Press release
Biofuel Additives Market to hit USD 33.43 billion by 2032, Norths America Holds 44% market revenue.
Biofuel Additives
The Global Biofuel Additives Market is growing due to increasing demand for cleaner and renewable energy, stringent government regulations on emissions, rising adoption of biofuels in transportation, and technological advancements in fuel additives that enhance engine efficiency, reduce pollutants, and improve overall fuel performance across industries.
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United States: Key Industry Developments
✅ March 2025: The U.S. Energy Information Administration (EIA) reported the total operable biofuel production capacity in the US reached 25 billion gallons per year, a significant increase from March 2024 figures, indicating market expansion.
✅ March 2025: The U.S. Department of Energy updated its 45Z Clean Fuel Production Tax Credit modeling tool to include new methods of alternative fuel production, allowing a wider range of companies to participate in the alternative fuels market.
✅ February 2025: The "Biofuel Scheme-2025" was approved in a US-relevant state, focusing on the effective utilization of agricultural and organic waste to boost production of eco-friendly fuel and achieve self-reliance in green energy
Japan: Key Industry Developments
✅ November 2025: Mitsubishi Gas Chemical, a Japanese firm, signed a sales and purchase agreement with U.S.-based Transition Industries for the purchase and sale of ultra-low carbon methanol, facilitating the supply of advanced biofuels components.
✅ August 2025: A Japanese automaker collaborated on a new initiative to research advanced biofuel applications, part of broader market efforts in the Asia-Pacific region to embrace AI and computer vision for e-commerce integration within the energy sector.
Mergers & Acquisitions:-
→ VCI Biofuels Group of Vietnam signed a definitive merger agreement with a SPAC (IMAQ), targeting a U.S. public listing with an implied enterprise value of $1 billion (early 2025).
→ VARO Energy announced a definitive agreement to acquire all shares of Preem Holding AB and Preem AB, Sweden's largest fuel producer, in March 2025.
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Market Segmentation-
→ By Product Type- antioxidants, corrosion inhibitors, cold flow improvers, detergents & dispersants, octane & cetane improvers, dyes & markers, others.
→ By Biofuel Type- typically bioethanol vs. biodiesel.
→ By Application (Fuel Application)- diesel fuel additives, heavy fuel oil additives, shipping fuel additives, gasoline fuel additives, others.
→ By Region / Geography - North America, Europe, Asia Pacific, Latin America, Middle East & Africa, etc.
Key Developments:-
→ In September 2025, the United States Biofuel Additives Market reported significant expansion driven by rising demand for cleaner energy, with the biodiesel additives segment leading due to extensive transportation use, and North America maintaining dominance through stringent regulations and government incentives for biofuel production.
→ In October 2025, key market players in the biofuel additives sector intensified focus on product innovation, launching advanced multifunctional additives to boost fuel efficiency, stability, and emissions control while complying with environmental standards, alongside strategic partnerships with biofuel producers to enhance compatibility and market reach.
→ In November 2025, the global Biofuel Additives Market analysis highlighted a convergence of regulatory demands, technological advances, and strategic partnerships amid 2025 tariff adjustments, prompting manufacturers to adopt supply chain agility, nearshoring, and diverse sourcing to meet decarbonization mandates and optimize performance.
Regional insights:-
→ North America holds the largest market share at over 44% in 2024, driven by stringent environmental regulations, biofuel adoption to cut emissions, and government incentives for renewable fuels. The region's mature production and distribution infrastructure, plus policies like biofuel blending mandates and tax benefits, further boost demand.
→ Asia-Pacific emerges as the fastest-growing region, fueled by rising vehicle populations in China, India, and Japan, alongside increasing petroleum and biofuel needs. Abundant feedstocks like palm oil and waste cooking oil, combined with renewable energy mandates, support cost-efficient additives.
Competitive Landscape:-
→ Clariant AG, The Lubrizol Corporation, Evonik Industries, Biofuel Systems Group, BASF, NALCO, Fuel Quality Services, Chemiphase Ltd., OBR Joint Stock Company, Chevron Oronite Company LLC., Infineum, Afton Chemical, E-ZOIL, and Eastman Chemical Company
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✅ Technology Roadmap Analysis
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