by The global U.S. Biofuels Market is estimated to be valued at US$ 32.91 Bn in 2023 and is expected to exhibit a CAGR of 7.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Biofuels are transportation fuels that are derived from plants and waste material like vegetable oils, fats, and grains. The common biofuels used in the United States are ethanol and biodiesel. Ethanol is produced from corn and cellulosic feedstocks while biodiesel is produced from soybean oil, waste cooking oil, and animal fats. Biofuels help reduce greenhouse gas emissions and improve energy security by displacing fossil fuels. They are a renewable alternative to gasoline and diesel. With growing environmental concerns around the world, biofuels are expected to play a significant role in sustainable transportation in the future.
Market key trends:
One of the major trends in the U.S. biofuels market is the increasing production of cellulosic ethanol. Cellulosic ethanol is made from non-food biomass sources like agricultural residues, forestry residues, and municipal solid waste. As these feedstocks do not compete with food production, cellulosic ethanol is considered more sustainable. Government policies like the Renewable Fuel Standard are driving investments in cellulosic technologies. Leading companies are collaborating to build commercial scale cellulosic ethanol plants. Advanced biofuels derived from algae are also gaining attention due to their higher energy content and lower life cycle carbon emissions compared to corn ethanol.
Porter’s Analysis:
Threat of new entrants: The U.S. biofuels market is moderately difficult to enter due to the availability of stringent government policies and standards regarding biofuel production. This ensures the capital investments made are protected.
Bargaining power of buyers: Buyers have medium bargaining power due to availability of different types of biofuel producers. However, since biofuels are significantly dependent on government mandates and incentives, buyers have limited options to opt for substitutes.
Bargaining power of suppliers: Feedstock suppliers have medium bargaining power owing to availability of multiple big agribusinesses supplying key materials like corn and soybean. However, stringent regulations maintain price stability of raw materials to some extent.
Threat of new substitutes: Fossil fuel remains the major substitute. However, growing environmental concerns are driving demand for sustainable alternatives like biofuels. Also, technology advancements are augmenting biofuel production efficiency, reducing the threat of new substitutes.
Competitive rivalry: Intense due to the presence of numerous global and regional players competing in price and quality.
Key Takeaways:
The Global U.S. Biofuels Market Demand is expected to witness high growth, exhibiting a CAGR of 7.9% over the forecast period, due to increasing consumption of blended fuels and production of advanced biofuels. The market size for 2023 is US$ 32.91 Bn.
Regional analysis:
North America dominated the market in 2022 with a share of over 60%, led by the strong presence of manufacturing facilities and supportive initiatives by the U.S. government favoring biofuel blending targets. Asia Pacific is anticipated to witness substantial gains, expanding at a CAGR of around 9% during 2023 – 2030 due to government investments and projects in India, China and Indonesia.
Key players:
Key players operating in the U.S. biofuels market are Marathon Petroleum Corporation, HollyFrontier Corporation, REG Life Sciences LLC, Louis Dreyfus Company, Orochem Technologies Inc., Hero BX, Archer Daniels Midland, Renewable Energy Group, Valero Energy Corp., Darling Ingredients Inc., Cargill Inc., POET LLC, Green Plains Inc., Flint Hills Resources, Bunge Limited, Crimson Renewable Energy LP, Aemetis Inc., Alto Ingredients, Inc., Pacific Ethanol, Inc., and CHS Inc.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
