Biorefinery Market Size, Share | Growth Report [2035]

Global Biorefinery Market Size, Forecast, and Trend Highlights Over 2023 - 2035

Biorefinery Market size is estimated to reach ~USD 210 Billion by the end of 2035 by growing at a CAGR of ~8% over the forecast period, i.e., 2023 – 2035. In addition to this, in the year 2022, the market size of biorefinery was ~USD 142 Billion. The growth of the market can be attributed to the increased conversion of waste into energy. Biorefineries employ waste to produce biofuels, platform chemicals, and other bio-based materials. It can also drastically lessen a major environmental load while also providing electricity. In 2021, 64 power plants in the United States created approximately 13.6 billion kilowatt-hours of electricity by burning around 28 million tons of combustible MSW for electricity generation. Moreover, biomass materials represented approximately 61% of the combustible MSW weight and approximately 45% of the electricity generated.

In addition to these, factors that are believed to fuel the market growth of biorefineries include the rising government initiatives to encourage the use of biorefineries. Governments from all over the world are implementing regulations and policies to boost the development of biorefineries. These policies include incentives and subsidies for the production of renewable energy, as well as mandates for the use of biofuels. On the other hand, the surging popularity of bio-based products is also expected to drive market growth. Several bio-based products, such as plastics, chemicals, and materials are produced from biorefineries. Moreover, the consumers are becoming more conscious of the product they are using and are more inclined to sustainability.

Global Biorefinery Market: Growth Drivers and Challenges

Growth Drivers

Growing Demand for Cleaner Fuels– Biofuels are fuels made from organic materials such as plants, agricultural products, algae, and animal waste. They are a suitable replacement for petroleum-derived gasoline or any conventional fuel. According to the WEO's Stated Policies Scenario, which is based on the most recent policy sets worldwide, these additional initiatives are expected to accelerate global clean energy investment to more than USD 2 trillion per year by 2030, a more than 50% increase from today.
Technological Advancement of Biorefining Process- New innovation in the biorefining process is likely to bring opportunities for the market. In February 2022, Oklahoma State University issues a patent for developing a new process of co-fermentation that transforms sugar into alcohol, ketones, and organic acids that increases the production of biofuels and minimum emission of carbon dioxide.
Growing Initiatives to Reduce the Carbon Emission– Several studies have highlighted the relevance of biorefineries as a focal point in the carbon-neutral ecosystem of technologies associated with the circular economy paradigm. According to the International Trade Administration, Vietnam's Prime Minister made various promises at the UN Climate Change Conference in Glasgow in November 2021 (COP26), including an ambitious objective of decreasing emissions to Net Zero by 2050.
Increasing Consumption of Electricity – Biorefineries are facilities that process biomass to create value-added products such as biofuels, biochemicals, and bioenergy/biopower. According to the International Energy Agency, after a 6% spike in 2021, global electricity demand has increased by 2.4% in 2022, matching its average growth rate over the five years preceding the Covid-19 pandemic.
Rising Awareness for Converting Waste to Energy– Biorefinery technology leverages all feedstock and follows waste to energy process for producing a diverse range of products with significant benefits. In 2023, Vietnam hopes to collect and handle around 96% of urban household waste in accordance with guidelines. As part of the authorized national policy on green growth for 2021-2030 with a vision to 2050, the Vietnamese government has set a goal of increasing the rate of solid trash collected and securely treated to nearly 100% by 2050.

Challenges

Uncertainty of Feedstock Availability – The production and availability of feedstock, such as forestry residue, and agricultural waste, are uncertain. As their production is dependent on crop yield, land use, and weather. This variability can affect the productivity and profitability of biorefineries and it is likely to hamper the market growth.
Capital and Building Operation Cost is High
Competitiveness Faced by Traditional Fossil Fuels

Global Biorefinery Market Segmentation

The global biorefinery industry is segmented and analyzed for demand and supply by product into energy driven, and material driven. Out of the two products produced by biorefinery, the energy driven segment is estimated to gain the largest market share of about ~60% in the year 2035. The growth of the segment can be attributed to the rising demand for bio-energy and biofuels and the rising need to reduce carbon emissions. With few alternative low-carbon technological options, biofuels are especially crucial for trucking, shipping, and aircraft. Moreover, according to the International Energy Agency, global biofuel demand increased by 5% per year on average between 2010 and 2019, the Net Zero Emissions by 2050 Scenario necessitates 14% annual growth until 2030. Biofuels are increasingly being created from feedstocks that do not compete with food crops, such as waste and leftovers. In the Net Zero Emissions by 2050 Scenario, biofuels produced from these resources meet 45% of total global biofuel demand by 2030; however, only an estimated 7% of biofuels were produced from wastes and leftovers in 2020.

The global biorefinery market is also segmented and analyzed for demand and supply by feedstock into starch & sugar crops, energy crops, organic & agricultural residues, multi-feedstock, and others. Amongst these five segments, the starch & sugar crops segment is expected to garner a significant share of around ~40% in the year 2035. The low cost of starch and sugar crop feedstock and they are readily available as they are present in abundance is likely to drive segment growth. These feedstocks are relatively much cheaper in comparison to other potential feedstock, including woody biomass or algae. Therefore, the adoption of sugar crops has increased as they are a cost-effective choice for biorefinery operations. Moreover, these feedstocks have high carbohydrate content, which can be converted into different valuable products, such as bioplastics, biochemicals, and biofuels.

Our in-depth analysis of the global biorefinery industry includes the following segments:

By Type	First Generation Second Generation Third Generation
By Technology	Industrial Biotechnology Physicochemical Thermochemical
By Feedstock	Starch & Sugar Crops Energy Crops Organic & Agricultural Residues Multi-feedstock Others
By Product	Energy Driven Material Driven

Global Biorefinery Market Regional Synopsis

The market share of biorefinery in Asia Pacific, amongst the market in all the other regions, is projected to be the largest with a share of about ~32% by the end of 2035. The growth of the market can be attributed majorly to the increasing demand for reducing carbon emission. The Union Cabinet presided over by Prime Minister Shri Narendra Modi, has accepted India's revised Nationally Determined Contribution (NDC), which would be reported to the United Nations Framework Convention on Climate Change (UNFCCC). India has now pledged to lower its GDP's emissions intensity by 45 percent by 2030. Furthermore, it is a step towards India's long-term objective of reaching net-zero emissions by 2070. On the other hand, the growing production of biofuels is also expected to drive market growth in the region. Owing to increased exports, China's biodiesel output is expected to reach 1.7 billion liters in 2021, up more than 54 percent from 2020.

The North American biorefinery market is estimated to be the second largest, registering a share of about ~29% by the end of 2035. The growth of the market can be attributed majorly to the increasing demand for electricity. Total power end-use consumption in the United States in 2022 was around 3% higher than in 2021. Retail electricity sales to the residential sector were approximately 4% higher in 2022 than in 2021, while retail power sales to the commercial sector were approximately 3% higher in 2022 than in 2021. On the other hand, the rise in the number of biorefineries is also expected to drive market growth in North America. In 2022, the United States had around 199 operational ethanol biorefineries. Furthermore, the Renewable Fuel Standard (RFS) in the United States, requires a certain amount of renewable fuels, such as biodiesel, and ethanol to be added to the transportation fuel supply.

Further, the market in the Europe, amongst the market in all the other regions, is projected to hold a majority of the share by the end of 2035. The growth of the market can be attributed majorly to the rising interest in the circular economy, which aims to reduce waste and maximize the use utilization of resources. Biorefineries are an integral part of the transition to a circular economy, as they can convert waste materials and biomass into valuable products. Moreover, the growing production of renewable energy is also expected to boost the market growth. The European Union’s Renewable Energy Directive mandates the increase of the share of renewable energy in their energy ix to 32% by 2030.

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Top Featured Companies Dominating the Global Biorefinery Market

Abengoa S.A.
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
Borregaard AS
Cargill, Incorporated
Chempolis Ltd.
Clariant
Green Plains Inc.
Red River Biorefinery
SGP Bioenergy Holdings, LLC
Veolia Environment SA
AFYREN SAS

In The News

AFYREN announced the launch of AFYREN NEOXY, the first large biorefinery plant, in Carling Saint-Avold, France. In 2024, the production of biobased carboxylic acids is expected to rise to 16,000 metric tons, saving 30,000 tons of CO2 emissions per year. The plant utilizes short supply chains to generate acids that are 100% biobased.
Veolia announced the inauguration of the world’s largest biorefinery project. The facility is set up to produce carbon-neutral biofuel from pulp production. The technology opens up a considerable potential for bioethanol production, estimated at roughly 2 million tons.

Global Economic Impact

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Despite Inflation & Fearing Recession, Businesses Across the Globe Expected to Do Better in 2023:

In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.

Key Questions Answered in the Report

1) What are the major factors driving the growth of the biorefinery market?

Ans: Increasing demand for electricity and cleaner fuels, and rising need to reduce carbon emissions are the major factors driving the market growth.

2) What would be the CAGR of biorefinery market over the forecast period?

Ans: The market size of biorefinery is anticipated to attain a CAGR of ~8% over the forecast period, i.e., 2023 – 2035.

3) What are the challenges affecting the biorefinery market growth?

Ans: The high cost of infrastructure, tough competition from fossil fuels, and feedstock availability affected by climate and land are estimated to be the growth hindering factors for the market expansion.

4) Which region will provide more business opportunities for growth of biorefinery market in future?

Ans: The market in the Asia Pacific region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.

5) Who are the major players dominating the biorefinery market?

Ans: The major players in the market are Abengoa S.A., Borregaard AS, Cargill, Incorporated, Chempolis Ltd., Clariant, Green Plains Inc., Red River Biorefinery, SGP Bioenergy Holdings, LLC, Veolia Environment SA, and AFYREN SAS

6) How are the company profiles selected?

Ans: The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.

7) What are the segments in the biorefinery market?

Ans: The market is segmented by type, product, technology, feedstock, and by region.

8) Which segment captures the largest market size in the product segment in the biorefinery market?

Ans: The energy driven segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.

Base Year	2022
Forecast Year	2023-2035
CAGR	~8%
Base Year Market Size (2022)	~ USD 142 Billion
Forecast Year Market Size (2035)	~ USD 210 Billion
Regional Scope	North America (U.S., and Canada) Latin America (Mexico, Argentina, Rest of Latin America) Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific) Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe) Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)