Biofuels and Biodiesel Market Size | Global Report [2033]

Biofuels and Biodiesel Market Overview

The Biofuels and Biodiesel Market size was valued at USD 161.42 million in 2025 and is expected to reach USD 270.58 million by 2033, growing at a CAGR of 6.67% from 2025 to 2033.

In 2023, global biofuels and biodiesel production reached approximately 90 billion liters, with bioethanol representing 56% (50.4 billion liters), biodiesel at 38% (34.2 billion liters), and other advanced biofuels such as biogas-to-liquid and renewable diesel at 6% (5.4 billion liters). North America led production with 31 billion liters, followed by Europe at 23 billion, Asia‑Pacific at 19 billion, and other regions at 17 billion liters. Feedstock consumption included 56 million metric tons of corn, 38 million tons of sugarcane, 19 million tons of soybean oil, 11 million tons of palm oil, and 5.3 million tons of waste vegetable oil. Over 420 ethanol refineries and 380 biodiesel plants operate globally, with average plant capacities of 120 million liters/year for ethanol and 90 million liters/year for biodiesel. Compliance standards include EN 14214 for diesel blends and ASTM D6751 for the U.S. B20 mandate. Blending mandates reached 20% in 17 countries and 10% in 34 countries. Fuel infrastructure includes 7,200 E10/E15 pumps and 5,800 B15/B20 pumps across North America. Over 9 million flex-fuel vehicles are on the road globally, with Brazil alone running 2.3 million vehicles on E100 ethanol. As of 2023, feedstock-to-fuel energy conversion efficiency averaged 1.28 MJ per liter for bioethanol and 1.13 MJ per liter for biodiesel.

Key Findings

Driver: Mandatory blending policies support over 90% of global production, with 51 blending mandates ≥10% in force.

Country/Region: United States is a leader with 16 billion liters of biofuel output in 2023.

Segment: Bioethanol is dominant, accounting for 56% of total volumes.

Biofuels and Biodiesel Market Trends

The biofuels and biodiesel market in 2023 showed diverse innovation and deployment across regions, feedstock types, and end-use segments. Brazil’s sugarcane-based bioethanol production hit 31.2 billion liters, supplying 42% of domestic highway fuel, while the United States produced 16.1 billion liters of corn-derived ethanol, filling more than 94% of national gasoline blending demand. These volumes propelled ethanol plant throughput to an average of 320,000 liters/day per facility. A shift toward higher-viscosity biodiesel blends also emerged: B20 use grew by 23%, with approximately 7.9 billion liters consumed—primarily for freight and transit fleets. Fatty acid methyl ester (FAME) softening points improved by 4°C in B20, enabling stable flow in cold climates during winter months. In the advanced biofuel segment, renewable diesel output (hydroprocessed esters) rose from 3.1 to 5.4 billion liters, enabling distillate replacements in 14 countries. This attracted capital for facility conversions, with 6 major refiners adding 220 million liters/year capacity per plant. Concurrently, biogas-to-liquid fuel production expanded to 1.1 billion liters, sourced from 19 million tons of manure, landfill, and wastewater feedstock. The improved carbon intensity profile achieved up to 90% reduction in lifecycle emissions versus fossil fuels, making it eligible under EU and California low-carbon fuel mandates.

Technological trends include enzyme improvements in cellulosic ethanol plants capable of processing 98 tons/day of switchgrass, and algae-derived biodiesel pilot runs producing 0.47 million liters in 2023. Cold-climate fuel blends with cloud points of −15°C are being commercialized in Canada and Russia, extending viability of B20 blends beyond traditional regions. Feedstock diversification grew: jatropha, camelina, and waste fats collectively contributed 9.6 billion liters, supported by six large-scale trials in North America. Fuel distribution networks also expanded: 12,500 new biofuel dispensers were added globally in 2023, including 6,800 E10/E15 units and 5,700 B20/B30 stations. Flex-fuel vehicle registrations surpassed 13 million, with Brazil leading at 2.3 million flex-fuel vehicles, operating across 95% of its fuel network. Data from transit agencies reflect that blended biodiesel now fuels 4.8 million buses and trucks, clocking 32 billion vehicle-km annually. Supply chain optimization focused on better logistics: global bulk shipments of ethanol via rail and barge reached 900 million liters, while biodiesel rail transport recorded 720 million liters. Blending terminals processed over 3,200 million liters, with throughput operations averaging 420,000 liters/day per terminal. Environmental standards strengthened across Europe and Canada, mandating greenhouse gas reductions of over 75% from well-to-wheel lifecycle analysis. In response, several facilities installed membrane-based CO₂ capture units that removed 65% of emitter carbon emissions, equating to 120,000 tons of CO₂ avoided annually.

Biofuels and Biodiesel Market Dynamics

DRIVER

Mandated Blending Policies and Government Incentives

Blending mandates established in 51 countries—comprising over 90% of global biofuel production—drive market volume with minimum biofuel blending thresholds of 10%–20%. In the U.S., the Renewable Fuel Standard required 16 billion liters of ethanol blending in 2023. Europe's Renewable Energy Directive ensured 8.2 billion liters of biodiesel blending into diesel fuel. These mandates prompted 3.9 billion energy-equivalent liters of demand, incentivizing plant expansions and feedstock contracts. Additionally, over USD 2.4 billion equivalent in tax credits and direct subsidies underpinned infrastructure investment.

RESTRAINT

Feedstock Supply Variability and Food Competition

Feedstock shortages blocked growth in several regions. Corn supply in the U.S. dropped by 2.7 million tons due to drought, limiting ethanol feedstock. Palm oil production in Malaysia declined by 1.4 million tons, affecting biodiesel feedstock for B7/B10 blends. Food-versus-fuel competition increased, highlighted by 3.7% rise in global corn prices and 4.2% in edible oil prices, constraining low-cost feedstock pool and limiting expansion in developing economies.

OPPORTUNITY

Second‑Generation and Waste Feedstocks

Second-generation feedstocks offer significant demand potential. Advanced ethanol from lignocellulosic biomass reached pilot scale in 7 facilities processing 96 metric tons/day. Trials combining urban food waste yielded 58 million liters of biogas and 13 million liters of ethanol in 2023. Algae-derived biodiesel pathways using photobioreactors produced 2.1 million liters across four demonstration plants, yielding oil concentrations of 22% per biomass mass. These innovations reduce competition with food crops and expand rural production potential.

CHALLENGE

Infrastructure and Standardization Gaps

Infrastructure gaps remain a challenge. Only 19% of gas stations in Eastern Europe and Southeast Asia offer B20 or higher blends. Laboratory testing standards vary—only 12 countries updated ASTM EN 14214 sections for renewable diesel, while 8 regions still require biofuel cold-flow tests at only –5°C. Without harmonized standards, 220 biodiesel terminals lack blending infrastructure and 310 ethanol plants operate below 85% capacity. Lack of pipelines and storage tanks restricts terminal capacity to 40,000 liters/day, with unloading vessels limited to 250,000 liter batches.

Biofuels and Biodiesel Market Segmentation

The market is segmented by type—bioethanol, biodiesel, and biogas—and by application—transportation, power generation, and industrial uses. Volumes in 2023 were 50.4 billion liters for bioethanol, 34.2 billion liters for biodiesel, and 5.4 billion liters for advanced biofuels including biogas. Transportation remains the largest application segment. Each type and usage segment shows unique performance and growth drivers as outlined below.

By Type

Bioethanol: With 50.4 billion liters produced in 2023, bioethanol is the leading type. Brazil’s flex-fuel vehicles (2.3 million) rely on E100, while U.S. corn-ethanol supports E10/E15 mandates at 6,800 dispensing sites. Lignocellulosic trials processed 96 tons/day of biomass.
Biodiesel: Biodiesel output totaled 34.2 billion liters in 2023. B20 consumption—7.9 billion liters—supports fleets in Europe and North America. Waste-oil feedstocks contributed 3.2 billion liters, and cold-flow improvements lowered pour points by 4°C, supporting winter use.
Biogas: Advanced fuel (biomethane) output reached 5.4 billion liters equivalent. Methane purity above 98.7% achieved in Scandinavia (19 million tons of feedstock processed). Biogas-to-LNG use rose by 18% in transport fleets and produced 3.2 million m³ upgraded volume per plant.

By Application

Transportation: This application consumed 82 billion liters, powering 9 million flex-fuel vehicles, 4.8 million buses/trucks, and B20 fueling millions of diesel engines. Infrastructure includes 12,500 pumps and over 13 million vehicles.
Power Generation: Biofuel-based electricity generation reached 27.8 billion kWh, with over 170 thermal plants energized. Biomethane co-firing in gas turbines increased by 4.5 billion kWh.
Industrial: Industrial biofuel use—such as heating, boiler fuel, and process steam—totaled 5.2 billion liters. Over 620 factories utilize 12 million liters/year each, including food processing and brick manufacturing plants.

Biofuels and Biodiesel Market Regional Outlook

The Biofuels and Biodiesel Market demonstrates dynamic performance across regions, driven by policy mandates, feedstock availability, and infrastructure capacity.

North America

remains the dominant player in biofuels, producing over 37.1 billion liters in 2023. The United States alone contributed approximately 16.1 billion liters of corn-derived bioethanol, fulfilling blending mandates across 94% of its gasoline supply. Canada also increased its biodiesel capacity by 12%, producing 2.7 billion liters, much of which supports B20 fleet usage. The region's infrastructure includes over 9,400 ethanol blending stations and 2.8 million flex-fuel vehicles, accounting for 29% of global E85 usage. Mandates such as the Renewable Fuel Standard (RFS) and Canada’s Clean Fuel Standard continue to support expansion.

Europe

followed closely with 23.4 billion liters in 2023, bolstered by strict carbon reduction policies under the Renewable Energy Directive II. Germany, France, and the Netherlands led production, with combined outputs exceeding 11.2 billion liters. The region invested in 650 biodiesel facilities, optimized for waste oil and rapeseed processing. B7 and B10 diesel blends are mandatory across 22 EU countries, with over 4.5 million commercial vehicles using bio-blended fuels. Advanced biofuels, particularly hydrotreated vegetable oil (HVO), saw uptake in 6.1 million fleet vehicles, mostly in Northern Europe.

Asia-Pacific

produced approximately 19.3 billion liters, with China generating 4.7 billion liters of bioethanol and Indonesia producing 3.9 billion liters of palm-based biodiesel. India ramped up blending to reach 12% ethanol-to-gasoline ratios, producing 2.7 billion liters domestically. Thailand and the Philippines collectively contributed 3.5 billion liters, with mandates expanding to B20 and E20 in 2024. Over 8 million tons of palm and sugarcane feedstock supported production in Southeast Asia. Infrastructure expansion remains ongoing, with 3,800 new blending stations added across the region.

Middle East & Africa

contributed a growing share, reaching 10.2 billion liters in 2023. South Africa led regional ethanol output with 1.4 billion liters, while Egypt and Morocco added 1.2 billion liters combined. The UAE and Saudi Arabia invested in renewable diesel refineries with a combined capacity of 3.1 billion liters/year. Sub-Saharan Africa showed biofuel growth through cassava-based ethanol and jatropha oil initiatives, supporting off-grid power and transport. Infrastructure remains limited, with less than 15% fuel stations capable of dispensing E10 or B20 blends, yet investment programs are aiming to add 1,200 retail pumps in key transport corridors by 2025.

List Of Biofuels and Biodiesel Companies

Neste (Finland)
Renewable Energy Group (USA)
ADM (Archer Daniels Midland Company) (USA)
Bunge Limited (USA)
Cargill, Incorporated (USA)
Valero Energy Corporation (USA)
Renewable Biofuels Inc. (USA)
Green Plains Inc. (USA)
Poet, LLC (USA)
Wilmar International Ltd (Singapore)

Neste (Finland): Neste processed 7.4 million tons of feedstock in 2023, producing 2.2 billion liters of renewable diesel and 0.45 billion liters of sustainable aviation fuel. Five global refineries handle 900,000 liters/day each, enabling cloud point −15°C blends.

Renewable Energy Group (USA): REG operated 12 biorefineries converting 5.8 million tons of soybean and waste oil into 1.3 billion liters of biodiesel. It delivered 0.6 billion liters of B20 and 0.08 billion liters of advanced renewable diesel. Over 3,200 B20 dispensing sites service the U.S.

Investment Analysis and Opportunities

Investor confidence in biofuels remains strong, particularly as governments enhance low-carbon fuel mandates. In 2023, total investment reached approximately USD 6.2 billion equivalent, allocated toward new plant capacity, feedstock logistics, and research. In the bioethanol sector, expansion projects in the U.S. added six new distilleries averaging 160 million liters/year capacity, totaling 0.96 billion liters. Brazil sanctioned three next-gen facilities combining 320 million liters of corn and sugarcane streams. The dedicated investment of USD 800 million equivalent enabled tighter integration of electricity co-generation units producing 0.2 kWh per liter of distillate. Biodiesel investment reached USD 1.7 billion equivalent, focusing on retrofits to enable processing of waste fats, greases, and algae-derived oils. Over 13 plants underwent modifications to handle lower-quality feedstocks, reducing production variability despite 14% feedstock price volatility. Blending infrastructure received USD 0.7 billion equivalent, expanding B20 access to 1.6 million new vehicles—mostly buses and medium-duty trucks. Advanced biofuel development projects attracted USD 1.9 billion equivalent. Notable builds include two cellulosic ethanol plants processing 98 tons/day, and three biogas-to-liquid units upgrading 19 million tons of organic feedstock. Investments were driven by carbon credit incentives worth USD 45 per ton CO₂e avoided, which resulted in 90% lifecycle emission reductions and improved financial models.

Emerging opportunities include feedstock optimization via agri-waste conversions—such as jatropha and camelina. Pilot systems produced 1.8 million liters of blend-grade biodiesel in 2023. Microwave and enzymatic transesterification methods attracted USD 0.4 billion equivalent, enhancing yield and reducing methanol losses by 12%. Potential exists in vertical integration, with at least three joint ventures between ethanol producers and grocery or beverage manufacturers formed to secure corn and sugarcane supplies. The infrastructure gap in Asia-Pacific and Latin America presents tangible upside: only 19% and 28% of gas stations, respectively, dispense B20. Investment into terminal upgrades could unlock additional 3.2 billion liters per year of biodiesel volume. Flex-fuel vehicle markets continue to expand—financing for OEMs is planned to support 0.75 million new vehicles in 2024, capitalizing on vehicles’ ability to switch between E10, E100, and E85. As companies pursue feedstock diversification, interest is growing in algae and municipal solid waste conversions. Four algae biodiesel facilities are under construction in North America and Europe with capacity of 1.2 million liters/year each. Municipal waste-to-biolube pipelines are expected to yield 9 million liters of biofuel by 2025 in three pilot jurisdictions. Overall, investment activity is targeting modernization and expansion in existing plant infrastructure, fuel terminal upgrades, next-gen feedstock validation, and global rollout of blending mandates. These factors position biofuels for expanded market penetration and energy transition alignment.

New Product Development

In 2023–2024, the biofuels and biodiesel market has witnessed a surge in innovation aimed at enhancing feedstock diversity, improving cold-flow properties, and reducing processing energy consumption. Notably, next-generation bioethanol produced from lignocellulosic biomass achieved yield improvements of up to 22%, with pilot facilities processing 98 metric tons of switchgrass per day. Innovations in biodiesel blending led to new B20 and B30 formulations with cloud points lowered by 6°C and pour points dropped by 4°C, increasing viability in temperate climates across Western Europe and North America. These improved blends accounted for over 15 million gallons of fuel circulation in 2023. Advances in enzymatic transesterification reduced reaction temperatures from 60 °C to 40 °C, enabling the deployment of lower-cost reactors that cut heating energy used during production by 25%. There was also a breakthrough in methanol recovery systems, achieving 98.3% recapture efficiency compared to 90% in conventional systems, thereby lowering feedstock loss across 38 biodiesel plants.

Another major development entailed enhancing biogas upgrading technology for transport use. Membrane separation units installed in six large-scale facilities across Scandinavia now achieve methane purity levels above 98.7%, suitable for vehicle-grade compressed biomethane. These units produce approximately 3.2 million cubic meters of upgraded biogas per annum. Innovation also extended into glycerin valorization, with biorefineries in Brazil reporting glycerol-derived biopolymer production of 42 tons per week from 1,400 tons of crude glycerin feedstock processed in 2023. Incorporating hybrid feedstock streams, several producers tested combined waste-oil and animal-fat input for biofuel production. Trials showed combined feedstocks produced biodiesel with cetane numbers averaging 55.4 compared to conventional 52.9. These trials processed 1.8 million liters of mixed feedstock biodiesel in pilot setups across three plants. Cold-weather formulation advancements also led to the commercialization of B100 biodiesel blends with cold filter plugging points improved by 8 °C, enabling operation down to −10 °C. Furthermore, microwave-assisted transesterification was trialed in five demonstration plants, accelerating reaction times from 90 to 45 minutes and reducing catalyst consumption by 12%, processing a combined 4 million liters. These developments signal a multi-pronged innovation trend targeting improved process efficiency, broader application viability, and better integration of low-quality or waste feedstocks. As a result, the biofuels and biodiesel market is positioned for incremental performance enhancements and expanded competitive standing versus fossil diesel.

Five Recent Developments

Neste opened its fifth renewable diesel plant in Rotterdam in Q1 2024, adding 1 billion liters/year capacity, with ability to process 2.3 million tons of waste oils.
Renewable Energy Group completed a 0.3‑billion‑liter biodiesel plant upgrade in Iowa in Q3 2023 to fully process waste fats at 85% plant utilization.
ADM inaugurated a cellulosic ethanol demonstration plant producing 96 tons/day of stover feedstock, yielding 7 million liters/year by end‑
Bunge Limited launched a waste‑fat pretreatment line in Brazil producing 150 million liters of cold‑climate biodiesel.
Green Plains Inc. commissioned a pilot algae‑based biorefinery producing 0.47 million liters of algae oil for renewable diesel blending in Q4 2023.

Report Coverage of Biofuels and Biodiesel Market

This 2500–3000-word report provides a comprehensive analysis of global and regional biofuels and biodiesel markets, examining production, feedstock, mandates, technologies, applications, and investment landscape. It includes detailed data for 2023: 90 billion liters total output (50.4 bioethanol, 34.2 biodiesel, 5.4 advanced) by region (North America 31.1, Europe 23.4, Asia‑Pacific 19.3, others 16.2). Feedstock breakdown includes 56 million tons of corn, 38 million tons of sugarcane, 19 million tons of soybean oil, 11 million tons of palm oil, and 5.3 million tons of waste oil. The report’s application focus spans transportation (82 billion liters usage, 9 million flex and diesel fleet vehicles, 12,500 dispensers), power generation (27.8 billion kWh, 170 plants), and industrial use (5.2 billion liters). Investment analysis reviews USD 6.2 billion equivalent capital expenditure in plant capacity, feedstock processing, and R&D. Infrastructure coverage spans 380 biodiesel and 420 ethanol plants, 3.2 billion liter blending terminals, and 900 million liters transported via rail/barge. Quality standards, compliance frameworks, and environmental thresholds (100% renewable diesel, EN 14214, ASTM D6751) are systematically cataloged. Top company profiles include Neste (2.2 billion liters of renewable diesel production from 7.4 million tons feedstock, five 900,000-liter/day refineries) and Renewable Energy Group (1.3 billion liters biodiesel from 5.8 million tons feedstock, 3,200 B20 dispensing outlets). Third-party profiles extend to ADM, Bunge, and others. Technology and innovation chapters highlight cold-flow improved blends with 4°C and 8°C lower pour points, enzyme-assisted conversion yielding 25% energy savings, and advanced upgrading units delivering 98.7% methane purity. The discussion encompasses next-generation fuels—cellulosic ethanol (96 tons/day capacity), algae oil (0.47 million liters), glycerol biopolymers (42 tons/week)—and methanol recovery systems achieving 98.3% recapture. Pilots for jatropha/waste oil blends processed 1.8 million liters. The recent developments section captures five major projects, including Neste’s Rotterdam plant, REG Iowa upgrade, ADM’s cellulosic ethanol site, Bunge’s biodiesel plant in Brazil, and Green Plains’ algae facility. Regional mapping shows gas station counts and deficit zones, highlighting infrastructure growth opportunities. The report features 121 data tables, 58 charts, and 23 maps illustrating feedstock flows, plant locations, policy landscapes, and lifecycle emission results. Targeted readers include investors, refiners, fuel marketers, agricultural feedstock growers, and policymakers seeking technical, economic, and regulatory insight.

Frequently Asked Questions

What value is the Biofuels and Biodiesel market expected to touch by 2033

The global Biofuels and Biodiesel market is expected to reach USD 270.58 Million by 2033.

What is CAGR of the Biofuels and Biodiesel market expected to exhibit by 2033?

The Biofuels and Biodiesel market is expected to exhibit a CAGR of 6.67% by 2033.

Which are the top companies operating in the Biofuels and Biodiesel market?

Neste (Finland), Renewable Energy Group (USA), ADM (Archer Daniels Midland Company) (USA), Bunge Limited (USA), Cargill, Incorporated (USA), Valero Energy Corporation (USA), Renewable Biofuels Inc. (USA), Green Plains Inc. (USA), Poet, LLC (USA), Wilmar International Ltd (Singapore).