environmental impact of energy generation from conventional sources such as coal and natural gas, is expected to help grow the biofuel from sugar crops market. However, lack of infrastructure, general lack of awareness on benefits of biofuels, and lack of biofuel producing crops in different countries have somewhat hampered the growth of the market.

Key Highlights

• Automotive sector is expected to dominate the biofuel from sugar crops market in forecast period, owing to various factors such as favorable government policies on biofuel compatible vehicles due to rising concerns over greenhouse gases emissions.
• Countries such as India, have a huge production of sugarcane, which is the most used primary source for biofuels from sugar crops. With the country's rising energy need and concerns over pollution from energy production from conventional sources and automobiles, owing to the stated reasons the region have a huge potential for biofuel from sugar crops market.
• South America is expected to dominate the market with majority of the demand coming from the countries such as the Brazil and Argentina, owing to the factors like high production of sugar crops like sugarcane, mandated use of ethanol according to government policies, and economical benefits of biofuel over conventional fuels.

Key Market TrendsAutomotive 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.

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.

Competitive Landscape

The biofuel from sugar crops market is consolidated with big players holding major part of the market. Some of the major companies are Royal Dutch Shell Plc, Wilmar International Limited, BP Plc, CropEnergies AG, Greenfield Global, Inc. among others.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

BP Plc
Royal Dutch Shell Plc
Wilmar International Limited
GranBio LLC
CropEnergies AG
Bunge Limited
Greenfield Global, Inc.
AURORA COOPERATIVE, INC.

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