Biorefinery Market Size to Worth USD 468.51 Billion by 2034

According to Towards Chemical and Materials, the global biorefinery market size is calculated at USD 229.54 billion in 2025 and is expected to be worth around USD 468.51 billion by 2034, growing at a compound annual growth rate (CAGR) of 8.25% over the forecast period 2025 to 2034.

Ottawa, Sept. 26, 2025 (GLOBE NEWSWIRE) -- The global biorefinery market size was valued at USD 212.05 billion in 2024 and is expected to hit around USD 468.51 billion by 2034, growing at a compound annual growth rate (CAGR) of 8.25% over the forecast period from 2025 to 2034. The Rising demand for sustainable and renewable bio-based products s driving the growth of the market A study published by Towards Chemical and Materials a sister firm of Precedence Research.

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Biorefinery Overview

The biorefinery market is experiencing significant growth as industries shift towards sustainable practices. This transition is driven by increasing environmental awareness, supportive government policies, and the rising demand for renewable energy. Biorefineries play a crucial role in converting biomass into valuable products such as biofuels, biochemical, and biomaterials, thereby reducing reliance on fossil fuels and minimizing carbon footprints. Technological advancements in conversion processes, along with innovations in feedstock utilization, are further enhancing the efficiency and economic viability of biorefinery. As a result, the market is poised for continued expansion, contributing to the global movement towards a more sustainable and circular economy.

Biorefinery Market Report Highlights

• The Europe biorefinery market size was estimated at USD 69.98 billion in 2024 and is expected to reach USD 154.84 billion by 2034, growing at a CAGR of 5.29%
  from 2025 to 2034.
• By feedstock type, the lignocellulosic biomass segment held a 38%market share in 2024. The dominance of the segment can be attributed to the innovations in pretreatment technologies.
• By technology, the biochemical conversion segment dominated the market with 44% market share in 2024. The dominance of the segment can be linked to the innovations in fermentation technology.
• By product type, the bioethanol segment led the market by holding 32% market share in 2024. The dominance of the segment is owed to the rising government concerns, along with the innovations in bioethanol production technologies.
• By end use industry, the transportation segment dominated the market with 46% market share in 2024. The dominance of the segment can be attributed to the rising awareness of climate change and innovations in biorefinery technologies.
• By refinery type, the second-generation biorefineries segment held a 46% market share in 2024. The dominance of the segment can be linked to its ability to produce valuable biochemicals, along with the rising environmental concerns.

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Biorefinery Market Report Scope

Report Attribute	Details
Market size value in 2026	USD 248.48 Billion
Revenue forecast in 2034	USD 468.51 Billion
Growth rate	CAGR of 8.25% from 2025 to 2034
Base year for estimation	2024
Historical data	2021 - 2024
Forecast period	2025 - 2034
Quantitative units	Revenue in USD million/billion and CAGR from 2025 to 2034
Report coverage	Revenue forecast, company ranking, competitive landscape, growth factors, and trends
Segments covered	By Feedstock Type, By Technology Pathway, By Product Type, By End-use Industry, By Refinery Type, By Region
Key companies profiled	Neste Corporation, Abengoa Bioenergy, Clariant AG, POET LLC, TotalEnergies SE, ADM (Archer Daniels Midland Company), UPM-Kymmene Corporation, Renewable Energy Group (Chevron), Gevo Inc., BASF SE, Borregaard ASA, Beta Renewables (Biochemtex), Enerkem Inc., Valero Energy Corporation, Algenol Biotech LLC, Dong Energy (Ørsted), GranBio, St1 Nordic Oy, LanzaTech, Cargill Incorporated

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Here Are Some Of The Top Products In The Biorefinery Market

1. Bioethanol- A renewable alcohol fuel used in transportation (gasoline blending) and chemicals.
2. Biodiesel (FAME)- Produced from vegetable oils or animal fats; used as diesel substitute or blend.
3. Renewable Diesel (HVO)- Hydrotreated vegetable oil; chemically similar to fossil diesel with superior properties.
4. Sustainable Aviation Fuel (SAF)- Jet fuel alternative from biomass or waste; crucial for decarbonizing aviation.
5. Biogas / Renewable Natural Gas (RNG)- Methane-rich gas from anaerobic digestion; used for heating, power, or transport.
6. Bio-based Chemicals- Includes succinic acid, lactic acid, and itaconic acid for polymers and solvents.
7. Lignin-based Products- Used in resins, adhesives, and as a renewable alternative to petroleum-based products.
8. Bio-based Plastics (Biopolymers)- Plastics from renewable feedstocks like PLA, PHA; used in packaging, agriculture.
9. Cellulosic Ethanol- Ethanol made from non-food biomass (e.g., crop residues, wood waste).
10. Glycerin (Glycerol)- Byproduct of biodiesel; used in pharmaceuticals, cosmetics, and food industries.

What Are The Major Trends In The Biorefinery Market?

• Advancements in biorefining technologies: Innovations in conversion processes, such as improved fermentation and catalytic methods, are enhancing the efficiency and economic viability of biorefineries.
• Shift towards sustainable feedstock: there is a growing emphasis on utilizing non-food biomass sources, like agricultural residues and algae, to produce biofuels and biochemical, reducing competition with food production.
• Integration of circular economy principles: biorefineries are increasingly adopting circular economy models by converting waste materials into valuable products, thereby minimizing waste and promoting resource efficiency.
• Government support and policy initiatives: many governments are implementing policies and regulations to promote the development and adoption of biorefineries, including incentives, subsidies, and mandates for the use biofuels and bio-based products.
• Rising demand for bio-based products: there is an increasing consumer preference for sustainable and renewable bio-based products, driving the growth of market as industries seek to meet this demand. growth of market as industries seek to meet this demand.
  

How Does AI Influence The Growth Of The Biorefinery Market In 2025?

By 2025, AI is increasingly reshaping the biorefinery arena: intelligent algorithms and machine learning models help predict complex process outcomes, optimize reaction conditions, and manage resource allocation within dynamic biomass conversion systems. AI driven twins and soft enable real time control of fermentation, purification, and separation units allowing operators to adjust parameters before bottlenecks emerge. Hybrid modelling combining mechanistic process knowledge with data drive driven insights improves scalability and adapts to feedstock variability. In biomass valorisation, AI tools assist enzyme engineering and metabolic pathway design, accelerating strain development and boosting yields. All these capabilities drive cost reduction, higher efficiencies, and more flexible operations thus strengthening the growth momentum of the biorefinery market.

Biorefinery Market Growth Factors

Can Smarter Processes Slash Waste And Boost Outputs?

AI is helping biorefineries run more efficiently by predicting process outcomes and adjusting conditions in real time. Tools like digital twins and soft sensors allow operators to detect inefficiencies early and optimize performance. This reduces energy waste, cuts costs, and increases output, making operations more sustainable. AI driven optimization is becoming central to achieving competitive and eco-friendly biorefineries.

Will Feedstock Engineering Redefine Biomass Supply?

Biotechnology, supported by AI, is improving the quality and availability of biomass feedstocks. Machine learning helps identify genetic traits that make plants easier to process and more resilient to environmental challenges. This ensures steady, efficient supply chains while reducing dependence on food crops. By enhancing crop performance and conversion efficiency, feedstock engineering is opening new opportunities for biorefinery growth.

Market Opportunity

Could AI Powered Scale-Up Unlock New Biorefinery Economics?

With AI techniques enabling more precise modelling, control and optimization of complex bioprocesses, there is opportunity to scale biorefineries more cost-effectively and reliably. As AI reduces uncertainty in feedstock variability, conversion efficiency, and energy use, investor can be more confident edge through lower operating costs and faster ramp-up. This opens doors for mid-sized and modular facilities to enter markets that had high entry barriers. Over time, such optimized expansion strategies could accelerate the deployment of biorefineries in regions where risk was previously tool high.

Biorefinery Market Segmentation

Feedstock Type Insights

Why Is Lignocellulosic Biomass Segment Dominating the Biorefinery Market?

The Lignocellulosic biomass segment registered its dominance over the market in 2024. Lignocellulosic biomass, derived from agricultural residues, wood, and dedicated energy crops, is abundant and cost-effective, making it highly attractive for large scale biorefinery operations. Its versatile composition allows conversion into biofuels, biochemical, and other valuable products using established biochemical and thermochemical technologies. Continuous research and technological advancements improve processing efficiency and product yields, further strengthening its position. As a result, lignocellulosic biomass remains a preferred feedstock driving the growth and stability of the market.

The aquatic biomass segment is expected to grow at the fastest rate in the market during the forecast period. Aquatic biomass, including algae and seaweed, offers high productivity and does not compete with food crops for arable land. It provides sustainable feedstock for biofuels and biochemical, while technological improvements are reducing processing costs and increasing conversion efficiency. Governments and industries are increasingly exploring aquatic biomass to meet renewable energy targets and sustainability goals. This combination of benefits and innovation is fuelling its rapid adoption and growth in the global biorefinery market.

Technology Insights

Why Is Biochemical Conversion Segment Dominating The Biorefinery Market?

The biochemical conversion segment dominated the market in 2024. Biochemical processes, such as enzymatic hydrolysis and fermentation, efficiently convert biomass into biofuels and biochemical while maintaining high selectivity for target products. The widespread adoption of proven biochemical methods and the ability to use a variety of feedstocks make this technology reliable and scalable. Continuous innovation in enzymes, microbes, and process optimization enhances productivity and cost-effectiveness. These factors allow biochemical conversion to maintain strong position in the global biorefinery market.

The thermochemical segment is projected to expand rapidly in the market in the coming years. Thermochemical processes, including gasification, pyrolysis, and hydrothermal liquefaction, can convert a wide range of biomass types into biofuels, chemicals, and energy products. These processes offer high efficiency and flexibility, allowing biorefineries to adapt to different feedstocks and product demands. Technological advancement is reducing costs and improving yields, making thermochemical conversion increasingly attractive. Growing investments and interest in large scale, integrated biorefineries are driving the rapid adoption of thermochemical technologies.

Product Type Insights

Why Is Bioethanol Segment Dominating The Biorefinery Market?

The bioethanol segment captured the largest portion of the market in 2024. Bioethanol is widely used as renewable fuel and additive, offering environmental benefits by reducing greenhouse gas emissions. Its established production processes, combined with a reliable supply of feedstocks such as sugarcane, corn, and lignocellulosic biomass, ensure consistent availability and scalability with gasoline further support market demand. Government mandates on blending bioethanol with gasoline further support demand. These factors help bioethanol with gasoline further support market demand. These factors help bioethanol maintain a strong position in the biorefinery product market.

The sustainable aviation fuel (SAF) segment is anticipated to grow with the highest CAGR in the market during the studied years. SAF provides an eco-friendly alternative to conventional jet fuel, addressing the aviation industry’s carbon emissions and sustainability targets. Increasing global air travel, combined with regulatory pressure to decarbonize, drives demand for SAF production. Technological advancements and investment in pilot and commercial scale production facilities are accelerating market adoption. As a result, SAF is positioned as the fastest growing product segment in the market.

End Use Industry Insights

Why Is Transportation Segment Dominating The Biorefinery Market?

The transportation segment maintained a leading position in the market in 2024. Transportation fuels derived from biomass, such as bioethanol and biodiesel, are widely adopted to reduce reliance on fossil fuels and lower emissions. Policies supporting renewable fuels, including blending mandates, create steady demand and market stability. The mature infrastructure for distribution and use of biofuels in vehicle further strengthens this segment. Consequently, transportation remains a dominant end-use sector driving biorefinery market growth.

The packaging segment is projected to grow at the fastest rate in the market between 2025 and 2034. Bio based and biodegradable materials are increasingly replacing conventional plastics due to environmental concerns and regulatory pressure. Advances in biopolymer technologies allow high quality packaging products further biomass. Rising consumer awareness and demand for sustainable packaging products further accelerate adoption. These factors make packaging the fastest growing end use sector in the market.

Refinery Type Insights

Why Are Second Generation Biorefineries Segment Dominating The Biorefinery Market?

The second-generation biorefineries segment dominated the market in 2024. These facilities convert non-food biomass such as agricultural residues, wood, and energy crops into biofuels and chemicals, offering sustainability advantages over first generation refineries. Established processes, technology maturity, and policy support make second generation biorefineries reliable and scalable. Their ability to produce multiple products efficiently contributes to profitability and market stability. As a result, second generation biorefineries maintain a dominant position in the global market.

The third-generation biorefineries segment is set to experience the fastest rate in the market during 2025 to 2034. Third generation refineries primarily use algae and other advanced feedstocks to produce biofuels, chemicals, and high-value bio products. Technological innovations, increasing research and development investment, and higher yield potentials make third generation biorefineries highly attractive. Growing demand for sustainable and renewable bio-based products is driving rapid expansion in this segment. Consequently, third generation biorefinery are the fastest growing refinery type in the biorefinery market.

Regional Insights 

Why Is Europe Dominating the Biorefinery Landscape?

Europe dominated the market in 2024, due to robust policy frameworks, sustainability mandates, and extensive investments in research and infrastructure. The region’s regulatory push for carbon neutrality and circular bio economy models fosters incentives and public funding for biorefinery deployment. Europe also benefits from a mature industrial ecosystem, technological expertise, and supportive institutions that facilitate collaboration between academia, government, and supportive institutions that facilitate collaboration between academia, government, and industry. Geographic proximity among nations aids cross border biomass sourcing and integrated supply chains. These factors combine to help Europe hold a dominant share of the market.

Germany plays a central role within Europe’s biorefinery sectors, leveraging its strong bio economy strategy, research capacity, and industrial base. The country’s commitment to integration biomass, bioenergy, and sustainable chemical production aligns with national goals around decarbonisation and innovation. Germany’s infrastructure and policy support attract funding and partnerships for demonstration projects, scaling and deployment. Its central location in Europe also enables efficient logistic for feedstock import, conversion, and distribution of bio-based products. Thus, Germany acts as a key driver and exemplar within the European biorefinery market.

Why Is Asia Pacific Fastest Growing Biorefinery Market?

Asia Pacific is projected to experience the highest growth rate in the market between 2025 and 2034, driven by factors such as rapid urbanization, increasing industrialization, and a growing emphasis on sustainable development. Governments In countries Like India, Indonesia, and Vietnam are implementing supportive policies, including biofuel blending mandates and subsidies for renewable energy, to promote the adoption of biorefinery technologies. Additionally, the region’s abundant agricultural residues and biomass resources provide a steady supply of feedstock for biorefinery operations. technological advancements in bioconversion processes and a rising consumer demand for bio-based products further contribute to the market’s growth. These factors collectively position Asia Pacific as a dynamic and rapidly growing hub for the market.

China stands out as a dominant player in the Asia Pacific biorefinery market, owing to its robust policy support, vast biomass resources, and a strong commitment to renewable energy development. China’s extensive agricultural sector generates significant amounts of biomass feedstock, including rice husks, wheat straw, and sugarcane bagasse, which are utilized in biorefinery processes. Moreover, China’s Investments In Research And Development, coupled with advancements in bioconversion technologies, have enhanced the efficiency and scalability of biorefinery operations. These combined efforts have positioned China as a leader in the biorefinery sector within the Asia Pacific region.

Limitations In The Biorefinery Market

• Biorefinery operations require advanced technologies, expensive enzymes, and energy intensive processes, making large sale deployment challenging.
• Seasonal variability, competition with food crops, and logistical challenges in transporting bulky biomass limit consistent and cost effective feedstock supply.

More Insights in Towards Chemical and Materials:

• Construction Chemicals Market : The global construction chemicals market size is calculated at USD 51.19 billion in 2024, grew to USD 53.02 billion in 2025 and is predicted to hit around USD 72.7 billion by 2034, expanding at healthy CAGR of 3.57% between 2025 and 2034.
• Agrochemicals Market : The global agrochemicals market size accounted for USD 285.36 billion in 2024 and is predicted to increase from USD 300.91 billion in 2025 to approximately USD 485.13 billion by 2034, expanding at a CAGR of 5.45% from 2025 to 2034.
• CIP (Clean In Place) Chemicals Market : The global CIP (clean in place) chemicals market size is calculated at USD 15.85 billion in 2024, grew to USD 17.29 billion in 2025 and is predicted to hit around USD 37.9 billion by 2034, expanding at healthy CAGR of 9.11% between 2025 and 2034.
• Boiler Water Treatment Chemicals Market : The global boiler water treatment chemicals market size was reached at USD 5.52 billion in 2024 and is expected to be worth around USD 15.46 billion by 2034, growing at a compound annual growth rate (CAGR) of 10.85% over the forecast period 2025 to 2034.
• PFAS Free Chemicals Market : The global PFAS free chemicals market volume was valued at 211.23 kilo tons in 2024 and is expected to reach around 905.32 kilo tons by 2034, growing at a CAGR of 15.67% from 2025 to 2034.
• Bio-Based Platform Chemicals Market : The global bio-based platform chemicals market size was reached at USD 29.33 billion in 2024 and is expected to be worth around USD 48.46 billion by 2034, growing at a compound annual growth rate (CAGR) of 5.15% over the forecast period 2025 to 2034.
• Lithium Chemicals Market : The global lithium chemicals market size was reached at USD 33.19 billion in 2024 and is expected to be worth around USD 196.28 billion by 2034, growing at a compound annual growth rate (CAGR) of 50% over the forecast period 2025 to 2034. 
• Electronic Materials And Chemicals Market : The global electronic materials and chemicals market size was valued at USD 74.19 billion in 2024 and is expected to hit around USD 136.03 billion by 2034, growing at a compound annual growth rate (CAGR) of 6.25% over the forecast period from 2025 to 2034.
• Textile Chemicals Market : The global textile chemicals market volume is expected to produce approximately 1.52 million tons in 2025, with a forecasted increase to 2.46 million tons by 2034, growing at a CAGR of 5.49% from 2025 to 2034.
• Commodity Chemicals Market : The global commodity chemicals market size was valued at USD 813.85 billion in 2024, grew to USD 867.97 billion in 2025, and is expected to hit around USD 1,549.36 billion by 2034, growing at a compound annual growth rate (CAGR) of 6.65% over the forecast period from 2025 to 2034.
• Bio-Based Textiles Market : The global bio-based textiles market size reached a size of 54.21 billion in 2025, the market is further projected to grow at a CAGR of 8.55% between 2025 and 2034, reaching a size of 113.43 billion by 2034.
• Biocides Market : The global biocides market size was reached at USD 10.85 billion in 2024 and is expected to be worth around USD 16.45 billion by 2034, growing at a compound annual growth rate (CAGR) of 4.25% over the forecast period 2025 to 2034. 
• Biomaterials Market : The global biomaterials market volume was reached at 805.32 kilo tons in 2024 and is expected to be worth around 1850.43 kilo tons by 2034, growing at a compound annual growth rate (CAGR) of 8.68% over the forecast period 2025 to 2034.
• Bio-based Propylene Glycol Market : The global bio-based propylene glycol market volume accounted for 2,322,157.1 tons in 2024, grew to 2,530,686.8 Tons in 2025, and is expected to be worth around 5,487,311.8 Tons by 2034, poised to grow at a CAGR of 8.98% between 2025 and 2034.
• U.S. Specialty Chemicals Market  : The U.S. specialty chemicals market size was reached at USD 192.55 billion in 2024, grew to USD 201.48 billion in 2025 and is expected to be worth around USD 303.05 billion by 2034, growing at a compound annual growth rate (CAGR) of 4.64% over the forecast period 2025 to 2034.
  

Biorefinery Market Top Key Companies:

• Neste Corporation
• Abengoa Bioenergy
• Clariant AG
• POET LLC
• TotalEnergies SE
• ADM (Archer Daniels Midland Company)
• UPM-Kymmene Corporation
• Renewable Energy Group (Chevron)
• Gevo Inc.
• BASF SE
• Borregaard ASA
• Beta Renewables (Biochemtex)
• Enerkem Inc.
• Valero Energy Corporation
• Algenol Biotech LLC
• Dong Energy (Ørsted)
• GranBio
• St1 Nordic Oy
• LanzaTech
• Cargill Incorporated

Recent Developments  

• In September 2025, Petronas, in collaboration with Enilive and Euglena, is advancing a biorefinery project in Pengerang, Malaysia. This facility aims to produce 650,000 tons of biofuels annually, including sustainable aviation fuel, hydrogenated vegetable oil, and, bio-naphtha. The project is slated to commerce operations by the second half of 2028, positioning southeast Asia as key biofuel exporter to Europe.
• In February 2025, The Australian Renewable Energy Agency (ARENA) has allocated A$8 million to Licella for a feasibility study on a biorefinery in Queensland. Utilizing sugarcane waste from the Isis Central Sugar Mill, the project aims to produce sustainable aviation fuel for Brisbane Airport. This initiative underscores Australia’s commitment to enhancing domestic biofuel production and energy security.

Biorefinery Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2019 to 2034. For this study, Towards Chemical and Materials has segmented the global Biorefinery Market

By Feedstock Type

• Lignocellulosic Biomass 
• Wood
• Straw
• Corn stover
• Bagasse
• Sugar & Starch Crops
• Sugarcane
• Corn
• Wheat
• Oil Crops 
• Soybean
• Rapeseed
• Palm
• Algae
• Organic Waste
• MSW
• Industrial Waste
• Food Waste
• Aquatic Biomass
• Seaweed
• Microalgae
  

By Technology Pathway

• Thermochemical Conversion
• Pyrolysis
• Gasification
• Hydrothermal Liquefaction
• Biochemical Conversion
• Fermentation
• Anaerobic Digestion
• Enzymatic Hydrolysis
• Mechanical/Physical Extraction
• Pressing
• Drying
• Milling

By Product Type

• Biofuels
  
  • Bioethanol
  • Biodiesel
  • Biogas
  • Sustainable Aviation Fuel (SAF)
  • Bio-oil
• Biochemicals
  • Platform Chemicals
  • Succinic Acid
  • Lactic Acid
  • Others (Furfural, etc.)
  • Specialty Chemicals 
  • Surfactants
• Solvents
  
  • Biopolymers
  • Biomaterials
  • Bioplastics
  • Bio-composites
• Natural Fibers
• Power & Heat
• Bioelectricity
• District Heating

By End-use Industry

• Transportation (Road, Aviation, Marine)
• Chemical Industry
• Power Generation
• Agriculture
• Packaging
• Textiles
• Pharmaceuticals & Personal Care
• Construction & Building Materials

By Refinery Type

• First-Generation Biorefineries (food-based)
• Second-Generation Biorefineries (non-food biomass)
• Third-Generation Biorefineries (algae and aquatic sources)
• Integrated Biorefineries (multi-feedstock, multi-product)

By Regional 

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa
  

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