Biofuel Industry Market Report 2025-2035: Government Incentives Drive Growth - Regulations Like The Renewable Fuel Standard (U.S.) And RED II (EU)

(MENAFN- GlobeNewsWire - Nasdaq) Dublin, April 11, 2025 (GLOBE NEWSWIRE) -- The "Biofuel Industry Market Report 2025-2035" has been added to ResearchAndMarkets.com's offering.
World revenue for the Biofuel Industry Market is set to surpass US$138.97 billion in 2025.
Government Policies and Regulatory Support
Governments worldwide are implementing policies and incentives to encourage biofuel production and adoption as part of their efforts to reduce carbon emissions and achieve energy security. Mandates such as the Renewable Fuel Standard (RFS) in the U.S. and the Renewable Energy Directive (RED II) in the European Union have set minimum blending requirements for biofuels in transportation fuels. Additionally, tax credits, subsidies, and carbon pricing mechanisms are making biofuels a more attractive alternative to fossil fuels.
For example, the U.S. government provides a biodiesel tax credit of $1 per gallon, benefiting companies such as Renewable Energy Group (REG) and Valero Energy Corporation, which produce and distribute biodiesel and renewable diesel. Similarly, Neste, a Finland-based company, is expanding its sustainable aviation fuel (SAF) production in response to EU regulations promoting the use of biofuels in aviation.
Feedstock Supply Constraints and Competition with Food Production
One of the most pressing challenges in the biofuel industry is the limited availability of sustainable feedstocks. First-generation biofuels, such as ethanol and biodiesel, primarily rely on corn, sugarcane, soy, and palm oil, leading to concerns over food security and land use conflicts. The expansion of biofuel production in regions like Brazil, Indonesia, and the U.S. has sparked debates about deforestation, biodiversity loss, and rising food prices.
As governments push for higher biofuel blending targets, competition between food and fuel markets intensifies. For example, Indonesia's biodiesel program has driven up palm oil demand, impacting food prices and contributing to deforestation. Similarly, ethanol production in the U.S. has raised concerns over corn availability for food and livestock feed. To overcome this challenge, the industry must diversify feedstock sources, focusing on waste-based, cellulosic, and algae-based biofuels. However, these alternatives require significant investments in technology and infrastructure, delaying large-scale commercialization.

Market Snapshot

• 2025 Market Value: Expected to exceed US$138.97 billion
• Forecast Period: 2025–2035
• Growth Outlook: Strong revenue growth anticipated across regions and segments
• Report Size: 352 pages, featuring 110 tables and 185 charts

Market Drivers & Challenges

Key Growth Drivers

• Government Incentives: Regulations like the Renewable Fuel Standard (U.S.) and RED II (EU)
• Corporate Adoption: Increased investments in SAF, biodiesel, and renewable diesel
• Energy Security: Countries diversifying away from fossil fuels
• Sustainability Push: Biofuels aligned with global net-zero targets

Major Challenges

• Feedstock Supply Constraints: Overlap with food production (e.g., corn, palm oil)
• Infrastructure & Tech Gaps: Advanced biofuels (algae, cellulosic) not yet fully scalable
• Food vs. Fuel Debate: Ongoing scrutiny around land use and deforestation

Market Segmentation

By Production Process

• Fermentation
• Transesterification
• Other Advanced Processes

By Blending Type

• Ethanol Blends (E5–E85)
• Biodiesel Blends (B5–B100)
• Renewable Diesel (Drop-in Fuel)
• Biojet Fuel

By Application

• Transportation
• Power Generation
• Industrial Heating
• Residential & Commercial Heating
• Other Uses

By Feedstock

• Maize
• Vegetable Oils
• Sugarcane & Sugar Beet
• Wheat
• Other Sustainable Sources

Regional & Country-Level Forecasts (2025–2035)

• 5 Regions + 20 Countries Covered
• North America: U.S., Canada
• Europe: Germany, UK, France, Spain, Italy
• Asia Pacific: China, India, Indonesia, Australia, South Korea
• Latin America: Brazil, Mexico
• MEA: GCC, South Africa

Each region includes breakdowns by process, application, blending type, and feedstock.

Company Coverage & Competitive Landscape

Featured Companies (15 Profiles Include SWOT, Revenue, Strategy):

• Royal Dutch Shell
• Valero Energy
• Archer Daniels Midland
• Green Plains
• Neste
• Renewable Energy Group
• Pacific Ethanol
• Butamax
• Air Liquide
• Petrobras
• Bunge Limited
• Wilmar International
• Abengoa
• Algenol Biotech
• Eniven Group

Key Questions Answered

• Which submarkets (e.g., SAF, renewable diesel) offer the highest ROI?
• How will biofuel regulations and subsidies evolve globally?
• What are the prospects of cellulosic and waste-based biofuels?
• Which companies are set to dominate by 2035?
• Where should new investments be focused geographically and technologically?

Strategic Insights & Recommendations

• Identify high-growth regions and sectors
• Understand regulatory shifts and policy incentives
• Plan entry or expansion into new feedstock markets
• Align product development with emerging energy needs
• Benchmark against market leaders' R&D and revenue trends

For more information about this report visit

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