Global Biofuels and Biodiesel Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Global Biofuels and Biodiesel Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Biofuels are the energy source which is made up of living microorganism, starch, and other livestock. Biofuels are also made from oil or tree seeds such as rapeseed, sunflower, soya, palm, coconut or jatropha. Biofuels account for two major types: bioethanol and biodiesel.

Market Overview:

The latest research study on the global Biofuels and Biodiesel market finds that the global Biofuels and Biodiesel market reached a value of USD 131304.0 million in 2022. It’s expected that the market will achieve USD 171573.06 million by 2028, exhibiting a CAGR of 4.56% during the forecast period.

Global Biodiesel Market Raw Material Analysis

Biofuels are derived from biomass and waste in solid (fuel pellets), liquid (bioethanol and biodiesel), and gaseous (biogas) form. Bioethanol production utilizes sugar (sugarcane or sugar beets), starch (cereals or corn), and cellulosic (corn stover or switch grass) feedstocks.

Biodiesel production utilizes oil bearing crops, recycled greases, animal fats, and algae. These feedstocks are also grouped under first, second, and third generation. The first generation feedstocks are regular biomass (sugar, starch, and oil bearing feedstocks), second generation are cellulosic feedstocks, and third generation are algae.

The biofuels market has seen developments in cellulosic and algae biofuel technology. These technologies/processes utilize cellulosic (switch grass, corn stover) and algae feedstock for bioethanol and biodiesel production respectively. As these feedstocks do not interfere in human food chain, they help in solving food vs fuel debate.

Market Drivers

As per the U.S Energy Information Agency (EIA), the global energy consumption will witness a significant hike of 28% by 2040. Depleting natural resources augmenting the scarcity of fossil fuels is signaling a failure to efficiently provide to the energy demand articulated by strong economic growth worldwide.

Owing to such inevitable circumstances coupled with increasing carbon footprints, biofuel market is all set to capitalize on the unfilled energy demand gap by traditional energy resources. Biofuels are derived from plants (i.e. energy crops), or secondarily from anaerobic digestion, agronomic, commercial, domestic, and wastes from industries. It has found tremendous scope of application in transportation and energy sector. Biodiesel can be produced using various feedstocks and can be used in diesel vehicles without any modification to the engine. Biodiesel is blended with diesel in various compositions of B5, B20, and B100.

The primary factor which is driving the global Biofuels and Biodiesel market is the growing interest in alternative fuels on account of uncertainty in global fuel prices, energy security, and the continuously rising in emission levels. The increasing environmental concerns and the need for energy independence is driving the market. Moreover, favourable government initiatives by various countries such as Brazil, United States and more, are fueling the growth of the global Biofuels and Biodiesel market.

The market for biofuels increased based primarily on demand from the transport sector, especially road vehicles, which use biofuels either in pure form or blended into conventional fossil fuels (e.g. diesel or gasoline). Moreover, since 2006 alternative markets for biodiesel and bioethanol, beyond their core usage in road transport, have emerged. Biofuels started to be used on increasingly larger scales in aviation, to generate electricity, for cooking and even in maritime transport. The policy focus of many countries on biofuels also evolved from one of limited scope covering liquid biofuels, to broader notions of bioenergy (solid, liquid and gaseous energy products) and bioeconomy.

Feedstock costs are another major influence on the market for biofuels. Feedstocks prices can swing wildly from high to low, disrupting farmers' planting plans, the cost of manufacturing biofuels, and the profitability of ethanol and biodiesel.

Biofuels consumption is to a large extent policy-driven, i.e., the result of various government mandates and incentives. A number of government policy objectives provide the motivation for these mandates and incentives, including increasing energy security and reducing greenhouse gas (GHG) emissions. Most major biofuel consuming nations already have a policy framework for biofuels in place, so new regulations are unlikely to lead to major increases in biofuels consumption in the near to mid-term.

Advances will moderate significantly going forward as the United States -- the world’s largest market -- stagnates. While this will directly limit increases in bioethanol demand overall, biodiesel demand will continue to grow at a healthy pace, supported by the expansion of biofuel mandates in a number of developing countries and by the implementation of the European Union’s renewable transport fuel target for 2020. Concerns about the use of food crops for biofuel production have caused the focus in North America and the European Union (EU) to shift toward advanced second and third generation biofuels derived from waste materials and nonedible, sustainable biomass. However, these gains will come from a very small base.

Region Overview:

From 2023-2028, North America is estimated to witness robust growth prospects.

Company Overview:

ADM is one of the major players operating in the Biofuels and Biodiesel market, holding a share of 2.74% in 2020.

Archer-Daniels-Midland Company (ADM) is a processor of oilseeds, corn, wheat, cocoa and other agricultural commodities. The Company manufactures protein meal, vegetable oil, corn sweeteners, flour, biodiesel, ethanol, and other food and feed ingredients.

Louis Dreyfus Company is a leading merchant and processor of agricultural goods. Its activities span the entire value chain from farm to fork, across a broad range of business lines (platforms). Structured as a matrix organization of six geographical regions and eight platforms, Louis Dreyfus Company is active in over 100 countries and employs approximately 18 000 people globally.

Segmentation Overview:

Among different product types, Bioethanol segment is anticipated to contribute the largest market share in 2028.

Application Overview:

By application, the Transportation segment occupied the biggest share from 2018 to 2022.

Key Companies in the global Biofuels and Biodiesel market covered in Chapter 3:

RBF
Neste Oil Rotterdam
Verbio AG
Cargill
Avril
Ag Processing
Raizen
Louis Dreyfus
Total Group
ADM
Bunge Ltd.
Renewable Energy Group

In Chapter 4 and Chapter 14.2, on the basis of types, the Biofuels and Biodiesel market from 2018 to 2029 is primarily split into:

Bioethanol
Biodiesel

In Chapter 5 and Chapter 14.3, on the basis of Downstream Industry, the Biofuels and Biodiesel market from 2018 to 2029 covers:

Agriculture
Transportation
Chemical
Pharmaceuticals

Geographically, the detailed analysis of consumption, revenue, market share and growth rate, historic and forecast (2018-2029) of the following regions are covered in Chapter 8 to Chapter 14:

North America (United States, Canada)
Europe (Germany, UK, France, Italy, Spain, Russia, Netherlands, Turkey, Switzerland, Sweden)
Asia Pacific (China, Japan, South Korea, Australia, India, Indonesia, Philippines, Malaysia)
Latin America (Brazil, Mexico, Argentina)
Middle East & Africa (Saudi Arabia, UAE, Egypt, South Africa)