Japan Sustainable Aviation Fuel Market

Japan Sustainable Aviation Fuel Market Summary:

According to Transpire Insight, a detailed research report on the market reflects that the domestic production segment dominates the Japan Sustainable Aviation Fuel Market, accounting for approximately 10% of Japan’s aviation fuel consumption target by 2030. ENEOS Corporation leads the market with approximately 400,000 kiloliters per year of planned SAF production capacity from FY2028 onward, making it the leading contributor to Japan market development, innovation, advanced sustainable aviation fuel production, expanding manufacturing capabilities, and growth dynamics.

Market Snapshot

• Market Value (2025): USD 105.1 Million.
• Expected Market Value (2026): USD 131.0 Million.
• Estimated Market Value (2033): USD 657.0 Million.
• Forecast CAGR (2026–2033): 25.90%

Introduction

Sustainable Aviation Fuels (SAF) represent the industry of production, blending, distribution, and consumption of low-carbon renewable jet fuel products designed to substitute standard fossil-based aviation kerosene. Low-carbon renewable SAFs are based on the use of renewable feedstock, such as used cooking oil (UCO), municipal waste, or synthetic e-fuel that allows for reducing greenhouse gas emissions from combustion processes without changing the design of aircraft engines and fuel infrastructure. Sustainable Aviation Fuel (SAF) an environmentally-friendly alternative fuel to traditional petroleum-based jet fuel. SAF is made from renewable and waste resources, such as used cooking oil (UCO), agricultural residue, municipal waste, and woody biomass instead of being produced from crude oil. SAF is a "drop-in" fuel, which means that it can be blended directly into existing aircraft engines and airport fueling infrastructure without the need for changes. Sustainable Aviation Fuel (SAF) provides several benefits for Japan’s aviation industry in terms of carbon emissions reductions, drop-in capability, energy security, and economic development. Sustainable Aviation Fuel may be able to considerably decrease lifecycle GHG emissions in contrast to standard fossil-based aviation fuel. The drop-in properties of SAF mean that it can be blended with existing fleets without any expensive changes. Using more waste-to-fuel production of SAF within Japan is a way for Japan to become less dependent on imported fuel and increase its energy security. In addition, government policies and investments into SAF technologies make Japan a possible regional center for SAF production.

Key Market Highlights: -

• By feedstock, the Sugar Crops segment dominated the market and holds nearly 35% share in 2025 and is projected to grow at a substantial CAGR during the forecast period. 
• By application, the Commercial Aviation segment dominated the market and holds nearly 61% share in 2025 and is projected to grow at a substantial CAGR during the forecast period. 
• By end user, the Airlines segment dominated the market and holds nearly 70% share in 2025 and is projected to grow at a substantial CAGR during the forecast period. 
• Green Innovation Fund and GX: The Japan government is speeding up the development of the Sustainable Aviation Fuel (SAF) industry via GX Economy Transition Bonds worth around JPY 340 billion in five years to establish large-scale SAF production plants and logistics systems. Such investment helps with production, logistics security, aircraft decarbonization, and the energy transition of Japan.

How is Technology Driving Growth in the Japan Sustainable Aviation Fuel Market?

The Japan Sustainable Aviation Fuel (SAF) market is progressing through the waste-to-fuel refining process, advanced conversion processes, artificial intelligence, and digital logistics. Advanced refinery processes use used cooking oil (UCO) obtained from residential and industrial sources to produce sustainable aviation fuel. The existing pathways such as Hydroprocessed Esters and Fatty Acids (HEFA) and Alcohol-to-Jet (ATJ) are making the production process more efficient and helping increase the SAF production capacity. Process optimization and automation through AI may help increase the efficiency of the refining process and also cut down the costs. Moreover, robotics and logistics facilities may facilitate better UCO collection, SAF blending, storage, and logistics in order to deliver fuel to Japan’s biggest airports.

Market Drivers

The SAF market in Japan is being influenced by government directives, carbon reductions, domestic feedstocks, and energy security issues. In Japan, there have been policies aimed at ensuring the use of SAFs by the country’s airlines starting fiscal 2030 in the supply of these fuels at major airports, as well as blending requirements for international flights. SAF is becoming more popular among airlines in Japan to ensure the decrease in greenhouse gas emissions along with efforts towards decarbonizing the aviation industry. There have been campaigns such as “Fry to Fly” which aim to collect used cooking oil to be used as SAF in Japan. There are several strengths of the Sustainable Aviation Fuel (SAF) that can be beneficial to the aviation industry in Japan such as lifecycle GHG emissions reduction, drop-in compatibility, energy security, government policy support, and compliance with international aviation framework requirements. SAF has the potential to considerably reduce lifecycle GHG emissions from jet fuel and thus assist Japan in its efforts towards achieving aviation decarbonization targets. The fact that it can be used without modification of any fueling systems is the strength of SAF. Local waste-based feedstock utilization can ensure Japan’s energy security by reducing its reliance on foreign fossil fuel sources.

Restrain

The sustainable aviation fuel (SAF) industry in Japan is facing several major issues. They include domestic availability of raw materials, high cost of manufacturing, infrastructure issues, and technological limitations. The importation of the raw materials could be an issue for supply security, whereas the cost of production of SAF is much higher compared to that of jet fuel.

Analysis of Prices and Consumer Behaviour 

The market for sustainable aviation fuel is dominated by SAF demand from commercial aviation (10% of Japan’s aviation fuel consumption targeted for SAF by 2030; primarily due to the decarbonization requirements of domestic and international aviation). The demand for SAF is expected to reach around 1.71 million kilometers by 2030, as the product would be increasingly adopted to reduce lifecycle carbon emissions and support Japan’s aviation decarbonization objectives. Around 1.71 million kiloliters of SAF are expected to be required in Japan by 2030. The sales volume is driven by the increasing adoption of SAF by airlines and the need to meet national aviation decarbonization targets. The commercial aviation industry represents the primary source of SAF demand, supported by government policies targeting 10% SAF utilization by 2030. The purchasing behavior of airlines exhibits a strong emphasis on reliable supply, certified sustainability performance and competitive pricing, as airlines require consistent SAF availability to meet their emissions-reduction commitments. Domestic SAF production and long-term supply agreements are also becoming increasingly important because Japan aims to establish a stable and scalable SAF supply chain and is projected to have around 1.92 million kiloliters of SAF supply capacity by 2030.

Top Companies in the Japan Sustainable Aviation Fuel Market

1. JX Nippon Oil & Energy
2. Eneos
3. Idemitsu Kosan
4. Cosmo Oil
5. Mitsubishi Corporation
6. Itochu
7. Marubeni
8. Sumitomo Corporation
9. Neste
10. Shell
11. BP
12. TotalEnergies
13. World Energy
14. IHI Corporation
15. Japan Airlines

Japan Sustainable Aviation Fuel Market Segmentation 

The Japan Sustainable Aviation Fuel Market share is divided into six categories: By fuel technology, feedstock, application, blending level, production stage and end user.

The Sugar Crops dominated the market, accounting for nearly 35% in 2025 and is expected to rise at a significant CAGR during the forecast period.

The Japan Sustainable Aviation Fuel Market is segmented by feedstock into Used Cooking Oil, Animal Fats, Agricultural Residues, Municipal Solid Waste, Forestry Residues, Sugar Crops, Algae, Captured CO₂. Among these, the Sugar Crops segment dominated the market, accounting for nearly 35% in 2025 and expected to increase at a significant CAGR during the forecast period. These crops had dominance in the market due to their high availability, well-established cultivation practices, and the ability to be used in manufacturing biofuels like sustainable aviation fuel. The increasing need for renewable energy, along with government policies and investment in the production of biofuels, is set to drive the use of these crops in the future.

The Commercial Aviation dominated the market, accounting for nearly 61% in 2025, and is expected to rise at a significant CAGR during the forecast period.

The Japan Sustainable Aviation Fuel Market is segmented by application into Commercial Aviation, Cargo Aviation, Military Aviation, Business Aviation, General Aviation, Charter Aviation, Airport Operations, Helicopters Among these, the Commercial Aviation segment dominated the market, accounting for nearly 61% in 2025 and expected to increase at a significant CAGR during the forecast period. Commercial aviation was dominating the market because of the increase in passenger volume, expansion of the flight network, and increased usage of aircraft around the globe. The demand for air travel is fueling the consumption of jet fuel; however, SAF is gaining popularity among airlines to meet their decarbonization goals.

The Airlines dominated the market, accounting for nearly 70% in 2025 and is expected to rise at a significant CAGR during the forecast period.

The Japan Sustainable Aviation Fuel Market is segmented by end user into Airlines, Airports, Fuel Suppliers, Oil Companies, Government Agencies, Aircraft Operators, Cargo Carriers, Business Jet Operators. Among these, the Airlines segment dominated the market, accounting for nearly 70% in 2025 and expected to increase at a significant CAGR during the forecast period. The presence of airlines in the market was because of the rising number of passengers and flights along with the need for sustainable aviation fuel (SAF). The increasing pressure of regulatory policies and corporate sustainability goals, alongside government-supported SAF projects, has made airlines opt for SAF which will help in growing the segment during the forecast period.

Future Market Trends for the Japan Sustainable Aviation Fuel Market: - 

1. Targets: Japan mandates that airlines reach at least a 10% usage rate of SAF on flights departing internationally by 2030, equating to an annual requirement of about 1.7 billion liters (450 million gallons).
2. Used Cooking Oil (UCO) Scaling: UCO produced domestically is the key feedstock. Campaigns such as "Fry to Fly," and the distribution of oil funnels by cities to millions of homes, are doubling UCO collection levels. However, domestic production will only be able to satisfy about one-quarter of 2030 needs.
3. Need for Imports: Given that domestic oils and local refineries such as the early producers like Safire Sky Energy are unable to satisfy total anticipated requirements, Japan will depend greatly on imported SAF in the future.
4. Value Surging and Price Impact: The markets predict that there will be a massive increase in volume and revenue growth in the long run (with dramatic scaling of market value going into the next decade) fueled primarily by very expensive per-ton pricing.
5. Geopolitical and Energy Security Motivators: Geopolitical tensions and disruptions to global trade in West Asia are causing alternative green fuels to become critical national energy security commodities.

Recent Development

• In January 2026: Japan has also been working towards establishing policies that would facilitate the adoption of SAF. Some of these policies include deliberations on sharing the cost of adopting SAF. The main goal of such efforts is to minimize the cost implications related to the acquisition of SAF as well as enhance its uptake by Japanese airlines.
• In May 2026: The second joint report from ANA and JAL emphasized the difficulties of providing Sustainable Aviation Fuels in Japan and associated risks. The airlines stated that a collaborative cost-sharing mechanism should be developed for the entire society in order to promote SAF usage, increase production capacity within the country, and reduce costs.
• In August 2026: SAF regulation in Japan proceeded, promoting policies to boost domestic production, distribution, and supply of sustainable aviation fuels. In line with the policy formulated for 2030, Japan plans to have 10% of the fuel consumption by Japanese airlines made up of sustainable aviation fuels.

Market Segment

This study forecasts revenue at Japan, regional and country levels from 2020 to 2033. Transpire Insight has segmented the Japan Sustainable Aviation Fuel Market based on the below-mentioned segments:

Japan Sustainable Aviation Fuel Market, By Fuel Technology

• HEFA
• Fischer-Tropsch
• Alcohol-to-Jet
• Power-to-Liquid
• Gasification
• Pyrolysis
• Synthetic E-Fuels
• Other Technologies

Japan Sustainable Aviation Fuel Market, By Feedstock

• Used Cooking Oil
• Animal Fats
• Agricultural Residues
• Municipal Solid Waste
• Forestry Residues
• Sugar Crops
• Algae
• Captured CO₂

Japan Sustainable Aviation Fuel Market, By Application

• Commercial Aviation
• Cargo Aviation
• Military Aviation
• Business Aviation
• General Aviation
• Charter Aviation
• Airport Operations
• Helicopters

Japan Sustainable Aviation Fuel Market, By Blending Level

• Below 10%
• 10–30%
• 30–50%
• 50–70%
• 70–90%
• 90–99%
• 100% SAF
• Drop-In Blends

Japan Sustainable Aviation Fuel Market, By Production Stage

• Commercial Production
• Demonstration Plants
• Pilot Plants
• Planned Facilities
• Feedstock Processing
• Refining
• Blending
• Distribution

Japan Sustainable Aviation Fuel Market, By End User

• Airlines
• Airports
• Fuel Suppliers
• Oil Companies
• Government Agencies
• Aircraft Operators
• Cargo Carriers
• Business Jet Operators