The global biofuel market has experienced substantial growth, driven by increasing concerns over energy security, fluctuations in oil prices, and strong governmental support for environmental policies. In 2024, the market was valued at USD 175.24 billion, and it is projected to rise to USD 188.9 billion by 2025 before expanding further to USD 258.09 billion by 2029, indicating a sustained growth trajectory throughout the forecast period.

Europe

In Europe, the region continues to play a pioneering role owing to its ambitious climate targets and the regulatory framework under RED II, which promotes the expansion of low-carbon biofuels. Germany remains the leading biodiesel producer in the European Union, generating approximately 54,000 barrels per day in 2021, while countries such as France, the Netherlands, and Sweden have intensified investments in hydrotreated vegetable oil (HVO) and advanced biofuels to reduce emissions in sectors that are difficult to decarbonise.

Asia

Across Asia, Japan, South Korea, and China represent three highly influential markets. Japan is expanding its bioenergy capacity by constructing 1,200 MW of new facilities, expected to increase capacity by 36% upon completion. South Korea has begun adjusting its policies in response to concerns about deforestation and carbon emissions, gradually reducing subsidies for biomass in favour of a more sustainable energy system. China, meanwhile, has encountered challenges from EU anti-dumping tariffs but has adapted by diversifying its export markets within the region and investing in sustainable aviation fuel, thereby maintaining its position in the global biofuel value chain.

America

The Americas constitute one of the world’s most significant centres for biofuel production and consumption, with the United States and Brazil serving as key contributors. Growth in the United States is largely supported by the Renewable Fuel Standard and technological advances in renewable diesel, whereas Brazil continues to lead in ethanol production from sugarcane, supported by mandatory blending policies. The region has also placed increasing emphasis on next-generation biofuels, including bio-oil derived from agricultural by-products such as cashew nut shell liquid (CNSL), which broadens the range of potential feedstocks for biofuel production.

Africa

Although still emerging, the biofuel market in Africa holds considerable potential due to the continent’s diverse biomass resources. South Africa focuses on producing biodiesel from sunflower oil, jatropha, and used cooking oil, while Nigeria and Ghana have advanced research on bio-oil sourced from agricultural residues such as palm waste, cocoa husk, and notably CNSL. Studies indicate that bio-oil from CNSL displays properties comparable to light diesel, making it suitable for small-scale energy applications while also enhancing the economic value of the regional cashew-processing industry.