Biofuels Global Market Report 2026

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.

Tariffs have created both challenges and opportunities for the biofuels market by influencing the trade of feedstocks, bio-refining equipment, and finished biofuel products. Higher import duties on agricultural raw materials and processing machinery have increased production costs for biodiesel, ethanol, and renewable diesel producers, especially in regions dependent on imported inputs such as Asia-Pacific and parts of Europe. These cost pressures have affected pricing and delayed capacity expansion in some markets. At the same time, tariffs on fossil fuel imports in certain countries have improved the relative competitiveness of domestically produced biofuels. This has supported local sourcing strategies and encouraged investments in regional biofuel production facilities.

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

The biofuels market size has grown strongly in recent years. It will grow from $187.83 billion in 2025 to $202.24 billion in 2026 at a compound annual growth rate (CAGR) of 7.7%. The growth in the historic period can be attributed to government biofuel blending mandates, volatility in crude oil prices, agricultural surplus utilization, early environmental regulations, rural energy security initiatives.

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.

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 market.

Major companies in the biofuels market are focusing on developing innovations such as biocrude upgrading processes to enhance efficiency, fuel quality, and cost-effectiveness in renewable fuel production. Biocrude upgrading processes transform 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 example, in October 2025, Honeywell International Inc., a U.S.-based technology and manufacturing company, introduced its biocrude upgrading technology. This process facilitates smoother biomass-to-fuel conversion, improves overall fuel yields, and supports decarbonization efforts across aviation and other transportation sectors. The technology is designed to be scalable and compatible with existing refining infrastructure, enabling rapid deployment across multiple production sites.

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. Through this acquisition, Trafigura aimed to strengthen its biofuels supply and distribution operations across Europe and Canada by integrating Greenergy's manufacturing and supply infrastructure into its broader fuels business, supporting the expansion of lower-carbon transportation fuels. Greenergy Limited is a UK-based road fuel supplier and a major European biodiesel producer, operating biofuel blending and manufacturing facilities in the UK and the Netherlands while serving commercial and wholesale markets internationally.

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.

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 the biofuels market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the biofuels market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain

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.

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.

Biofuels Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses biofuels market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for biofuels ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The biofuels market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market. This section also examines key products and services offered in the market, evaluates brand-level differentiation, compares product features, and highlights major innovation and product development trends.
• The supply chain analysis section provides an overview of the entire value chain, including key raw materials, resources, and supplier analysis. It also provides a list competitor at each level of the supply chain.
• The updated trends and strategies section analyses the shape of the market as it evolves and highlights emerging technology trends such as digital transformation, automation, sustainability initiatives, and AI-driven innovation. It suggests how companies can leverage these advancements to strengthen their market position and achieve competitive differentiation.
• The regulatory and investment landscape section provides an overview of the key regulatory frameworks, regularity bodies, associations, and government policies influencing the market. It also examines major investment flows, incentives, and funding trends shaping industry growth and innovation.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.
• The total addressable market (TAM) analysis section defines and estimates the market potential compares it with the current market size, and provides strategic insights and growth opportunities based on this evaluation.
• The market attractiveness scoring section evaluates the market based on a quantitative scoring framework that considers growth potential, competitive dynamics, strategic fit, and risk profile. It also provides interpretive insights and strategic implications for decision-makers.
• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth.
• Expanded geographical coverage includes Taiwan and Southeast Asia, reflecting recent supply chain realignments and manufacturing shifts in the region. This section analyzes how these markets are becoming increasingly important hubs in the global value chain.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The company scoring matrix section evaluates and ranks leading companies based on a multi-parameter framework that includes market share or revenues, product innovation, and brand recognition.

Scope

• Markets Covered: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
• Companies Mentioned: 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.
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Taiwan; Russia; South Korea; UK; USA; Canada; Italy; Spain
• Regions: Asia-Pacific; South East Asia; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time Series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data Segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
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