U.S. Biofuels Market holds a forecasted revenue of USD 38.32 Bn in 2025 and is likely to cross USD 65.25 Bn by 2032 with a steady annual growth rate of 7.9% .

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.

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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.

What will be the Size of the Biofuels Market during the forecast period?

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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 significant con

U.S. Biofuels Market comes with extensive industry analysis of development components, patterns, flows, and sizes. The report calculates present and past market values to forecast potential market management during the forecast period between 2024 - 2032.

The biofuels production market in Latin America was valued at close to 28 billion U.S. dollars in 2023 and is expected to be worth more than 30 billion U.S. dollars by 2025. More information on the biofuels production market can be found here.

North America is the largest biofuels production market in the world. In 2023, the North American biofuels market was worth some 44.76 billions U.S. dollars and is forecast to exceed 60 billion U.S. dollars by 2030. More information on the biofuels production market can be found here.

Biofuels Market size is expected to be worth around USD 307.3 Billion by 2033 from USD 131.0 Billion in 2023, growing at a CAGR of 8.9%

• The global industry was valued at US$ 165.9 Bn in 2022
• It is estimated to advance at a CAGR of 11.3% from 2023 to 2031 and reach US$ 434.8 Bn by the end of 2031

Market Introduction

Attribute	Detail
Drivers	Supply Security & Risk Abatement of Conventional Oil Price Volatility of Crude Oil

Regional Outlook of Liquid Biofuel Industry

Attribute	Detail
Leading Region	North America

Liquid Biofuel Market Snapshot

Attribute	Detail
Market Size Value in 2022	US$ 165.9 Bn
Market Forecast Value in 2031	US$ 434.8 Bn
Growth Rate (CAGR)	11.3%
Forecast Period	2023-2031
Historical Data Available for	2021
Quantitative Units	US$ Bn for Value & Million Liters for Volume
Market Analysis	It includes cross-segment analysis at the global as well as regional level. Furthermore, the qualitative analysis includes drivers, restraints, key trends, Porter’s Five Forces analysis, value chain analysis, and key trend analysis.
Competition Landscape	Market share analysis by company (2022) Company profiles section includes overview, product portfolio, sales footprint, key subsidiaries or distributors, strategy and recent developments, and key financials
Format	Electronic (PDF) + Excel
Market Segmentation	By Product Type Ethanol Biodiesel By Feedstock Sugar Crops Starch Crops Vegetable Oils Animal Fats Others By Process Fermentation Transesterification Others By Application Transportation Power Generation Heat
Regions Covered	North America Latin America Europe Asia Pacific Middle East & Africa
Countries Covered	U.S. Canada Germany U.K. France Spain Italy Russia and CIS Japan China India ASEAN Brazil Mexico GCC South Africa
Companies Profiled	Fulcrum BioEnergy Archer Daniels Midland Company RB FUELS POET, LLC Cargill, Incorporated Bangchak Corporation Public Company Limited Renewable Energy Group, Inc. Bunge Green Biologics Limited CropEnergies AG Algenol Emami Agrotech Limited World Energy LLC Envien Group Bio-Oils Energy Others
Customization Scope	Available upon request
Pricing	Available upon request

Gaseous biofuels have the highest market value worldwide. In 2023, the market value for gaseous biofuels production was estimated at 52.03 billion U.S. dollars. This compared to a market size of 24.71 billion U.S. dollars for solid biofuels production. More information on the biofuels production market can be found here.

The U.S. Liquid Biofuel Market size was valued at USD 48.02 USD Billion in 2023 and is projected to reach USD 88.35 USD Billion by 2032, exhibiting a CAGR of 9.1 % during the forecast period. Recent developments include: September 2022 – Gevo announced a world-class sustainable fuel production facility in Lake Preston, its largest economic investment in South Dakota history. This new facility is the first billion-dollar-plus project in the Governor’s Office of Economic Development history., June 2022 – Alto Ingredients, Inc. disclosed that it was awarded a USD 22.7 million cash grant from the USDA's Biofuel Producer Program, established under the CARES Act to aid biofuel producers who were affected by the COVID-19 pandemic's market disruptions. The funds will be utilized to advance their plant's maintenance and infrastructure, including upgrading equipment and operating systems to increase efficiency and reliability, expanding corn storage capacity, installing high-protein harvesting technology, and expanding distribution channels. These capital investments are expected to enhance the company's growth and increase profitability., May 2022 – Fulcrum BioEnergy Inc. announced the completion of the commissioning and operations of its Sierra Biofuels plant, the world’s first landfill waste to renewable transportation fuels plant. Combined with operations, its feedstock processing facility covers landfill waste into a clean, prepared feedstock.. Key drivers for this market are: Growing Focus on Safety and Organization to Fuel Market Growth. Potential restraints include: Instability in Raw Material Prices Are Hindering the Market Growth. Notable trends are: Growth of IT Infrastructure to Bolster the Demand for Modern Cable Tray Management Solutions.

The Biofuels Market Report is Segmented by Fuel Type (Bioethanol, Biodiesel, Renewable Diesel, and More), Generation (First-Generation, Third-Generation, and More), Feedstock (Sugar Crops, Starch Crops, Algae, and More), Technology (Fermentation, Trans-Esterification, Hydrotreatmen, and More), End-Use (Road Transport, Aviation, Marine, and Power Generation and Heating), and Geography (North America, Europe, Asia-Pacific, and More).

Analysis of the US solid biofuels market, including consumption, production, import, and export trends from 2013-2024, with forecasts to 2035. Covers market value, volume, and key product types like wood charcoal and pellets.

In US Algae-based Biofuels Market is projected to grow from USD 0.9 billion in 2025 to USD 4.8 billion by 2031, at a CAGR of 32.1%

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Lignocellulosic Feedstock-Based Biofuel Market Size 2024-2028

The lignocellulosic feedstock-based biofuel market size is forecast to increase by USD 33.65 billion, at a CAGR of 50.35% between 2023 and 2028.

The market is driven by the increasing ethanol blending rate targets, which necessitate the exploration of alternative feedstocks beyond traditional corn and sugarcane. However, the market faces significant challenges. The non-cropland affecting nature of lignocellulosic feedstock, which includes agricultural residues and energy crops, poses a challenge in terms of availability and sustainability. Additionally, the complex and costly conversion process for lignocellulosic biomass into biofuels remains a significant hurdle.
Companies seeking to capitalize on this market must navigate these challenges by focusing on innovation in feedstock sourcing and conversion technologies. Success in this market requires a strategic approach to supply chain management and cost optimization, ensuring a sustainable and cost-effective production process.

What will be the Size of the Lignocellulosic Feedstock-Based Biofuel Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2018-2022 and forecasts 2024-2028 - in the full report.
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The market continues to evolve, driven by advancements in enzymatic hydrolysis and separation technologies. Agricultural residues, such as sugarcane bagasse and corn stover, are increasingly utilized as feedstocks due to their availability and fuel efficiency. However, scale-up challenges persist, necessitating supply chain optimization and improved feedstock logistics. Energy crops and anaerobic digestion offer alternative sources of lignocellulosic biomass, while waste management initiatives provide a sustainable solution for reducing carbon footprint. Investment incentives and sustainability metrics play a crucial role in ensuring economic viability, as process optimization and the reduction of water usage become key priorities. Food waste and government subsidies also contribute to the market's dynamism, with the potential to significantly increase biomass yield.

Policy regulations and market penetration strategies continue to shape the industry, with a focus on commercialization of cellulosic ethanol and the exploration of new conversion technologies, such as acid hydrolysis and thermal pretreatment. The ongoing quest for higher conversion efficiency and lower carbon footprint drives innovation in the sector, with a growing emphasis on life cycle assessment and greenhouse gas emissions reduction. Storage and transportation solutions are also essential for ensuring the competitiveness of lignocellulosic biofuels in the marketplace. Market players continue to explore commercialization strategies, with wood chips and municipal solid waste emerging as promising feedstocks. The integration of advanced technologies, such as mechanical pretreatment and process optimization, is essential for addressing the complexities of lignocellulosic biomass conversion and ensuring long-term market growth.

How is this Lignocellulosic Feedstock-Based Biofuel Industry segmented?

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

Conversion Process

  Biochemical
  Thermochemical


Application

  Automotive
  Aviation
  Others


Geography

  North America

    US
    Canada


  Europe

    Germany


  APAC

    China


  South America

    Brazil


  Rest of World (ROW)

By Conversion Process Insights

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

The market is witnessing significant growth due to the increasing focus on sustainable energy sources and the availability of abundant agricultural residues and energy crops. The biochemical segment dominates this market, driven by the emphasis on research and development in the conversion process. This process involves three primary steps: pretreatment of feedstocks, enzymatic hydrolysis, and fermentation, followed by the recovery of end-products. Feedstocks undergo physical or chemical pretreatment to disrupt their fibrous structure, allowing for the separation of hemicelluloses from lignin and cellulose chains. Enzymatic hydrolysis then breaks down the cellulose into simple sugars, which are fermented into biofuels. Scale-up challenges persist due to the complex nature of the conversion process and the need for efficient separation technologies.

Supply chain optimization is crucial for economic viability, with feedstock logistics and water usage being key considerations. Sugarcane bagasse and corn stover are common feedst

Biofuels Market Outlook

According to our latest research, the global biofuels market size reached USD 151.2 billion in 2024, reflecting a robust growth trajectory driven by expanding renewable energy mandates and increasing environmental concerns. The market is projected to grow at a CAGR of 7.1% from 2025 to 2033, reaching a forecasted value of USD 281.2 billion by 2033. This growth is primarily attributed to the rising adoption of biofuels in transportation and power generation, coupled with government policies supporting the transition toward cleaner energy alternatives.

One of the most significant growth factors for the biofuels market is the global push toward decarbonization and the reduction of greenhouse gas emissions. Governments across North America, Europe, and Asia Pacific are implementing stringent regulations and offering incentives to promote the use of renewable fuels over conventional fossil fuels. The enforcement of blending mandates, such as the Renewable Fuel Standard (RFS) in the United States and the Renewable Energy Directive (RED II) in the European Union, has been instrumental in driving demand. These policies require a minimum percentage of biofuels to be blended into transportation fuels, ensuring a steady and growing market for biofuel producers. Additionally, the increasing consumer awareness regarding environmental sustainability and the harmful effects of carbon emissions is propelling the adoption of biofuels on a global scale.

Technological advancements in biofuel production processes are further accelerating market growth. The development of advanced biofuels, such as cellulosic ethanol and algae-based biodiesel, is enhancing the efficiency and sustainability of biofuel production. Innovations in feedstock utilization, including the use of waste materials, non-food crops, and genetically modified organisms, are reducing the dependency on traditional food-based feedstocks and addressing concerns related to food security. These advancements are also driving down production costs and improving the yield and quality of biofuels, making them more competitive with conventional fuels. As a result, investment in research and development within the biofuels sector continues to rise, attracting both public and private sector funding.

Another pivotal growth factor is the increasing demand for alternative fuels in the transportation and aviation sectors. The transportation industry is one of the largest contributors to global carbon emissions, prompting governments and industry stakeholders to seek cleaner fuel alternatives. The aviation sector, in particular, is experiencing a surge in the adoption of sustainable aviation fuels (SAFs), which are primarily derived from biofuels. Airlines are under mounting pressure to reduce their carbon footprint, and biofuels offer a viable solution for achieving this goal. The power generation sector is also leveraging biofuels for co-firing in thermal power plants, further expanding the market's application base. The versatility of biofuels in various applications is a key driver of sustained market growth.

From a regional perspective, North America and Europe currently dominate the biofuels market, accounting for a significant share of global consumption and production. North America is bolstered by robust government policies, abundant feedstock availability, and a well-established biofuel infrastructure. Europe, on the other hand, is driven by aggressive decarbonization targets and strong regulatory support for renewable energy. The Asia Pacific region is emerging as a high-growth market, fueled by rising energy demand, increasing environmental awareness, and supportive government initiatives in countries such as China, India, and Indonesia. Latin America, particularly Brazil, also plays a critical role in the global biofuels landscape due to its extensive ethanol production from sugarcane. The Middle East & Africa region is gradually entering the market, with a focus on diversifying energy sources and reducing dependency on oil.

Type Analysis

The biofuels market is segmented by type into ethanol, biodiesel, biogas, and others, each contributing uniquely to the overall market dynamics. Ethanol remains the largest segment, primarily due to its widespread use as a blending agent in gasoline, especially in the United States and Brazil. The growth of this segment is supported by established production technologies, abunda

The U.S. solid biofuel market reduced to $1B in 2024, dropping by -4.8% against the previous year. In general, consumption saw a relatively flat trend pattern. As a result, consumption reached the peak level of $1.1B. From 2016 to 2024, the growth of the market remained at a lower figure.

Biofuels market has been steadily increasing over recent years, and forecasts suggest a substantial growth trajectory in the upcoming period.

ATTRIBUTES	DETAILS
STUDY PERIOD	2018-2031
BASE YEAR	2024
FORECAST PERIOD	2025-2031
HISTORICAL PERIOD	2018-2024
UNIT	VALUE (USD MILLION)
KEY COMPANIES PROFILED	Diester Industries, Neste Oil Rotterdam, ADM, Infinita Renovables, Biopetrol, Cargill, Ital Green Oil, Glencore, Louis Dreyfus, Renewable Energy Group, RBF Port Neches, Ag Processing, Elevance, Marathon Petroleum Corporation, Evergreen Bio Fuels, Minnesota Soybean Processors, Caramuru, Jinergy, Hebei Jingu Group, Longyan Zhuoyue, Shandong Jinjiang
SEGMENTS COVERED	By Product Type - Bioethanol, Biodiesel By Application - Industrial Fuels, Transportation Fuels, Chemical Industry By Sales Channels - Direct Channel, Distribution Channel By Geography - North America, Europe, Asia-Pacific, South America, Middle East and Africa

The global biofuels market size was USD 132.68 billion in 2024 & is projected to grow from USD 142 billion in 2025 to USD 244.34 billion by 2033.
Report Scope:

Report Metric	Details
Market Size in 2024	USD 132.68 Billion
Market Size in 2025	USD 142 Billion
Market Size in 2033	USD 244.34 Billion
CAGR	7.02% (2025-2033)
Base Year for Estimation	2024
Historical Data	2021-2023
Forecast Period	2025-2033
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
Segments Covered	By Type,By Fuel Type,By Feedstock,By Region.
Geographies Covered	North America, Europe, APAC, Middle East and Africa, LATAM,
Countries Covered	U.S., Canada, U.K., Germany, France, Spain, Italy, Russia, Nordic, Benelux, China, Korea, Japan, India, Australia, Singapore, Taiwan, South East Asia, UAE, Turkey, Saudi Arabia, South Africa, Egypt, Nigeria, Brazil, Mexico, Argentina, Chile, Colombia,

According to Cognitive Market Research, the global advanced biofuel market size was 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.

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