The biofuels market in Latin America has recently experienced developments in legislation, market movements, industry knowledge, and internal discussions, making it imperative for the stakeholders to have a strategic approach toward biofuels and understand the key dynamics and factors influencing this market.
New analysis from Frost & Sullivan (chemicals.frost.com), Strategic Opportunities for Biofuels in Latin America, finds that biofuels is a 'hot' topic in Latin America with market participants strongly pursuing growth strategies to leverage this market. This study covers the market for bioethanol and biodiesel, offering details on current legislation, opportunities, emerging trends, best practices adopted by the industry, and an assessment of the impact of the economic downturn.
If you are interested in a virtual brochure, which provides a brief synopsis of the research and a table of contents, then send an email to Catalina Rossini, Corporate Communications, at catalina.rossini[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country. Upon receipt of the above information, a brochure will be sent to you by email.
"Capacity expansion, vertical integration, strategic sourcing, and bioenergy co-generation are some of the diverse growth strategies being implemented by the market participants to overcome the impact of the economic downturn," says Frost & Sullivan Research Analyst Alessandra Lancellotti. "Industry participants understand that only the integrated and large-scale companies are likely to survive the current economic climate."
Energy co-generation is considered the most applied growth strategy currently, with primarily new production units investing in this technology to diversify their range of products and boost revenues. Market participants can also work on creating alternative renewable energy sources to meet the persistent demand for energy.
The biggest fallout of the economic slump has been the lack of credit, which is reducing investments in biodiesel as well as bioethanol. Additionally, the decline in oil prices makes uncertain the viability of biodiesel as a cost-effective fuel. In Brazil, some mills were constrained to withdraw expansion projects for an undetermined period due to debits. Several mills also laid off employees that are likely to be cost burdens when the harvest period begins, and therefore, the companies will have to contract and train workers again.
"2009 is expected to be a difficult year for this sector, with investments anticipated to be 40.0 percent lower than in 2008," explains Lancellotti. "Producers are also likely to trim down investments in raw material improvement."
Owing to the economic decline, biodiesel producers with expansion capacity projects on stand-by are spending part of their budgets in minor but important aspects that continue to be bottlenecks for the biodiesel industry. For instance, internal research adds value to by-products, infrastructure, and logistics development.
"Despite the turbulent conditions, bioethanol participants are investing in market consolidation through mergers and acquisitions and anticipate profitability in the medium term," concludes Lancellotti.
Strategic Opportunities for Biofuels in Latin America is part of the Chemicals & Materials Growth Partnership Service program, which also includes research in the following markets: Latin American Engineering Plastics Market, Mexican Paints and Coatings Market, Brazilian Paints and Coatings Market, Brazilian Market for Food Emulsifiers, Argentinean Fertilizers Market, and Latin America Biofuel Technology Providers. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.
Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best in class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 35 offices on six continents.
Strategic Opportunities for Biofuels in Latin America / N5CC