Visiongain has published a new report entitled Biofuel Industry Market Report 2025-2035: Forecasts by Production Process (Transesterification, Other Processes, Fermentation), by Blending Type (Ethanol Blends (E5, E10, E15, E85), Biodiesel Blends (B5, B10, B20, B100), Renewable Diesel (Drop-In Fuel), Biojet Fuel Blends), by Application (Transportation, Power Generation, Industrial Heating, Residential & Commercial Heating, Other), by Feedstock (Maize, Vegetable Oils, Sugar Beet, Wheat, Sugarcane, Other) AND Regional and Leading National Market Analysis PLUS Analysis of Leading Companies.

The global biofuel industry market is estimated at US$138.97 billion in 2025 and is projected to grow at a CAGR of 7.9% during the forecast period 2025-2035.

The global biofuel market is entering a new phase of expansion, driven by aviation and maritime decarbonisation efforts, advancements in cellulosic and waste-based biofuels, and growing demand in emerging economies. Investments in SAF, advanced biofuels, maritime applications, circular economy innovations, and developing market infrastructure will define the next growth cycle for the industry. As regulatory frameworks tighten and sustainability becomes a priority across industries, biofuels will play a pivotal role in the global energy transition.

What are the Current Market Drivers?

Rising Demand for Sustainable Aviation Fuel (SAF) and Maritime Biofuels

The aviation and shipping industries are under increasing pressure to decarbonize, with regulations and industry commitments driving demand for biofuels. The International Civil Aviation Organization (ICAO) and the International Maritime Organization (IMO) have set carbon reduction targets that require alternative fuel adoption. Sustainable aviation fuel (SAF), which can reduce carbon emissions by up to 80% compared to conventional jet fuel, is becoming a major growth driver for the biofuel market.

BP, Shell, and Neste are investing heavily in SAF production, with major airlines like United Airlines and Lufthansa forming partnerships to secure long-term supplies. Similarly, GoodFuels and Maersk are developing biofuels for maritime applications, supporting the shipping sector’s transition to cleaner fuels.

Growing Consumer and Corporate Sustainability Initiatives

Consumer preferences and corporate sustainability commitments are increasingly shaping biofuel demand. Many companies and industries are setting net-zero emissions goals, with biofuels playing a crucial role in their decarbonization strategies. Fleet operators, logistics providers, and public transportation systems are transitioning to biofuels to reduce their carbon footprints.

For instance, Amazon and UPS have incorporated biodiesel and renewable diesel into their delivery fleets, while Delta Airlines has committed to using SAF for a portion of its flights. Additionally, McDonald’s is powering some of its supply chain logistics with biodiesel derived from used cooking oil, reinforcing the circular economy in the biofuel sector.

Where are the Market Opportunities?

Expansion of Sustainable Aviation Fuel (SAF) Market

The demand for Sustainable Aviation Fuel (SAF) presents one of the biggest growth opportunities in the biofuel sector. The aviation industry is under increasing regulatory pressure to decarbonize, with organizations such as the International Civil Aviation Organization (ICAO) setting ambitious carbon reduction goals. Airlines are actively seeking sustainable alternatives to conventional jet fuel, driving investments in SAF production.

Major oil companies like BP, Shell, and Neste are investing in SAF refineries, while airlines such as United Airlines and Lufthansa have committed to long-term SAF procurement agreements. Additionally, startups like LanzaJet and Velocys are pioneering new production methods using waste-based feedstocks. Given the relatively low penetration of SAF in the aviation market, there is significant room for expansion, especially with increasing mandates requiring a minimum SAF blend in commercial aviation fuel.

Growth of Advanced and Cellulosic Biofuels

The next wave of biofuel innovation lies in second- and third-generation biofuels, which utilize non-food biomass such as agricultural residues, municipal waste, and algae. These biofuels offer higher sustainability benefits as they do not compete with food production and have a lower carbon footprint compared to first-generation biofuels.

Companies like Clariant, POET, and Beta Renewables are leading advancements in cellulosic ethanol, while ExxonMobil and Synthetic Genomics are exploring algae-based biofuels. Government grants and private investments are accelerating research into hydrotreated vegetable oil (HVO), biomass-to-liquid (BTL) fuels, and gasification technologies, creating an opportunity for commercial-scale production and integration into existing fuel infrastructure.

Competitive Landscape

The major players operating in the biofuel industry market are Abengoa, S.A, Air Liquide S.A., Algenol Biotech, Archer Daniels Midland Company, Bio-Oils Energy, Bunge Limited, Butamax Advanced Biofuels LLC, Eniven Group, Green Plains Inc., Pacific Ethanol, Inc, Petroleo Brasileiro S.A, Renewable Biofuels LLC, Royal Dutch Shell Plc, Valero Energy Corporation, Wilmar International Ltd. These major players operating in this market have adopted various strategies comprising M&A, investment in R&D, collaborations, partnerships, regional business expansion, and new product launch.

Recent Developments

• 18 March 2025, Alto Ingredients entered into an agreement with Bradley L. Radoff and Michael Torok, under which they agreed to vote in Favor of the Board’s nominated directors and comply with standstill provisions until the 2026 Annual Meeting.
• 27 Feb 2025, Petrobras Singapore carried out the first bunkering operation of VLSFO (Very Low Sulfur Fuel Oil) with 24% renewable content (B24) for the vessel André Rebouças in Singapore. The biofuel used was UCOME, derived from used cooking oil.

Notes for Editors

If you are interested in a more detailed overview of this report, please send an e-mail to contactus@visiongain.com or call +44 207 336 6100.

How will this Report Benefit you?

Visiongain’s 352-page report provides 110 tables and 185 charts/graphs. Our new study is suitable for anyone requiring commercial, in-depth analyses for the biofuel industry market, along with detailed segment analysis in the market. Our new study will help you evaluate the overall global and regional market for Biofuel Industry. Get financial analysis of the overall market and different segments including production process, blending type, application, and feedstock, and company size and capture higher market share. We believe that there are strong opportunities in this fast-growing biofuel industry market. See how to use the existing and upcoming opportunities in this market to gain revenue benefits in the near future. Moreover, the report will help you to improve your strategic decision-making, allowing you to frame growth strategies, reinforce the analysis of other market players, and maximise the productivity of the company.

About Visiongain

Visiongain is one of the fastest-growing and most innovative independent media companies in Europe. Based in London, UK, Visiongain produces a host of business-to-business reports focusing on the automotive, aviation, chemicals, cyber, defence, energy, food & drink, materials, packaging, pharmaceutical and utilities sectors.

Visiongain publishes reports produced by analysts who are qualified experts in their field. Visiongain has firmly established itself as the first port of call for the business professional who needs independent, high-quality, original material to rely and depend on.