First Generation Biofuel - Global Strategic Business Report

The global market for First Generation Biofuel was estimated at US$157.2 Billion in 2024 and is projected to reach US$211.5 Billion by 2030, growing at a CAGR of 5.1% from 2024 to 2030. This comprehensive report provides an in-depth analysis of market trends, drivers, and forecasts, helping you make informed business decisions. The report includes the most recent global tariff developments and how they impact the First Generation Biofuel market.

Global First Generation Biofuel Market - Key Trends & Drivers Summarized

Why Does First Generation Biofuel Continue to Play a Pivotal Role in the Renewable Energy Mix?

First generation biofuels, derived primarily from food crops such as corn, sugarcane, wheat, and vegetable oils, remain a significant component of the global bioenergy landscape. Despite criticism over food-versus-fuel debates and land use concerns, these biofuels - mainly bioethanol and biodiesel - still account for the majority of global biofuel production due to their established infrastructure, mature technologies, and strong policy support. In regions like North America, Brazil, and parts of Europe, first generation biofuels are integral to national energy strategies, especially in decarbonizing the transportation sector. Their compatibility with existing internal combustion engine vehicles and ability to blend seamlessly with petroleum-based fuels offer a practical path for reducing greenhouse gas emissions in the short to medium term. Additionally, government mandates such as Renewable Fuel Standards (RFS), blending obligations, and carbon credit incentives have provided market stability and demand assurance for producers. While second and third generation biofuels are gaining traction, first generation variants continue to play a critical bridging role in the global transition to cleaner energy, particularly in markets where energy security and rural economic development are top priorities.

How Are Policy Frameworks and Trade Dynamics Influencing Market Momentum?

Policy support has been a cornerstone of the first generation biofuel market, with a wide array of subsidies, tax incentives, and blending mandates underpinning demand. In the U.S., the Renewable Fuel Standard (RFS) continues to drive substantial ethanol consumption, especially from corn-based sources. Brazil, leveraging its sugarcane industry, has built one of the most advanced ethanol programs globally, supported by mandatory blend rates and a robust flex-fuel vehicle market. The European Union’s Renewable Energy Directive (RED II) also supports biofuel usage, albeit with increasing scrutiny on feedstock sustainability and indirect land-use change (ILUC). Meanwhile, global trade dynamics have become increasingly complex, with tariffs, antidumping duties, and sustainability certifications shaping cross-border biofuel flows. Countries such as Indonesia and Argentina, major producers of biodiesel from palm and soybean oil respectively, have faced export restrictions in key markets over environmental and trade disputes. This has led to fluctuating pricing and supply volatility, prompting nations to reassess sourcing strategies. Despite these challenges, policy backing and geopolitical diversification efforts are expected to continue shaping the market’s direction, as governments balance energy goals with sustainability imperatives.

What Are the Technological and Sustainability Challenges Facing First Generation Biofuels?

While first generation biofuels offer a scalable alternative to fossil fuels, they face increasing scrutiny over environmental and ethical concerns. The reliance on food crops raises critical issues related to food security, land degradation, and water use. The production of feedstock for bioethanol and biodiesel can contribute to deforestation, biodiversity loss, and greenhouse gas emissions if not managed sustainably. Technological constraints also limit efficiency; for instance, fermentation and transesterification processes have relatively modest energy yields compared to more advanced methods. In response, regulatory agencies are imposing more stringent sustainability criteria, requiring traceability, lifecycle emissions assessments, and third-party certification to verify compliance. At the same time, ongoing R&D efforts are focused on improving conversion efficiencies, reducing input costs, and minimizing ecological footprints. Enhanced crop varieties, better land-use practices, and integrated biorefinery models are being developed to optimize feedstock utilization. However, the gradual shift in investment toward second generation (non-food biomass) and third generation (algae-based) biofuels is a clear indication that while first generation biofuels serve an important role today, their long-term viability will hinge on how effectively they can address environmental and ethical constraints.

What Is Driving Continued Global Demand and Investment in First Generation Biofuels?

The growth in the first generation biofuel market is driven by several factors related to transportation fuel demand, regulatory support, feedstock availability, and the global push for energy diversification. High oil prices and supply disruptions - exacerbated by geopolitical tensions - are reinforcing the strategic value of domestically produced biofuels, especially in energy-importing countries. The continued use of conventional vehicles in developing economies, where electric vehicle adoption remains low, is sustaining demand for ethanol and biodiesel blends as transitional fuels. The abundance and scalability of agricultural feedstocks in countries such as the U.S., Brazil, India, and Indonesia provide a reliable production base that supports domestic energy policies and rural employment. Blending mandates, carbon reduction targets, and compliance with international climate agreements are encouraging governments to maintain or expand biofuel quotas. Additionally, the growing interest in low-carbon fuel standards (LCFS), renewable fuel credits, and voluntary corporate sustainability programs is creating a parallel demand stream for certified, low-emission biofuel solutions. In summary, while the market faces long-term competition from advanced biofuels and electrification, the immediate drivers of policy, infrastructure readiness, and energy security continue to sustain and propel the global first generation biofuel industry.

Report Scope

The report analyzes the First Generation Biofuel market, presented in terms of market value (US$ Thousand). The analysis covers the key segments and geographic regions outlined below.

Segments: Type (Biodiesel Type, Ethanol Type); Feedstock (Coarse Grain, Sugar Crop, Vegetable Oil, Other Feedstocks); Application (Transportation Application, Aviation Application, Other Applications)

Geographic Regions/Countries: World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Key Insights:

• Market Growth: Understand the significant growth trajectory of the Biodiesel Type segment, which is expected to reach US$138.7 Billion by 2030 with a CAGR of a 4.1%. The Ethanol Type segment is also set to grow at 7.0% CAGR over the analysis period.
• Regional Analysis: Gain insights into the U.S. market, estimated at $42.8 Billion in 2024, and China, forecasted to grow at an impressive 7.9% CAGR to reach $41.6 Billion by 2030. Discover growth trends in other key regions, including Japan, Canada, Germany, and the Asia-Pacific.

Why You Should Buy This Report:

• Detailed Market Analysis: Access a thorough analysis of the Global First Generation Biofuel Market, covering all major geographic regions and market segments.
• Competitive Insights: Get an overview of the competitive landscape, including the market presence of major players across different geographies.
• Future Trends and Drivers: Understand the key trends and drivers shaping the future of the Global First Generation Biofuel Market.
• Actionable Insights: Benefit from actionable insights that can help you identify new revenue opportunities and make strategic business decisions.

Key Questions Answered:

• How is the Global First Generation Biofuel Market expected to evolve by 2030?
• What are the main drivers and restraints affecting the market?
• Which market segments will grow the most over the forecast period?
• How will market shares for different regions and segments change by 2030?
• Who are the leading players in the market, and what are their prospects?

Report Features:

• Comprehensive Market Data: Independent analysis of annual sales and market forecasts in US$ Million from 2024 to 2030.
• In-Depth Regional Analysis: Detailed insights into key markets, including the U.S., China, Japan, Canada, Europe, Asia-Pacific, Latin America, Middle East, and Africa.
• Company Profiles: Coverage of players such as Archer Daniels Midland Company (ADM), Borregaard ASA, Bunge Limited, Cargill, Incorporated, Chevron Corporation and more.
• Complimentary Updates: Receive free report updates for one year to keep you informed of the latest market developments.

Select Competitors (Total 34 Featured):

• Archer Daniels Midland Company (ADM)
• Borregaard ASA
• Bunge Limited
• Cargill, Incorporated
• Chevron Corporation
• Cosan S.A.
• FutureFuel Corp.
• Green Plains Inc.
• Louis Dreyfus Company
• Neste Corporation
• Pacific Biodiesel
• Pacific Ethanol, Inc.
• Petrobras Biocombustível S.A.
• POET, LLC
• Raízen S.A.
• Renewable Energy Group
• TotalEnergies SE
• Valero Energy Corporation
• VERBIO Vereinigte BioEnergie AG
• Wilmar International Limited

Tariff Impact Analysis: Key Insights for 2025

Global tariff negotiations across 180+ countries are reshaping supply chains, costs, and competitiveness. This report reflects the latest developments as of April 2025 and incorporates forward-looking insights into the market outlook.

The analysts continuously track trade developments worldwide, drawing insights from leading global economists and over 200 industry and policy institutions, including think tanks, trade organizations, and national economic advisory bodies. This intelligence is integrated into forecasting models to provide timely, data-driven analysis of emerging risks and opportunities.

What’s Included in This Edition:

• Tariff-adjusted market forecasts by region and segment
• Analysis of cost and supply chain implications by sourcing and trade exposure
• Strategic insights into geographic shifts

Buyers receive a free July 2025 update with:

• Finalized tariff impacts and new trade agreement effects
• Updated projections reflecting global sourcing and cost shifts
• Expanded country-specific coverage across the industry