Ethyl alcohol market in Brazil

Earlier Report Observations

The Brazilian ethyl alcohol market volume declined from 2.4 billion liters in 2018 to 0.9 billion liters in 2023, despite domestic production rising from 2.3 billion liters to 3.3 billion liters over the same period. This contraction was primarily driven by a sharp, sustained drop in imports—from 1.8 billion liters to just 60 million liters—and a significant increase in exports, which grew from 1.7 billion liters to 2.5 billion liters.

The COVID-19 pandemic in 2020 triggered a surge in demand for ethyl alcohol as a disinfectant, leading to increased production and exports while imports fell. The subsequent recovery of the alcoholic beverages sector in 2021, marked by growth in distilled spirits like gin, supported domestic consumption and contributed to a slight market rebound. Further export growth in 2022 continued to draw supply away from the domestic market, though expansion in the beverage sector helped lift market volume again in 2023. Regulatory measures, such as the temporary authorization for selling 70% liquid alcohol until late 2023, facilitated access to disinfectant products during the pandemic.

Production ethyl alcohol in Brazil

In kind, 2018-2021, M l

From 2018 to 2021, Brazil maintained its position as the world's third-largest producer of ethyl alcohol by volume.

Top producers of ethyl alcohol, 2018-2021

World map of production of ethyl alcohol, 2018-2021

In 2021, Brazil produced 2,674 million liters of ethyl alcohol, marking a 4.8% decrease from the previous year. Over the 2018-2021 period, production grew by 17.1%, with an average annual growth rate of 5.4%. The lowest production level was recorded in 2019 at 2,140 million liters, which saw the largest decline of 6.3%. In contrast, production peaked in 2020 at 2,808 million liters, with the largest increase of 31.3%.

Annual dynamics of production in Brazil in kind, 2018-2021, M l

In value, 2018-2021, M $ US

Brazil's ethyl alcohol production value increased for the second consecutive year. In 2021, output was valued at 1,456 million US dollars, up 16.2% year-over-year. Between 2018 and 2021, production value rose by 20.2%, equivalent to an annualized rate of 6.3%. The lowest value was recorded in 2019 at 1,100 million US dollars, which experienced the largest decline of 9.2%.

Annual dynamics of production in Brazil in value, 2018-2021, M $ US

Exports ethyl alcohol from Brazil

Exports in kind, M l

After two years of growth, Brazil's ethyl alcohol export volume declined. In 2021, exports totaled 1,948 million liters, down 27.0% from 2020. Over the 2018-2021 period, exports increased by 15.7%, with an average annual growth rate of 5.0%. The highest export volume was recorded in 2020 at 2,669 million liters, which saw the largest increase of 37.5%.

Annual dynamics of product's exports from Brazil in kind, 2018-2021, M l

From 2018 to 2021, the United States, South Korea, and the Netherlands remained the top buyers of Brazilian ethyl alcohol by volume. The United States accounted for 43.9% of exports, South Korea for 33.3%, and the Netherlands for 6.1%, together representing 83.3% of total export volume.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from Brazil in kind, 2018-2021

Exports in value, M $ US

Following a two-year uptrend, Brazil's ethyl alcohol export value declined. In 2021, exports amounted to 1,061 million US dollars, a 10.9% decrease from the previous year. Between 2018 and 2021, export value grew by 18.7%, equating to an annualized rate of 5.9%. The peak value was recorded in 2020 at 1,192 million US dollars, which experienced the largest increase of 19.4%.

Annual dynamics of product's exports from Brazil in value, 2018-2021, M $ US

Throughout 2018-2021, the United States, South Korea, and the Netherlands led in the value of Brazilian ethyl alcohol exports. The United States represented 44.4% of export value, South Korea 31.2%, and the Netherlands 6.2%, collectively accounting for 81.9% of total export flows.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from Brazil in value, 2018-2021

Imports ethyl alcohol to Brazil

Imports in kind, M l

Brazil's ethyl alcohol import volume declined for the third consecutive year. In 2021, imports totaled 432 million liters, a sharp drop of 57.1% from the previous year. Between 2018 and 2021, imports decreased by 75.6%, with an annualized decline rate of 37.5%.

Annual dynamics of product's imports to Brazil in kind, 2018-2021, M l

From 2018 to 2021, the United States and Paraguay were the dominant sources for Brazil's ethyl alcohol imports by volume, together accounting for 99.8% of total import flows.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to Brazil in kind, 2018-2021

Imports in value, M $ US

Brazil's ethyl alcohol import value fell for the third year in a row. In 2021, import value reached 241 million US dollars, reflecting a dramatic 47.4% decrease from the previous year. Over the 2018-2021 period, import value dropped by 70.2%, with an average annual decline rate of 33.2%.

Annual dynamics of product's imports to Brazil in value, 2018-2021, M $ US

Throughout 2018-2021, the United States and Paraguay were the key markets for Brazil's ethyl alcohol imports by value. The United States accounted for 88.7% of import flows, and Paraguay for 10.9%, together forming 99.6% of total import value.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to Brazil in value, 2018-2021