The global biofuels market attained a volume of 184.56 Billion Liters in 2025 and is projected to expand at a CAGR of 4.50% through 2035. The market is further expected to achieve a volume of 286.62 Billion Liters by 2035. Strong policy incentives and expanding feedstock innovation continue to open new commercial pathways, allowing producers and logistics operators to scale low-carbon fuel adoption without major equipment overhauls.
A noticeable development reshaping the market surfaced in July 2025, when Neste expanded its renewable diesel supply partnership with DB Schenker to support low-carbon road and marine logistics networks across Europe. This agreement adds momentum to renewable diesel uptake among cross-border freight operators and ports that run vessels on blended fuels. According to the biofuels market analysis, global demand is expected to remain nearly 6% till 2030, driven by stronger mandates and transport sector decarbonization. This has given biofuel producers clearer signals to scale refining capacity and diversify feedstocks. Companies are now pushing beyond traditional ethanol and biodiesel toward next-gen renewable diesel, bio-methanol, and sustainable aviation fuel platforms that support multi-sector fuel switching.
Biofuel suppliers prioritize reliability, especially where distribution involves marine, aviation, and heavy trucking flows. Cargo owners look for cleaner fuels that do not interrupt equipment performance, and refiners react by improving feedstock pre-treatment systems and fuel stability. In December 2025, Kuehne+Nagel and Swiss International Air Lines (SWISS) expanded their strategic partnership to speed up the use of cleaner aviation solutions. The most active players invest in feedstock flexibility, digital traceability tools, and catalytic upgrading routes to cut carbon intensity, boosting the overall biofuels market trends and dynamics. Buyers want commercial stability, so sellers put more detail into lifecycle emissions accounting and audit-ready documents.
Base Year
Historical Period
Forecast Period
Compound Annual Growth Rate
4.5%
Value in Billion Liters
2026-2035
*this image is indicative*
| Global Biofuels Market Report Summary | Description | Value |
| Base Year | Billion Liters | 2025 |
| Historical Period | Billion Liters | 2019-2025 |
| Forecast Period | Billion Liters | 2026-2035 |
| Market Size 2025 | Billion Liters | 184.56 |
| Market Size 2035 | Billion Liters | 286.62 |
| CAGR 2019-2025 | Percentage | XX% |
| CAGR 2026-2035 | Percentage | 4.50% |
| CAGR 2026-2035 - Market by Region | North America | 4.9% |
| CAGR 2026-2035 - Market by Country | USA | 5.1% |
| CAGR 2026-2035 - Market by Country | China | 5.0% |
| CAGR 2026-2035 - Market by Form | Liquid Biofuel | 5.3% |
| CAGR 2026-2035 - Market by Feedstock | Sugarcane | 5.2% |
| Market Share by Country 2025 | Australia | 2.1% |
The IEA expects global biofuel demand to rise about 23% to 200 billion liters by 2028, with renewable diesel and ethanol driving two thirds of this increase. According to the biofuels market analysis, India has advanced its 20% ethanol blending target to 2025–26, pushing refiners, distillers, logistics firms, and automakers to lock in long term feedstock and storage contracts. In April 2025, the Madhya Pradesh government launched a comprehensive new biofuels initiative under the Madhya Pradesh Renewable Energy Policy 2025. For B2B buyers, this gives predictable policy cover to commit capital investments.
SAF has become a major growth contributor of the market. The United States SAF Grand Challenge aims for 3 billion gallons of domestic SAF by 2030 and 35 billion gallons by 2050, compelling airlines, fuel suppliers, and airports to coordinate investments in new hydrotreating, alcohol-to-jet, and Fischer-Tropsch lines. In November 2025, Spring GDS, a global leader in cross-border logistics, announced the launch of its Book & Claim solution for sustainable aviation fuel (SAF), a new initiative designed to reduce emissions from air transport and help customers meet their sustainability goals with verified, transparent reporting, accelerating demand in the biofuels market.
Capital now flows into advanced renewable diesel more aggressively than into first-generation biodiesel. Carolina Renewable Products, in January 2024, announced the launch of a USD 280 million renewable diesel facility in South Carolina, targeting 155 jobs and long-term offtake with logistics and fleet operators, accelerating the biofuels market value. In the other hand, in April 2024, Repsol launched the commercial name of its 100% renewable diesel in its service stations, Nexa 100% Renewable Diesel. Nexa 100% Renewable Diesel has a unique formulation that optimizes performance and extends the life of the engines of diesel vehicles. For B2B buyers, these projects signal better volume reliability and contract sizes suitable for large fleets.
Policy makers push the industry away from a narrow food-crop base toward waste, residues, and multi-feedstock strategies. India’s National Policy on Biofuels, updated in 2022, supports ethanol from sugarcane, damaged grains, agricultural residues, and even waste biomass while advancing the 20% blending goal to 2025–26. Similar ideas appear in other regions as developers integrate used cooking oil, tallow, corn oil, and municipal waste into renewable diesel or SAF pathways, propelling the overall biofuels market growth. In November 2025, Honeywell introduced a breakthrough technology that converts agricultural and forestry waste into ready-to-use renewable fuels for hard-to-abate sectors, such as the maritime industry.
Biofuels are positioned at the intersection of energy security and climate policy, bringing treasury and energy ministries together to align funding priorities with decarbonization goals. In December 2025, Tidewater Midstream and Infrastructure Ltd. announced that they have entered into an initiative agreement with the Government of British Columbia that will provide Tidewater with BC LCFS Credits to support the production of low-carbon renewable gasoline and renewable diesel from the Fluid Catalytic Cracking co-processing infrastructure at the Prince George Refinery, propelling biofuels market opportunities. For refiners, blenders, and traders, this trend entails that biofuels are now part of core energy planning, not just environmental branding.
The EMR’s report titled “Global Biofuels Market Report and Forecast 2026-2035” offers a detailed analysis of the market based on the following segments:
Market Breakup by Product
Key Insight: Biodiesel captures major traction in the biofuels market scope because it aligns with current diesel engines and lets fleets shift toward cleaner performance without changing maintenance behavior. Ethanol is expanding its share with stronger blending economics, better distribution practices, and supportive regulations around gasoline networks. Wood pellets focus on industrial heat and power buyers that want reliable solid fuels with stable handling.
Market Breakup by Form
Key Insight: Liquid fuels dominate the biofuels market dynamics because they blend smoothly with diesel and gasoline supply chains, reducing switching costs. Solid biofuels appeal to industrial and power users that prioritize consistent combustion performance. Gaseous fuels grow fast as transport and energy companies test renewable gas infrastructure to strengthen long term emissions improvement. Buyers compare performance stability, compatibility, and logistics simplicity when choosing fuel form. Firms plan future portfolios around multi-form pathways to keep supply options open and reduce risk in shifting energy landscapes.
Market Breakup by Feedstock
Key Insight: Biofuel feedstock strategy reflects long term security and performance outcomes. Corn offers reliable volume for ethanol production with stable yields and efficient processing. Sugarcane supports strong fermentation economics where climate and land patterns align. Vegetable oils accelerate the biofuels market value, owing to hydrotreating growth, feeding renewable diesel and biodiesel scalability. Other feedstocks like waste residues and lignocellulosic inputs bring flexibility and environmental advantages, though supply can be uneven. Buyers value feedstock stability, certification clarity, and predictable emissions profiles.
Market Breakup by Application
Key Insight: Biofuel application pathways reflect technical readiness and operational goals. Transportation dominates because its blending and distribution system already supports large volumes across road, marine, and rail fleets. Aviation grows at the fastest pace as SAF proves compatible with airport infrastructure and meets strong emissions ambitions, creating biofuels market opportunities. Energy generation facilities apply solid, liquid, and gaseous biofuels to adjust power mixes. Heating applications favor solid fuels and biomass pathways aligned to industrial heat demand.
Market Breakup by Region
Key Insight: North America advances its shares owing to renewable diesel and SAF supply tied to transport and aviation networks. Europe dominates the market, driven by aggressive mandates and multi-feedstock refinery integration. The biofuels market in Asia Pacific expands quickly with rising fuel demand and scaling investment. Latin America leverages ethanol experience and emerging biodiesel hubs. The Middle East and Africa build pathways tied to export, aviation, and marine corridors. Each region navigates infrastructure maturity, compliance signals, and procurement patterns differently.
By product, biodiesel captures the largest share of the market due to rising fleet decarbonization pressure
Biodiesel leads the market because commercial fleets, ports, and logistics providers prioritize fuels that work with existing engines and storage setups while lowering lifecycle carbon. The category benefits from strong interest among trucking and marine operators who seek cleaner fuels without major hardware changes. Biodiesel producers improve their conversion efficiency and draw from flexible feedstocks to reduce volatility in supply. This biofuels market trend encourages adoption by large corporate buyers who want predictable contract volumes. In April 2025, Aemetis Inc. announced that the company’s subsidiary in India, Universal Biofuels, received multiple orders for an aggregate of USD 31 million for the delivery during May, June and July of more than 33,000 kiloliters of biodiesel to the three government-owned oil marketing companies (OMCs).
Ethanol expands its share in the biofuels market because light-duty transport networks shift toward cleaner blends and because policy incentives encourage refiners to raise blend ratios. Fuel distributors tighten product handling standards to protect engine performance, making ethanol more attractive to fleet owners. Growth also reflects better access to multi-feedstock supply chains and improved distillation technology. With many industrial buyers focusing on carbon footprint reduction and compliance signaling, ethanol has become a cornerstone for blended gasoline routes.
Liquid biofuels occupy a major share of the market because their handling resembles conventional fuels, making them easier to adopt at scale. Established distribution systems, storage tanks, and pumping infrastructure all reduce operational friction, so fleets integrate them without major disruptions. Products like biodiesel and renewable diesel typically slot into standard marine, road, and industrial fuel networks. In September 2025, the government of Australia announced plans to invest AUD 1.1 billion to support the domestic production of drop-in, low-carbon liquid fuels, such as renewable diesel and sustainable aviation fuel (SAF).
The gaseous form observes significant growth in the biofuels market because fleets explore biomethane and renewable gas pathways for deeper emissions reductions. Major interest in this category stems from companies that already operate LNG or CNG engines and can shift gradually. In November 2024, GPS Renewables (GPSR), a leading biogas engineering firm, partnered with Oil India Limited (OIL) to establish eight compressed biogas (CBG) plants in India. Operators view gaseous fuels as a bridge to future hydrogen or e-fuel options. Storage design, safety measures, and metering accuracy remain critical, so suppliers invest in upgraded compression and delivery systems.
Corn accounts for a substantial share of the market because fermentation infrastructure, logistics networks, and distillery capacity are mature and scalable. Ethanol producers rely on corn’s predictable supply, making contract planning easier for industrial buyers. Feedstock consistency enables stable yields and supports commercial confidence. Blenders appreciate corn-derived ethanol because performance and octane characteristics fit automotive engines. In March 2025, COAMO Agroindustrial Cooperativa selected ICM Tecnologia em Biocombustíveis Ltda. (ICM) to provide professional services and equipment for a new dry-mill grain ethanol facility at the COAMO industrial site in Campo Mourão, Paraná, Brazil. Producers also improve co-product value recovery, giving refinery economics extra strength, accelerating the biofuels market revenue.
Vegetable oils gain momentum because renewable diesel and biodiesel projects expand aggressively, demanding flexible lipid feedstocks. Producers refine pre-treatment and hydrotreating steps to handle mixed oils, improving reliability and scale. Fleet operators choose renewable diesel because it suits existing engines and gives measurable emissions gains, so suppliers seek higher output from vegetable oils.
Transportation leads the biofuels market because fleets look for cleaner fuels that drop into current engines and fuel systems, limiting retrofit needs, and biodiesel, ethanol, and renewable diesel all align with this goal. Logistics operations care about emissions reporting and uptime, so suppliers stress stability, storage, and traceability. Policy incentives support transportation blends in many regions, nudging corporate buyers to secure longer-term contracts. In May 2025, Argus launched a new freight service which offers global pricing and market intelligence for biofuels, associated feedstocks and chemicals. Oil distributors upgrade blending and testing tools to meet tighter specifications. Integration with marine, trucking, and rail networks gives transportation fuels a broad platform.
Aviation observes significant biofuels market expansion as airlines and airports shift toward sustainable aviation fuel routes. SAF fits into jet engines and airport fuel farms, reducing disruptions to operations. With strong regulatory momentum and rising global targets, SAF interest extends across national carriers, cargo airlines, and aviation service groups. Procurement teams depend on emissions reduction data and lifecycle carbon reporting to justify expenditure.
Europe secures the leading position in the market due to aggressive mandates and advanced refining infrastructure upgrades
Europe holds the leading position because its mandates and emissions programs shape biofuel investment decisions across transport, aviation, and marine sectors. Producers scale renewable diesel, ethanol, and SAF capacity to serve corporate fleets and logistics corridors. Refiners advance co-processing strategies to lift renewable volumes without massive rebuilds. Buyers depend on structured compliance and consistent quality control, making European operations a reference point globally. Regional ports focus on flexible fuel storage and blending pipelines, supporting multi-feedstock biofuels market expansion.
Factors such as rising energy demand and stronger decarbonization commitments are converging to drive growth in the Asia Pacific market. Countries support ethanol and biodiesel programs, while renewable diesel and SAF trials expand around key transport hubs. Refiners invest in flexible feedstock lines and upstream partnerships to build reliable supply. Industrial buyers look for cleaner, drop-in alternatives that protect equipment performance. Meanwhile, logistics operators become more active in sourcing blended fuels.
| CAGR 2026-2035 - Market by | Country |
| USA | 5.1% |
| China | 5.0% |
| UK | 4.9% |
| Germany | 4.6% |
| France | 4.4% |
| Canada | XX% |
| Italy | XX% |
| Japan | XX% |
| India | XX% |
| Australia | XX% |
| Saudi Arabia | 4.0% |
| Brazil | XX% |
| Mexico | 3.9% |
The competitive landscape in the market is shaped by integrated producers, energy companies, commodity traders, and refiners that focus on scale, feedstock resilience, and downstream flexibility. Biofuel companies invest in hydroprocessing upgrades, digital emissions tracking, and multi-feedstock structures to reduce risk and open higher value contracts with aviation, marine, and trucking fleets. Growth opportunities include co-processing renewable streams in existing refinery units, producing sustainable aviation fuel, and forming long-term partnerships with logistics providers that want lifecycle emissions transparency.
Biofuels market players also target waste-based inputs, expanding into used cooking oil and residue aggregation networks to improve supply stability. Biofuel specialists emphasize certification and traceability because corporate buyers value audit-ready documents. As more hubs explore renewable diesel and SAF, producers try to scale capacity while managing cost pressure. The competitive focus revolves around efficiency, reliability, and emissions performance rather than volume alone.
Archer Daniels Midland Company, established in 1902, headquartered in the United States, builds integrated ethanol and biodiesel supply through grain origination, enzyme enhancements, and dry mill optimization. The company strengthens co-product management and fermentation yield performance to support reliable volume. ADM invests in flexible feedstock strategies and logistics capability, enabling stable distribution for transport and industrial buyers.
Shell Plc, founded in 1907, headquartered in London, United Kingdom, expands renewable diesel, SAF, and bio-methanol portfolios tied to refinery integration and certification systems. Shell focuses on waste-based feedstocks and co-processing strategies, allowing renewable volumes to scale through existing assets.
Wilmar International Ltd., established in 1991, headquartered in Singapore, leverages vertically integrated edible oil networks to support biodiesel production. The company invests in feedstock flexibility, residue capture, and upgraded pre-treatment systems that improve product stability and continuity. Wilmar supports downstream customers with renewable solutions designed around fleet compatibility and emissions needs, especially in Asian transport corridors.
Cargill, Incorporated, founded in 1865, headquartered in the United States, tailors biofuel solutions around feedstock aggregation, supply risk reduction, and conversion efficiency. The company develops renewable diesel and biodiesel capability through flexible lipid and residue inputs, serving transport fleets and industrial demand. Cargill’s expertise in trading and origination helps customers manage cost exposure and ensure long-term feedstock access.
*Please note that this is only a partial list; the complete list of key players is available in the full report. Additionally, the list of key players can be customized to better suit your needs.*
Other key players in the market include Chevron Corporation, BP Plc, Green Plains Inc., Abengoa S.A., Gevo, Inc., and POET, LLC, among others.
Unlock the latest insights with our biofuels market trends 2026 report. Discover regional growth patterns, consumer preferences, and key industry players. Stay ahead of competition with trusted data and expert analysis. Download your free sample report today and drive informed decisions in the market.
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*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*
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In 2025, the market reached an approximate volume of 184.56 Billion Liters.
The market is projected to grow at a CAGR of 4.50% between 2026 and 2035.
The market is estimated to witness a healthy growth in the forecast period of 2026-2035 to reach about 286.62 Billion Liters by 2035.
Companies are diversifying feedstocks, expanding co-processing units, investing in SAF platforms, improving digital carbon tracking, and forming supply contracts with fleet operators to secure stable long-term demand.
The key trends aiding the market are the development of biofuels from innovative raw materials and surging research activities aimed at developing innovative technologies for the production of low-carbon and affordable fuels.
The major regions in the market are North America, Latin America, the Middle East and Africa, Europe, and the Asia Pacific.
The major forms of biofuels are solid biofuel, liquid biofuel, and gaseous biofuel.
The key players in the market include Archer Daniels Midland Company, Shell Plc, Wilmar International Ltd., Cargill, Incorporated, Chevron Corporation, BP Plc, Green Plains Inc., Abengoa S.A., Gevo, Inc., and POET, LLC, among others.
Companies face feedstock price swings, certification pressure, refinery integration costs, and scaling risk. Ensuring stable product quality, logistics efficiency, and reliable volumes while maintaining cost competitiveness remains difficult.
Explore our key highlights of the report and gain a concise overview of key findings, trends, and actionable insights that will empower your strategic decisions.
| REPORT FEATURES | DETAILS |
| Base Year | 2025 |
| Historical Period | 2019-2025 |
| Forecast Period | 2026-2035 |
| Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
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| Breakup by Product |
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| Breakup by Form |
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| Breakup by Feedstock |
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| Breakup by Application |
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| Breakup by Region |
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| Market Dynamics |
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| Competitive Landscape |
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| Companies Covered |
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