Biofuels Market Report 2026

Biofuels Market Overview

• Biofuels market size has reached to $187.83 billion in 2025 • Expected to grow to $276.81 billion in 2030 at a compound annual growth rate (CAGR) of 8.2% • Growth Driver: Increasing Transportation Sector Demand Fuels Growth In The Biofuels Market • Market Trend: Rising Prominence Of Technological Advancements In The Biofuel Market • North America was the largest region in 2025 and Asia-Pacific is the fastest growing region.

What Is Covered Under Biofuels Market?

Biofuel refers to a cleaner-burning alternative to petroleum-based diesel fuel made from renewable sources such as new and old vegetable oils and animal fats. It is a harmless and biodegradable substance created by mixing alcohol with vegetable oil, animal fat, or recycled cooking grease. The primary purpose of biofuels is to help reduce the carbon footprint of transportation and other industries. The main form of biofuels are solid biofuel, liquid biofuel, and gaseous biofuel. The solid biofuel of biofuel is a solid form of biofuel used as fuel for the generation of heat or electricity. The biofuel product is biodiesel, ethanol, biogas, and other products that are derived from feedstocks such as coarse grain, non-agri feedstock, biomass, vegetable oil, sugar crop, jatropha and other feedstocks.

What Is The Biofuels Market Growth Forecast?

The biofuels market size is expected to see strong growth in the next few years. It will grow to $276.81 billion in 2030 at a compound annual growth rate (CAGR) of 8.2%. The growth in the forecast period can be attributed to net zero emission targets, rising demand for sustainable aviation fuel (SAF), advancements in enzyme and fermentation technologies, increased investment in second generation biofuels, expansion of carbon credit markets. Major trends in the forecast period include advanced bio-refining processes, waste-to-fuel conversion expansion, renewable diesel adoption growth, sustainable aviation fuel scaling, feedstock diversification strategies.

Global Biofuels Market Segmentation

1) By Form: Solid Biofuel, Liquid Biofuel, Gaseous Biofuel 2) By Product Type: Biodiesel, Ethanol, Biogas, Other Products 3) By Feedstock: Coarse Grain, Non-Agri Feedstock, Biomass, Vegetable Oil, Sugar Crop, Jatropha, Other Feedstocks Subsegments: 1) By Solid Biofuel: Wood Pellets, Agricultural Residues, Dedicated Energy Crops, Biomass Briquettes 2) By Liquid Biofuel: Bioethanol, Biodiesel, Renewable Diesel, Bio-Jet Fuel 3) By Gaseous Biofuel: Biogas, Biomethane, Hydrogen From Biomass

What Is The Driver Of The Biofuels Market?

The rising demand for energy in the transportation sector is expected to propel the growth of the process oil market going forward. The transportation sector refers to the industry involved in the movement of people and goods from one place to another. Biofuels can be used as an alternative or blend with traditional fuels in the transportation industry, reducing the carbon footprint and meeting regulatory requirements for cleaner energy sources. For instance, in September 2023, the International Air Transport Association (IATA), a Canada-based trade association representing the airline industry, reported a significant increase in total traffic for July 2023, with a 26.2% rise compared to July 2022, resulting in the highest-ever recorded July revenue passenger kilometers (RPKs). Therefore, the rising passenger traffic in the transportation sector is expected to propel the growth of the biofuels industry.

Key Players In The Global Biofuels Market

Major companies operating in the biofuels market are 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, Velocys Inc., Virent Energy Systems Inc., Aemetis Inc., Amyris Inc., Anellotech Inc., Avantium Technologies B. V., Axens Technologies (IFP), Cargill Inc., Chevron Corporation, Clariant International AG, Corbion N. V., DG Fuels, Diamond Green Diesel LLC, Dimeta, DMC Biotechnologies Inc., Enerkem Inc., Fidelis New Energy LLC, Fluid Quip Technologies LLC, Genofuel, Gevo Inc., GranBio, Green Plains Inc., Haldor Topsoe A/S, Honeywell International Inc.

Global Biofuels Market Trends and Insights

Major companies are operating in the biofuels market, focusing on developing innovation such as biocrude upgrading processes to improve efficiency, fuel quality, and cost-effectiveness in renewable fuel production. A biocrude upgrading process converts agricultural and forestry biomass into a low-cost, high-quality intermediate that can be further refined into sustainable aviation fuel (SAF), marine fuel, or gasoline similar to how modular systems streamline conversion and optimize resource utilization. For instance, in October 2025, Honeywell International Inc, a US-based technology and manufacturing company, introduced its biocrude upgrading technology. The process enables smoother biomass-to-fuel conversion, enhances overall fuel yield, and supports decarbonization efforts in aviation and other transport sectors. The product is designed to be scalable and compatible with existing refining facilities, allowing rapid deployment across multiple production sites.

What Are Latest Mergers And Acquisitions In The Biofuels Market?

In August 2024, Trafigura Group Pte Ltd, a Singapore-based global commodity trading and energy logistics provider, completed the acquisition of Greenergy’s European and Canadian supply businesses from Brookfield Asset Management and its affiliate Brookfield Business Partners for an undisclosed amount. With this acquisition, Trafigura aimed to strengthen its biofuels supply and distribution operations in Europe and Canada by combining Greenergy’s manufacturing and supply infrastructure into its broader fuels business, supporting growth in lower-carbon transport fuels. Greenergy Limited is a UK-based supplier of road fuels and a major European biodiesel producer, operating biofuel blending and manufacturing facilities in the UK and the Netherlands and serving commercial and wholesale markets internationally.

Regional Outlook

North America was the largest region in the biofuel market in 2025.Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in this market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in this market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain

What Defines the Biofuels Market?

The biofuel market consists of sales of methanol, butanol and biogas. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

How is Market Value Defined and Measured?

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified). The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

What Key Data and Analysis Are Included in the Biofuels Market Report 2026?

The biofuels market research report is one of a series of new reports from The Business Research Company that provides market statistics, including industry global market size, regional shares, competitors with the market share, detailed market segments, market trends and opportunities, and any further data you may need to thrive in the biofuels industry. The market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future state of the industry.