Sustainable Aviation Fuel (SAF) Market by Feedstock Type (Bio-based, Synthetic, Waste-based), Production Technology (HEFA, FT-SPK, ATJ-SPK), Blend Ratio (Below 30%, 30-50%), Application (Commercial Aviation, Military Aviation), End User, and Geography - Global Forecast to 2035

What is the Sustainable Aviation Fuel (SAF) Market Size?

The global sustainable aviation fuel market was valued at USD 1.45 billion in 2024 and is expected to reach USD 1.85 billion in 2025. This market is expected to be around USD 39.28 billion by 2035, growing at a CAGR of 35.0% from 2025 to 2035. The increasing momentum toward aviation decarbonization and net-zero emissions commitments, combined with stringent regulatory mandates such as CORSIA and ReFuelEU Aviation, along with increasing airline sustainability pledges and declining SAF production costs, is driving the global adoption of sustainable aviation fuel across commercial airlines, cargo operators, and business aviation sectors.

Market Highlights: Sustainable Aviation Fuel (SAF)

• In terms of revenue, the global sustainable aviation fuel market is valued at USD 1.85 billion in 2025 and is projected to reach USD 39.28 billion by 2035.
• The market is expected to grow at a CAGR of 35.0% from 2025 to 2035.
• North America dominates the global sustainable aviation fuel market with the largest market share of 35-40% in 2025.
• Europe is expected to witness the fastest CAGR during the forecast period.
• By feedstock type, the bio-based segment holds the largest market share of 65-70% in 2025.
• By feedstock type, the synthetic fuel segment is expected to witness the fastest CAGR through 2035.
• By production technology, the HEFA (Hydroprocessed Esters and Fatty Acids) segment contributes the highest market share of 70-75% in 2025.
• By production technology, the FT-SPK (Fischer-Tropsch Synthetic Paraffinic Kerosene) segment is expected to witness the fastest CAGR from 2025 to 2035.
• By blend ratio, the below 30% segment holds the largest market share of 75-80% in 2025.
• By blend ratio, the above 50% segment is expected to witness the fastest CAGR during the forecast period.
• By application, the commercial aviation segment holds the largest market share of 70-75% in 2025.
• By application, the cargo aviation segment is expected to witness the fastest CAGR during the forecast period.
• By end user, the airlines segment holds the largest share of 60-65% in 2025.
• By end user, the airport operators segment is expected to witness the fastest CAGR during the forecast period.

Market Overview and Insights

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The sustainable aviation fuel market includes the production, distribution, and use of drop-in alternative jet fuels made from renewable sources. SAF is chemically similar to regular jet fuel and can be used in current aircraft engines and fuel systems without changes. These fuels come from different materials such as used cooking oil, agricultural leftovers, municipal solid waste, forestry waste, algae, and synthetic methods that use captured carbon and renewable electricity. The production process uses technologies that change these materials into aviation-grade kerosene that meets ASTM D7566 certification standards.

Unlike fossil-based jet fuel, sustainable aviation fuel can cut lifecycle greenhouse gas emissions by up to 80% or more, based on the material and production method. The market is driven by international aviation's goal to achieve net-zero carbon emissions by 2050, regulations requiring SAF use, sustainability efforts from major airlines, improvements in production technology, and increasing investments from both the public and private sectors to boost production capacity and meet rising demand from the aviation industry.

How is Technology Innovation Transforming the Sustainable Aviation Fuel Market?

Technological innovation is reshaping the SAF market through new production methods and process improvements. Better catalytic processes are increasing conversion efficiencies and lowering production costs, making SAF more competitive with regular jet fuel. Power-to-Liquid (PtL) technology combines captured CO2 with green hydrogen made from renewable electricity. This approach does not compete with food production or need agricultural land. Genetic engineering and synthetic biology are helping to develop high-yield energy crops and create microorganisms that turn waste materials into jet fuel precursors more efficiently.

Process intensification technologies are cutting down the physical space and capital costs of SAF production facilities. This change allows for distributed production models that are closer to feedstock sources and fuel demand centers. New separation and purification technologies are boosting product yields and making it possible to use lower-quality feedstock materials that were previously thought unsuitable for fuel production. Artificial intelligence and machine learning are being used to optimize production parameters in real time, predict maintenance needs, and improve overall facility efficiency. Digital supply chain platforms are improving feedstock sourcing, logistics coordination, and sustainability tracking throughout the SAF value chain. Co-processing technologies enable conventional refineries to handle renewable feedstocks alongside petroleum, providing a way to expand production capacity in the near term without needing to invest in completely new infrastructure.

What are the Key Trends in the Sustainable Aviation Fuel (SAF) Market?

Power-to-Liquid (PtL) and E-fuels development: A major change in the sustainable aviation fuel market is the fast progress of power-to-liquid technologies and synthetic e-fuels made from captured CO2 and green hydrogen generated with renewable electricity. This method offers almost unlimited scalability without interfering with food production or land use. It addresses one of the key limitations of bio-based SAF. Big energy companies and aviation stakeholders are investing significantly in demonstration plants and large-scale facilities. Several projects have been announced in Europe, the Middle East, and North America. This trend signals the future of truly circular aviation fuel and allows the sector to achieve significant reductions in carbon emissions, even for long-haul international flights.

Airline consortium and offtake agreements: Another key trend driving market growth is the formation of strategic alliances among airlines and long-term purchase agreements with SAF producers. Major airlines are working together through initiatives like the Clean Skies for Tomorrow Coalition and are committing to multi-billion-dollar SAF purchase agreements that extend through 2030 and beyond. These agreements give producers the demand certainty they need to secure funding for new production facilities, while airlines ensure a more predictable supply of SAF at stable prices. This cooperative approach is speeding up production capacity expansion and creating a more reliable investment climate, with some airlines even investing in SAF production ventures to guarantee their supply.

Market Scope

Market Dynamics

Drivers

Regulatory Mandates and Carbon Reduction Targets

Regulatory Mandates and Carbon Reduction Targets

A key factor driving the sustainable aviation fuel market is the introduction of strict regulations and mandatory blending requirements in major aviation markets worldwide. The International Civil Aviation Organization's Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) sets binding carbon reduction duties for airlines operating international routes. The European Union's ReFuelEU Aviation initiative requires fuel suppliers to provide minimum SAF blending percentages, starting at 2% in 2025. This percentage will increase to 6% by 2030, 20% by 2035, and reach 70% by 2050. The United Kingdom has launched its own Sustainable Aviation Fuel Mandate. Several U.S. states, including California, have created carbon pricing systems that encourage SAF use. Additionally, the U.S. federal government offers tax credits through the Sustainable Aviation Fuel Credit, providing up to $1.75 per gallon for qualifying SAF. These regulations and financial incentives make a strong case for adopting SAF. They drive demand growth and increase production capacity as airlines comply with requirements and aim to avoid carbon penalties or secure incentive payments.

Restraint

Production Cost Premium and Feedstock Availability Constraints

Despite strong growth, the sustainable aviation fuel market faces major challenges with production costs and available feedstocks. SAF currently costs between 2 and 4 times more than conventional jet fuel. This high price creates significant barriers for its widespread use, particularly in price-sensitive aviation markets. The premium price is due to low production volumes, costly conversion technologies, and high feedstock prices. Additionally, the limited supply of suitable sustainable feedstocks is another major issue. Used cooking oil and animal fats, the main feedstocks for HEFA-based SAF, have a global supply that cannot meet the expected SAF demand. Agricultural residues and specially grown energy crops raise concerns about land use changes, water usage, and potential competition with food production. Advanced feedstocks like municipal solid waste and algae require more technology development to become commercially viable. Moreover, the infrastructure for collecting, processing, and transporting different feedstocks is underdeveloped in many areas. These supply-side issues slow down the growth of SAF and create uncertainty about the industry’s ability to meet ambitious blending goals and airline procurement commitments without major technological advancements and investments in infrastructure.

Opportunity

Emerging Market Expansion and New Production Pathways

The growth of SAF production and use in new aviation markets, especially in Asia-Pacific, the Middle East, and Latin America, presents a significant chance for market expansion. Countries such as Singapore, Japan, India, the UAE, and Brazil are creating national SAF strategies with support from their governments, leading to new demand beyond traditional North American and European markets. The fast growth of aviation in these areas, along with greater environmental awareness and new regulations, is driving investments in local SAF production. Moreover, the commercial use of new production methods provides game-changing opportunities. Alcohol-to-jet (AtJ) technology allows for SAF production from ethanol and other alcohols, which broadens feedstock options. Direct air capture paired with synthetic fuel production could offer nearly unlimited SAF supply without feedstock limits. Advanced fermentation methods and engineered microorganisms can turn different waste streams into jet fuel precursors. If these new technologies scale successfully, they could significantly lower production costs and increase feedstock availability, potentially matching the price of conventional jet fuel while tackling sustainability issues linked to first-generation biofuels.

Feedstock Type Insights

Why are Bio-based Feedstocks Leading the SAF Market?

The bio-based feedstock segment is the largest, making up 65-70% of the sustainable aviation fuel market in 2025. This dominance shows that bio-based SAF production technologies, especially HEFA pathways, are commercially mature. These pathways convert vegetable oils, used cooking oil, animal fats, and other lipid feedstocks into drop-in jet fuel. Bio-based feedstocks benefit from established collection and supply chains, proven conversion technologies with various certified production methods (HEFA, FT-SPK from biomass, AtJ-SPK), and they can provide immediate emissions reductions. Used cooking oil and waste animal fats are particularly appealing since they do not compete with food production and have strong sustainability credentials. Agricultural and forestry residues add more feedstock variety, although converting them requires gasification or other complex processes. The bio-based segment enjoys broad regulatory acceptance and meets existing SAF certification standards, which allows for immediate commercial use.

The synthetic fuel segment is expected to grow the fastest through 2035. Synthetic SAF produced through power-to-liquid processes combines captured carbon dioxide with green hydrogen created from renewable electricity. This approach could potentially provide unlimited amounts of SAF without feedstock limitations. This technology addresses the scalability issues of bio-based feedstocks and removes worries about land use, water consumption, and competition with food or fiber production. Currently, synthetic SAF is more expensive and still in earlier stages of commercial rollout. However, it benefits from the falling costs of renewable electricity, better electrolyzer economics, and improved carbon capture efficiency. Major demonstration projects and the first commercial-scale facilities are starting in Europe and the Middle East, supported by governments that are accelerating technology progress and reducing costs.

Production Technology Insights

How does HEFA Technology Support Market Growth?

The HEFA (Hydroprocessed Esters and Fatty Acids) segment is expected to capture 70-75% of the sustainable aviation fuel market in 2025. HEFA technology leads the way because it is the most developed method for producing SAF. Many production facilities are already operating around the world. This process turns lipid feedstocks, such as used cooking oil, animal fats, and vegetable oils, into synthetic paraffinic kerosene through hydroprocessing. This fuel is chemically the same as conventional jet fuel. HEFA-SAF was the first alternative jet fuel to gain ASTM certification in 2011, and it can be blended with up to 50% conventional jet fuel. The technology has lower capital costs compared to other methods. It also has a proven operational history, reliable supply chains for feedstock, and the ability to produce renewable diesel alongside SAF, which helps project economics. Major producers like Neste, World Energy, and Gevo run large HEFA facilities, ensuring a steady supply of SAF to airlines globally.

The FT-SPK (Fischer-Tropsch Synthetic Paraffinic Kerosene) segment is set to grow at the fastest rate through 2035. Fischer-Tropsch technology converts synthesis gas, which comes from biomass, municipal solid waste, or captured CO2 with green hydrogen, into liquid hydrocarbons using catalytic processes. This method provides many benefits, such as flexibility in feedstock, the use of low-value waste streams and residues, and the possibility for greater emissions reductions over their lifecycle. FT-SPK can turn various carbon sources into SAF, which helps address the limitations in feedstock availability that affect HEFA production. This technology generates ultra-clean fuels with excellent combustion properties and can be tuned to maximize jet fuel output. Recent improvements in gasification efficiency, catalyst performance, and process integration are enhancing FT-SPK economics. Several commercial-scale projects are in progress, including facilities that use municipal solid waste and forestry residues as feedstocks. This positions FT-SPK as an important method for meeting long-term SAF demand as the market grows beyond available lipid feedstocks.

Application Insights

How Commercial Aviation Drives the SAF Market?

The commercial aviation segment holds the largest market share, making up about 70-75% in 2025. The commercial airline sector feels the most pressure to reduce carbon emissions from regulators, investors, and environmentally aware passengers. This leads to significant adoption of sustainable aviation fuel (SAF). Major airlines such as United Airlines, Delta Air Lines, American Airlines, Lufthansa Group, Air France-KLM, and British Airways have made strong commitments to purchase SAF and have investment agreements with producers. Corporate customers now favor airlines with solid sustainability records. This trend creates advantages for carriers that show climate leadership through their use of SAF. The segment benefits from lower fuel procurement costs, a greater capacity to manage SAF cost increases in ticket prices, and the ability to improve brand value through sustainability efforts. Hub operations allow for efficient SAF use since fuel can be taken on at a limited number of locations where SAF is available. Long-haul international routes have the highest emissions per passenger. They also represent key opportunities for deploying SAF, as alternatives like battery-electric aircraft are not practical.

In contrast, the cargo aviation segment is set to grow at the fastest rate during the forecast period. Delivery and logistics companies like DHL, UPS, FedEx, and Amazon Air face increasing demands from corporate clients and regulators to cut their carbon emissions. The rise of e-commerce has led to rapid growth in air cargo volumes, while also increasing emissions and attention to sustainability. Corporate shippers are now demanding carbon-neutral delivery options and adding sustainability requirements to their logistics contracts. This pushes cargo carriers to adopt SAF more aggressively. Major cargo airlines have announced significant SAF purchase agreements and investment plans. The segment has an easier time passing fuel costs onto business clients compared to more price-sensitive passenger markets. Moreover, cargo operations usually rely on fewer, standardized types of aircraft and hub-and-spoke networks. This setup simplifies the logistics of integrating SAF and allows for concentrated deployment at key locations.

End User Insights

Why are Airlines the Primary End Users of SAF?

The airlines segment will hold the largest share, around 60-65%, in 2025. Airlines use the majority of globally produced SAF and make purchasing decisions while establishing offtake agreements with producers. Major carriers lead the energy transition in aviation due to regulations, sustainability commitments, investor pressure, and customer expectations. Airlines actively participate in SAF development through investments, joint ventures with energy firms, and partnerships with technology providers. They set science-based targets linked to the industry's net-zero goal for 2050 and see SAF as the main tool for reducing emissions from their existing fleets. The segment has strong internal expertise in fuel purchasing, quality assurance, and supply chain management. Airlines also advocate for favorable SAF policies and collaborate with industry groups like IATA to establish standards and encourage market growth. Their purchasing power and long-term commitments are crucial for attracting investment in new production capacity.

The airport operators segment is expected to grow the fastest through 2035. Airports are increasingly becoming sustainability hubs and actively participating in the SAF ecosystem instead of just distributing fuel. Leading airports like Los Angeles International, San Francisco International, Schiphol Amsterdam, Changi Singapore, and Heathrow are launching SAF programs, upgrading infrastructure for SAF blending and storage, and encouraging airline use through sustainability-linked airport fees. Some airports are directly investing in local SAF production facilities to gain competitive advantages and ensure regional supply security. Airport operators understand that improving SAF availability can attract eco-conscious airlines, support route development, and strengthen their competitiveness. They are building partnerships with fuel suppliers, forming SAF coalitions with airline customers, and pushing for supportive policies with government authorities. Additionally, airports have their own decarbonization targets for Scope 3 emissions, which include airline operations, creating direct incentives to encourage SAF adoption by tenant carriers.

U.S. Sustainable Aviation Fuel Market Size and Growth 2025 to 2035

The U.S. sustainable aviation fuel market is projected to be worth around USD 10.24 billion by 2035, growing at a CAGR of 36.2% from 2025 to 2035.

How is North America Leading the Global SAF Market?

North America holds the largest market share of nearly 35 to 40% in 2025. This region's leading position comes from strong support at both federal and state levels, significant domestic production capacity, and active airline purchase commitments. The United States provides the Sustainable Aviation Fuel Credit, which offers up to $1.75 per gallon for qualifying SAF. This credit greatly improves project finances. California's Low Carbon Fuel Standard adds further value for SAF through tradable credits. The U.S. is home to major SAF producers like World Energy, Gevo, LanzaJet, and Montana Renewables. Many facilities are operational, and expansion projects are in progress. Canada's Clean Fuel Regulations set lifecycle carbon intensity requirements that support SAF adoption. The region benefits from a variety of feedstock options, including agricultural residues, forestry waste, and municipal solid waste, enabling multiple production methods. Key North American airlines, such as United Airlines, Delta Air Lines, American Airlines, and Air Canada, have announced multi-billion-dollar SAF purchase agreements and investments in production companies. The region has extensive refining infrastructure and established fuel distribution networks that help with SAF production and logistics. In addition, strong research institutions and innovation networks are pushing forward next-generation SAF technologies.

Which Factors Support Europe's Rapid SAF Market Growth?

Europe is set to experience the fastest growth from 2025 to 2035. This growth is driven by the strictest regulatory framework in the world for adopting sustainable aviation fuel (SAF). The ReFuelEU Aviation regulation establishes rising mandatory SAF blending requirements that will reach 70% by 2050, including specific demands for synthetic fuels. This creates a clear regulatory environment that attracts investment. The European Green Deal and the Fit for 55 package position SAF as vital for achieving climate neutrality by 2050. The EU's Innovation Fund and Connecting Europe Facility offer significant funding for SAF production projects, with billions set aside to support the first commercial facilities.

National governments such as Germany, France, the Netherlands, Sweden, and Norway have introduced additional support mechanisms and sustainability requirements. Europe is becoming the global leader in developing power-to-liquid and synthetic SAF, with major projects from companies like Norsk e-Fuel, Atmosfair, and HIF Global. The region's airlines, including Lufthansa Group, Air France-KLM, IAG, Ryanair, and SAS, have set ambitious SAF targets and procurement programs. Europe's strong focus on producing green hydrogen from offshore wind and other renewables supports the growth of synthetic SAF. The area also benefits from expertise in biofuels, circular economy frameworks that promote waste-to-fuel pathways, and active collaboration among aviation stakeholders, energy firms, and technology providers through initiatives like the Clean Aviation Partnership.

Recent Developments

• May 2025: United Airlines invested in the power-to-liquid fuels company Twelve and signed a 14-year contract for 260 million gallons of SAF supply.
• April 2025: Neste began SAF production at its upgraded Rotterdam renewable fuels refinery, enabling up to 500,000 tonnes/year of SAF. This increases Neste’s total global SAF production capacity to about 1.5 million tonnes/year
• January 2024: LanzaJet inaugurated its Freedom Pines Fuels facility in Georgia, USA, marking the world's first commercial-scale ethanol-to-SAF production plant with capacity of 10 million gallons annually.
• January 2024: The European Union’s ReFuelEU Aviation regulation entered into force, requiring that from 2025 all aviation fuel supplied at EU airports must contain a minimum of 2% sustainable aviation fuel (SAF). The mandate will gradually increase over time, reaching 6% by 2030, 20% by 2035, and 70% by 2050. In addition, a sub-mandate for synthetic aviation fuels (e-fuels) will begin in 2030, initially set at around 1.2% of total aviation fuel supply, with higher quotas in subsequent decade.

Segments Covered in the Report

By Feedstock Type

• Bio-based
  • Used Cooking Oil
  • Animal Fats
  • Agricultural Residues
  • Forestry Residues
  • Energy Crops
  • Algae
• Waste-based
  • Municipal Solid Waste
  • Industrial Waste
• Synthetic
  • Power-to-Liquid (CO2 + Green Hydrogen)
  • Gas-to-Liquid

By Production Technology

• HEFA (Hydroprocessed Esters and Fatty Acids)
• FT-SPK (Fischer-Tropsch Synthetic Paraffinic Kerosene)
• FT-SPK/A (Fischer-Tropsch with Aromatics)
• ATJ-SPK (Alcohol-to-Jet Synthetic Paraffinic Kerosene)
• CHJ (Catalytic Hydrothermolysis Jet)
• HC-HEFA (Hydrotreated Depolymerized Cellulosic Jet)
• Power-to-Liquid (PtL)
• Others

By Blend Ratio

• Below 30%
• 30-50%
• Above 50%
• 100% (Neat SAF)

By Application

• Commercial Aviation
  • Narrow-body Aircraft
  • Wide-body Aircraft
  • Regional Jets
• Military Aviation
• Business Jets & General Aviation
• Cargo Aviation
  • Dedicated Freighters
  • Passenger-to-Freighter Conversions
• Helicopter Operations

By End User

• Airlines
• Airport Operators
• Fuel Suppliers & Distributors
• Military & Defense
• Corporate Aviation
• Charter Services
• Fixed-Base Operators (FBOs)
• Aircraft Manufacturers
• Others

By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa

Frequently Asked Questions