Biofuels Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

The Biofuels Market is segmented by Type (Biodiesel, Ethanol, and Other Types), Feedstock (Palm Oil, Jatropha, Sugar Crop, Coarse Grain, and Other Feedstock), and Geography (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa).

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Biofuels Industry Overview

Biofuels Market Summary
Study Period: 2019 - 2028
Fastest Growing Market: Asia Pacific
Largest Market: North America
CAGR: > 7 %

Major Players

Biofuels Market Major Players

*Disclaimer: Major Players sorted in no particular order
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Biofuels Market Analysis

The biofuels market is expected to register a CAGR of more than 7% during the forecast period of 2022-2027. The COVID-19 pandemic affected the market adversely due to a fall in demand for fuels as transportation was halted, which, in turn, affected the demand for biofuels as they are used by blending them with fossil fuels. In terms of the growth of the market, the demand for secure, sustainable, and clean energy coupled with government mandates of increasing blending in automotive fuels is expected to propel the demand for biofuels across the globe. However, high cost of production of biofuels even with all the benefits associated with them is likely to restrain the growth of market.

  • Ethanol is likely to experience significant growth in the biofuel market owing to its extensive use in automotive vehicles without any major overhauls in the internal combustion engine.
  • Currently, research is underway to develop additional feedstocks that could be used to make biofuels, along with production processes that are safe for the environment and take less toll on it, which is likely to present many opportunities in the future.
  • North America is likely to remain the dominant region in the biofuels market during the forecast period.

Biofuels Industry Segments

The biofuels market report includes:

Fuel Type
Ethanol
Biodiesel
Other Fuel Types
Feedstock
Palm Oil
Jatropha
Sugar Crop
Coarse Grain
Other Feedstock
Geography
North America
Europe
Asia-Pacific
South America
Middle-East and Africa

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Biofuels Market Trends

This section covers the major market trends shaping the Biofuels Market according to our research experts:

Ethanol Likely to Experience a Significant Growth

  • Globally, the transportation sector is the biggest emitter of greenhouse gases, majorly due to the combustion of fossil fuels used in their internal combustion engines. The transportation sector has a major share of private vehicles, such as four-wheelers and two-wheelers, along with commercial vehicles.
  • Private vehicles majorly fall into the lightweight vehicle category and are powered by gasoline as fuel.
  • To limit the emission of greenhouse gases, countries all over the world have brought norms, and an increasing number of countries now mandate the blending of gasoline with ethanol to lower emissions and reduce dependency on fossil fuels.
  • Major blending mandates that drive the global demand for biofuels are set in North America, India, Brazil, Europe, etc. For instance, the Government of India and oil marketing companies are aggressively promoting the blending of 10% ethanol in motor spirit with an aim to increase the blending percentage gradually to 20% by 2028. In 2016, the global bio-gasoline consumption stood at 965 thousand barrels of oil equivalent per day, which went increasing till 2019, and a suffered a decline in 2020 due to the COVID-19 pandemic. The consumption is expected to recover once the effect of the pandemic gets subsided.
  • Similarly, Canada is likely to release the final regulation for publication of its Clean Fuel Standard program in spring 2022. The Clean Fuel Standard program includes a nationwide goal of an average 15% ethanol blend by 2030.
  • Furthermore, in March 2022, Brazil's Ministry of Economy announced that it would waive its import tariff on ethanol, including other products, through the end of 2022 to alleviate inflationary pressures. This is expected to give a boost to the ethanol blending in the gasoline and drive the market.
  • Therefore, owing to the above points, the ethanol segment is expected to experience significant growth in the biofuels market during the forecast period.
Biofuels Market : Bio-Gasoline Consumption, in Thousand Barrels of Oil Equivalent per Day, Global, 2015-2020

North America is Expected to Dominate the Market

  • The North American region houses one of the biggest aviation markets along with a well-established terrain transportation infrastructure running on primarily fossil fuels. The North American region has been at the forefront of lowering emissions to limit the greenhouse effect.
  • In 2020, the North American region produced about 623 thousand barrels of oil equivalent per day of biofuels, including biogasoline and biodiesel. Ethanol's share in the production was significantly higher than biodiesel, accounting for almost 500 thousand barrels of oil equivalent per day.
  • Furthermore, in 2020 United States consumed 454 thousand barrels of oil equivalent per day, close to half of the global bio-gasoline consumption.
  • The countries in the region consider policies that help in the rapid adoption of biofuels in the region. In January 2022, the US Environmental Protection Agency announced a new initiative for streamlining the review of biofuels and chemicals that can play a major role in replacing higher GHG emitting fossils fuels providing a major push to the biofuels market.
  • Similarly, in Canada, the government is aiming for increased carbon taxes by CAD 10 to CAD 50 per tonne of emissions from April 2022, thereby pushing for wider adoption of biofuels that emit less GHG.
  • Hence, owing to the above points, the North American region is likely to dominate the biofuels market owing to the government policies and production capacity.
Biofuels Market : Growth Rate by Region, 2022-2027

Biofuels Market Competitor Analysis

The competitive landscape of the Biofuels Market is fragmented. Some of the major players include Archer Daniels Midland Company, Abengoa Bioenergy SA, Renewable Energy Group Inc., Cargill Incorporated, and POET LLC.

Biofuels Market Top Players

  1. Abengoa Bioenergy S.A.

  2. POET, LLC

  3. Archer Daniels Midland Company

  4. Cargill Incorporated

  5. Renewable Energy Group, Inc.

*Disclaimer: Major Players sorted in no particular order

Biofuels Market Concentration

Biofuels Market Recent Developments

  • In January 2022, Malaysia's Palm Oil Board announced that it intends to implement its nationwide adoption of the B20 palm oil biofuel program by the end of the year. The mandate to manufacture biofuel with a 20% palm oil component known as B20 for the transport sector was first rolled out in January 202 but faced delays due to the pandemic.
  • In December 2021, Stanlow Terminals announced that it would develop the United Kingdom's largest biofuel storage hub in the northwest of England as part of a focus on emerging opportunities amid energy transition and net-zero goals.

Biofuels Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Scope of the Study

    2. 1.2 Market Definition

    3. 1.3 Study Assumptions

  2. 2. EXECUTIVE SUMMARY

  3. 3. RESEARCH METHODOLOGY

  4. 4. MARKET OVERVIEW

    1. 4.1 Introduction

    2. 4.2 Biofuel Production Historic and Forecast, in thousand barrels of oil equivalent per day, till 2027

    3. 4.3 Biofuel Consumption Historic and Forecast, in thousand barrels of oil equivalent per day, till 2027

    4. 4.4 Recent Trends and Developments

    5. 4.5 Government Policies and Regulations

    6. 4.6 Market Dynamics

      1. 4.6.1 Drivers

      2. 4.6.2 Restraints

    7. 4.7 Supply Chain Analysis

    8. 4.8 Industry Attractiveness - Porter's Five Force Analysis

      1. 4.8.1 Bargaining Power of Suppliers

      2. 4.8.2 Bargaining Power of Consumers

      3. 4.8.3 Threat of New Entrants

      4. 4.8.4 Threat of Substitutes Products and Services

      5. 4.8.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 Fuel Type

      1. 5.1.1 Ethanol

      2. 5.1.2 Biodiesel

      3. 5.1.3 Other Fuel Types

    2. 5.2 Feedstock

      1. 5.2.1 Palm Oil

      2. 5.2.2 Jatropha

      3. 5.2.3 Sugar Crop

      4. 5.2.4 Coarse Grain

      5. 5.2.5 Other Feedstock

    3. 5.3 Geography

      1. 5.3.1 North America

      2. 5.3.2 Europe

      3. 5.3.3 Asia-Pacific

      4. 5.3.4 South America

      5. 5.3.5 Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Strategies Adopted by Leading Players

    3. 6.3 Company Profiles

      1. 6.3.1 Abengoa Bioenergy SA

      2. 6.3.2 Cargill Incorporated

      3. 6.3.3 Shell PLC

      4. 6.3.4 Wilmar International Ltd

      5. 6.3.5 Renewable Energy Group Inc.

      6. 6.3.6 Archer Daniels Midland Company

      7. 6.3.7 BP PLC

      8. 6.3.8 POET LLC

      9. 6.3.9 Neste Oyj

      10. 6.3.10 Verbio Vereinigte BioEnergie AG

      4. *List Not Exhaustive

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability
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Biofuels Market Research FAQs

The Biofuels Market is studied from 2019 - 2028.

The Biofuels Market is growing at a CAGR of >7% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2019 - 2028.

North America holds highest share in 2021.

Abengoa Bioenergy S.A., POET, LLC, Archer Daniels Midland Company, Cargill Incorporated, Renewable Energy Group, Inc. are the major companies operating in Biofuels Market.

Biofuels Industry Reports

In-depth industry statistics and market share insights of the Biofuels sector for 2020, 2021, and 2022. The Biofuels research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. Available to download is a free sample file of the Biofuels report PDF.

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