The global liquid biofuels market was valued at USD 72.75 billion in 2021 and it is predicted to surpass around USD 127.57 billion by 2030 with a CAGR of 6.44% from 2022 to 2030.
Liquid biofuel is an energy-efficient alternative and helps reduce energy security risks and pollution levels associated with the combustion of fossil fuels. Hence it can be blended in large quantities with traditional fossil fuels for use in applications such as transportation. Although biodiesel has the ability to replace conventional fuel, its production capacity is not enough to meet the current demand. Thus, the market is highly regulated with various tax incentives in different countries.
Governments across the world have introduced numerous policies and strategies to mitigate the concerns associated with climate change. Energy security, rural development, and climate change mitigation are some of the crucial parameters responsible for such policy goals.
The demand for fatty acids bio jet fuel, hydro processed esters, and renewable diesel, also known as hydrotreated vegetable oil (HVO), is expected to ascend over the forecast period. This growth in demand can be attributed to their potential properties of being used unblended without maintenance regimes, modification to engines in transportation, and fuel supply infrastructure.
Emerging economies such as Brazil, China, India, and some of the European countries aim to replace 5% to 20% of the total fossil-based fuels with biodiesel in applications such as transportation. However, there is substantial potential for facilities with low economies of scale by producing biodiesel at a smaller size, with more significant potential to benefit small-scale farmers in the raw material stage and contribute to rural development.
Scope of The Report
| Report Coverage | Details |
| Market Size in 2021 | USD 72.75 billion |
| Revenue Forecast by 2030 | USD 127.57 billion |
| Growth rate from 2022 to 2030 | CAGR of 6.44% |
| Base Year | 2021 |
| Forecast Period | 2022 to 2030 |
| Segmentation | Product, application, and region |
| Companies Covered |
Archer Daniels Midland Company; Gevo; Green Plains; Wilmar International; Algenol; Pacific Ethanol Inc.; Valero Energy Corp.; Petrobras; Butamax; Renewable Energy Corp.; and Bunge North America Inc |
Product Insights
Biofuel demand has increased over the last few years owing to rising focus towards energy security and the application of flex-fuel vehicles. Bioethanol demand in North America was 32,562.7 thousand TOE in 2021 and is estimated to expand at a CAGR of 5.9% from 2022 to 2030.
The North America liquid biofuels market is rapidly growing for bioethanol & biodiesel. Significant factors influencing the growth include favorable regulatory and political support, innovation support (for second and third generation biofuels), environmental support, customer support, geopolitical support, and agricultural and economic support.
Major factors fueling the regional market growth include high demand for green fuels, stringent environmental regulations, and high investment for the development of biofuel refineries. Factors, such as technological advancement and rising awareness regarding biofuel being a clean fuel are anticipated to further drive regional growth. In the U.S., 49 states have implemented ASTM D6751 as state law and now been mandated to enforce the ASTM D6751 biodiesel standard.
In Asia Pacific, the demand for bioethanol was 6,258.1 thousand TOE in 2021 and is expected to reach 10,681.7 thousand TOE by 2030. The Asia Pacific market for bioethanol is estimated to expand at a CAGR of 6.9% over the forecast period.
Polish bioethanol consumption witnessed a rise in 2020 as mandates gradually escalated slightly, and a limited share had been fulfilled through the use of biodiesels. During the same year in the Netherlands, biofuel consumption grew because of increased taxes and higher mandates on diesel cars. In Sweden, bioethanol consumption has been dropping, prominently owing to the dip in E85 sales as government energy taxes for flex-fuel cars paved hurdle for the biofuel application.
Application Insights
Transportation biofuel consumption is needed to triple by 2030 and has to be on the trail with the Sustainable Development Scenario (SDS). This compares the 10% of global transportation fuel demand, to be compared with the current level which is around 3.5%.
Stronger policy support and invention that will reduce costs are required to balance up with both the adoption of biofuels and advanced biofuel consumption in the various transportation sectors, as foreseen in the sustainable development scenario. As sustainable biofuels have a place in the sustainable development scenario, more prevalent sustainability governance must be paired to provide higher biofuel output.
Transportation fuel demand in the Asia Pacific was 4,180.4 thousand TOE in 2021 and is expected to reach 7,235.3 thousand TOE by 2030. The Asia Pacific market for transportation is estimated to expand at a CAGR of 9% over the forecast period.
India and Brazil are estimated to witness a rise in liquid biofuel production as both countries have recorded the highest production levels across their region. This factor is anticipated to accelerate the market further which is yet to achieve sustainable development scenario volume for 2030. In terms of bioethanol production, Brazil recorded the highest production levels across Central and South America. Brazil has also announced its plans to scale up and mandate the usage of biodiesel from 10% to 15%.
Regional Insights
North America has dominated the global market over the past few years, owing to the abundance of feedstock and arable area for biofuel production. U.S., Brazil, the European Union, and China are anticipated to be some of the major regions driving the demand for liquid biofuels. However, other economies such as Thailand, Indonesia, Canada, Australia, and Philippines are anticipated to create significant opportunities for the biofuel industry. Concerning the long-term global impact of biofuel potential, growth of the bioethanol and biodiesel markets is primarily based on the availability of agricultural land for non-food production.
The Canadian Clean Fuels Standard (CFS) has anticipated to apply various norms for gaseous, liquid, and solid fuels combusted for energy production coupled with the transportation sector. The Canadian government has been focusing on the achievement of annual reductions by 30 Mt in Greenhouse Gas (GHG) emissions by 2030, contributing to the country’s effort to achieve an overall GHG emission reduction of 30% by 2030.
Central and South America market have been propelled owing to rising government initiatives and increasing focus on energy security and independence. Furthermore, the high dependence on fossil fuels is compelling the distinct governments in the region to look for alternatives. Moreover, bio-fuels provide an excellent solution to the crisis of depleting fossil fuels in countries such as Brazil, Venezuela and others.
Key Players
Market Segmentation
Chapter 1. Introduction
1.1. Research Objective
1.2. Scope of the Study
1.3. Definition
Chapter 2. Research Methodology
2.1. Research Approach
2.2. Data Sources
2.3. Assumptions & Limitations
Chapter 3. Executive Summary
3.1. Market Snapshot
Chapter 4. Market Variables and Scope
4.1. Introduction
4.2. Market Classification and Scope
4.3. Industry Value Chain Analysis
4.3.1. Raw Material Procurement Analysis
4.3.2. Sales and Distribution Channel Analysis
4.3.3. Downstream Buyer Analysis
Chapter 5. COVID 19 Impact on Liquid Biofuels Market
5.1. COVID-19 Landscape: Liquid Biofuels Industry Impact
5.2. COVID 19 - Impact Assessment for the Industry
5.3. COVID 19 Impact: Global Major Government Policy
5.4. Market Trends and Opportunities in the COVID-19 Landscape
Chapter 6. Market Dynamics Analysis and Trends
6.1. Market Dynamics
6.1.1. Market Drivers
6.1.2. Market Restraints
6.1.3. Market Opportunities
6.2. Porter’s Five Forces Analysis
6.2.1. Bargaining power of suppliers
6.2.2. Bargaining power of buyers
6.2.3. Threat of substitute
6.2.4. Threat of new entrants
6.2.5. Degree of competition
Chapter 7. Competitive Landscape
7.1.1. Company Market Share/Positioning Analysis
7.1.2. Key Strategies Adopted by Players
7.1.3. Vendor Landscape
7.1.3.1. List of Suppliers
7.1.3.2. List of Buyers
Chapter 8. Global Liquid Biofuels Market, By Product
8.1. Liquid Biofuels Market, by Product, 2022-2030
8.1.1. Biodiesel
8.1.1.1. Market Revenue and Forecast (2017-2030)
8.1.2. Bioethanol
8.1.2.1. Market Revenue and Forecast (2017-2030)
8.1.3. Others
8.1.3.1. Market Revenue and Forecast (2017-2030)
Chapter 9. Global Liquid Biofuels Market, By Application
9.1. Liquid Biofuels Market, by Application, 2022-2030
9.1.1. Transportation Fuel
9.1.1.1. Market Revenue and Forecast (2017-2030)
9.1.2. Power Generation
9.1.2.1. Market Revenue and Forecast (2017-2030)
9.1.3. Thermal Heating
9.1.3.1. Market Revenue and Forecast (2017-2030)
Chapter 10. Global Liquid Biofuels Market, Regional Estimates and Trend Forecast
10.1. North America
10.1.1. Market Revenue and Forecast, by Product (2017-2030)
10.1.2. Market Revenue and Forecast, by Application (2017-2030)
10.1.3. U.S.
10.1.3.1. Market Revenue and Forecast, by Product (2017-2030)
10.1.3.2. Market Revenue and Forecast, by Application (2017-2030)
10.1.4. Rest of North America
10.1.4.1. Market Revenue and Forecast, by Product (2017-2030)
10.1.4.2. Market Revenue and Forecast, by Application (2017-2030)
10.2. Europe
10.2.1. Market Revenue and Forecast, by Product (2017-2030)
10.2.2. Market Revenue and Forecast, by Application (2017-2030)
10.2.3. UK
10.2.3.1. Market Revenue and Forecast, by Product (2017-2030)
10.2.3.2. Market Revenue and Forecast, by Application (2017-2030)
10.2.4. Germany
10.2.4.1. Market Revenue and Forecast, by Product (2017-2030)
10.2.4.2. Market Revenue and Forecast, by Application (2017-2030)
10.2.5. France
10.2.5.1. Market Revenue and Forecast, by Product (2017-2030)
10.2.5.2. Market Revenue and Forecast, by Application (2017-2030)
10.2.6. Rest of Europe
10.2.6.1. Market Revenue and Forecast, by Product (2017-2030)
10.2.6.2. Market Revenue and Forecast, by Application (2017-2030)
10.3. APAC
10.3.1. Market Revenue and Forecast, by Product (2017-2030)
10.3.2. Market Revenue and Forecast, by Application (2017-2030)
10.3.3. India
10.3.3.1. Market Revenue and Forecast, by Product (2017-2030)
10.3.3.2. Market Revenue and Forecast, by Application (2017-2030)
10.3.4. China
10.3.4.1. Market Revenue and Forecast, by Product (2017-2030)
10.3.4.2. Market Revenue and Forecast, by Application (2017-2030)
10.3.5. Japan
10.3.5.1. Market Revenue and Forecast, by Product (2017-2030)
10.3.5.2. Market Revenue and Forecast, by Application (2017-2030)
10.3.6. Rest of APAC
10.3.6.1. Market Revenue and Forecast, by Product (2017-2030)
10.3.6.2. Market Revenue and Forecast, by Application (2017-2030)
10.4. MEA
10.4.1. Market Revenue and Forecast, by Product (2017-2030)
10.4.2. Market Revenue and Forecast, by Application (2017-2030)
10.4.3. GCC
10.4.3.1. Market Revenue and Forecast, by Product (2017-2030)
10.4.3.2. Market Revenue and Forecast, by Application (2017-2030)
10.4.4. North Africa
10.4.4.1. Market Revenue and Forecast, by Product (2017-2030)
10.4.4.2. Market Revenue and Forecast, by Application (2017-2030)
10.4.5. South Africa
10.4.5.1. Market Revenue and Forecast, by Product (2017-2030)
10.4.5.2. Market Revenue and Forecast, by Application (2017-2030)
10.4.6. Rest of MEA
10.4.6.1. Market Revenue and Forecast, by Product (2017-2030)
10.4.6.2. Market Revenue and Forecast, by Application (2017-2030)
10.5. Latin America
10.5.1. Market Revenue and Forecast, by Product (2017-2030)
10.5.2. Market Revenue and Forecast, by Application (2017-2030)
10.5.3. Brazil
10.5.3.1. Market Revenue and Forecast, by Product (2017-2030)
10.5.3.2. Market Revenue and Forecast, by Application (2017-2030)
10.5.4. Rest of LATAM
10.5.4.1. Market Revenue and Forecast, by Product (2017-2030)
10.5.4.2. Market Revenue and Forecast, by Application (2017-2030)
Chapter 11. Company Profiles
11.1. Archer Daniels Midland Company
11.1.1. Company Overview
11.1.2. Product Offerings
11.1.3. Financial Performance
11.1.4. Recent Initiatives
11.2. Gevo
11.2.1. Company Overview
11.2.2. Product Offerings
11.2.3. Financial Performance
11.2.4. Recent Initiatives
11.3. Green Plains
11.3.1. Company Overview
11.3.2. Product Offerings
11.3.3. Financial Performance
11.3.4. Recent Initiatives
11.4. Wilmar International
11.4.1. Company Overview
11.4.2. Product Offerings
11.4.3. Financial Performance
11.4.4. LTE Scientific
11.5. Algenol
11.5.1. Company Overview
11.5.2. Product Offerings
11.5.3. Financial Performance
11.5.4. Recent Initiatives
11.6. Pacific Ethanol Inc.
11.6.1. Company Overview
11.6.2. Product Offerings
11.6.3. Financial Performance
11.6.4. Recent Initiatives
11.7. Valero Energy Corp.
11.7.1. Company Overview
11.7.2. Product Offerings
11.7.3. Financial Performance
11.7.4. Recent Initiatives
11.8. Petrobras; Butamax
11.8.1. Company Overview
11.8.2. Product Offerings
11.8.3. Financial Performance
11.8.4. Recent Initiatives
11.9. Renewable Energy Corp.
11.9.1. Company Overview
11.9.2. Product Offerings
11.9.3. Financial Performance
11.9.4. Recent Initiatives
11.10. Bunge North America Inc.
11.10.1. Company Overview
11.10.2. Product Offerings
11.10.3. Financial Performance
11.10.4. Recent Initiatives
Chapter 12. Research Methodology
12.1. Primary Research
12.2. Secondary Research
12.3. Assumptions
Chapter 13. Appendix
13.1. About Us
13.2. Glossary of Terms
Cross-segment Market Size and Analysis for
Mentioned Segments
Additional Company Profiles (Upto 5 With No Cost)
Additional Countries (Apart From Mentioned Countries)
Country/Region-specific Report
Go To Market Strategy
Region Specific Market DynamicsRegion Level Market Share Import Export AnalysisProduction AnalysisOthers