Aviation Biofuel - Global Strategic Business Report

The global market for Aviation Biofuel was valued at US$38.7 Billion in 2024 and is projected to reach US$48.8 Billion by 2030, growing at a CAGR of 3.9% 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 Aviation Biofuel market.

Global Aviation Biofuel Market - Key Trends & Drivers Summarized

Why Is Aviation Biofuel Emerging as a Strategic Pillar in Decarbonizing the Aviation Industry and Ensuring Long-Term Energy Resilience?

Aviation biofuel, also known as sustainable aviation fuel (SAF), is rapidly becoming a cornerstone of global efforts to decarbonize aviation, a sector historically reliant on fossil-based jet fuels with limited low-carbon alternatives. With commercial aviation responsible for roughly 2-3% of global CO2 emissions and demand expected to rise, biofuels offer an immediate and scalable pathway to emission reductions within existing aircraft and infrastructure. Their “drop-in” compatibility with current engines and fueling systems gives them a critical advantage over electrification and hydrogen solutions still in early-stage deployment.

Global regulatory frameworks, such as the International Civil Aviation Organization’s (ICAO) CORSIA program and the EU’s RefuelEU initiative, are mandating lifecycle emissions reductions and SAF blending targets to push the industry toward net-zero by 2050. Biofuels derived from sustainable feedstocks - such as used cooking oil, agricultural residues, municipal waste, and non-food energy crops - are central to meeting these mandates. As airlines, airports, and fuel suppliers align with ESG targets and carbon offset mechanisms, aviation biofuel adoption is transitioning from pilot-scale to commercial viability.

Beyond emissions mitigation, aviation biofuel offers strategic value in energy diversification and supply chain resilience. Regional production of SAF using local feedstocks reduces dependence on volatile crude oil markets and enhances energy security. Governments are now treating SAF capacity building as an industrial policy priority, linking it with job creation, rural development, and innovation in the circular economy. With climate imperatives accelerating, aviation biofuel is no longer a niche alternative but a central enabler of the industry’s long-term operational and reputational sustainability.

How Are Feedstock Technologies, Processing Pathways, and Certification Standards Advancing Commercial Deployment?

Technological innovation across the SAF value chain is accelerating scalability and performance optimization. Multiple conversion pathways - such as HEFA (Hydroprocessed Esters and Fatty Acids), Fischer-Tropsch synthesis, Alcohol-to-Jet (ATJ), and Synthetic Iso-Paraffins (SIP) - are being deployed based on regional feedstock availability and policy incentives. HEFA remains the most commercially mature route, using waste fats and oils, while emerging platforms are targeting lignocellulosic biomass, algae, and carbon-captured e-fuels for next-generation feedstock flexibility.

Feedstock diversification is a key focus, with industry stakeholders investing in low-cost, non-edible, and waste-based inputs to avoid land-use conflicts and food security concerns. Advanced R&D in microbial conversion, pyrolysis, and gasification is enabling higher yields, lower GHG intensity, and broader compatibility with global supply chains. Lifecycle assessments and carbon intensity metrics are becoming standard components of SAF procurement, ensuring that environmental claims are verifiable, traceable, and aligned with global climate protocols.

Certification remains central to market integrity and uptake. Standards such as ASTM D7566 define technical and environmental benchmarks for SAF blending with conventional jet fuels. Certification pathways validate fuel safety, engine compatibility, and emissions performance across approved processing methods. Airlines, regulators, and fuel providers increasingly require multi-tier certification - including ICAO CORSIA eligibility and national sustainability labeling - before adoption in commercial operations. These standards are instrumental in de-risking procurement and building trust across the aviation ecosystem.

Which Airline Segments, Airport Hubs, and Regional Policies Are Accelerating Aviation Biofuel Uptake?

Commercial airlines are leading the charge in SAF adoption, particularly flag carriers, full-service networks, and sustainability-focused low-cost carriers. Major players in North America, Europe, and Asia-Pacific have entered long-term offtake agreements with biofuel producers to secure supply and meet emissions reduction targets. SAF is being integrated into regular flight operations, with flagship routes and climate-conscious travel options marketed to corporate and leisure customers seeking greener alternatives.

Airports are becoming critical facilitators of SAF deployment through fuel blending infrastructure, storage upgrades, and collaboration with regional suppliers. Hubs such as Los Angeles (LAX), Amsterdam Schiphol, Frankfurt, and Singapore Changi are establishing SAF-ready fueling systems and incentivizing carriers through reduced landing fees, emissions credits, or preferential gate allocation. Regional airport authorities are also working with municipal waste processors and agribusinesses to co-locate SAF production near major air corridors.

National and regional policies are providing the structural support needed to scale aviation biofuel markets. The European Union’s RefuelEU Aviation initiative mandates SAF blending percentages beginning in 2025, with targets increasing through 2050. The U.S. Inflation Reduction Act includes tax credits and production incentives for SAF, while countries like the UK, Japan, and Canada are launching SAF roadmaps that link aviation decarbonization to national climate goals. These regulatory levers are fostering demand certainty, investment pipelines, and cross-sector collaboration - catalyzing the transition from demonstration to deployment.

How Are Industry Collaboration Models, Capital Deployment, and Supply Chain Innovation Reshaping Market Expansion?

Strategic partnerships between airlines, energy companies, and technology developers are driving investment into biofuel production capacity and distribution logistics. Co-development agreements, equity investments, and joint ventures are helping de-risk SAF commercialization by aligning feedstock sourcing, refining capabilities, and offtake commitments. Major oil and gas companies are repositioning biofuels as part of their decarbonization strategies, leveraging existing refinery assets to integrate SAF into their product portfolios.

Capital deployment into aviation biofuel infrastructure is scaling rapidly, with public-private funding mechanisms, green bonds, and climate-aligned financial instruments supporting new biorefineries and retrofitting of legacy plants. Multilateral development banks, climate funds, and sovereign wealth entities are increasingly backing SAF ventures in both developed and emerging markets. Long-term purchase agreements and price floor mechanisms are being used to secure revenue predictability for producers and encourage first-mover investments.

Supply chain innovation is becoming a key differentiator in market development. Logistics platforms are emerging to coordinate feedstock aggregation, fuel blending, quality control, and carbon tracking. Blockchain and digital twin technologies are being explored to provide end-to-end traceability, enabling airlines and corporate buyers to quantify Scope 3 emissions reductions. As SAF gains traction, vertically integrated ecosystems combining feedstock cultivation, processing, and delivery are reshaping how aviation fuel is produced, distributed, and valued.

What Are the Factors Driving Growth in the Aviation Biofuel Market?

The aviation biofuel market is accelerating as decarbonization pressure, regulatory mandates, and energy diversification imperatives converge across the aviation value chain. SAF is uniquely positioned to deliver near-term emissions reductions while leveraging existing aircraft and fueling infrastructure - bridging the gap between climate ambition and operational feasibility.

Key growth drivers include the global rollout of emissions compliance frameworks, expanding feedstock and conversion technologies, rising corporate travel decarbonization commitments, and increasing alignment between energy, agriculture, and aviation sectors. As production scales and costs decline, SAF is expected to evolve from a niche sustainability initiative to a mainstream component of global aviation fuel supply.

As climate targets tighten and flight demand rebounds, could aviation biofuel become the defining catalyst that enables the aviation industry to decouple growth from carbon - transforming air travel into a climate-resilient, net-zero mode of global connectivity?

Report Scope

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

Segments: Type (Hydroprocessed Esters & Fatty Acids, Hydrotreated Vegetable Oil, Flight Test, Safety Information Protection, Alcohol-To-Jet); Application (Military, Commercial, 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 Hydroprocessed Esters & Fatty Acids segment, which is expected to reach US$18.0 Billion by 2030 with a CAGR of a 3.2%. The Hydrotreated Vegetable Oil segment is also set to grow at 4.1% CAGR over the analysis period.
• Regional Analysis: Gain insights into the U.S. market, valued at $10.6 Billion in 2024, and China, forecasted to grow at an impressive 7.0% CAGR to reach $9.8 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 Aviation 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 Aviation 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 Aviation 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 Aemetis Inc., Air Company, Alder Fuels, Amyris Inc., BP plc and more.
• Complimentary Updates: Receive free report updates for one year to keep you informed of the latest market developments.

Some of the 34 companies featured in this Aviation Biofuel market report include:

• Aemetis Inc.
• Air Company
• Alder Fuels
• Amyris Inc.
• BP plc
• Chevron Corporation
• Clay Lacy Aviation
• Eneos Holdings
• Eni S.p.A.
• Fulcrum BioEnergy Inc.
• Gevo Inc.
• Honeywell International Inc.
• LanzaJet
• LanzaTech
• Neste Oyj
• PetroSun Inc.
• Preem AB
• Red Rock Biofuels LLC
• Renewable Developments Australia
• Shell plc

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