Latin America and the Caribbean: Ethanol Market 2024

Ethanol Market Size in Latin America and the Caribbean

The Latin American ethanol market stood at $X in 2022, remaining stable against the previous year. The market value increased at an average annual rate of +4.0% over the period from 2012 to 2022; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years. The most prominent rate of growth was recorded in 2020 when the market value increased by 8.8% against the previous year. As a result, consumption reached the peak level of $X. From 2021 to 2022, the growth of the market remained at a lower figure.

Ethanol Production in Latin America and the Caribbean

In value terms, ethanol production stood at $X in 2022 estimated in export price. The total output value increased at an average annual rate of +2.5% from 2012 to 2022; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years. The growth pace was the most rapid in 2018 when the production volume increased by 8.5% against the previous year. The level of production peaked at $X in 2020; however, from 2021 to 2022, production remained at a lower figure.

Ethanol Exports

Exports in Latin America and the Caribbean

In 2022, the amount of ethyl alcohol exported in Latin America and the Caribbean skyrocketed to X litres, with an increase of 21% against the previous year's figure. Over the period under review, exports, however, showed a slight curtailment. The most prominent rate of growth was recorded in 2020 with an increase of 26%. Over the period under review, the exports attained the maximum at X litres in 2012; however, from 2013 to 2022, the exports stood at a somewhat lower figure.

In value terms, ethanol exports surged to $X in 2022. In general, exports, however, saw a slight decrease. The level of export peaked at $X in 2012; however, from 2013 to 2022, the exports remained at a lower figure.

Exports by Country

Brazil prevails in exports structure, accounting for X litres, which was near 75% of total exports in 2022. Guatemala (X litres) took the second position in the ranking, followed by Paraguay (X litres) and Peru (X litres). All these countries together held near 18% share of total exports. Bolivia (X litres) took a minor share of total exports.

From 2012 to 2022, average annual rates of growth with regard to ethanol exports from Brazil stood at -2.2%. At the same time, Paraguay (+38.3%), Peru (+2.5%), Bolivia (+2.4%) and Guatemala (+1.6%) displayed positive paces of growth. Moreover, Paraguay emerged as the fastest-growing exporter exported in Latin America and the Caribbean, with a CAGR of +38.3% from 2012-2022. From 2012 to 2022, the share of Paraguay, Guatemala and Peru increased by +6, +2.1 and +1.7 percentage points, respectively. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, Brazil ($X) remains the largest ethanol supplier in Latin America and the Caribbean, comprising 74% of total exports. The second position in the ranking was held by Guatemala ($X), with a 7.7% share of total exports. It was followed by Paraguay, with a 6.1% share.

In Brazil, ethanol exports decreased by an average annual rate of -2.1% over the period from 2012-2022. The remaining exporting countries recorded the following average annual rates of exports growth: Guatemala (+2.0% per year) and Paraguay (+40.6% per year).

Export Prices by Country

In 2022, the export price in Latin America and the Caribbean amounted to $X per litre, picking up by 26% against the previous year. In general, the export price recorded a relatively flat trend pattern. As a result, the export price reached the peak level and is likely to continue growth in the immediate term.

Average prices varied noticeably amongst the major exporting countries. In 2022, major exporting countries recorded the following prices: in Guatemala ($X per litre) and Paraguay ($X per litre), while Bolivia ($X per litre) and Peru ($X per litre) were amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Bolivia (+1.9%), while the other leaders experienced more modest paces of growth.

Ethanol Imports

Imports in Latin America and the Caribbean

In 2022, purchases abroad of ethyl alcohol was finally on the rise to reach X litres for the first time since 2018, thus ending a three-year declining trend. In general, imports, however, continue to indicate a noticeable reduction. The growth pace was the most rapid in 2017 when imports increased by 73%. Over the period under review, imports reached the peak figure at X litres in 2018; however, from 2019 to 2022, imports stood at a somewhat lower figure.

In value terms, ethanol imports amounted to $X in 2022. Overall, imports, however, recorded a pronounced downturn. The pace of growth was the most pronounced in 2017 with an increase of 65% against the previous year. The level of import peaked at $X in 2012; however, from 2013 to 2022, imports failed to regain momentum.

Imports by Country

In 2022, Colombia (X litres), Peru (X litres) and Brazil (X litres) was the major importer of ethyl alcohol in Latin America and the Caribbean, making up 77% of total import. It was distantly followed by Jamaica (X litres), making up a 7.5% share of total imports. Mexico (X litres), Chile (X litres) and Panama (X litres) took a little share of total imports.

From 2012 to 2022, the biggest increases were recorded for Panama (with a CAGR of +68.3%), while purchases for the other leaders experienced more modest paces of growth.

In value terms, Brazil ($X), Mexico ($X) and Colombia ($X) constituted the countries with the highest levels of imports in 2022, with a combined 64% share of total imports. These countries were followed by Peru, Jamaica, Chile and Panama, which together accounted for a further 28%.

Panama, with a CAGR of +55.7%, recorded the highest growth rate of the value of imports, among the main importing countries over the period under review, while purchases for the other leaders experienced more modest paces of growth.

Import Prices by Country

In 2022, the import price in Latin America and the Caribbean amounted to $X per litre, rising by 2.6% against the previous year. Over the period under review, the import price, however, saw a mild decline. The pace of growth was the most pronounced in 2021 when the import price increased by 20%. Over the period under review, import prices hit record highs at $X per litre in 2013; however, from 2014 to 2022, import prices stood at a somewhat lower figure.

There were significant differences in the average prices amongst the major importing countries. In 2022, amid the top importers, the country with the highest price was Mexico ($X per litre), while Peru ($X per litre) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Mexico (+12.9%), while the other leaders experienced mixed trends in the import price figures.

Source: IndexBox Platform

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