Brazilian Biodiesel Industry Expected to Grow Nearly 27% by 2024

In 2024, the GDP of the soybean and biodiesel chain could fall by 5.77%, totaling R$521.3 billion. After 22 years of strong growth of 2,023%, this drop is related to the poor soybean harvest and its negative impact on agribusiness services.

This was emphasized in a survey conducted by Esalq/USP’s Cepea (Center of Excellence in Applied Economics) in collaboration with the Brazilian Association of Vegetable Oil Industries (Abiove), based on data through the second quarter of the year.

The data also shows that the expected good performance of the industry should mitigate the decline in GDP of the production chain, especially in the biodiesel sector, which is set to grow by 26.92%.

Despite the decline, the GDP of the soy and biodiesel chains in 2024 should still be significantly higher than pre-epidemic levels and should account for 20.8% of the country’s agribusiness GDP and 4.5% of the Brazilian economy as a whole.