Nov 19, 2025

Domestic Market Drives Expansion of Ethanol Sales in Brazil

Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.

The domestic market is emerging as the growth vector for the Brazilian ethanol sector as corn ethanol producers search for new markets. That was the evaluation of the CEO of SCA Brasil, Martinho Seliti Ono, made during a live "Expansion of Corn Ethanol Boosts New Consumption Opportunities in Brazil", broadcast on November 3, 2025 on SCA Brazil's YouTube and LinkedIn channels.

Ono highlighted that 80% of hydrated ethanol sales in Brazil are concentrated in only six states: Sao Paulo, Minas Gerais, Goias, Parana, Mato Grosso, and Mato Grosso do Sul. These states comprise 59% of the flex fuel vehicles in the country. The best opportunity for expansion is in the other 21 states which together, account for 41% of the flex fleet, but ethanol is used in only 10% of those vehicles. The flex fuel fleet already numbers 80% of Brazil's light vehicles, which reinforces the potential to expand the use of renewable fuel.

Any additional sales of ethanol in Brazil will come from the expansion of corn ethanol production. According to a survey by SCA Brasil, between 2005 and 2024 Brazil inaugurated 32 new corn ethanol plants, while the number of sugarcane mills practically remained stable with 141 open and 133 closed. The study also points out that the growth of corn ethanol is expected to double in the coming years, while sugarcane ethanol tends to remain at a stable level.