Biorefinery Market Size, Share, Growth, Trends, and Global Industry Analysis: By Feedstock (Starch & Sugar Crops, Energy Crops, Organic & Agricultural Residues, Multi feedstock, Others), By Process (Biochemical Processes, Chemical Processes, Mechanical/Physical Processes, Thermochemical Processes, Multi process), By Product (Energy, Chemicals, Materials, Others), and Region Forecast 2020-2031

Biorefinery Market size was valued at US$ 6,100 million in 2024 and is expected to reach US$ 9,980 million by 2031, growing at a significant CAGR of 7.2% from 2025-2031. Moreover, the U.S. Biorefinery Market is projected to grow significantly, reaching an estimated value of US$ 3,200 million by 2031. The market refers to the integrated processing of biomass into a spectrum of bio-based products including fuels, power, heat, chemicals, and materials using technologies that are sustainable and often renewable. Biorefineries function much like traditional petroleum refineries but use biological feedstocks such as agricultural residues, energy crops, forest biomass, or organic waste.

The market is evolving rapidly, driven by the global demand for low-carbon solutions, energy diversification, and circular economy goals. Governments and private players alike are investing in advanced biorefining technologies, including thermochemical and biochemical pathways, to convert biomass into high-value products with minimal environmental impact. As sustainability becomes a strategic imperative across industries, biorefineries are positioned as a critical node in the transition toward a bio-based, low-emission economy.

Facts & Figures

• More than 60% of running biorefineries across the globe have shifted to second-generation feedstocks such as agricultural residues and non-food biomass, which reflects the industry direction of distance from food-versus-fuel competition to genuine circular economy schemes.
• More than 30 countries today have biorefineries within their own national decarbonisation strategies, with coordinating policy cover for feedstock sourcing, capital subsidy, product off-take agreements, and carbon credits qualification.
• Biochemical outputs of biorefineries, such as bioplastics, bio-aromatics, and organic acids, are showing double-digit growth with increasing demand from packaging, personal care, and pharma industry companies seeking fossil-free feedstocks.
• Hybrid and modular biorefinery designs are becoming commercially viable, enabling flexible operation co-producing chemicals, energy, and fuels from diverse feedstock streams, usually designed to suit local biomass content.      

Key Developments:

• In June 2025, Praj Industries entered into an agreement with Paraguay's Enersur S.A., for an integrated biorefinery manufacturing ethanol and co-products, marking strategic Indian inroads into Latin America
• In February 2024, ARENA funded Licella A$8?million and Viva Energy A$2.4?million to research sugarcane-waste-to-SAF conversion at Queensland's Isis Central Sugar Mill.

Biorefinery Market Segmentation:

Based on the feedstock:

• Starch & Sugar Crops
• Energy crops
• Organic & Agricultural Residues
• Multi feedstock
• Others

Organic and agricultural residues are the most prospective feedstock for the future biorefineries due to their ubiquity, low price, and minimal land-use competition. Compared to starch or energy crops, residues such as wheat straw, corn stover, and sugarcane bagasse are by-products of frequent agricultural activities, hence, their utilization is economically and environmentally superior. This feedstock type is a perfect fit with the goals of the circular economy and waste valorization policies in regions like the Asia-Pacific and the EU. Newer technologies for enzymatic hydrolysis and pretreatment have made it feasible to recover lignin-derived compounds and fermentable sugars from these residues more efficiently to facilitate scalable production of second-generation biofuels and bio-based chemicals with greener profiles and reduced lifecycle emissions.

Based on the process:

• Biochemical Processes
• Chemical Processes
• Mechanical/ Physical Processes
• Thermochemical Processes
• Multi process
• Others

Biochemical reactions are the prevailing processes in the biorefinery industry since they have the capability to produce high-value, high-purity products under comparatively mild conditions. Biochemical conversions, spearheaded by fermentation and enzyme-catalysed conversion, dominate the organic feedstock conversion to ethanol, lactic acid, biosurfactants, and functional chemicals. Biochemical processing stands out for its flexibility to convert diverse feedstocks ranging from food waste to lignocellulosic biomass with little or no carbon penalty. Beyond this, progress in genetically engineered microbes and enzyme blends has also improved efficiency of conversion and product yield significantly. As green industries like pharmaceuticals, personal care, and packaging turn to bio-derived feedstocks, biochemical processes are emerging as a hub of the next-generation biorefinery platform around the world.

Based on the product:

• Energy
• Chemicals
• Materials
• Others

Of all product streams, energy, predominantly in the form of biofuels, is the blue-chip product of most operating biorefineries. Bioethanol, biodiesel, and sustainable aviation fuel (SAF) are ready fossil replacements with immediate market take-up, especially in transport markets subject to regulatory pressure to clean up. Energy products are easier to scale and inserted into existing fuel infrastructure, allowing for immediate take-up with minimal disruption. What is altering, however, is the shift away from first-generation biofuels to more technologically advanced, waste-based types with improved carbon intensity scores. Hydroprocessed esters and fatty acids (HEFA) and alcohol-to-jet technologies are gaining traction, especially with heightened demand for SAF. For developers, energy outputs give economic viability and potential use in national energy transformation plans.