Summary

Biodiesel Market Trends & Summary

Biodiesel market is expected to reach US$ 70.61 billion by 2033 from US$ 41.62 billion in 2024, with a CAGR of 6.05% from 2025 to 2033. The market is being driven by a number of factors, including government regulations that support renewable energy, growing concerns about energy security and the volatility of oil prices, ongoing technological advancements in production processes, rising public awareness of environmental issues, and increased efforts to combat climate change.

The report Biodiesel Market & Forecast covers by Application (Fuel, Power Generation, Others), Feedstock (Vegetable Oil, Animal Fats), Countries and Company Analysis 2025-2033.


Biodiesel Industry Overview

One practical way to lessen the negative environmental effects of the industrial and transportation sectors is to use biodiesel. It comes from sustainable resources including reclaimed cooking grease, vegetable oils, and animal fats. Glycerol is released as a byproduct of the chemical transformation of the raw ingredients into biodiesel during the transesterification process. Biodiesel has several benefits, including lowering greenhouse gas emissions, which lowers air pollution and helps mitigate climate change. Because it can be produced domestically, its use also increases energy security by reducing reliance on imported fossil fuels. Additionally, it has excellent lubricating qualities that can prolong engine life and improve efficiency. Furthermore, it doesn't require any engine modifications and can be easily incorporated into the current diesel infrastructure. There are other varieties of biodiesel, such as B100, which is pure biodiesel, B20, which is a combination of 20% biodiesel and 80% petrodiesel, and B5, which is a blend of 5% biodiesel.

Government laws and policies supporting renewable energy sources and lowering greenhouse gas emissions have an impact on the worldwide biodiesel business. The growing worries about energy security and the volatility of oil prices lend more credence to this. Furthermore, the practicality and efficiency of producing biodiesel are improved by developments in production technology and the expansion of feedstock availability, which is driving the market's growth. Accordingly, a favorable environment for market expansion is being created by growing public awareness of environmental issues and the growing need for cleaner energy solutions. Furthermore, partnerships between the public and private sectors support research and development efforts in applications for biodiesel, which is boosting market expansion. Additionally, global initiatives to tackle climate change and accomplish sustainable development objectives are driving market expansion.

Additionally, by 2022, the Indian government intended to blend over 5% biodiesel, which is anticipated to spur growth during the projection period. 10,960.1 million liters were produced in Central and South America in 2021. As blending levels increased to use excess palm oil production, the increase was ascribed to an increase in domestic demand.


Growth Drivers for the Biodiesel Market

Oil price volatility and energy security

Concerns about energy security and the volatility of oil prices on the worldwide market have an impact on the biodiesel market. A good substitute for conventional petroleum-based fuels, biodiesel improves energy self-sufficiency and lessens reliance on imported oil. The availability of domestically generated biodiesel can act as a buffer against price shocks and supply uncertainty during periods of geopolitical tensions or supply disruptions. Additionally, consumers looking for more stable and predictable fuel costs find biodiesel to be an appealing alternative due to the volatility of crude oil prices. The worldwide biodiesel industry is therefore growing as a result of growing knowledge of the potential advantages of biodiesel in maintaining energy stability and security.


Developments in technology and the availability of feedstock

The availability of appropriate feedstock and improvements in production methods are key factors in the expansion of the biodiesel sector. Technological advancements like better catalysts and more effective conversion procedures have greatly increased the yields and decreased the costs of producing biodiesel. Additionally, the conversion of many feedstock sources, including waste oils, animal fats, and vegetable oils, into biodiesel has been the focus of research and development activities. The sector is more resilient to changes in agricultural markets and worries about food-versus-fuel conflicts are reduced when feedstock sources are diversified. The market for biodiesel grows in sustainability and economic potential as new feedstock sources, including algae and non-food biomass, become feasible. This draws investment and encourages broader use.


Rules and policies of the government

Government laws and initiatives to support renewable energy sources and combat climate change have a significant impact on the worldwide biodiesel business. In order to promote the use of biodiesel as a renewable substitute for traditional fossil fuels, numerous nations have put laws and incentives into place. These regulations frequently consist of blending requirements, tax breaks, and financial aid for the production and use of biodiesel. For example, the United States' Renewable Fuel Standard (RFS) mandates that a specific amount of biodiesel and other renewable fuels be mixed with conventional transportation fuels. In addition to generating a steady demand for biodiesel, these regulations also demonstrate a commitment to lowering greenhouse gas emissions, which encourages investments in the technology and infrastructure needed for biodiesel production.


Challenges in the Biodiesel Market

Infrastructure and Distribution

One major obstacle to the growth of the biodiesel business is the absence of infrastructure for its production and distribution. Many areas lack dedicated biodiesel fueling stations, blending facilities, and transportation networks, especially those that have not yet made investments in alternative fuel technologies. This restricts the use of biodiesel by making it harder for businesses and consumers to get. The effective blending of biodiesel with petroleum diesel, which is necessary for broader market penetration, is further hampered by inadequate infrastructure. Furthermore, stakeholders may be put off by the substantial capital outlay needed to construct such infrastructure, especially in emerging nations. Therefore, unless a large amount of money is invested in the creation of infrastructure to support its widespread usage and delivery, biodiesel will have a difficult time competing with traditional fuels.


Technological and Efficiency Barriers

Although biodiesel technology has advanced, a number of obstacles still stand in the way of its full potential. In order to lower costs and boost yields, additional technological advancements are needed to improve feedstock conversion efficiency, or the capacity to transform raw materials into premium biodiesel. Because the industrial process produces by-products that must be recycled or handled effectively, waste management also poses challenges. Furthermore, because it necessitates a large investment in cutting-edge infrastructure and technology, increasing output to satisfy growing worldwide demand continues to be a major challenge. The industry's capacity to compete with conventional fossil fuels is nevertheless constrained by high production costs and the intricacy of large-scale operations. For the biodiesel business to thrive and be sustainable over the long run, these efficiency and technological obstacles must be removed.


Biodiesel Market Overview by Regions

By countries, the global biodiesel market is divided into United States, Canada, France, Germany, Italy, Spain, United Kingdom, Belgium, Netherlands, Turkey, China, Japan, India, South Korea, Thailand, Malaysia, Indonesia, Australia, New Zealand, Brazil, Mexico, Argentina, Saudi Arabia, and UAE, and South Africa.


United States Biodiesel Market

Due to government regulations, environmental concerns, and the growing need for renewable energy sources, the biodiesel industry in the United States is among the biggest in the world. The production and usage of biodiesel have been greatly aided by the Renewable Fuel Standard (RFS) and other state-level incentives. Although the industry is dominated by feedstocks such as waste oils, animal fats, and soybean oil, there is potential for the future due to the growing interest in algae-based biodiesel. Technical developments in the production of biodiesel are increasing productivity and cost-effectiveness despite obstacles such feedstock price instability and rivalry with food production. The development of infrastructure, including as blending plants and gas stations, is also assisting in the rise of the market. The U.S. biodiesel business is anticipated to keep growing as environmental objectives increase, aiding in the switch to cleaner energy.

The Energy Information Administration (EIA) estimates that 1,699 million gallons of biodiesel were produced in the US in 2023. Standard diesel engines can run on biodiesel alone or in conjunction with petroleum.

The US Department of Energy (DOE) declared in January 2023 that it will invest USD 118 million in 17 projects to speed up the development of sustainable biofuels for the country's industry and transportation needs. By advancing biorefinery development from pre-pilot to demonstration, the chosen projects will increase domestic production of biofuels and bioproducts and provide sustainable fuels that reduce emissions linked to fossil fuels.


United Kingdom Biodiesel Market

As part of the nation's larger initiatives to lower carbon emissions and switch to renewable energy sources, the biodiesel market in the UK is expanding. Adoption of biodiesel is fueled by government regulations that require the use of biofuel in transportation, such as the Renewable Transport Fuel Obligation (RTFO). For the manufacturing of biodiesel, the UK mostly uses feedstocks such as old cooking oils, tallow, and vegetable oils, with an emphasis on waste-based and sustainable materials. Technological developments are increasing conversion efficiency and lowering costs, despite obstacles like feedstock supply and competition with food production. The UK's pledge to achieve net-zero emissions by 2050, which promotes investment in renewable energy infrastructure, further supports the industry. The UK biodiesel market is expected to continue expanding as customer demand for environmentally friendly substitutes increases.


India Biodiesel Market

India's emphasis on renewable energy and lowering reliance on fossil fuels is propelling the country's biodiesel business into a growth phase. Through programs like the National Biofuels Policy, which attempts to increase the use of biofuel in industry and transportation, the government has been encouraging the production of biodiesel. In order to produce biodiesel and allay worries about food security, India mostly uses non-edible feedstocks like algae, Jatropha, and used cooking oil. The availability of feedstock, high manufacturing costs, and inadequate infrastructure are some of the market's obstacles. Nonetheless, government incentives, growing energy demand, and growing environmental consciousness are promoting investment in the industry. The biodiesel industry is anticipated to grow in the upcoming years as India attempts to reach its renewable energy targets.

In September 2024, Indian Oil Corporation blended 23.24 crore gallons of biodiesel with normal fuel, reaching a 0.49 percent biodiesel blending ratio. This was higher than other oil marketing businesses' blending ratio of 0.43 percent.


Saudi Arabia Biodiesel Market

Saudi Arabia's growing emphasis on renewable energy as part of its Vision 2030 ambition to diversify its economy and lessen reliance on fossil fuels is propelling the country's biodiesel sector. Although oil is still Saudi Arabia's main energy source, the government is looking into alternative fuels, such as biodiesel, to lower carbon emissions and increase sustainability. For the manufacturing of biodiesel, feedstocks such waste oils, palm oil, and jatropha are being investigated. High manufacturing costs, a lack of native feedstock, and the prevalence of petroleum-based fuels are some of the market's obstacles, though. Despite these obstacles, Saudi Arabia's dedication to sustainability and investments in renewable energy infrastructure present chances for the biodiesel industry to expand in the upcoming years.


Application – Market breakup in 3 viewpoints:
1. Fuel
2. Power Generation
3. Others


Feedstock – Market breakup in 2 viewpoints:
1. Vegetable Oil
2. Animal Fats


Countries – Market breakup of 25 Countries Covered in the Report:
1. North America

1.1 United States
1.2 Canada

2. Europe

2.1 France
2.2 Germany
2.3 Italy
2.4 Spain
2.5 United Kingdom
2.6 Belgium
2.7 Netherlands
2.8 Turkey

3. Asia Pacific

3.1 China
3.2 Japan
3.3 India
3.4 South Korea
3.5 Thailand
3.6 Malaysia
3.7 Indonesia
3.8 Australia
3.9 New Zealand

4. Latin America

4.1 Brazil
4.2 Mexico
4.3 Argentina

5. Middle East & Africa

5.1 Saudi Arabia
5.2 United Arab Emirates
5.3 South Africa


All the Key players have been covered from 3 Viewpoints:
• Overview
• Recent Development
• Revenue Analysis


Company Analysis:
1. Archer Daniels Midland Company
2. FutureFuel
3. Nestle’s
4. Renewable Energy Group, Inc.,
5. Bunge Global SA
6. Wilmar
7. Shell


Key Questions Answered in Report:
1. How big is the Biodiesel industry?
The global Biodiesel market size was valued at US$ 41.62 billion in 2024 and is expected to reach US$ 70.61 billion in 2033.

2. What is the Biodiesel growth rate?
The global Biodiesel market is expected to expand at a compound annual growth rate (CAGR) of 6.05 % from 2025 to 2033.

3. Who are the key players in Biodiesel industry?
Some key players operating in the Biodiesel market includes Archer Daniels Midland Company, FutureFuel, Nestle’s, Renewable Energy Group, Inc., Bunge Global SA, Wilmar, and Shell.

4. What are the factors driving the Biodiesel industry?
Rising demand for renewable energy, environmental concerns about fossil fuels, government regulations and incentives, production technology developments, and growing consumer preference for sustainable and eco-friendly modes of mobility are the main drivers of the biodiesel sector.

5. Which Region held the largest market share in the Biodiesel industry?
North America is expected to hold the largest market share in the industry.

6. What segments are covered in the Biodiesel Market report?
Application, Feedstock and Countries segment are covered in this report.

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Table of Contents

1. Introduction


2. Research Methodology


3. Executive Summary


4. Market Dynamics
4.1 Growth Drivers
4.2 Challenges


5. Global Biodiesel Market


6. Market Share
6.1 By Application
6.2 By Feedstock
6.3 By Country


7. Application
7.1 Fuel
7.2 Power Generation
7.3 Others


8. Feedstock
8.1 Vegetable Oil
8.2 Animal Fats


9. Country
9.1 North America

9.1.1 United States
9.1.2 Canada

9.2 Europe

9.2.1 France
9.2.2 Germany
9.2.3 Italy
9.2.4 Spain
9.2.5 United Kingdom
9.2.6 Belgium
9.2.7 Netherlands
9.2.8 Turkey

9.3 Asia Pacific

9.3.1 China
9.3.2 Japan
9.3.3 India
9.3.4 South Korea
9.3.5 Thailand
9.3.6 Malaysia
9.3.7 Indonesia
9.3.8 Australia
9.3.9 New Zealand

9.4 Latin America

9.4.1 Brazil
9.4.2 Mexico
9.4.3 Argentina

9.5 Middle East & Africa

9.5.1 Saudi Arabia
9.5.2 United Arab Emirates
9.5.3 South Africa


10. Porter’s Five Analysis
10.1 Bargaining Power of Buyers
10.2 Bargaining Power of Suppliers
10.3 Degree of Rivalry
10.4 Threat of New Entrants
10.5 Threat of Substitutes


11. SWOT Analysis
11.1 Strength
11.2 Weakness
11.3 Opportunity
11.4 Threat


12. Company Analysis
12.1 Archer Daniels Midland Company

12.1.1 Overview
12.1.2 Recent Development
12.1.3 Revenue

12.2 FutureFuel

12.2.1 Overview
12.2.2 Recent Development
12.2.3 Revenue

12.3 Nestle’s

12.3.1 Overview
12.3.2 Recent Development
12.3.3 Revenue

12.4 Renewable Energy Group, Inc.

12.4.1 Overview
12.4.2 Recent Development
12.4.3 Revenue

12.5 Bunge Global SA

12.5.1 Overview
12.5.2 Recent Development
12.5.3 Revenue

12.6 Wilmar

12.6.1 Overview
12.6.2 Recent Development
12.6.3 Revenue

12.7 Shell

12.7.1 Overview
12.7.2 Recent Development
12.7.3 Revenue