Biofuel Market Size and Outlook 2031

Report Description

Forecast Period	2027-2031
Market Size (2025)	USD 123.23 Billion
CAGR (2026-2031)	9.76%
Fastest Growing Segment	Vegetables Oils
Largest Market	North America
Market Size (2031)	USD 215.47 Billion

Market Overview

The Global Biofuel Market will grow from USD 123.23 Billion in 2025 to USD 215.47 Billion by 2031 at a 9.76% CAGR. Biofuels are liquid or gaseous fuels derived from renewable biomass sources, such as agricultural crops, organic waste, and plant residues, serving as sustainable alternatives or additives to conventional fossil fuels. The primary drivers propelling this market include stringent government mandates aimed at decarbonizing the transportation sector and national strategies focused on enhancing energy security by reducing reliance on imported petroleum. Furthermore, the inherent volatility of crude oil prices encourages the adoption of these renewable energy sources to stabilize long-term operational costs for commercial and industrial stakeholders.

The industry continues to demonstrate significant production volumes amid these supporting factors. According to the World Bioenergy Association, in 2024, global ethanol production reached 118 billion liters, highlighting the extensive scale of current manufacturing. However, a major challenge impeding broader market expansion is the constraint on feedstock availability, where competition between agricultural land for food and fuel production creates supply chain vulnerabilities and elevates raw material costs.

Key Market Drivers

The implementation of supportive government regulatory frameworks and blending mandates serves as the paramount driver for the global biofuel market. Governments worldwide are enforcing rigorous policies to reduce carbon intensity in transportation, effectively guaranteeing demand through statutory blending requirements. These mandates insulate producers from market fluctuations and encourage long-term capacity investments by creating an assured baseline for consumption. For example, the United States continues to rely heavily on legislative standards to maintain high output levels. According to the Renewable Fuels Association, February 2024, in the '2024 Ethanol Industry Outlook', the U.S. ethanol industry produced 15.6 billion gallons in 2023, a volume largely underpinned by the statutory requirements of the Renewable Fuel Standard. This regulatory backing ensures that biofuel manufacturing maintains momentum even during periods of economic uncertainty.

Simultaneously, the rapid expansion of the Sustainable Aviation Fuel (SAF) market is acting as a transformative catalyst, driven by the aviation sector’s urgent need to decarbonize. Airlines and logistics companies are increasingly securing supply through forward-purchase agreements to meet net-zero commitments, pushing the industry beyond traditional road transport applications. According to the International Air Transport Association, June 2024, in the 'SAF Output to Triple' press release, global SAF production is projected to reach 1.9 billion liters in 2024, representing a significant scaling of manufacturing capabilities. This sectoral shift is occurring alongside broader demand patterns in developing regions. According to the International Energy Agency, in 2024, emerging economies are expected to account for nearly 70% of global biofuel demand growth over the next five years, highlighting a diversification of market drivers.

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Key Market Challenges

The limited availability of feedstock presents a significant structural barrier to the expansion of the global biofuel industry. As producers rely heavily on agricultural crops, the intensifying competition between cultivating land for food supplies and fuel inputs creates substantial supply chain volatility. This dependency leads to inevitable fluctuations in raw material pricing, which directly impacts the profitability of biofuel manufacturing. When crop yields are unpredictable or diverted to food markets, the operational costs for fuel producers rise, making the final product less competitive against traditional fossil fuels.

This economic pressure restricts the ability of manufacturers to scale operations or invest in capacity expansion. The sheer volume of raw materials required to sustain current output levels highlights the severity of this dependency. According to the Renewable Fuels Association, in 2024, the ethanol industry utilized 5.3 billion bushels of corn to maintain fuel production levels. This reliance on massive agricultural inputs means that supply constraints do not merely increase costs but actively cap the potential for market growth. Consequently, the sector faces difficulty in meeting rising demand targets solely due to these upstream resource limitations.

Key Market Trends

The market is witnessing a decisive surge in the penetration of Hydrotreated Vegetable Oil (HVO) as a superior alternative to traditional Fatty Acid Methyl Esters (FAME). Unlike conventional biodiesel, HVO serves as a drop-in fuel compatible with existing diesel engines and infrastructure without blend limits, making it highly attractive for the heavy-duty transport sector. This technical advantage is driving rapid infrastructure scaling in major economies to meet commercial demand. According to the World Bioenergy Association, November 2024, in the 'Global Bioenergy Statistics Report 2024', the United States led global production with 11 billion liters of HVO in 2023, nearly doubling its output from the previous year.

Simultaneously, the maritime sector is aggressively adopting bio-bunkering solutions to comply with tightening international emission standards. Shipping companies are increasingly integrating bio-blended fuels into their operations, utilizing major logistics hubs to secure consistent supply chains for deep-sea vessels. This shift represents a crucial diversification of biofuel usage beyond terrestrial and aerial applications, establishing marine transport as a new frontier for demand. According to DNV, January 2025, in the 'Biofuels in Shipping' white paper, the total sales of bio-blended fuel in the key bunkering hubs of Singapore and Rotterdam rose to over 1.6 million tonnes in 2024, highlighting the rapid acceleration of adoption in global trade routes.

Segmental Insights

The vegetable oils segment represents the fastest-growing category in the Global Biofuel Market due to its essential role as the primary feedstock for biodiesel and renewable diesel production. According to the International Energy Agency, the rapid expansion of hydrotreated vegetable oil capacities requires consistent lipid supplies that waste-based sources cannot fully satisfy. Consequently, the established agricultural production of soybean and rapeseed oils offers the necessary scalability to support this demand. This reliability ensures vegetable oils remain the preferred resource for meeting the intensifying decarbonization mandates across the global transportation sector.

Regional Insights

North America holds the leading position in the global biofuel market, driven by robust government mandates and established production infrastructure. The region benefits significantly from the Renewable Fuel Standard program, administered by the U.S. Environmental Protection Agency, which requires the blending of renewable fuels into transportation fuel. This regulatory framework ensures consistent demand and encourages industrial investment. Furthermore, a strong emphasis on reducing greenhouse gas emissions across the United States and Canada continues to accelerate the adoption of ethanol and biodiesel, securing the region's market dominance.

Recent Developments

In September 2024, Woodland Biofuels announced a significant investment of $1.35 billion to construct a large-scale renewable biofuels plant at the Port of South Louisiana. The planned facility focuses on converting waste biomass into carbon-negative renewable natural gas and ultra-green hydrogen for use in transportation and power generation. The project aims to become one of the world’s largest carbon-negative renewable fuel production sites, with plans to capture and sequester hundreds of thousands of tons of carbon dioxide annually. This development highlights the growing industrial commitment to utilizing waste streams for the production of advanced, low-carbon energy carriers.
In April 2024, Honeywell announced the launch of a new hydrocracking technology capable of producing sustainable aviation fuel (SAF) from biomass. This breakthrough process allows for the conversion of solid biomass, such as crop leftovers and wood waste, into fuel that is 90% less carbon-intensive than fossil-based jet fuel. The technology improves yield by up to 5% and reduces operating costs by approximately 20% compared to other hydroprocessing solutions. By expanding the variety of usable feedstocks beyond vegetable oils and fats, this innovation addresses supply limitations and supports the global scale-up of renewable fuel production.
In February 2024, TotalEnergies and Airbus signed a strategic partnership agreement to advance the decarbonization of the aviation industry through sustainable aviation fuels (SAF). Through this collaboration, the energy company committed to supplying the aircraft manufacturer with SAF for more than half of its fuel requirements across Europe. Furthermore, the organizations agreed to implement a joint research and innovation program aimed at developing 100% sustainable fuels compatible with both current and future aeronautical designs. This initiative focuses on understanding the effects of fuel composition on carbon emissions and non-CO2 effects, thereby supporting the sector's net-zero objectives.
In January 2024, LanzaJet formally inaugurated the world’s first commercial-scale ethanol-to-sustainable aviation fuel (SAF) production facility in Georgia, United States. This landmark project, valued at approximately $200 million, utilizes proprietary alcohol-to-jet technology to convert ethanol derived from sustainable agricultural feedstocks into low-carbon jet fuel and renewable diesel. The facility aims to produce ten million gallons of SAF and renewable diesel annually, addressing the aviation sector's critical demand for decarbonization. Supported by government funds and industry investors, this launch represents a pivotal step in proving the commercial viability of converting diverse ethanol sources into drop-in renewable fuels.

Key Market Players

Archer Daniels Midland Company
Green Plains Inc.
Petrobras
Valero Energy Corp.
Alto Ingredients Inc.
Butamax Advanced Biofuels LLC
Wilmar International Ltd.
Renewable Energy Group, Inc.
Bunge North America, Inc.
Royal Dutch Shell Plc

By Form	By Application	By Feedstock	By Region
Solid Biofuel Liquid Biofuel and Gaseous Biofuel	Transportation Aviation Energy Generation Heating and Others	Corn Sugarcane Vegetables Oils and Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Biofuel Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Biofuel Market, By Form:

Solid Biofuel
Liquid Biofuel and Gaseous Biofuel

Biofuel Market, By Application:

Transportation
Aviation
Energy Generation
Heating and Others

Biofuel Market, By Feedstock:

Corn
Sugarcane
Vegetables Oils and Others

Biofuel Market, By Region:

North America

United States
Canada
Mexico

Europe

France
United Kingdom
Italy
Germany
Spain

Asia Pacific

China
India
Japan
Australia
South Korea

South America

Brazil
Argentina
Colombia

Middle East & Africa

South Africa
Saudi Arabia
UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Biofuel Market.

Available Customizations:

Global Biofuel Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

Detailed analysis and profiling of additional market players (up to five).

Global Biofuel Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]

Table of content

1. Product Overview

1.1. Market Definition

1.2. Scope of the Market

1.2.1. Markets Covered

1.2.2. Years Considered for Study

1.2.3. Key Market Segmentations

2. Research Methodology

2.1. Objective of the Study

2.2. Baseline Methodology

2.3. Key Industry Partners

2.4. Major Association and Secondary Sources

2.5. Forecasting Methodology

2.6. Data Triangulation & Validation

2.7. Assumptions and Limitations

3. Executive Summary

3.1. Overview of the Market

3.2. Overview of Key Market Segmentations

3.3. Overview of Key Market Players

3.4. Overview of Key Regions/Countries

3.5. Overview of Market Drivers, Challenges, Trends

4. Voice of Customer

5. Global Biofuel Market Outlook

5.1. Market Size & Forecast

5.1.1. By Value

5.2. Market Share & Forecast

5.2.1. By Form (Solid Biofuel, Liquid Biofuel and Gaseous Biofuel)

5.2.2. By Application (Transportation, Aviation, Energy Generation, Heating and Others)

5.2.3. By Feedstock (Corn, Sugarcane, Vegetables Oils and Others)

5.2.4. By Region

5.2.5. By Company (2025)

5.3. Market Map

6. North America Biofuel Market Outlook

6.1. Market Size & Forecast

6.1.1. By Value

6.2. Market Share & Forecast

6.2.1. By Form

6.2.2. By Application

6.2.3. By Feedstock

6.2.4. By Country

6.3. North America: Country Analysis

6.3.1. United States Biofuel Market Outlook

6.3.1.1. Market Size & Forecast

6.3.1.1.1. By Value

6.3.1.2. Market Share & Forecast

6.3.1.2.1. By Form

6.3.1.2.2. By Application

6.3.1.2.3. By Feedstock

6.3.2. Canada Biofuel Market Outlook

6.3.2.1. Market Size & Forecast

6.3.2.1.1. By Value

6.3.2.2. Market Share & Forecast

6.3.2.2.1. By Form

6.3.2.2.2. By Application

6.3.2.2.3. By Feedstock

6.3.3. Mexico Biofuel Market Outlook

6.3.3.1. Market Size & Forecast

6.3.3.1.1. By Value

6.3.3.2. Market Share & Forecast

6.3.3.2.1. By Form

6.3.3.2.2. By Application

6.3.3.2.3. By Feedstock

7. Europe Biofuel Market Outlook

7.1. Market Size & Forecast

7.1.1. By Value

7.2. Market Share & Forecast

7.2.1. By Form

7.2.2. By Application

7.2.3. By Feedstock

7.2.4. By Country

7.3. Europe: Country Analysis

7.3.1. Germany Biofuel Market Outlook

7.3.1.1. Market Size & Forecast

7.3.1.1.1. By Value

7.3.1.2. Market Share & Forecast

7.3.1.2.1. By Form

7.3.1.2.2. By Application

7.3.1.2.3. By Feedstock

7.3.2. France Biofuel Market Outlook

7.3.2.1. Market Size & Forecast

7.3.2.1.1. By Value

7.3.2.2. Market Share & Forecast

7.3.2.2.1. By Form

7.3.2.2.2. By Application

7.3.2.2.3. By Feedstock

7.3.3. United Kingdom Biofuel Market Outlook

7.3.3.1. Market Size & Forecast

7.3.3.1.1. By Value

7.3.3.2. Market Share & Forecast

7.3.3.2.1. By Form

7.3.3.2.2. By Application

7.3.3.2.3. By Feedstock

7.3.4. Italy Biofuel Market Outlook

7.3.4.1. Market Size & Forecast

7.3.4.1.1. By Value

7.3.4.2. Market Share & Forecast

7.3.4.2.1. By Form

7.3.4.2.2. By Application

7.3.4.2.3. By Feedstock

7.3.5. Spain Biofuel Market Outlook

7.3.5.1. Market Size & Forecast

7.3.5.1.1. By Value

7.3.5.2. Market Share & Forecast

7.3.5.2.1. By Form

7.3.5.2.2. By Application

7.3.5.2.3. By Feedstock

8. Asia Pacific Biofuel Market Outlook

8.1. Market Size & Forecast

8.1.1. By Value

8.2. Market Share & Forecast

8.2.1. By Form

8.2.2. By Application

8.2.3. By Feedstock

8.2.4. By Country

8.3. Asia Pacific: Country Analysis

8.3.1. China Biofuel Market Outlook

8.3.1.1. Market Size & Forecast

8.3.1.1.1. By Value

8.3.1.2. Market Share & Forecast

8.3.1.2.1. By Form

8.3.1.2.2. By Application

8.3.1.2.3. By Feedstock

8.3.2. India Biofuel Market Outlook

8.3.2.1. Market Size & Forecast

8.3.2.1.1. By Value

8.3.2.2. Market Share & Forecast

8.3.2.2.1. By Form

8.3.2.2.2. By Application

8.3.2.2.3. By Feedstock

8.3.3. Japan Biofuel Market Outlook

8.3.3.1. Market Size & Forecast

8.3.3.1.1. By Value

8.3.3.2. Market Share & Forecast

8.3.3.2.1. By Form

8.3.3.2.2. By Application

8.3.3.2.3. By Feedstock

8.3.4. South Korea Biofuel Market Outlook

8.3.4.1. Market Size & Forecast

8.3.4.1.1. By Value

8.3.4.2. Market Share & Forecast

8.3.4.2.1. By Form

8.3.4.2.2. By Application

8.3.4.2.3. By Feedstock

8.3.5. Australia Biofuel Market Outlook

8.3.5.1. Market Size & Forecast

8.3.5.1.1. By Value

8.3.5.2. Market Share & Forecast

8.3.5.2.1. By Form

8.3.5.2.2. By Application

8.3.5.2.3. By Feedstock

9. Middle East & Africa Biofuel Market Outlook

9.1. Market Size & Forecast

9.1.1. By Value

9.2. Market Share & Forecast

9.2.1. By Form

9.2.2. By Application

9.2.3. By Feedstock

9.2.4. By Country

9.3. Middle East & Africa: Country Analysis

9.3.1. Saudi Arabia Biofuel Market Outlook

9.3.1.1. Market Size & Forecast

9.3.1.1.1. By Value

9.3.1.2. Market Share & Forecast

9.3.1.2.1. By Form

9.3.1.2.2. By Application

9.3.1.2.3. By Feedstock

9.3.2. UAE Biofuel Market Outlook

9.3.2.1. Market Size & Forecast

9.3.2.1.1. By Value

9.3.2.2. Market Share & Forecast

9.3.2.2.1. By Form

9.3.2.2.2. By Application

9.3.2.2.3. By Feedstock

9.3.3. South Africa Biofuel Market Outlook

9.3.3.1. Market Size & Forecast

9.3.3.1.1. By Value

9.3.3.2. Market Share & Forecast

9.3.3.2.1. By Form

9.3.3.2.2. By Application

9.3.3.2.3. By Feedstock

10. South America Biofuel Market Outlook

10.1. Market Size & Forecast

10.1.1. By Value

10.2. Market Share & Forecast

10.2.1. By Form

10.2.2. By Application

10.2.3. By Feedstock

10.2.4. By Country

10.3. South America: Country Analysis

10.3.1. Brazil Biofuel Market Outlook

10.3.1.1. Market Size & Forecast

10.3.1.1.1. By Value

10.3.1.2. Market Share & Forecast

10.3.1.2.1. By Form

10.3.1.2.2. By Application

10.3.1.2.3. By Feedstock

10.3.2. Colombia Biofuel Market Outlook

10.3.2.1. Market Size & Forecast

10.3.2.1.1. By Value

10.3.2.2. Market Share & Forecast

10.3.2.2.1. By Form

10.3.2.2.2. By Application

10.3.2.2.3. By Feedstock

10.3.3. Argentina Biofuel Market Outlook

10.3.3.1. Market Size & Forecast

10.3.3.1.1. By Value

10.3.3.2. Market Share & Forecast

10.3.3.2.1. By Form

10.3.3.2.2. By Application

10.3.3.2.3. By Feedstock

11. Market Dynamics

11.1. Drivers

11.2. Challenges

12. Market Trends & Developments

12.1. Merger & Acquisition (If Any)

12.2. Product Launches (If Any)

12.3. Recent Developments

13. Global Biofuel Market: SWOT Analysis

14. Porter's Five Forces Analysis

14.1. Competition in the Industry

14.2. Potential of New Entrants

14.3. Power of Suppliers

14.4. Power of Customers

14.5. Threat of Substitute Products

15. Competitive Landscape

15.1. Archer Daniels Midland Company

15.1.1. Business Overview

15.1.2. Products & Services

15.1.3. Recent Developments

15.1.4. Key Personnel

15.1.5. SWOT Analysis

15.2. Green Plains Inc.

15.3. Petrobras

15.4. Valero Energy Corp.

15.5. Alto Ingredients Inc.

15.6. Butamax Advanced Biofuels LLC

15.7. Wilmar International Ltd.

15.8. Renewable Energy Group, Inc.

15.9. Bunge North America, Inc.

15.10. Royal Dutch Shell Plc

16. Strategic Recommendations

17. About Us & Disclaimer

Report Description

Table of content

Figures and Tables

Frequently asked questions

What was the market size of the Global Biofuel Market in 2025?

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