PUBLISHER: Visiongain | PRODUCT CODE: 1869561
PUBLISHER: Visiongain | PRODUCT CODE: 1869561
The global Biofuels & Biochemicals market is projected to grow at a CAGR of 9.9% by 2035.
The Biofuels & Biochemicals Market Report 2025-2035 (Including Impact of U.S. Trade Tariffs): This report will prove invaluable to leading firms striving for new revenue pockets if they wish to better understand the industry and its underlying dynamics. It will be useful for companies that would like to expand into different industries or to expand their existing operations in a new region.
Mandates and Incentives Are Locking In Structural Demand
Policy remains the flywheel, with binding blend requirements and tax credits turning what used to be discretionary 'green' volumes into base demand. In aviation, the EU's ReFuelEU Aviation rule begins in 2025 with a 2% SAF blend mandate and scales through 2030, forcing airlines and fuel suppliers to secure supply and proof of sustainability, while Switzerland plans alignment from 2026. These measures sit alongside the broader RED III framework, which tightens transport-renewables targets and traceability, increasingly privileging advanced feedstocks and sustainable pathways that can clear lifecycle thresholds. Together, these rules convert policy intent into offtake inevitability, which de-risks projects and underwriting.
In the U.S., the clean fuel production credit (¬B45Z) became effective for 2025 production, paying on well-to-wheels carbon intensity and rewarding producers that can verifiably drive down CI scores. Treasury and IRS guidance clarifies eligibility and modeling, while ongoing tweaks to GREET parameters and treatment of ILUC are sharpening the economic signal toward low-CI feedstocks and process efficiency. That design materially improves bankability for SAF, renewable diesel and ethanol-to-jet pathways that can document CI reductions, and it pushes enzyme providers, pretreatment technology and carbon capture toward the critical path.
Feedstock Tightness, Traceability and ILUC Disputes Inflate Risk
The best pathways on paper still depend on scarce, auditable feedstocks. Used cooking oil, tallow and other waste lipids remain constrained, with allegations of origin-fraud periodically roiling European markets and making buyers cautious. RED III's tougher sustainability and traceability rules raise the compliance bar even as they strengthen market integrity, and lifecycle debates around indirect land use change continue to influence credit values and eligibility across jurisdictions. Producers that can't prove chain-of-custody and low CI risk losing price premia or tax eligibility, compressing margins at the worst possible time in project ramp-up.
Supply risk compounds when national programs redirect feedstocks inward. Indonesia's march to B40-B50 reduces palm oil exports available for biodiesel outside its borders, while Europe's advanced-biofuel sub-targets absorb a growing share of limited Annex IX feedstocks. Singapore's upcoming SAF mandate illustrates how even well-signaled policies face near-term cost and supply headwinds, with early estimates putting SAF at multiples of fossil jet and highlighting the challenge of scaling waste-based inputs quickly enough. Until novel lipids, residues, lignocellulosics and CO,CC-to-X routes reach scale, feedstock scarcity will be a persistent cap on growth.
What would be the Impact of US Trade Tariffs on the Global Biofuels & Biochemicals Market?
The introduction and adjustment of U.S. tariffs on biofuels and biochemicals have created both challenges and opportunities for the global market. Over the past few years, tariff policies targeting imports of ethanol, biodiesel, and renewable chemical intermediates have reshaped international trade flows, influencing competitiveness and investment strategies across key producing regions. The United States, one of the largest producers and consumers of biofuels, has used tariff measures to protect domestic industries from low-cost imports, particularly from Latin America and Southeast Asia. However, such policies also disrupt supply chains and impact countries reliant on U.S. exports. The global biofuels market's response to these tariffs varies based on regional production capacity, feedstock availability, and government incentives, resulting in different recovery trajectories V-shaped, U-shaped, or L-shaped depending on market resilience and policy adjustments.
What Questions Should You Ask before Buying a Market Research Report?
You need to discover how this will impact the biofuels & biochemicals market today, and over the next 10 years:
Segments Covered in the Report
In addition to the revenue predictions for the overall world market and segments, you will also find revenue forecasts for five regional and 25 leading national markets:
The report also includes profiles and for some of the leading companies in the Biofuels & Biochemicals Market, 2025 to 2035, with a focus on this segment of these companies' operations.
Overall world revenue for Biofuels & Biochemicals Market, 2025 to 2035 in terms of value the market will surpass US$220.1 billion in 2025, our work calculates. We predict strong revenue growth through to 2035. Our work identifies which organizations hold the greatest potential. Discover their capabilities, progress, and commercial prospects, helping you stay ahead.