Manya Rathore
Research expert covering India
Global biofuel industry - statistics & facts
Global biofuel production has followed a consistently upward trajectory over the past two decades, increasing more than tenfold in output between the early 2000s and 2024. This growth has been driven largely by policy frameworks promoting energy security and the reduction of greenhouse gas emissions. The industry shows no signs of slowing, with production volumes continuing to set new records in the most recent years tracked.
Leading producing nations
Production is heavily concentrated in a few countries, with the United States and Brazil together accounting for well over half of the world's biofuel output as of 2024. The Americas, particularly North America and Latin America, dominate both ethanol and biodiesel production at the regional level, with other regions such as Asia and Europe playing comparatively secondary roles.Â
Ethanol and biodiesel
Ethanol remains the dominant biofuel type by volume globally, with biodiesel production representing roughly half of ethanol volumes. Both fuel types are projected to continue growing through 2030, although growth rates are expected to moderate as the industry matures. Forecasts suggest ethanol will maintain its lead, while biodiesel's growth edges forward more gradually.Â
Europe expands steadily, with Germany at the helm
Within Europe, Germany stands out as the clear regional leader in biofuel production, far outpacing other major economies such as France, the Netherlands, and Spain. EU-wide biofuel output has expanded dramatically since the early 2000s, reaching an all-time high in the most recent years on record. However, the pace of growth within the EU has noticeably flattened in recent years, suggesting the region may be approaching a production plateau.Â
Scale and sustainability
Looking ahead, global production is forecast to continue rising, particularly driven by ongoing expansion in North America, which is expected to remain the world's largest ethanol and biodiesel-producing region. The gap between ethanol and biodiesel production is projected to persist through the end of the decade, underscoring the structural preference for ethanol. As the industry scales, questions around sustainability and land-use impacts remain a key challenge that policymakers and producers will need to address. Â
