First Generation Biofuel Market Research Report By Feedstocks (Sugarcane, Corn, Soybeans, Palm Oil), By Biofuel Type (Bioethanol, Biodiesel, Biomass Briquettes, Biomass Pellets), By Application (Transportation, Industrial, Residential), By End-Use Industry (Automotive, Agriculture, Power Generation) and By Regional (North America, Europe, South America, Asia-Pacific, Middle East and Africa) - Forecast to 2032

Global First Generation Biofuel Market Overview:

As per MRFR analysis, the First Generation Biofuel Market Size was estimated at 189.43 (USD Billion) in 2022. The First Generation Biofuel Market Industry is expected to grow from 198.35(USD Billion) in 2023 to 300.0 (USD Billion) by 2032. The First Generation Biofuel Market CAGR (growth rate) is expected to be around 4.71% during the forecast period (2024 - 2032).

Key First-Generation Biofuel Market Trends Highlighted

The increasing demand for sustainable energy sources, stringent environmental regulations, and government incentives are primarily driving the growth of the first-generation biofuel market. The rising concerns over fossil fuel depletion and greenhouse gas emissions are further fueling the adoption of biofuels as an alternative.The market presents significant opportunities for innovation in feedstock utilization. Research and development efforts are focused on identifying new feedstocks that can yield high-quality biofuels while minimizing environmental impact. Additionally, there is potential for growth in the blending of biofuels with conventional fossil fuels to reduce carbon emissions.Increased production capacity in major producing regions, such as the United States and Brazil, is a notable trend in the first-generation biofuel market. The development of advanced biofuel technologies, such as cellulosic ethanol, is expected to further expand the market by addressing the sustainability concerns associated with first-generation biofuels. Additionally, the adoption of blended biofuels in various industries, including transportation and aviation, is gaining momentum.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

First-Generation Biofuel Market Drivers

Increasing Demand for Renewable Energy Sources

The growing demand for renewable energy sources is a major driver of the First Generation Biofuel Market Industry. As the world becomes increasingly aware of the need to reduce greenhouse gas emissions and transition to a more sustainable energy future, biofuels are becoming increasingly attractive. First-generation biofuels, which are produced from food crops such as corn, sugarcane, and soybeans, are a relatively mature technology that can be easily integrated into existing infrastructure.As a result, they are expected to play a significant role in meeting the world's growing demand for renewable energy in the coming years. In addition to the environmental benefits, first-generation biofuels also offer economic benefits. They can help to reduce dependence on foreign oil imports, create jobs, and stimulate rural economies. As a result, governments around the world are increasingly supporting the production and use of biofuels. The increasing demand for renewable energy sources is expected to drive significant growth in the First Generation Biofuel Market Industry in the coming years. As governments and businesses around the world continue to transition to a more sustainable energy future, biofuels are expected to play an increasingly important role in meeting the world's energy needs.

Rising Prices of Fossil Fuels

The rising prices of fossil fuels are another major driver of the First Generation Biofuel Market Industry. As the world's population grows and economies develop, the demand for energy is increasing. This increased demand is putting upward pressure on the prices of fossil fuels, such as oil and natural gas. As a result, biofuels are becoming more cost-competitive with fossil fuels. In some cases, biofuels are already cheaper than fossil fuels, especially in regions with high fuel taxes.The rising prices of fossil fuels are expected to continue to drive growth in the First Generation Biofuel Market Industry in the coming years.

Government Support

Government support is another important driver of the First Generation Biofuel Market Industry. Governments around the world are increasingly recognizing the benefits of biofuels and are implementing policies to support their production and use. These policies include tax incentives, subsidies, and mandates. For example, the United States has a Renewable Fuel Standard that requires a certain amount of biofuels to be blended into transportation fuels.Government support is expected to continue to play a major role in the growth of the First Generation Biofuel Market Industry in the coming years.

First Generation Biofuel Market Segment Insights:

First Generation Biofuel Market Feedstocks Insights

Feedstocks are the raw materials used to produce first-generation biofuels. The most common feedstocks for first-generation biofuels are sugarcane, corn, soybeans, and palm oil. Sugarcane is the most widely used feedstock for first-generation biofuels, accounting for around 50% of global production. Sugarcane is a tropical crop that is grown in warm climates. It is a high-yielding crop, and it can be used to produce both ethanol and biodiesel. Corn is the second most widely used feedstock for first-generation biofuels, accounting for around 30% of global production.Corn is a cereal crop that is grown in temperate climates. It is a high-yielding crop, and it can be used to produce both ethanol and biodiesel. Soybeans are the third most widely used feedstock for first-generation biofuels, accounting for around 15% of global production. Soybeans are a legume crop that is grown in temperate climates. They are a high-protein crop, and they can be used to produce both biodiesel and bio-oil. Palm oil is the fourth most widely used feedstock for first-generation biofuels, accounting for around 5% of global production.Palm oil is a tropical oil crop that is grown in warm climates. The growth of the market is attributed to the increasing demand for renewable energy sources and the government's supportive policies for biofuel production. The feedstocks segment of the First Generation Biofuel Market is expected to grow at a CAGR of 4.5% over the forecast period from 2023 to 2032. The growth of the segment is attributed to the increasing demand for sugarcane, corn, soybeans, and palm oil as feedstocks for biofuel production.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

First Generation Biofuel Market Biofuel Type Insights

The Biofuel Type segment plays a crucial role in the First Generation Biofuel Market. Bioethanol, biodiesel, biomass briquettes, and biomass pellets are the primary types of biofuels considered in this segment. Bioethanol, produced from crops such as corn, sugarcane, and wheat, accounted for the largest market share in 2023, valued at approximately USD 120 billion. Biodiesel, derived from vegetable oils, animal fats, and waste cooking oil, is projected to exhibit significant growth over the forecast period, reaching a market value of USD 65 billion by 2032.Biomass briquettes and pellets, made from compressed organic matter, are gaining popularity as sustainable heating fuels and are expected to contribute to the overall market growth, with a combined market size of USD 20 billion by 2032. The segmentation of the First Generation Biofuel Market by Biofuel Type provides insights into the performance and growth potential of different types of biofuels, enabling stakeholders to make informed decisions about product development, market expansion, and investment strategies.

First Generation Biofuel Market Application Insights

The First Generation Biofuel Market is segmented into various applications, including transportation, industrial, and residential. Among these, the transportation segment accounted for the largest share of the market in 2023 and is projected to continue its dominance throughout the forecast period. The growth of this segment is primarily driven by increasing demand for biofuels in the transportation sector, as they offer a sustainable alternative to fossil fuels. The industrial segment is also expected to witness significant growth, owing to the rising adoption of biofuels in various industrial processes, such as power generation and manufacturing.The residential segment, on the other hand, is projected to grow at a slower pace due to the limited use of biofuels in household applications.

First Generation Biofuel Market End-Use Industry Insights

The First Generation Biofuel Market segmentation by End-Use Industry comprises Automotive, Agriculture, and Power Generation. The automotive segment held the largest revenue share of the market in 2023, owing to the increasing demand for biofuels as a sustainable alternative to fossil fuels in the transportation sector. The Agriculture segment is expected to witness significant growth over the forecast period due to the rising demand for biofuels for agricultural machinery and equipment. The Power Generation segment is anticipated to have a steady growth rate, driven by the increasing adoption of biofuels in power plants to reduce greenhouse gas emissions.

First Generation Biofuel Market Regional Insights

The First Generation Biofuel Market is segmented regionally into North America, Europe, APAC, South America, and MEA. North America held the largest market share in 2023 and is expected to maintain its dominance throughout the forecast period. The region's strong demand for biofuels is driven by government mandates and incentives, as well as the growing popularity of biofuels as a sustainable alternative to fossil fuels. Europe is the second-largest market for first-generation biofuels and is expected to experience steady growth in the coming years.The region's biofuel industry is supported by a number of EU directives and regulations which promote the use of renewable energy sources. APAC is the fastest-growing region for first-generation biofuels and is expected to account for a significant share of the global market by 2032. The region's growing population and increasing demand for energy are driving the growth of the biofuel industry. South America and MEA are relatively small markets for first-generation biofuels but are expected to experience modest growth in the coming years. The regions' biofuel industries are supported by a number of government initiatives and incentives, which are aimed at promoting the use of sustainable energy sources.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

First Generation Biofuel Market Key Players And Competitive Insights:

Major players in the First Generation Biofuel Market industry are investing heavily in research and development to improve the efficiency and cost-effectiveness of their products. Leading Generation Biofuel Market players are also forming strategic partnerships with other companies in the value chain to gain access to new technologies and markets. The First Generation Biofuel Market development is being driven by the increasing demand for renewable energy sources and the growing awareness of the environmental impact of fossil fuels. The competitive landscape of the First Generation Biofuel Market is expected to remain fragmented in the coming years, with a number of small and medium-sized players competing for market share. However, the entry of large, well-established companies into the market is expected to intensify competition and consolidate the industry.Archer Daniels Midland Company (ADM) is a leading global provider of agricultural commodities and food products. ADM's First Generation Biofuel Market business unit produces and markets a variety of biofuels, including ethanol, biodiesel, and renewable diesel. ADM has a strong presence in the Americas, Europe, and Asia, and the company is expanding its operations in emerging markets. ADM is committed to sustainability and has set a goal of reducing its greenhouse gas emissions by 25% by 2025.Nestle Corporation is a Finnish company that is a global leader in the production and marketing of renewable fuels. Nestle's First Generation Biofuel Market business unit produces and markets a variety of biofuels, including renewable diesel, sustainable aviation fuel, and bioplastics. Neste has a strong presence in Europe and North America, and the company is expanding its operations in Asia and South America. Neste is committed to sustainability and has set a goal of achieving carbon neutrality by 2035.

Key Companies in the First Generation Biofuel Market Include:

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  ADM

  
  


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  Cosan SA

  
  


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  Green Plains

  
  


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  Bunge Limited

  
  


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  M Group

  
  


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  Enerkem

  
  


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  Clariant

  
  


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  Renewable Energy Group

  
  


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  Pacific Ethanol

  
  


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  DSM

  
  


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  Cargill

  
  


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  Novozymes

  
  


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  Poet LLC

  
  


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  Neste

  
  


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  Valero Energy

  
  

First-Generation Biofuel Market Industry Developments

The First Generation Biofuel Market is projected to be valued at USD 198.35 billion in 2023 and is expected to witness a CAGR of 4.71% during the forecast period (2024-2032), reaching USD 300.0 billion by 2032. Increasing demand for sustainable and renewable energy sources, particularly in transportation, is driving the growth of the market. Government initiatives and regulations supporting the use of biofuels are further contributing to the market's expansion. Key industry players are investing in research and development to improve the efficiency and cost-effectiveness of first-generation biofuel production. The market is witnessing the adoption of advanced technologies such as cellulosic ethanol production, which utilizes non-food feedstocks, and the development of biofuel blends with improved performance characteristics.

First Generation Biofuel Market Segmentation Insights

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  First Generation Biofuel Market Feedstocks Outlook

  
  
  
  
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    Sugarcane

    
    
  
  
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    Corn

    
    
  
  
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    Soybeans

    
    
  
  
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    Palm Oil

    
    
  
  
  
  

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  First Generation Biofuel Market Biofuel Type Outlook

  
  
  
  
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    Bioethanol

    
    
  
  
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    Biodiesel

    
    
  
  
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    Biomass Briquettes

    
    
  
  
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    Biomass Pellets

    
    
  
  
  
  

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  First Generation Biofuel Market Application Outlook

  
  
  
  
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    Transportation

    
    
  
  
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    Industrial

    
    
  
  
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    Residential

    
    
  
  
  
  

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  First Generation Biofuel Market End-Use Industry Outlook

  
  
  
  
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    Automotive

    
    
  
  
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    Agriculture

    
    
  
  
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    Power Generation

    
    
  
  
  
  

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  First Generation Biofuel Market Regional Outlook

  
  
  
  
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    North America

    
    
  
  
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    Europe

    
    
  
  
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    South America

    
    
  
  
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    Asia-Pacific

    
    
  
  
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    Middle East and Africa