What Are the Historic and Current Trends in the Biofuels Market?
The Biofuels Market has seen significant growth in the past few years.
• The market size grew from $175.24 billion in 2024 to $188.9 billion in 2025, at a CAGR of 7.8%.
Key drivers of this growth include energy security concerns, volatility in oil prices, and government incentives.
What is the Projected Growth of the Biofuels Market?
The biofuels market is predicted to witness robust growth in the upcoming years.
• By 2029, the market size is forecasted to reach $258.09 billion, expanding at a CAGR of 8.1%.
Accelerating growth factors include renewable energy targets, advancements in feedstock production, rising public awareness, and adoption by emerging economies. Trends likely to shape the market are advanced biofuels development, technological innovation, integration with conventional fuels, and market consolidation.
What Factors are Projected to Drive the Biofuels Market?
The surge in petroleum prices is expected to significantly drive the growth of the biofuel market. Events such as the Russia-Ukraine war, market tightness, and uncertainty about demand and supply have contributed to rising crude oil prices, leading to an increased demand for biofuels derived from renewable resources. For instance, the Federal Reserve Bank of Dallas reported a surge in crude oil prices from $71 per barrel in December 2021 to $109 per barrel by May 2022, generating greater demand for biofuels.
How Is the Biofuels Market Segmented?
The biofuels market can be segmented as follows:
• By Form: Solid Biofuel, Liquid Biofuel, Gaseous Biofuel
• By Product Type: Biodiesel, Ethanol, Biogas, Other Products
• By Feedstock: Coarse Grain, Non-Agri Feedstock, Biomass, Vegetable Oil, Sugar Crop, Jatropha, Other Feedstocks
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What are the Emerging Trends in the Biofuels Market?
Technological advancements are a key trend in the biofuels market. Advanced biofuels, compatible with existing fuel infrastructure and having high energy densities, are gaining popularity. Companies operating in the biofuel market are developing innovative solutions. For instance, Clariant, a Europe-based chemical company, recently launched a new line of Vita surfactants and polyethylene glycols made entirely from bio-based renewable carbon.
Who Are The Major Players in the Biofuels Market?
Key companies in the biofuels market include:
• The Archer-Daniels-Midland Company
• Abengoa S. A.
• Renewable Energy Corporation
• Wilmar International Limited
• Poet LLC
• Praj Industries Limited
• Raven SR Inc.
• Shell PLC
• Sustainable Oils
• UPM-Kymmene Oyj, and others.
Which Region Dominates the Biofuels Market?
North America held the largest market share in 2024. However, Asia-Pacific is anticipated to be the fastest-growing region in the forecast period. The regions covered in this report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa.
