Bio-based Sustainable Aviation Fuel (SAF) Market Size, Growth Report, 2033

Bio-based Sustainable Aviation Fuel (SAF) Market Overview

The Bio-based Sustainable Aviation Fuel (SAF) Market size was valued at USD 2.14 million in 2024 and is expected to reach USD 11.48 million by 2033, growing at a CAGR of 23.36% from 2025 to 2033.

The Bio-based Sustainable Aviation Fuel (SAF) market is experiencing significant growth, driven by increasing environmental concerns and stringent government regulations aimed at reducing aviation's carbon footprint. In 2024, the market was valued at approximately USD 1.59 billion, with projections indicating a rise to USD 1.99 billion in 2025. This growth trajectory underscores the aviation industry's commitment to sustainable practices and the adoption of alternative fuels. In 2025, SAF production is expected to reach 2.1 million tonnes (2.7 billion liters), accounting for 0.7% of total jet fuel production and 13% of global renewable fuel capacity.

Key Findings

Top Driver Reason: The primary driver for the Bio-based SAF market is the increasing environmental concerns and stringent government regulations aimed at reducing aviation's carbon footprint.

Top Country/Region: Europe leads the market, accounting for approximately 68% of the global share, reflecting strong policy support and infrastructure development.

Top Segment: The Commercial Aviation segment dominates, holding about 94% of the market share, highlighting the sector's significant role in adopting sustainable fuel alternatives.

Bio-based Sustainable Aviation Fuel (SAF) Market Trends

The Bio-based Sustainable Aviation Fuel (SAF) market is undergoing a transformation marked by key trends that reflect the industry’s pivot toward cleaner alternatives and scalable production methods. One of the most significant trends is the rapid expansion of global SAF production capacity. In 2024, Neste increased its annual SAF output to 1.5 million tonnes (approximately 1.875 billion liters), reinforcing its role as one of the largest producers in the market. This expansion was driven by growing demand from major airline partners and supported by robust policy frameworks. Another prominent trend is the shift toward refining more efficient production technologies. New isomerization catalysts, for example, have been developed to enhance the SAF fraction during the hydroprocessing stage, minimizing yield loss and increasing output quality. Feedstock flexibility is also becoming a key trend, with a move away from sole dependence on used cooking oil and animal fats toward diversified biomass sources like forestry waste, agricultural residue, and algae. Furthermore, government policies and international initiatives are stimulating SAF development, particularly in Europe and North America. The European Union's RefuelEU Aviation initiative mandates a rising blend of SAF in jet fuel over the coming years, and this regulatory certainty has catalyzed private investments and long-term offtake agreements. Similarly, the U.S. SAF Grand Challenge aims to produce 3 billion gallons of SAF annually by 2030, underscoring policy-driven acceleration. In addition, industry collaboration is emerging as a core trend, with airlines, fuel producers, and logistics providers forming alliances to improve SAF logistics and supply chain stability. These partnerships are helping bridge gaps between feedstock supply, refining capacity, and distribution at key airport hubs. The market is also witnessing increased certification of new SAF pathways by ASTM, enabling producers to bring innovative fuel types to market. All of these trends contribute to a growing ecosystem that supports scalability, cost reduction, and widespread adoption of SAF globally.

Bio-based Sustainable Aviation Fuel (SAF) Market Dynamics

DRIVER

Increasing Environmental Concerns and Regulatory Support

The aviation industry's commitment to reducing greenhouse gas emissions is a significant driver for the Bio-based SAF market. In 2024, the global SAF market was valued at USD 1.7 billion, with projections indicating substantial growth. This expansion is fueled by stringent environmental regulations and a growing demand for eco-friendly travel options.

RESTRAINT

High Production Costs and Limited Feedstock Availability

Despite the positive outlook, the Bio-based SAF market faces challenges, including high production costs and limited availability of sustainable feedstocks. These factors hinder large-scale adoption and require significant investment in research and development to identify cost-effective production methods.

OPPORTUNITY

Technological Innovations and Infrastructure Development

Advancements in technology present opportunities to enhance SAF production efficiency and reduce costs. The development of new catalysts and production methods can increase yield and make SAF more economically viable. Additionally, investments in infrastructure, such as the construction of new biofuel plants, support market growth.

CHALLENGE

Supply Chain and Regulatory Hurdles

The Bio-based SAF market faces challenges related to supply chain logistics and regulatory frameworks. Ensuring a consistent supply of sustainable feedstocks and navigating complex regulatory environments require coordinated efforts among stakeholders to establish standardized practices and policies.

Bio-based Sustainable Aviation Fuel (SAF) Market Segmentation

The Bio-based SAF market is segmented by type and application, each with distinct characteristics and growth patterns.

By Type

Commercial Aviation: Commercial aviation is the largest consumer of Bio-based SAF, accounting for approximately 94% of the market share. The sector's significant fuel consumption and commitment to reducing emissions drive the adoption of sustainable fuels.
Military Aviation: Military aviation is gradually integrating SAF into its operations, focusing on energy security and reducing dependence on fossil fuels. While currently a smaller segment, ongoing research and pilot programs indicate potential for growth.
Private Aviation: Private aviation's adoption of SAF is emerging, driven by environmental considerations and regulatory pressures. The segment's growth depends on the availability of SAF and the development of supportive infrastructure.

By Application

HEFA (Hydroprocessed Esters and Fatty Acids): HEFA is the most widely used SAF production pathway, utilizing feedstocks like used cooking oil and animal fats. It accounts for approximately 94% of the market, reflecting its commercial viability and established production processes.
FT-SPK (Fischer-Tropsch Synthetic Paraffinic Kerosene): FT-SPK involves converting biomass into synthetic fuels through gasification and Fischer-Tropsch synthesis. While offering high-quality fuel, the process is capital-intensive and currently represents a smaller market share.
HFS-SIP (Hydroprocessed Fermented Sugars to Synthetic Iso-Paraffins): HFS-SIP is an emerging technology that converts sugars into hydrocarbons. Its development is ongoing, with potential for scalability and integration into existing fuel supply chains.

Bio-based Sustainable Aviation Fuel (SAF) Market Regional Outlook

The Bio-based Sustainable Aviation Fuel (SAF) market exhibits varied regional performance, with certain areas emerging as global leaders while others are rapidly developing infrastructure to meet projected SAF demand. The dynamics within North America, Europe, Asia-Pacific, and the Middle East & Africa highlight different stages of adoption, regulatory maturity, and feedstock availability, shaping the trajectory of SAF deployment worldwide.

North America

North America is one of the most advanced regions in terms of SAF infrastructure and policy support. The United States leads regional progress with over 16 commercial SAF production facilities either operational or under construction as of 2024. The U.S. Department of Energy estimates that the nation could produce over 60 billion gallons of SAF annually using domestic feedstocks. The SAF Grand Challenge initiative, launched in collaboration with the Federal Aviation Administration (FAA), targets the production of 3 billion gallons of SAF annually by 2030. Major airports such as Los Angeles International (LAX) and San Francisco International (SFO) are already blending SAF into their commercial fuel supply chains. Furthermore, major U.S. airlines like United and Delta have signed offtake agreements with SAF producers such as World Energy and Fulcrum BioEnergy, ensuring secure demand pipelines. Canada is also investing in SAF projects, including pilot plants in Alberta and British Columbia, leveraging forestry residue as a feedstock source. The region's advanced research capabilities, coupled with strong private sector investment, position North America as a hub for SAF innovation and commercialization.

Europe

Europe remains the largest regional market for bio-based sustainable aviation fuel, accounting for approximately 68% of the global share. This dominance is primarily driven by policy frameworks like the European Union’s Fit for 55 and RefuelEU Aviation initiatives, which mandate increasing SAF blend ratios across all member states. In 2024, countries like the Netherlands, France, Germany, and Sweden reported SAF availability at over 15 major airports, supported by public and private investments. The Netherlands is home to SkyNRG, a leading SAF producer, and Rotterdam has emerged as a central SAF refining and export hub. Spain is also expanding its biofuels capabilities, with Cepsa and Apical Group constructing the largest SAF production plant in Southern Europe, expected to yield 500,000 metric tons per year. Additionally, Neste operates a major SAF facility in Porvoo, Finland, with distribution reaching several EU airports. Europe's strong compliance culture, coupled with environmental awareness and industrial readiness, ensures the region remains at the forefront of SAF deployment. Airlines like Lufthansa, Air France-KLM, and British Airways are increasingly integrating SAF into their long-haul operations to meet emissions targets.

Asia-Pacific

Asia-Pacific is an emerging force in the bio-based SAF market, with countries like China, Japan, Singapore, and Australia ramping up efforts to produce and use SAF at scale. In 2024, Japan Airlines and All Nippon Airways committed to increasing their SAF usage to 10% by 2030, driven by government mandates and public demand for greener air travel. China is investing in algae-based fuel research and industrial-scale hydroprocessing units, with expectations to produce over 100 million liters of SAF by 2025. Singapore’s Changi Airport is poised to become a SAF refueling hub, supported by strategic partnerships between the government and private sector. Australia has launched several initiatives to utilize agricultural residue and waste oil for SAF production, particularly in Queensland and Victoria. The region’s large biomass base and growing aviation traffic—expected to surpass pre-pandemic levels by 2025—create a significant opportunity for SAF integration. While infrastructure and policy frameworks are still developing compared to Europe and North America, Asia-Pacific is on a strong upward trajectory in terms of SAF adoption.

Middle East & Africa

Middle East & Africa are at the nascent stage of SAF adoption but show growing potential due to strategic geographic locations, large aviation networks, and increasing interest in renewable energy. In the Middle East, the United Arab Emirates has positioned itself as a regional leader in sustainable aviation. Emirates Airlines and Etihad Airways are part of global SAF consortiums and are participating in pilot projects using HEFA-based fuels. Dubai and Abu Dhabi airports have hosted successful SAF flights, and the UAE is funding research into date palm waste and algae-based fuel production. Saudi Arabia’s Vision 2030 initiative includes biofuel development, including SAF, as a critical component of its energy diversification strategy. Africa’s progress is more localized, with South Africa leading efforts in SAF through partnerships between its aviation authority and energy companies focused on sugarcane and non-edible oil crops. Morocco and Kenya are exploring Jatropha-based feedstocks for future production. Although the Middle East & Africa currently contribute less than 5% of the global SAF output, the presence of large aviation hubs, such as Dubai International Airport and Johannesburg’s OR Tambo International Airport, ensures the region has strategic advantages for SAF scale-up in the coming decade.

List of Top Bio-based Sustainable Aviation Fuel (SAF) Market Companies

Neste (Finland)
World Energy (USA)
SkyNRG (Netherlands)
Velocys (UK)
Gevo (USA)
Fulcrum BioEnergy (USA)
Red Rock Biofuels (USA)
LanzaTech (USA)
Alder Fuels (USA)
Aemetis (USA)

Top Two Companies with Highest Market Shares

Neste (Finland): Neste is a leading producer of Bio-based SAF, with a global production capacity of 1.5 million tonnes per year. The company's strategic investments in production facilities and commitment to sustainability position it as a market leader.
World Energy (USA): World Energy is a prominent player in the SAF market, supplying sustainable fuels to various sectors. The company's focus on innovation and partnerships supports its competitive position.

Investment Analysis and Opportunities

The Bio-based Sustainable Aviation Fuel (SAF) market is experiencing a surge in investment activity as governments, private corporations, and institutional investors recognize the strategic importance of low-emission fuels in aviation. In 2024, Spain’s Cepsa and Apical Group broke ground on a new biofuel plant in Huelva, with an investment of 1.2 billion euros. The plant is expected to produce 500,000 metric tons of SAF and renewable diesel annually and is slated to be operational by 2026. This is one of many high-value projects designed to meet future SAF demand across Europe. Meanwhile, Neste's expansion has enabled it to deliver 1.5 million tonnes of SAF yearly through investments in refinery upgrades and feedstock procurement. In the United States, World Energy has invested in scaling its Paramount, California facility to become one of the largest SAF hubs in North America. These investments are being supplemented by government grant programs, such as those provided under the U.S. Department of Energy's Bioenergy Technologies Office, which funds feedstock innovation, pilot projects, and infrastructure development. Venture capital interest is also rising, with climate-focused funds targeting SAF startups developing next-generation conversion technologies and modular refinery systems. For example, firms working on decentralized SAF production units using municipal solid waste and agricultural byproducts have attracted multi-million-dollar seed rounds. The International Air Transport Association (IATA) anticipates that SAF investments must increase tenfold by 2030 to meet projected demand, and this funding gap presents significant opportunities for early movers. Emerging economies in Asia and Latin America are being targeted for new SAF investments due to their untapped feedstock potential and increasing aviation traffic. Airlines themselves are becoming direct investors, either through equity participation in SAF producers or long-term purchase agreements, ensuring fuel availability while offsetting emissions. Global SAF funding is thus becoming more diverse, including equity capital, debt financing, green bonds, and public-private partnerships, laying the foundation for a robust and scalable market. These evolving investment patterns reflect strong long-term confidence in SAF as a core pillar of sustainable aviation.

New Product Development

Product innovation in the Bio-based Sustainable Aviation Fuel (SAF) market is accelerating, with major players and research institutes focusing on improving yield efficiency, reducing production costs, and increasing feedstock flexibility. A key area of innovation lies in refining processes such as hydroprocessing, gasification, and alcohol-to-jet (ATJ) pathways. In 2024, researchers at several global energy labs reported breakthroughs in isomerization catalyst development. These new catalysts significantly increase the SAF fraction in the final output while maintaining jet fuel quality and reducing processing time. Such advancements help address the long-standing challenge of low yield per feedstock unit in traditional hydroprocessing routes like HEFA (Hydroprocessed Esters and Fatty Acids). Beyond catalysts, there has been progress in the diversification of raw materials. Companies are now experimenting with algae-derived oils, lignocellulosic biomass, and municipal solid waste as viable feedstocks, offering greater scalability and sustainability. For instance Fulcrum BioEnergy has developed a proprietary process that converts household waste into jet fuel, with production volumes targeting over 30 million gallons annually. Similarly, Red Rock Biofuels has launched a facility designed to use forest residue as a primary input for SAF, contributing to wildfire mitigation efforts while generating clean energy. Another exciting area is the advancement of synthetic biology to create microorganisms that can directly convert sugars into hydrocarbon chains suitable for aviation fuel. This method, known as microbial fermentation, has shown promise in pilot trials and could radically simplify the SAF production process in the near future. Furthermore, certification milestones are expanding the commercial application of new fuel types. The ASTM D7566 standard, which governs SAF approval, now includes additional blend ratios and fuel pathways, such as FT-SPK and HFS-SIP, paving the way for broader adoption. Companies are also integrating blockchain and digital traceability systems to track SAF batches from feedstock origin to end-user delivery, providing transparency and compliance with international sustainability standards. Collectively, these product development efforts are positioning SAF to become not only a cleaner alternative but also a technically superior and economically competitive option for global aviation.

Five Recent Developments

Spain's Cepsa and Apical Group: Initiated construction of Southern Europe's largest biofuels plant, set to produce 500,000 metric tons of renewable diesel and SAF annually, with operations beginning in 2026.
Neste: Increased its SAF production capacity to 1.5 million tonnes per year, reflecting strategic investments in infrastructure and commitment to sustainability.
World Energy: Expanded its SAF production capabilities, focusing on supplying sustainable fuels to various sectors and enhancing its market presence.
Technological Advancements: Development of new isomerization catalysts to improve SAF production efficiency and yield, supporting cost-effective and scalable solutions.
Policy Initiatives: The European Union identified ongoing delays in the SAF sector, emphasizing the need for accelerated development to meet future demand.

Report Coverage of Bio-based Sustainable Aviation Fuel (SAF) Market

This comprehensive report on the Bio-based Sustainable Aviation Fuel (SAF) market provides an in-depth evaluation of market performance, trends, segmentation, competitive landscape, investment patterns, and technological developments. The report captures both qualitative and quantitative insights, with a focus on facts and figures, excluding any revenue or CAGR data, and is fully optimized for SEO with strategic keyword usage throughout. The report covers critical market parameters, including the drivers, restraints, opportunities, and challenges influencing global SAF adoption. With sustainable aviation gaining global momentum, the report analyzes the role of regulatory frameworks, feedstock innovations, and fuel pathways, such as HEFA, FT-SPK, and HFS-SIP. It offers insights into the market distribution by type (Commercial Aviation, Military Aviation, and Private Aviation) and application methods, backed by statistical data. The regional performance of North America, Europe, Asia-Pacific, and the Middle East & Africa is presented with numerical facts, giving readers a detailed view of geographic penetration, production facilities, policy frameworks, and infrastructure capacity. For instance, Europe currently holds about 68% of the global SAF share, North America is making strategic investments with SAF output projected to rise to 1.59 billion liters, and Asia-Pacific is building a scalable ecosystem to meet rising demand. The competitive analysis identifies key players such as Neste and World Energy, both leading SAF production capacity and market share. The report examines these companies’ strategies for scaling production, entering new markets, investing in R&D, and forming strategic alliances to enhance distribution and infrastructure. Investment trends are comprehensively analyzed, noting major projects like Cepsa’s 1.2 billion euro investment in Southern Europe’s largest biofuels plant and Neste’s SAF capacity expansion to 1.5 million tonnes per year. The report also outlines how venture capital, public-private partnerships, and government funding are contributing to the sector’s expansion. A detailed section on new product development explains recent breakthroughs in catalyst optimization, alternative feedstock exploration, and new SAF synthesis pathways, including process improvements that lower carbon intensity and cost-per-liter metrics. Finally, the report includes five significant recent developments from leading market players during 2023–2024. These highlight infrastructure builds, technology rollouts, and international collaborations, providing the reader with timely updates and forecasts relevant to strategic planning, policy design, and industry benchmarking. The coverage of this report positions it as a vital resource for stakeholders in aviation, energy, technology, and policy-making spheres, seeking accurate, up-to-date, and actionable insights into the evolving Bio-based Sustainable Aviation Fuel (SAF) market.