Biofuel Market Size

Biofuel Market Size

Biofuel Market was valued at USD 167.2 billion in 2023 and is anticipated to grow at over 7.2% CAGR between 2023 and 2032. Increased demand for eco-friendly fuels in road transportation along with heightened awareness of renewable energy utilization, and a growing emphasis on reducing greenhouse gas emissions are significant factors propelling the market growth.

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Expanding feedstock diversity along with increasing advanced biofuel initiatives will favor the biofuel market growth. The industry is witnessing a shift toward a more diverse range of feedstocks along with the traditional sources like corn and sugarcane, non-food feedstocks such as algae, waste cooking oil, and agricultural residues were gaining prominence. This diversification aimed to reduce competition with food crops and improve sustainability. In addition, increasing focus on advanced biofuels, such as cellulosic ethanol and renewable diesel, is witnessing an increasing notable trend where the product offer higher energy efficiency and reduced greenhouse gas emissions compared to first-generation biofuels.

Growing consumer and regulatory emphasis on sustainability and carbon reduction is driving the demand for certified sustainable biofuels. Certifications like RSB (Roundtable on Sustainable Biomaterials) and ISCC (International Sustainability & Carbon Certification) gained importance, in turn adding biofuel market growth prospects. Similarly, ongoing research and development efforts are leading to more efficient and cost-effective biofuels production processes. Innovations in enzyme technology and biorefinery approaches were improving yields and lowering production costs.