Biofuel Market: Global Opportunity Analysis and Industry Forecast 2021-2031 Market

Biofuel Market Outlook - 2027

Biofuels are fuels produced directly or indirectly from organic material such as biomass including plant materials and animal waste. Biofuel is viewed as a source of renewable energy, unlike, fossil fuels for example, oil, coal, and petroleum gas. Biofuel is normally advocated as a cost-effective and environment friendly option in contrast to oil and other non-renewable energy sources, especially inside setting of rising oil costs and expanded worry over the commitments made by fossil fuels to global warming.  Biofuels are in the form of solid, gaseous or liquid, where all these types of biofuel are used to signify liquid biofuel for transport of ethanol, which is a type of alcohol produced from any feedstock containing significant amount of sugar. Biofuels may be derived from agricultural crops, with conventional food plants or from special energy crops. It may also be produced from forestry, agricultural or fishery products or municipal wastes, as well as from agro-industry, food industry and food service by-products and wastes. 

COVID-19 scenario analysis:

• The global market for biofuels is severely impacted by the outbreak of the COVID-19 pandemic. 
• The COVID-19 pandemic saw a decline in the economic growth in almost all the major countries, thus affecting consumer spending patterns. 
• Owing to the lockdown implemented across various countries, national and international transport have been hampered, which has significantly impacted the supply chain of numerous industries across the globe, thereby increasing the supply–demand gap.
• Thus, insufficiency in raw material supply is expected to hamper the production rate of biofuels, which negatively impact the market growth.

Top impacting factors: Market Scenario Analysis, Trends, Drivers, and Impact Analysis

Foremost factor that contributes for its growth is it reduces carbon emission as it is produced from bio-mass that includes plants and animals. Studies suggest that biofuels reduce greenhouse gases up to 60%. Besides this, it is a cost-effective fuel as it reduces dependence over fossil fuels as the biofuel is generated from natural and organic products. However, there are some restraints for this market like, insufficient availability of feedstock such as algae, starch, and sugar that would hinder the growth of biofuel market, all the feedstocks does not possess the same performance, which is a concern for the future market growth. Though the shortage of raw materials can be met by growing more crops that is used in biofuels, this could greatly impact the regional biodiversity of the environment as more land will be used for fuel production. 

New product launches to flourish the market

In 2020, INEOS and UPM Biofuels announced a long-term agreement to supply a renewable raw material for new and inventive bio-attributed polymers to be created at INEOS Köln, Germany. INEOS will utilize UPM BioVerno, a sustainable crude material from renewable residue of wood mash handling, to create bio-ascribed polyolefins. These new sustainable materials will be used in a wide scope of items from plastic food bundling to clinical and pipes. Applications also include BIOVYNTM, the world's first commercially available bio-credited PVC, created by INOVYN an INEOS Business.

Surge in use of biofuel in industrial applications

Biofuel is serving in many sectors such as energy generation and cooking fuel but the sector where it has it more impact is transportation. Ethanol, a biofuel, can be used as a fuel substitute for petroleum fuel. Bioethanol has lower emissions of carbon dioxide than coal and gasoline which harm the environment. Apart from this, ethanol, a biofuel is used in alcoholic beverages, pharmaceuticals, and cosmetics. The starch and sugar-based feedstock type segment holds a significant share of the ethanol market and is expected to continue to the trend throughout the forecast period. Starch-based bioethanol uses corn, barley, wheat, and other starch raw materials as feedstock to produce ethanol.

Key benefits of the report:

• This study presents the analytical depiction of the global Biofuel industry along with the current trends and future estimations to determine the imminent investment pockets.
• The report presents information related to key drivers, restraints, and opportunities along with detailed analysis of the global Biofuel market.
• The current market is quantitatively analysed from 2020 to 2027 to highlight the global Biofuel market growth scenario.
• Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market. 
• The report provides a detailed global Biofuel market analysis based on competitive intensity and how the competition will take shape in coming years. 

 Biofuel Market: Global Opportunity Analysis and Industry Forecast 2020-2027 Report Highlights