LONDON–(BUSINESS WIRE)–SpendEdge has been monitoring the global biofuels market and the market is poised to experience spend growth of more than USD 56 billion between 2019-2024 at a CAGR of over 5% during the forecast period. Request Free Sample Pages.
Read the 125-page research report with TOC and LOE on “The Global Biofuels Market – Procurement Intelligence Report, Pricing Outlook in Geographies that include APAC, North America, South America, and MEA, and insights into best practices to optimize procurement spend.”
Governments across the globe are taking initiatives for the gradual replacement of fossil fuels with biofuels. Such initiatives include financial and regulatory support for R&D activities and the production of biofuels. This will ensure a substantial spend growth in the global biofuels market. Compared with fossil fuels such as gasoline and diesel, biofuels offer better price stability to buyers which will act as another chief spend accelerator in the biofuels market.
In terms of production and consumption, North America holds the highest share in the global biofuels market. Factors like the issuance of mandates on the usage of biofuels as an additive to gasoline and diesel mixtures will drive the demand for biofuels, such as ethanol and biodiesel, in the US and Canada. In APAC, governments are undertaking initiatives to boost the domestic production of biofuels to limit the dependence on oil and energy imports. This requirement for energy independence along with other factors such as the supply shortage of gasoline and diesel and the focus on reducing GHG emissions will promote spend growth in the biofuels market in APAC.
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Insights into the market pricing trends
- The commercial viability of biofuels is assessed based on their manufacturing costs. These costs tend to differ based on the types of feedstocks used in the production of biofuels. For instance, the production of corn-based ethanol accounts for lesser feedstock costs than the production of biodiesel.
- The plant setup cost for producing biofuels is high and varies on the basis of the type of raw materials utilized. For instance, the capital investment done in a sugarcane-based biofuel plant is higher than a sorghum-based biofuel plant. This renders a sugarcane-based ethanol plant 25% costlier than a sorghum plant of the same size.
Insights into the supply market that will have potential impacts on your procurement strategy
- Biofuels suppliers will tackle a substantial hike in their R&D expenses owing to their deepening focus on producing more versions of biofuels with higher efficiency with less dependency on feedstock, such as vegetable oils and animal fats.
- Entering into long term contracts with suppliers will benefit buyers with efficient category management and scopes to optimize spend. The viability of such a long-term supplier relationship can be determined by adopting SRM that will help buyers to understand the suppliers’ SCM process and assess suppliers’ contribution to procurement. This will help buyers in determining various tactics to maximize suppliers’ performance and in developing strategic contract management initiatives.
Some of the top biofuels suppliers enlisted in this report
- Cargill Inc.
- Archer Daniels Midland Co.
- BASF SE
- Royal Dutch Shell Plc
- INEOS Group Holdings SA
- Valero Energy Corp.
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Some of the key topics covered in this report are:
- Biofuels market spend segmentation by region
- Biofuels supply market analysis
- Regional spend opportunity for biofuels suppliers
- Biofuels suppliers cost structure
- Total cost of ownership analysis in the biofuels market
- Biofuels pricing models analysis
- Category management objectives
- Cost saving opportunities in the biofuels market
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