Biofuel Market: Market Size, Trend, by Fuel Type (Ethanol, Biodiesel, Renewable Diesel, Bio jet), by Form Type (Liquid, Gas, Solid), by End Users Type (Transportation, Aviation, Other End Use), by Region & Major Players – Global Forecast to 2030
Wissen Research estimated that the global biofuel market reached USD 177.6 billion in 2024 and will grow to USD 257.8 billion by 2030, growing at a CAGR of 6.4 % during the forecast period, 2025-2030.
Global Market
Global biofuel market is anticipated to reach USD 257.8 billion by 2030 from USD 177.6 billion in 2024, growing at an annualized rate of 6.4 % during the forecast period, 2025-2030
North America
North America leads the biofuel market due to established blending mandates under the U.S. Renewable Fuel Standard (RFS) and Canada’s Clean Fuel Regulations. The region has significant ethanol and renewable diesel capacity, supported by strong corn production, advanced refining infrastructure, and increasing investments in sustainable aviation fuel (SAF) projects.
Asia-Pacific
Asia-Pacific is one of the fastest-growing regions, driven by expanding fuel demand, energy security concerns, and supportive policies in countries such as China, India, Indonesia, and Thailand. Ethanol blending programs, biodiesel mandates, and rising aviation demand are accelerating regional biofuel capacity additions.
Innovation
Key innovations include commercialization of second-generation (cellulosic) biofuels, hydroprocessed esters and fatty acids (HEFA) technology for SAF production, feedstock-flexible biorefineries, integration of carbon capture and storage (CCS) with ethanol plants, and development of waste-based and algae-derived fuels to lower lifecycle carbon intensity.
Global Investment
Global investments are concentrated in renewable diesel and SAF production facilities, feedstock supply chain integration, advanced biorefinery technologies, and capacity expansions aligned with decarbonization targets. Capital is also flowing into joint ventures between agribusinesses, energy majors, and airlines to secure long-term offtake agreements and improve project bankability.
Strategic Activities Within the Biofuel Market
Drivers: Government blending mandates and decarbonization policies
Government mandates remain the strongest structural driver of biofuel demand. In the United States, the Renewable Fuel Standard (RFS) requires billions of gallons of renewable fuel blending annually, with recent EPA targets exceeding 20 billion gallons per year. The U.S. produced about 15–16 billion gallons of fuel ethanol in 2023, supported by corn output and established refining infrastructure. Brazil mandates high ethanol blending (typically around 27% in gasoline), making it the world’s second-largest ethanol producer at over 30 billion liters annually. In India, the government achieved 20% ethanol blending in petrol in 2023–24, five years ahead of its original 2030 target, significantly increasing domestic ethanol procurement. Such binding policies create predictable demand, reduce fossil fuel imports, support rural incomes, and provide long-term visibility for producers investing in renewable diesel and sustainable aviation fuel capacity expansions.
Opportunities: Sustainable Aviation Fuel (SAF) scale-up
Sustainable aviation fuel represents a major growth opportunity as aviation accounts for roughly 2–3% of global CO₂ emissions. The International Air Transport Association (IATA) projects SAF will be essential to achieving net-zero aviation by 2050. The EU’s ReFuelEU Aviation regulation mandates SAF blending starting at 2% in 2025, rising progressively to 70% by 2050. In the U.S., the Inflation Reduction Act introduced SAF tax credits of up to $1.75 per gallon depending on lifecycle carbon intensity. Companies such as Neste Corporation (Finland) and World Energy, LLC (United States) have expanded SAF production capacity, while major airlines have signed multi-year offtake agreements. As global jet fuel consumption exceeds 300 billion liters annually, even modest SAF blending creates significant incremental demand.
Challenges: Feedstock constraints and price volatility
Feedstock availability and pricing remain a critical constraint. First-generation biofuels rely heavily on crops such as corn, sugarcane, soybean oil, and palm oil, linking production economics to agricultural commodity cycles. For example, U.S. ethanol production consumes roughly 35–40% of the domestic corn crop annually, exposing producers to weather-driven yield variability and price swings. Renewable diesel expansion has increased demand for soybean oil and used cooking oil, contributing to tight supply conditions in recent years. The FAO Food Price Index spikes during global supply disruptions highlight how food-versus-fuel concerns can intensify policy scrutiny. Additionally, advanced biofuels depend on agricultural residues and waste oils that require complex collection logistics. These constraints can compress producer margins, delay project timelines, and complicate long-term supply contracts despite supportive decarbonization policies.
The global biofuel market is a well-established and steadily expanding segment of the broader renewable energy industry, focused on fuels derived from biological feedstocks such as corn, sugarcane, vegetable oils, agricultural residues, and waste oils. The market was valued at USD 177.6 billion in 2024 and is projected to reach USD 257.8 billion by 2030, registering a steady CAGR of 6.4 % driven by decarbonization targets, blending mandates, and energy security priorities. Growth is supported by increasing ethanol blending in gasoline, expansion of renewable diesel capacity, and rising sustainable aviation fuel (SAF) adoption. Demand is strongest across transportation, aviation, and marine sectors, with additional uptake in power generation. Advancements in second-generation biofuels, feedstock-flexible biorefineries, and integration of carbon capture technologies are further strengthening commercialization and global scalability of low-carbon fuel solutions.
Ethanol by fuel type dominated the biofuel market in the year 2024.
In 2024, ethanol retained the largest share of the global biofuel market, supported by established blending mandates and large-scale production infrastructure. The United States, the world’s leading producer, generated roughly 15–16 billion gallons of fuel ethanol annually, primarily from corn under the Renewable Fuel Standard (RFS). Brazil, the second-largest producer, manufactures over 30 billion liters per year, supported by its long-standing 27% ethanol blending mandate (E27) and widespread flex-fuel vehicle adoption—more than 80% of new cars sold are flex-fuel capable. India has also accelerated ethanol use, achieving 20% blending in petrol in 2023–24, significantly increasing domestic procurement volumes. Major producers such as Archer Daniels Midland Company (United States) and POET, LLC (United States) operate multi-plant networks supplying domestic and export markets, reinforcing ethanol’s structural dominance within global biofuels.
Transportation sector by end user type held the largest market share in the biofuel market in the year 2024.
In 2024, the transportation sector remained the dominant end user of biofuels globally, accounting for the vast majority of consumption due to binding road fuel blending mandates and aviation decarbonization efforts. In the United States, more than 98% of gasoline contains up to 10% ethanol (E10) under the Renewable Fuel Standard, directly linking biofuel demand to road transport. Brazil mandates 27% ethanol blending (E27) nationwide, while India achieved 20% ethanol blending in 2023–24, substantially increasing volumes supplied to oil marketing companies. Biodiesel and renewable diesel are similarly tied to transport; Indonesia implemented a B40 biodiesel mandate in 2025, absorbing millions of kilolitres annually into diesel supply. In aviation, airlines are signing sustainable aviation fuel (SAF) offtake agreements with producers such as Neste Corporation (Finland), reinforcing transport’s central role in global biofuel revenue generation.
Asia Pacific is projected to show the highest growth rate in the biofuel market during the forecast period (2025–2030)
Asia Pacific is expected to register the strongest growth momentum in the biofuel market during 2025–2030, underpinned by aggressive blending mandates, rising transport fuel demand, and structural energy security priorities. India is a key growth engine. Under its Ethanol Blending Programme, the country achieved approximately 20% ethanol blending in petrol in 2023–24, advancing its target timeline and materially reducing gasoline imports. Ethanol production capacity in India has expanded significantly over the past five years, supported by interest subvention schemes and public sector oil marketing company procurement guarantees.
Southeast Asia is simultaneously accelerating biodiesel expansion. Indonesia implemented a B35 mandate in 2023 and moved to B40 in 2025, materially increasing domestic palm oil consumption for energy use. Given Indonesia’s annual crude palm oil production exceeding 45 million metric tons, policy-driven biodiesel absorption is reshaping regional trade balances. Malaysia is also progressing with higher biodiesel blends in transport and industrial segments.
China adds another layer of growth through waste-based feedstocks. The country exported nearly 3 million metric tons of used cooking oil in 2024, much of which is processed into renewable diesel and sustainable aviation fuel, integrating Asia Pacific into global low-carbon fuel supply chains.
Collectively, binding mandates, feedstock availability, refining investments, and aviation decarbonization initiatives position Asia Pacific as the fastest-expanding biofuel region over the medium term.
Sources: Secondary Research
“Voluntary and compliance carbon markets are materially improving the economics of advanced biofuels, with LCFS and SAF credits enhancing project IRRs and accelerating capacity expansions across North America and Europe.”
Chief Commercial Officer, Renewable Fuels Producer (United States)
“Feedstock flexibility—spanning used cooking oil, animal fats, agricultural residues, and energy crops—is becoming a core competitive differentiator as producers hedge against price volatility and supply-chain disruptions.”
VP of Operations, Integrated Bioenergy Company (Europe)
“Sustainable aviation fuel mandates and airline offtake agreements are catalyzing large-scale hydroprocessed esters and fatty acids (HEFA) investments, driving rapid scale-up of drop-in biojet production.”
Director of Strategy, Aviation Biofuel Developer (Asia Pacific)
“Lifecycle carbon intensity transparency, traceability platforms, and certification schemes are now central to buyer decisions, as corporates demand verifiable Scope 1 and Scope 3 emissions reductions from fuel suppliers.”
Chief Sustainability Officer, Global Energy Company (Global)
| Particulars |
Details |
| Report |
Biofuel Market |
| Forecast Period |
2025-2030 |
| Base Year |
2024 |
| Format |
|
| Market Size (2024) |
USD 177.6 Billion |
| CAGR (2025-2030) |
6.4 % |
| Number of Pages |
165 |
| Number of Tables |
159 |
| Number of Figures |
40 |
| Key Segments |
Biofuel Market by Fuel Type. (Ethanol, Biodiesel, Renewable Diesel, Bio jet) Biofuel Market by form Type (Liquid, Gas, Solid) Biofuel Market by End Users Type (Transportation, Aviation, Other End Use) |
| Regions Covered |
|
| Key Players Covered (Majority Share Holders) |
Archer Daniels Midland Company (USA), Chevron Corporation (USA), Valero Energy Corporation (USA), Neste Oyj (Finland), Cargill, Incorporated (USA), Wilmar International Ltd (Singapore), VERBIO AG (Germany), Borregaard ASA (Norway), POET, LLC (USA), Green Plains Inc. (USA) |
| Other Players |
The Andersons, Inc. (USA), BP p.l.c. (United Kingdom), Future Fuel Corporation (USA), Münzer Bioindustrie GmbH (Austria), Aemetis, Inc. (USA), CropEnergies AG (Germany), Raízen S.A. (Brazil), Blue Biofuels, Inc. (USA), Pannonia Bio Zrt. (Hungary), GreenJoules (India), Algenol, Inc. (USA) |
The global market for biofuel market was valued at USD 177.6 billion in 2024.
The global biofuel market is anticipated to grow at an annual growth rate of 6.4 % from 2025 to 2030 to reach USD 257.8 billion, by 2030.
Leading players within the biofuel market are Archer Daniels Midland Company (USA), Chevron Corporation (USA), Valero Energy Corporation (USA), Neste Oyj (Finland), Cargill, Incorporated (USA)
The biofuel market exhibits a moderate to increasingly concentrated structure, where a relatively small group of large multinational producers controls a significant portion of total output, while mid-tier and regional firms continue to compete and innovate—driven by mergers, strategic partnerships, and capacity expansions that gradually reduce fragmentation in core segments like ethanol and renewable diesel.
