Biorefinery Market Size & Share, by Type (First Generation, Second Generation, Third Generation); Technology (Industrial Biotechnology, Physicochemical, Thermochemical); Feedstock (Starch & Sugar Crops, Energy Crops, Organic & Agricultural Residues, Multi-feedstock); Product (Energy Driven, Material Driven) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2023-2035

  • Report ID: 4883
  • Published Date: May 01, 2023
  • Report Format: PDF, PPT

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

Biorefinery Market size is projected to surpass USD 210 Billion by the end of 2035, growing at a CAGR of 8% during the forecast period, i.e., 2023-2035. In the year 2022, the industry 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.

Biorefinery Market
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Biorefinery Sector: 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.


  • 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

Biorefinery Market: Key Insights

Base Year


Forecast Year




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)
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Biorefinery Segmentation

Product (Energy Driven, Material Driven)

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.

Feedstock (Starch & Sugar Crops, Energy Crops, Organic & Agricultural Residues, Multi-feedstock)

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 market 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

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Biorefinery Industry - Regional Synopsis

APAC Market Statistics

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.

North American Market Forecast   

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.

Europe Market Forecast

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.

Research Nester
Biorefinery Market Share
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Companies Dominating the Biorefinery Landscape

    • 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


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.

Author Credits:  Payel Roy, Dhruv Bhatia

  • Report ID: 4883
  • Published Date: May 01, 2023
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

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

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

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.

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.

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

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.

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

The energy driven segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
Biorefinery Market Report Scope

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