The Report Covers Biofuels Market Size & Share and It is Segmented by Type (Biodiesel, Ethanol, and Other Types), Feedstock (Palm Oil, Jatropha, Sugar Crop, Coarse Grain, and Other Feedstock), and Geography (North America, Europe, Asia-Pacific, South America, the Middle East, and Africa). The Report Offers Market Size and Forecasts for the Biofuels Market in Volume for all the Above Segments.

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Biofuels Market Size 2025-2029

The biofuels market size is forecast to increase by USD 32.6 billion at a CAGR of 3.8% between 2024 and 2029.

The market is experiencing significant growth due to the increasing adoption of renewable energy sources as a response to reducing greenhouse gas emissions. Key biofuels include those derived from corn, sugarcane, vegetable oil, and biomass. This shift towards sustainable energy solutions is being fueled by both environmental concerns and regulatory mandates. However, market expansion is not without challenges. Fluctuations in oil prices pose a significant threat to the competitiveness of biofuels, as they can impact the cost-effectiveness of production. Additionally, regulatory hurdles impact adoption, particularly in regards to the approval and implementation of new biofuel technologies and standards.
Supply chain inconsistencies, including the availability and cost of raw materials, also temper growth potential. Companies seeking to capitalize on market opportunities must navigate these challenges effectively, focusing on innovation, cost reduction, and regulatory compliance. By doing so, they can position themselves as leaders in the rapidly evolving biofuels landscape.

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The market is experiencing dynamic shifts driven by environmental concerns, regulatory frameworks, and technological advancements. Biofuel environmental impact is a critical factor influencing consumer awareness and public perception. Regulatory environments, such as renewable fuel mandates, shape the market landscape and drive investment opportunities in advanced biofuels like cellulosic ethanol. Biofuel lifecycle analysis and sustainability are key considerations for biofuel certification and consumer acceptance. Sustainable aviation fuel and drop-in fuels are gaining traction due to their reduced carbon footprint and compatibility with existing infrastructure. Biomass conversion and feedstock supply chain are essential components of the biofuel industry, with innovation ecosystems fostering breakthroughs in biofuel technology and biomass utilization.
Biofuel adoption rates are influenced by cost competitiveness and blending ratios, while infrastructure development and industry consolidation shape market penetration. Biofuel standards and certification play a crucial role in ensuring transparency and trust in the market. Social impact assessments and continuous innovation are essential for addressing challenges and seizing opportunities in the evolving biofuels landscape. Biofuels are derived from renewable sources, including plants, algae, and organic waste, and are utilized to fuel various vehicles, such as cars, trucks, ships, and airplanes. The market's expansion is driven by environmental regulations, the need for GHG reductions, and energy security concerns. Key biofuels include ethanol, biodiesel, renewable diesel, hydrogenated oil, biojet, and sustainable aviation fuel. Feedstocks for biofuel production include vegetable oil, molasses, coarse grain, sugar crops, and biomass, among others.

How is this Biofuels Industry segmented?

The biofuels industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Application

  Transportation
  Aviation
  Heating
  Energy generation
  Others


Product

  Ethanol
  Biodiesel


Material

  Starch crops and sugar crops
  Agricultural residues
  Oil crops
  Waste oils and fats
  Algae and non-food crops


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    UK


  APAC

    China
    India
    Indonesia


  South America

    Argentina
    Brazil


  Rest of World (ROW)

By Application Insights

The transportation segment is estimated to witness significant growth during the forecast period.

The transportation market has witnessed substantial expansion in the last decade, fueled by growing concerns over climate change, the imperative to decrease greenhouse gas emissions, and the pursuit of energy security. Governments worldwide have enacted regulations and policies to encourage biofuel adoption, contributing to market growth. Biofuels, derived from renewable sources such as plants, algae, and organic waste, are used to power various vehicles, including automobiles, heavy-duty trucks, ships, and aircraft. These alternative fuels offer improved fuel efficiency, reduced carbon emissions, and contribute to a low-carbon economy and circular economy. Biofuel production processes include the conversion of waste biomass into bioethanol, biodiesel, renewable diesel, biojet fuel, and other advanced biofuels.

The industrial sector and agricultural sector are significan

According to Cognitive Market Research, the global biofuel market size is USD 167.4 billion in 2024 and will expand at a compound annual growth rate (CAGR) of 6.2% from 2024 to 2031. Market Dynamics of Biofuel Market

Key Drivers for Biofuel Market

Global Transition to Renewable Energy Sources: Increasing apprehensions regarding climate change and energy security are driving both governments and industries to embrace biofuels as a viable alternative to fossil fuels.

Supportive Government Initiatives and Financial Aid: Regulatory requirements such as blending mandates and financial support are enhancing the production and utilization of biofuels in both transportation and power generation.

Abundant Supply of Feedstock: Agricultural residues, used cooking oil, and energy crops offer a readily accessible feedstock for biofuel production, particularly in rural and agricultural areas.

Progress in Biofuel Production Technologies: Advancements in second- and third-generation biofuels are enhancing efficiency, minimizing land use conflicts, and facilitating the utilization of non-food biomass.

Key Restraints for Biofuel Market

High Production Expenses Relative to Fossil Fuels: In spite of advancements, biofuels frequently remain pricier than petroleum-based options, hindering their competitiveness in the absence of subsidies.

Food versus Fuel Controversy: The utilization of food crops such as corn and sugarcane for fuel production raises ethical dilemmas and exerts pressure on the global food supply and pricing.

Infrastructure Challenges for Distribution and Blending: Numerous regions are deficient in the necessary pipelines, storage facilities, and vehicles capable of managing biofuel blends, which hampers market penetration.

Inconsistent Policy and Regulatory Environments: Variations in global regulations, a lack of long-term policy stability, and frequent alterations in mandates generate investment risks within the biofuel industry.

Key Trends for Biofuel Market

Expansion of Second- and Third-Generation Biofuels: The emphasis is transitioning from food-based biofuels to those derived from algae, waste products, and non-edible plants, thereby enhancing sustainability.

Increased Funding in Aviation and Marine Biofuels: Airlines and maritime companies are increasingly adopting biofuels to achieve emission reduction targets, thereby creating new demand avenues beyond ground transportation.

Integration of Circular Economy Concepts: Biofuel producers are increasingly leveraging waste-to-energy models, turning municipal and industrial waste into valuable fuel sources.

Public–Private Partnerships in Bioenergy Development: Governments and corporations are collaborating to scale up biofuel infrastructure and R&D, accelerating commercialization and adoption. Introduction of the Biofuel Market

Biofuels are renewable fuels made from biomass such as plant matter, animal matter, or human waste. Several nations are making efforts to reduce their reliance on foreign oil. With oil refineries operating at full capacity and prices on the rise, businesses and consumers alike are looking for alternatives. The biofuel market is being driven by the increased use of green energy sources and the introduction of laws to cut carbon dioxide emissions. Global electricity consumption has increased as a result of fast urbanization and industrialization. As a result, a number of governments are making investments in renewable sources of energy to meet the growing need for electricity while also advancing their environmental objectives. An increase in the number of new biofuel projects being built is anticipated to grow the market.

BCC Research Market Report says global market for biofuels is estimated to increase from $125.9 billion in 2023 to reach $143.8 billion by 2028 with a compound annual growth rate (CAGR) of 2.7%.

The global biofuels production market was valued at nearly 120 billion U.S. dollars in 2023. Figures are projected to continuously increase until 2030 when the biofuels market is forecast to amount to more than 175 billion U.S. dollars. More information on the global biofuels production market can be found here. Largest biofuel producers Biofuels are especially prevalent in the transportation sector and have been marketed as a renewable alternative to petroleum-based motor fuels such as gasoline and diesel. Ethanol and biodiesel are the most common biofuel types, which are won from distilling and refining feedstocks such as crops, vegetable oils, and cooking fats. Although biofuel adoption has increased, they are usually blended with gasoline and diesel in order for them to work in regular combustion engines. The United States is the leading biofuel producing country in the world, followed by Brazil and Indonesia. Biofuels production to exceed 200bn liters Both ethanol and biodiesel production is forecast to increase in the coming years. In 2024, a biofuel production forecast suggests worldwide output could edge close to 200 billion liters per annum.

The Biofuels Market size is expected to reach a valuation of USD 277.2 billion in 2033 growing at a CAGR of 11.80%. The Biofuels Market research report classifies market by share, trend, demand, forecast and based on segmentation.

Global Biofuels market size is expected to reach $258.09 billion by 2029 at 8.1%, soaring petroleum prices fueling the growth of the biofuel market

The global biofuels market size reached approximately 176.61 Billion Liters in 2024. The market is assessed to grow at a CAGR of 4.50% between 2025 and 2034 to attain a volume of around 274.27 Billion Liters by 2034.

According to Cognitive Market Research, the global advanced biofuel market size will be USD 20514.5 million in 2024. It will expand at a compound annual growth rate (CAGR) of 8.80% from 2024 to 2031.

North America held the major market share for more than 40% of the global revenue with a market size of USD 8205.80 million in 2024 and will grow at a compound annual growth rate (CAGR) of 7.0% from 2024 to 2031.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD 6154.35 million.
Asia Pacific held a market share of around 23% of the global revenue with a market size of USD 4718.34 million in 2024 and will grow at a compound annual growth rate (CAGR) of 10.8% from 2024 to 2031.
Latin America had a market share of more than 5% of the global revenue with a market size of USD 1025.73 million in 2024 and will grow at a compound annual growth rate (CAGR) of 8.2% from 2024 to 2031.
Middle East and Africa had a market share of around 2% of the global revenue and was estimated at a market size of USD 410.29 million in 2024 and will grow at a compound annual growth rate (CAGR) of 8.5% from 2024 to 2031.
The thermochemical category is the fastest growing segment of the advanced biofuel industry

Market Dynamics of Advanced Biofuel Market

Key Drivers for Advanced Biofuel Market

Technological Advancements in Biofuel Production Processes to Boost Market Growth

Technological developments in biofuel production techniques are driving growth in the advanced biofuel industry by increasing efficiency and diversifying feedstock sources. Non-food biomass, such as agricultural leftovers, is being converted into biofuels more efficiently because of advances in enzyme engineering and synthetic biology. Advanced fermentation processes are also improving bioethanol and biodiesel production. Thermochemical methods such as gasification and pyrolysis have enabled the conversion of waste materials into biofuels such as syngas and biodiesel. These innovations lower production costs and increase scalability, making biofuels more competitive with fossil fuels. Neste and Chevron are setting the standard by aggressively investing in new technologies and growing their production capacity. In addition, the market is anticipated to grow during the projected period as a result of players in the industry adopting Advanced Biofuels. For instance, according to the International Energy Agency (IEA), biofuel production is expected to increase by 28% between 2021 and 2026, driven by innovations in enzymatic hydrolysis and fermentation processes.

Rising Government Mandates and Policies Encouraging Renewable Energy Adoption to Drive Market Growth

Rising government regulations and policies are important drivers of the advanced biofuel business, boosting renewable energy use to minimize carbon emissions. Governments around the world, particularly in the United States, the European Union, and Brazil, have introduced policies like as blending mandates and subsidies to encourage biofuel use in the transportation and industrial sectors. For example, the United States Renewable Fuel Standard (RFS) and the European Union's Renewable Energy Directive (RED II) set lofty goals for boosting biofuel blends in fuel supplies. These policies provide financial incentives and tax benefits to biofuel producers, encouraging research and investment in advanced biofuels and ultimately hastening the transition to cleaner energy sources.

Restraint Factor for the Advanced Biofuel Market

High Production Costs Compared to Conventional Fossil Fuels Will Limit Market Growth

The advanced biofuel sector is hampered by high production costs when compared to conventional fossil fuels. Producing biofuels, particularly second-generation variations, necessitates sophisticated procedures and expensive technology such as enzymatic hydrolysis and gasification, which raises operational expenses. Furthermore, finding renewable feedstocks such as agricultural leftovers or algae can be more expensive and unpredictable than extracting fossil fuels. The necessity for specialized infrastructure for biofuel production, storage, and transport raises the cost even further. As a result, despite their environmental benefits, biofuels frequently struggle to compete with cheaper fossil fuels, restricting their broad use in cost-sensitive industries such as transportation and electricity.

Impact of Covid-19 on the Adv...

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Biodiesel Market Size 2024-2028

The biodiesel market size is forecast to increase by USD 16.71 billion at a CAGR of 7.38% between 2023 and 2028.

The market is experiencing significant growth due to the increasing demand for renewable and sustainable energy sources. One of the key drivers is the growing use of algae for biodiesel production, which offers numerous advantages such as high oil yield and reduced greenhouse gas emissions. Soy oil and palm oil are the most commonly used feedstocks due to their availability and cost-effectiveness. Another trend in the market is the utilization of spent bleaching earth as a feedstock for biodiesel production, which not only reduces waste but also lowers production costs. However, the high operating costs of biodiesel production remain a major challenge for market growth. Producers must continuously explore ways to improve efficiency and reduce costs to remain competitive in the market. Overall, the market is expected to witness steady growth in the coming years, driven by increasing environmental awareness and government regulations promoting the use of renewable energy sources.

What will be the Size of the Biodiesel Market During the Forecast Period?

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The market represents a significant segment of the renewable biofuels industry, driven by the growing demand for environmentally friendly fuels In the transportation sector. With the increasing global population and the subsequent rise in vehicles on the road, there is a pressing need to reduce carbon emissions and dependence on fossil fuels. Biodiesel, derived from vegetable oils such as soybean oil, corn oil, canola oil, and animal tallow, among others, is a viable alternative to petroleum-based diesel fuels. The market is influenced by various factors, including feedstock selection, production capacity, and crude prices.
The market's size and direction are influenced by the adoption rate of biodiesel by Original Equipment Manufacturers (OEMs) and the availability of raw materials. The use of biodiesel in diesel engines reduces greenhouse gas emissions, making it an attractive option for consumers and governments alike. Global biodiesel consumption is expected to grow as more countries shift towards sustainable biofuels to mitigate their carbon footprint.

How is the Biodiesel Industry segmented and which is the largest segment?

The industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Application

  Transport fuel
  Power generation
  Others


Type

  Vegetable oil
  Animal fats
  Others


Geography

  APAC

    India
    Thailand


  North America

    US


  Europe



  South America

    Brazil


  Middle East and Africa

By Application Insights

The transport fuel segment is estimated to grow significantly during the forecast period. Biodiesel serves as an eco-friendly alternative to traditional diesel fuel for internal combustion engines. In Europe, biodiesel dominates the biofuel market, accounting for over 80% of consumption, driven by its increasing adoption in the automotive sector. In India, the biodiesel industry is poised for growth due to substantial investments in manufacturing, with several states, such as Karnataka, utilizing biodiesel in public transportation to reduce greenhouse gas emissions. Vegetable oils, including soybean oil, corn oil, canola oil, animal fats like poultry fat and tallow, and feedstocks like palm oil and palm kernel oil, serve as raw materials for biodiesel production. The shift towards sustainable biofuels is driven by environmental concerns and increasing crude oil prices. Biodiesel is also used in power generation applications, further expanding its market reach.

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The Transport fuel segment was valued at USD 25.90 billion in 2018 and showed a gradual increase during the forecast period.

Regional Analysis

APAC is estimated to contribute 49% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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Biodiesel production in Indonesia and India is experiencing growth due to government subsidies and mandates. In Indonesia, production has increased since 2016, driven by new subsidy calculations and domestic blending requirements. Exports remain marginal. In India, the expansion of biofuel plants and government incentives for oil manufacturing companies will boost biodiesel production during the forecast period. Vegetable oils, such as soybean oil, corn oil, and canola oil animal fats, incl

Global Second Generation Biofuels market size is expected to reach $33.23 billion by 2029 at 25.3%, environmental benefits fueling growth in the second-generation biofuels market

Global Advanced Biofuels market size is expected to reach $654.34 billion by 2029 at 41.2%, automotive industry drives growth in the advanced biofuels market

The report covers Biofuel Companies in Brazil and it is segmented by Type (Biodiesel, Ethanol, and Other Types) and Feedstock (Coarse Grain, Sugar Crop, Vegetable Oil, and Other Feedstocks). The report offers the production forecasts in million cubic meters (MCM) for all the above segments.

The global biodiesel market is forecasted to reach a value of US$ 226.6 billion by the end of 2034, up from US$ 116.3 billion in 2024. Worldwide demand for biodiesel is forecasted to increase at a CAGR of 6.9% through 2034.

Report Attributes	Details
Biodiesel Market Size (2024E)	US$ 116.3 Billion
Projected Market Value (2034F)	US$ 226.6 Billion
Global Market Growth Rate (2024 to 2034)	6.9% CAGR
China Market Value (2034F)	US$ 31.9 Billion
Canada Market Growth Rate (2024 to 2034)	5% CAGR
North America Market Share (2024E)	21.6%
East Asia Market Value (2034F)	US$ 55.7 Billion
Key Companies Profiled	Bunge Ltd. Cargill Inc. Neste Oyj Wilmar International Ltd. Renewable Energy Group Inc. Louis Dreyfus Company BIOX Corporation Emami Group

Country-wise Insights

Attribute	United States
Market Value (2024E)	US$ 18 Billion
Growth Rate (2024 to 2034)	4.9% CAGR
Projected Value (2034F)	US$ 29.1 Billion

Attribute	China
Market Value (2024E)	US$ 14.8 Billion
Growth Rate (2024 to 2034)	8% CAGR
Projected Value (2034F)	US$ 31.9 Billion

Category-wise Insights

Attribute	Soybean
Segment Value (2024E)	US$ 15.2 Billion
Growth Rate (2024 to 2034)	6.7% CAGR
Projected Value (2034F)	US$ 29.2 Billion

Attribute	Fuel
Segment Value (2024E)	US$ 14.1 Billion
Growth Rate (2024 to 2034)	7.6% CAGR
Projected Value (2034F)	US$ 29.2 Billion

The global liquid biofuels market value of USD 78.40 Billion in 2024. The market is further expected to grow in the forecast period of 2025-2034 at a CAGR of 6.30% to reach a value of USD 144.43 Billion by 2034.

The forecast for the global Biofuel market predicts substantial growth, with market size projected to soar to USD 381.82 Billion by 2033, a significant increase from the USD 202.69 Billion recorded in 2024. This expansion reflects an impressive compound annual growth rate (CAGR) of 7.29% anticipated between 2025 and 2033.

The Global Biofuel market size to cross USD 381.82 Billion by 2033. [https:

Biofuels Market Outlook

The biofuels market has witnessed significant growth over the past few years and is projected to continue its upward trajectory with a market size of approximately USD 150 billion in 2023. It is anticipated to grow at a compound annual growth rate (CAGR) of 8.5% to reach an estimated USD 300 billion by 2032. This growth is fueled by increasing demand for sustainable energy solutions, governmental policies promoting renewable energy, and technological advancements in biofuel production. The global push towards reducing carbon footprints and mitigating climate change impacts is also a significant catalyst driving this market forward.

One of the primary growth factors for the biofuels market is the increasing global demand for clean and renewable energy sources. As concerns about environmental sustainability intensify, governments and industries are investing heavily in alternative energy solutions that can reduce greenhouse gas emissions. Biofuels, derived from organic materials, present a viable option as they offer a renewable and less polluting alternative to fossil fuels. This shift towards cleaner energy sources is further supported by international agreements, such as the Paris Agreement, which aims to limit global warming, thereby encouraging the adoption of biofuels across various sectors.

Another critical factor contributing to the growth of the biofuels market is the advancement in biofuel production technologies. Innovations in production techniques, such as the development of second and third-generation biofuels, have significantly increased the efficiency and scalability of biofuel production. These advancements have enabled the use of non-food biomass sources, reducing the competition between food and fuel, and enhancing the sustainability of biofuels. Additionally, technological improvements in fermentation, transesterification, and gasification processes have lowered production costs, making biofuels more competitive with traditional fossil fuels.

Government policies and incentives have also played a crucial role in the expansion of the biofuels market. Various countries have implemented mandates and subsidies to encourage the production and consumption of biofuels. For instance, the Renewable Fuel Standard in the United States requires a specific volume of renewable fuel to replace or reduce the quantity of petroleum-based transportation fuel. Similarly, the European Union's Renewable Energy Directive sets targets for renewable energy usage in transportation. These regulatory frameworks create a favorable environment for biofuel market growth, providing certainty and stability for investors and producers.

The emergence of Next Generation Biofuel technologies is set to revolutionize the biofuels market, offering even more sustainable and efficient energy solutions. These advanced biofuels, often referred to as fourth-generation biofuels, are developed using cutting-edge techniques that enhance the carbon capture process, making them a pivotal component in the fight against climate change. By utilizing genetically modified organisms and innovative production methods, next generation biofuels aim to maximize energy output while minimizing environmental impact. This approach not only addresses the limitations of earlier biofuel generations but also aligns with global sustainability goals, providing a promising pathway for the future of renewable energy.

Regionally, the biofuels market is experiencing varied growth patterns. North America and Europe remain dominant due to robust governmental support and established infrastructure for biofuel production. However, significant growth is also anticipated in the Asia Pacific region, driven by increasing energy demand, economic growth, and a shift towards sustainable energy practices. Countries like China and India are investing heavily in biofuels, adopting policies to reduce reliance on fossil fuels. Meanwhile, Latin America, with its abundant natural resources and agricultural base, continues to be a significant player in biofuel production, especially in biodiesel and bioethanol sectors.

Feedstock Type Analysis

The biofuels market can be segmented based on feedstock type into first generation, second generation, and third generation biofuels. First-generation biofuels, derived from food crops such as corn and sugarcane, have been the most traditional and widely used type. However, their impact on food prices and land use has raised sustainability concerns.

Global Biofuels Market Report with focus on first generation solid, liquid and gaseous biofuels, applications such as transportation, heating and electricity generation.

Global Biofuels market size 2025 is $166.3 Billion whereas according out published study it will reach to $322.233 Billion by 2033. Biofuels market will be growing at a CAGR of 8.62% during 2025 to 2033.

The size of the Biofuels Market was valued at USD XXX billion in 2024 and is projected to reach USD XXX billion by 2033, with an expected CAGR of 3.23% during the forecast period.Biofuels are renewable sources of energy obtained from organic matter, including plant-based, algal, agricultural, or forest-related waste. As they produce significantly less greenhouse gas emissions than their fossil fuel counterparts, biofuels are a greener substitute for fossil fuels. Ethanol and biodiesel have constituted the primary forms of biofuels over the years that have been used as fuels for transport, and the third form is biogas, which has been used for power and heating. It is rapidly growing in response to rising concerns over climate change, energy security, and the need for sustainability in the energy sector. Government policies and subsidies along with technology are contributing to growth in this market. The driving forces are ever-increasing crude oil prices and the thrust worldwide to come out of the clutches of non-renewable sources of energy. Challenges remain including feedstock supply and production prices and competition between feedstocks used for foodstuffs. There is still immense potential in a low-carbon transition for the biofuel market, not least because its global efforts sustainably contribute towards a development-friendly future for humanity.