Coarse Grain Biofuel Market Size - By Fuel, By Application, Growth Forecast, 2025 - 2034

Coarse Grain Biofuel Market Size

The global coarse grain biofuel market size was estimated at USD 50.7 billion in 2024. The market is expected to grow from USD 56.1 billion in 2025 to USD 142.4 billion in 2034, at a CAGR of 10.9%, according to a recent study by Global Market Insights Inc.

• Favorable government mandates & fuel blending targets coupled with rapid expansion feedstock use in the production of sustainable aviation fuel (SAF) is bolstering the industry growth. Governments across the globe are enforcing biofuel blending mandates to reduce carbon emissions and enhance energy security. Coarse grains like corn and sorghum are central to meeting ethanol blending targets, especially in transport fuels.
   
• For instance, as per U.S. bioenergy statistics report in by July 2025, the U.S. Renewable Fuel Standard (RFS) continues to drive corn ethanol production, with over 15.4 billion gallons produced in 2022 and rising in 2025. The USDA’s ERS tracks this trend, showing consistent growth in corn usage for ethanol. These mandates create a stable demand for coarse grain-based biofuels, encouraging investment and production expansion.
   
• The aviation industry is under pressure to decarbonize, and SAF derived from ethanol is gaining traction. Coarse grains are increasingly used as feedstock for ethanol-based SAF, especially in regions with strong regulatory support. This trend is opening new markets for coarse grain biofuels beyond road transport, thereby creating a favorable industry scenario.
   
• For instance, Neste, a Finnish energy company, expanded its SAF production in 2025 using ethanol derived from coarse grains to meet EU aviation mandates under RED II. Currently, Neste’s global SAF production capability has increased to 1.5 million tons per annum, which in turn will have a positive impact on industry growth.
   
• Rising sustainability & net-zero goals along with increasing concern towards energy security & domestic resource utilization targets is influencing industry dynamics. Global climate commitments are pushing industries to adopt low-carbon fuels as coarse grain biofuels, particularly ethanol, offer a viable pathway to reduce emissions in transport and industrial sectors. Their lifecycle emissions are significantly lower than fossil fuels, aligning with net-zero strategies.
   
• For instance, Canada has set targets of 40-45% reduction in GHG emissions by 2030 (benchmarked against 2005) and net zero emissions by 2050. In addition, Canada has a high use of transport fuels per capita. Decarbonization of transport is a key strategic priority as transport accounts for 22% of Canada’s GHG emissions, with on-road vehicles accounting for 85% of the total.
   
• Various countries are prioritizing domestic feedstocks to reduce reliance on imported fossil fuels. Coarse grains offer a reliable and scalable option for biofuel production, especially in regions with strong agricultural bases. This strategy supports rural economies and stabilizes energy supply chains.
   
• For instance, as per Ministry of Petroleum & Natural Gas, India in 2025 has Ethanol Blended Petrol (EBP) program targets 20% blending by end of 2025, with maize and sorghum identified as key feedstocks. This is anticipated to increase the use of coarse grain feedstock for ethanol blending across the country, and with the rise in automobile sector in the country, the demand for biofuel will soar down the line.
   

Coarse Grain Biofuel Market Trends

• Rising advancements in fermentation technologies combined with increasing private & public infrastructure partnership to promote biofuel production will augment the industry landscape over the forecast period. Innovations in fermentation and enzyme technologies have improved ethanol yields from coarse grains, reducing production costs and increasing efficiency.
   
• For instance, in October 2025, the government of Indonesia is considering a mandatory bioethanol content level of 10% for gasoline sold in the country to lower carbon dioxide emissions and reduce its dependence on fuel imports. These advancements make coarse grain biofuels more competitive and scalable, especially in regions with limited access to oilseed feedstocks.
   
• Governments are partnering with private firms to build biofuel infrastructure, including refineries and blending facilities. These collaborations are especially impactful in emerging markets, where coarse grains are abundant but underutilized for energy production.
   
• Increasing concerns towards feedstock diversification along with shifting focus towards climate resilience initiatives through adoption of biofuel is further augmenting the industry landscape. To avoid food vs. fuel conflicts, producers are exploring alternative coarse grains like barley and millet. These grains are more climate-resilient and suitable for marginal lands, making them ideal for biofuel production in regions facing water scarcity or soil degradation.
   
• Product application across industrial heating & non-transport applications is also creating a favorable market scenario. Coarse grain biofuels are being adopted in industrial heating and power generation, expanding their market beyond transportation. Ethanol and biodiesel derived from grains offer cleaner combustion and lower emissions, making them suitable for industrial use.
   
• For instance, in 2025, Germany’s Federal Ministry for Economic Affairs supported barley-based ethanol use in industrial boilers as part of its clean energy transition. Furthermore, carbon pricing mechanisms and tax credits are making biofuels financially attractive. Coarse grain-based biofuels benefit from these incentives, especially in countries with aggressive decarbonization policies. This financial support lowers market entry barriers and boosts adoption.
   
• Moreover, expanding biofuel global trade and export opportunities across countries including the U.S., Brazil, India, Indonesia, among others is bolstering the product demand. Countries with surplus coarse grains are leveraging biofuel exports to meet international blending mandates.
   
• This trend is creating new revenue streams and strengthening trade relations, especially in regions with advanced agricultural systems. For instance, Argentina increased corn ethanol exports to the EU in 2025, aligning with RED II compliance and bilateral trade agreements.
   

Coarse Grain Biofuel Market Analysis

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• Based on fuel, the coarse grain biofuel market is segmented into ethanol, biodiesel, and others. Ethanol based biofuel industry dominated by 78.6% of the market share in 2024 and is set to grow at a CAGR of 11% by 2034. This growth is driven by various factors including policy driven demand stability and expansion of dry mill technology that aids in efficient feedstock production for biofuel.
   
• The Renewable Fuel Standard (RFS) continues to be a cornerstone of ethanol demand in the U.S., ensuring consistent blending mandates. Ethanol production matched its record of 16.1 billion gallons in 2024, with exports reaching 1.9 billion gallons, indicating strong international interest in coarse grain-based ethanol.
   
• Dry mill ethanol plants dominate U.S. production, accounting for over 92% of grain-based ethanol. These facilities are increasingly adopting advanced fermentation and dehydration technologies to improve yield and reduce energy consumption. The dry mill process efficiently converts corn and sorghum into ethanol, distillers grains, and corn oil, enhancing the value chain.
   
• For instance, as per the Renewable Fuels Association’s 2025 Outlook, dry mill plants added approximately USD 2.71 of value per bushel of corn processed, with over 198 biorefineries operating nationwide. This diversification helps to reduce reliance on other feedstocks including vegetable oil & sugarcane and supports rural economies. Various regions’ agricultural abundance makes it ideal for scaling ethanol production from coarse grains, in turn adding to the market growth.
   
• The coarse grain biofuel market from biodiesel industry will reach USD 25 billion by 2034. Stable production with feedstock diversification and product compatibility with modern auto engines is creating a positive demand across the globe. Biodiesel production from coarse grains remains modest but stable. While vegetable oils dominate, corn oil extracted during ethanol production is increasingly used in biodiesel blends. This integration enhances feedstock utilization and supports circular bioeconomy models.
   
• Updated fuel specifications including ASTM D6751 and ISO 8217 have enabled higher biodiesel blends to be used in modern engines, including marine and rail applications. This trend is expanding biodiesel’s reach beyond road transport, which in turn is creating a favorable market scenario across the globe.
   
• For instance, in September 2025, the government of India has initiated steps to extend its biofuel blending program to the diesel-powered construction equipment sector, with plans to mix biofuels into fuel used by heavy carriers, bulldozers, cranes, and other machinery. It is aimed to cut crude oil imports and support India’s net-zero targets while boosting farmer incomes through crop-based fuels.
   

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• Based on application, the coarse grain biofuel market is segmented into transportation, aviation, & others. Transportation application industry held a market share of 84% in 2024 and will grow at a CAGR of 10.4% by 2034. Fuel blending mandates & infrastructure integration along with rising trend of decentralized biorefineries & modular biofuel production is augmenting the industry landscape.
   
• Governments globally are enforcing ethanol blending mandates to reduce carbon emissions in road transport. Coarse grains like corn and sorghum are central to meeting these mandates. The integration of biofuels into existing fuel infrastructure (e.g., E10, E15 blends) allows for seamless adoption without major vehicle modifications.
   
• For instance, in October 2025, China's Port of Qingdao has completed its first refueling of 24% biodiesel blended with very low sulfur fuel oil. The initiative of blending biofuel which was decided in November 2024 to address challenges faced by China’s biodiesel refiners, whose exports plummeted after the EU imposed steep tariffs in August. In addition, due to these various ships on routes between China and the EU, state refiners may leverage carbon credit incentives to promote the adoption of lower-carbon bunker fuels, thus promoting industry growth.
   
• The rise of decentralized biorefineries is enabling localized production of coarse grain biofuels, reducing logistics costs and enhancing rural development. Modular technologies allow scalable ethanol and biodiesel production from corn and barley, especially in developing regions.
   
• The coarse grain biofuel market from aviation industry will grow at a CAGR of 15% by 2034 driven by increasing sustainable aviation fuel (SAF) commercialization along with regulatory framework & carbon compliance initiatives across aviation sector. SAF derived from ethanol and other coarse grain feedstocks is transitioning from pilot-scale to commercial viability.
   
• SAF offers up to 80% lifecycle CO₂ reduction compared to fossil jet fuel, making it central to aviation decarbonization strategies. For instance, in January 2024, LanzaJet opened the world’s first ethanol-to-SAF plant in Georgia, with global supply agreements including Delta and British Airways.
   
• Global aviation regulations like CORSIA and the EU’s ReFuelEU initiative are mandating SAF blending and lifecycle emissions reductions. These frameworks are driving demand for biofuels made from coarse grains and agricultural residues. The EU’s Green Deal and ICAO’s CORSIA program are pushing SAF adoption across Europe and Asia-Pacific, with corn and sorghum-based ethanol as key feedstocks.
   
• Governments and private firms are investing heavily in SAF infrastructure, including feedstock cultivation, conversion technologies, and distribution networks. Coarse grains are being prioritized due to their scalability and compatibility with existing ethanol-to-jet pathways. For instance, in May 2023, Neste doubled its SAF production capacity in Singapore, using corn-based ethanol and agricultural residues to meet Asia-Pacific aviation demand.
   

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• The U.S. dominated the coarse grain biofuel market in North America with around 93% share in 2024 and generated USD 18.7 billion in revenue. Strategic policy alignment with climate goals combined with agricultural strength as a competitive advantage for grain production is complementing the industry growth, especially across the U.S.
   
• North America’s biofuel trajectory is tightly aligned with climate policy frameworks as the U.S. and Canada are leveraging coarse grain biofuels, especially corn ethanol not just for emissions reduction but also for rural revitalization and energy independence. These policies are not isolated, they are part of broader decarbonization strategies that integrate agriculture, transportation, and industrial sectors.
   
• For instance, The U.S. DOE’s 2024 initiative to cut emissions from fuels by 85% by 2035 directly supports ethanol and biodiesel innovation from coarse grains. In addition, the region’s vast agricultural base gives it a competitive edge in coarse grain biofuel production. Corn and sorghum are not only abundant but also supported by robust logistics and processing infrastructure.
   
• This synergy between farming and energy sectors creates a resilient supply chain and positions North America as a global exporter. For instance, in January 2025, USDA decided to invest around USD 180 million in additional domestic biofuels and clean energy projects to lower costs and increase American energy security across the nation.
   
• The Europe industry will grow at A CAGR of 9.9% through 2034, driven by innovation in water-based biofuels coupled with increasing aviation & maritime sector integration. European producers are leading in waste-to-biofuel technologies. Coarse grain residues are being integrated into advanced biofuel pathways, reducing land-use pressure and enhancing sustainability metrics.
   
• For instance, in December 2024, Portugal's Galp Energia announced to start producing biodiesel and biojet fuel from waste in an industrial-scale unit it is building at its Sines refinery in 2026. Ethanol-derived SAF and marine biofuels are gaining traction due to regulatory mandates and corporate sustainability goals.
   
• The Asia Pacific coarse grain biofuel industry will reach USD 36 billion by 2034. The market growth is fueled by government led industry expansion along with rising adoption of biodiesel blending across the region. Countries including India and China are scaling ethanol production using maize and sorghum to reduce fossil fuel dependency and support rural economies.
   
• For instance, in February 2025, the government of India through its Biofuel Scheme-2025 will lead to economic prosperity, green energy production, and employment generation across the country. In addition, the scheme will harness the agricultural strength of the states and encourage innovation, thereby adding to the overall industry growth.
   
• The Middle East & Africa industry will grow at rate of 4.7% by 2034, driven by introduction of pilot-scale projects along with import-driven SAF development. MEA is in the early stages of biofuel adoption, with pilot projects exploring coarse grain feedstocks. These initiatives are often government-backed and aim to test feasibility in arid climates.
   
• The Latin America industry was valued at USD 10 billion in 2024. The regional growth was driven by integrated ethanol ecosystems along with rigorous investment & infrastructure expansion. The region, especially Brazil, is integrating corn ethanol production to optimize seasonal availability and feedstock flexibility. This dual-feedstock model enhances resilience and export potential.
   
• For instance, in August 2025, Corn ethanol projects in Brazil reach over USD 0.4 billion in new investments. It included announced projects that will expand Brazil’s corn ethanol production capacity by roughly 50%, from the current 8.2 billion liters to 12.1 billion liters per harvest. This in turn will create a favorable market scenario over the forecast timeframe.
   

Coarse Grain Biofuel Market Share

• The top 5 companies in the coarse grain biofuel industry ADM, Chevron Corporation, Clariant, AG, CropEnergies AG, and Wilmar international Ltd. held over 35% market share in the year 2024. Wilmar operates biodiesel plants in Asia using corn oil and palm derivatives. Its integrated agribusiness model supports feedstock security and cost efficiency. In 2025, Wilmar expanded its SAF feedstock partnerships and reported strong growth in renewable fuel exports to Europe.
   
• TotalEnergies is converting its Grandpuits refinery into a biofuel hub, producing HVO and ethanol from coarse grains and residues. With 7M barrels/year biofuel output and 10% EU market share target by 2030, it’s integrating biofeed co-processing across eight refineries.
   

Coarse Grain Biofuel Market Companies

Major players operating in the coarse grain biofuel industry are:

• ADM
• Borregaard
• BTG Bioliquids
• Cargill
• Chevron
• Clariant
• COFCO
• CropEnergies
• FutureFuel
• Munzer Bioindustrie
• My Eco Energy
• Neste
• POET
• Praj Industries
• The Andersons
• TotalEnergies
• UPM
• Verbio
• Wilmar International
• Zilor
   
• ADM remains a prominent player in corn ethanol, operating 18 bioethanol plants with 1.8B gallons/year capacity. In Q2 2025, ADM reported USD 452 million in adjusted earnings, driven by operational resilience and portfolio simplification. Its USD 500 million decarbonization investment and novel oilseed commercialization reinforce its dominance in coarse grain biofuels.
   
• Chevron Corporation, through its acquisition of Renewable Energy Group (REG), has expanded its biodiesel footprint using corn oil and waste feedstocks. In 2024, Chevron posted USD 17.7 billion net income and invested USD 7.7 billion in low-carbon projects. Its strategy includes SAF, renewable diesel, and carbon capture, positioning it as a diversified biofuel player.
   
• Clariant AG focuses on second-generation bioethanol from agricultural residues, including coarse grain stover. Its sunliquid technology is deployed in Romania and Germany. With a strong sustainability profile and innovation in enzymatic conversion, Clariant is scaling its biofuel operations to meet EU RED III mandates.
   

Coarse Grain Biofuel Industry News

• In October 2025, Advanced Biofuels Canada (ABFC) through its annual report stated that biofuels produced made from Canadian crops and other renewable sources, are one of the most effective methods for reducing greenhouse gas emissions from vehicles.
   
• In September 2025, The Australian government announced to invest around USD 735 million in the development of a low-carbon fuels industry. The step will boost demand for biofuel feedstocks including canola, which in turn will bolster industry growth.
   
• In June 2025, the U.S. Grains Council (USGC) and the Secretariat of Energy Development of the State of Tamaulipas, Mexico signed a memorandum of understanding (MOU) establishing a cooperative framework to promote ethanol vehicle programs to decarbonize public transportation, enhance renewable energy options and support U.S. ethanol exports.
   

This coarse grain biofuel market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Million) and volume (Mtoe) from 2025 to 2034, for the following segments:

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Market, By Fuel

• Ethanol
• Biodiesel
• Others

Market, By Application

• Transportation
• Aviation
• Others

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
• Asia Pacific
  • China
  • India
  • Indonesia
  • Australia
  • South Korea
• Middle East & Africa
  • Saudi Arabia
  • South Africa
• Latin America
  • Brazil
  • Argentina