United Kingdom Biofuels Market Size, Share, and COVID-19 Impact Analysis, By Feedstock (Corn, Sugarcane, Vegetable Oils, and Others), By Application (Transportation, Aviation, Energy Generation, Heating, and Others), and UK Biofuels Market Insights, Industry Trend, Forecasts to 2035.

United Kingdom Biofuels Market Forecasts to 2035

• The United Kingdom Biofuels Market Size Was Estimated at USD 2,503.9 Million in 2024
• The UK Biofuels Market Size is Expected to Grow at a CAGR of around 11.08% from 2025 to 2035
• The UK Biofuels Market Size is Expected to Reach USD 7,953.5 Million by 2035

According to a research report published by Spherical Insights & Consulting, the United Kingdom Biofuels Market Size is anticipated to reach USD 7,953.5 Million by 2035, growing at a CAGR of 11.08% from 2025 to 2035. The UK biofuels market is growing due to strong government mandates like the Renewable Transport Fuel Obligation and rising investments in sustainable aviation fuel and waste-based biofuel technologies for cleaner energy.

Market Overview

The UK biofuels market refers to a renewable energy source that is made from a variety of feedstocks, including biomass, sugar, starch, and oilseed crops. Biofuels like ethanol, biodiesel, and others are increasingly being used as fuel for vehicles. The market for biofuels is expanding significantly due to government initiatives to lower greenhouse gas emissions and the growing demand for renewable energy sources in the UK. In line with national climate targets, biofuels are being marketed as cleaner substitutes for fossil fuels in the UK, especially for heating and transportation. The development of second- and third-generation biofuels, which employ waste materials and non-food biomass to increase efficiency and lessen rivalry with food sources, is a significant trend. Advanced biofuel innovations, like cellulosic ethanol, algal fuels, and fuels derived from crop residues, are accelerating because of their increased energy output and reduced emissions. Furthermore, waste is being converted into useful feedstocks through the application of circular economy principles, improving sustainability throughout the industry. This change encourages resource efficiency in addition to addressing environmental issues. The market for biofuels is ideally positioned to contribute significantly to the shift to a more environmentally friendly energy future with sustained technology advancement and robust regulatory support. To develop its HBx algal biofuel technology, UK-based climate tech business HutanBio has received £2.25 million from the Clean Growth Fund. Sunlight and CO2 are transformed into clean, sulphur-free gasoline by the carbon-negative process, which Eco Act independently validated. The funding supports the United Kingdom's drive for low-emission, renewable energy solutions and aims to decarbonise heavy and maritime sectors.

Report Coverage

This research report categorizes the market for the UK biofuels market based on various segments and regions and forecasts revenue growth and analyses trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the United Kingdom biofuels market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the United Kingdom biofuels market.

Driving Factors

The UK biofuels sector is being propelled by strong government policies like the Renewable Transport Fuel Obligation, which aims to achieve net-zero emissions by 2050. The market is also growing faster because of the demand for sustainable aviation fuel (SAF). Sustainability is also increasing through technological advances in second- and third-generation biofuels, and circular economy initiatives using waste products as feedstock. Biofuels are also important in decarbonising the hard-to-abate sectors of heavy manufacturing, shipping, and aviation, and contribute to increasing energy security.

Restraining Factors

The UK biofuel sector has faced multiple obstacles, such as high production costs, a lack of sustainable feedstocks, competition with food sources, etc. Furthermore, regulatory uncertainty and inconsistent governmental support may hinder investor confidence. Also, the presence of low-cost biofuel imports, especially from China and the US, places downward pressure on the prices of domestic producers, posing a threat to the long-term sustainability of the domestic industry. These factors hamper the biofuels market during the forecast period.

Market Segmentation

The United Kingdom biofuels market share is classified into feedstock and application.

• The vegetable oils segment held the largest market share in 2024 and is expected to grow at a significant CAGR during the forecast period.

The United Kingdom biofuels market is segmented by feedstock into corn, sugarcane, vegetable oils, and others. Among these, the vegetable oils segment held the largest market share in 2024 and is expected to grow at a significant CAGR during the forecast period. The market for biofuels is anticipated to be dominated by the vegetable oil category. This is mostly because it is less harmful than other fuels like methanol, petrol, and ethanol, which makes it appropriate for biofuels. A lot of consumers utilise it to make biodiesel. The risk of unintentional fire is decreased by vegetable oil's significantly greater flash point. The cost of producing biodiesel is further decreased by the availability and affordability of feedstock, such as used cooking oil.

• The transportation segment held the highest revenue market share in 2024 and is expected to grow at a significant CAGR during the forecast period.

The United Kingdom biofuels market is segmented by application into transportation, aviation, energy generation, heating, and others. Among these, the transportation segment held the highest revenue market share in 2024 and is expected to grow at a significant CAGR during the forecast period. Its consumption occurred in transportation because biofuels are so energy-dense and easy to distribute using the existing infrastructure with little modifications.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the United Kingdom biofuels market and a with comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborate analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Argent Energy
• Greenergy International Ltd
• Green Fuels Ltd
• Drax Group plc
• Bio UK Fuels (Sheffield) Ltd
• BeesleyFuels
• Speedy Fuels Ltd
• Episome Biotech
• Cargill
• Archer Daniels Midland (ADM)
• Neste
• Others

Key Target Audience

• Investors
• Market players
• End-users
• Government Authorities
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Market Segment

This study forecasts revenue at United Kingdom, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the United Kingdom biofuels market based on the below-mentioned segments:

United Kingdom Biofuels Market, By Feedstock

• Corn
• Sugarcane
• Vegetable Oils
• Others

United Kingdom Biofuels Market, By Application

• Transportation
• Aviation
• Energy Generation
• Heating
• Others