Biofuel demand forecast to increase 28% over the next 5 years
Following a historic decline in 2020 amid global transport disruption due to the Covid-19 pandemic, total biofuel demand is on course to surpass 2019 levels in 2021. In our main case, annual global demand for biofuels is set to grow by 28% by 2026, reaching 186 billion litres. The United States leads in volume increases, but much of this growth is a rebound from the drop caused by the pandemic. Asia accounts for almost 30% of new production over the forecast period, overtaking European biofuel production by 2026. This is thanks to strong domestic policies, growing liquid fuel demand and export-driven production. Recent Indian ethanol policies and blending targets for biodiesel in Indonesia and Malaysia are responsible for most of the growth in Asia. India is set to become the third largest market for ethanol demand worldwide by 2026.
