Biodiesel Market Size - By Feedstock (Animal Fat, Vegetable Oil), By Application (Transportation, Power Generation), Regional Outlook & Global Forecast, 2024 – 2032

Biodiesel Market Size

Biodiesel Market was valued at USD 35.5 billion in 2023 and is predicted to register a CAGR of over 7.2% between 2024 and 2032, due to the confluence of environmental concerns, renewable energy initiatives, and a shift towards sustainable fuel alternatives. This momentum is fostering investment in biodiesel production infrastructure, fostering a robust and dynamic market poised for continued growth in the transition towards more sustainable energy solutions.
 

Many countries in the are shifting their focus toward the use of biofuels and are mapping various strategies. For instance, in the United States, the Sustainable Aviation Challenge sets a goal for the airline industry to use 11 billion litres of sustainable aviation fuel (SAF) by 2030 equivalent to 15% of current jet fuel demand. It will support this government to work on a SAF tax credit linked to GHG intensity.
 

COVID– 19 Impact

The COVID-19 pandemic has had varied impacts on the biofuel industry. The pandemic has heightened awareness of environmental concerns, leading to increased emphasis on renewable fuels. Governments are likely to implement policies promoting biodiesel production and consumption to reduce carbon emissions and enhance energy security. Additionally, advancements in technology and research resulted in more efficient and cost-effective biodiesel production methods, further boosting market expansion.
 

Biodiesel Market Trends

The biodiesel industry is experiencing a surge in growth propelled by two key factors including the rising demand for sustainable energy and fluctuating oil prices. As the global awareness of environmental concerns and climate change intensifies, there is a growing emphasis on adopting cleaner and more sustainable energy sources. Biodiesel, derived from renewable resources such as vegetable oils and animal fats, serves as a viable alternative to traditional fossil fuels, significantly reducing carbon emissions. Many countries are aiming to utilise biofuel resources in coming years.
 

Biodiesel Market Analysis

The vegetable oil segment will grow at a CAGR of over 7% through 2032, primarily due to its popularity and widespread use as a feedstock. Vegetable oils, such as soybean oil, canola oil, and palm oil, are abundant and readily available, ensuring a consistent and stable supply for biodiesel production. Moreover, these oils have favorable characteristics such as high energy content and compatibility with existing infrastructure, making them efficient substitutes for traditional fossil fuels.
 

The transportation segment accounted for over 70% revenue share in 2023 due to increased awareness and concerns about environmental sustainability have prompted governments and industries to adopt cleaner and renewable energy sources for transportation. Biodiesel, derived from renewable resources such as vegetable oils and animal fats, serves as a viable alternative to traditional fossil fuels, contributing to reduced greenhouse gas emissions.
 

North America biodiesel market is anticipated to reach more than USD 26 billion by 2032. The region has a well-established agricultural sector, particularly in the United States and Canada, which provides a steady and abundant supply of feedstock such as soybean and canola oil, commonly used in biodiesel production. Additionally, stringent environmental regulations and a growing emphasis on reducing carbon emissions in North America have led to increased government support and incentives for biofuel production and consumption. Companies in the country are investing significant amount and establishing partnership to use biofuels in industries.
 

Biodiesel Market Share

Renewable Energy Group holds a significant position within the biodiesel business, acknowledged for its widespread utility across diverse industries. Leveraging a strong legacy entrenched in the solar energy sectors, the company has successfully provided biodiesel solutions catering to a broad range of applications in commercial, industrial, and utility domains.
 

Biodiesel Market Companies

The major companies are focusing on marketing strategies, technological advancements, brand recognition and economies of scale to meet the competition prevailing in the industry. The key industry market players include:

• Abellon Clean Energy
• Ag Processing, Inc.
• ALTRET GREENFUELS LIMITED
• Anellotech
• Archer Daniels Midland Company (ADM)
• Bunge Ltd.
• Cargill
• Chevron Corporation
• Clariant
• FutureFuel Corporation
• Greenergy
• Manuelita S.A.
• Renewable Biofuels, Inc.
• Renewable Energy Group
• TerraVia Holdings, Inc.
• Total Energies
• Universal Biofuels Private Limited
• Washwell Biodiesel
• Wilmar International Ltd.
   

Biodiesel Industry News

• In January 2022, the US Environmental Protection Agency unveiled a strategic initiative aimed at enhancing the efficiency of the evaluation process for biofuels and chemicals capable of serving as viable alternatives to higher greenhouse gas (GHG)-emitting fossil fuels. This initiative is anticipated to significantly bolster the biofuels market.
   
• In November 2022, Technip Energies secured a contract from Total Energies to produce Sustainable Aviation Fuel (SAF) at the Grandpuits platform in France. The contractual scope encompasses Engineering, Procurement, and Construction (EPC) assistance, facilitating the transformation of the refinery into a zero-crude platform with a primary focus on SAF. The facility's annual production capacity is approximately 210,000 metric tons.
   

The biodiesel market research report includes in-depth coverage of the industry with estimates & forecast in terms of “USD Billion” from 2019 to 2032, for the following segments:

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Market, By Feedstock

• Animal Fat
• Vegetable Oil
• Others

Market, By Application

• Transportation
• Power Generation
• Others

The above information has been provided for the following countries across the regions:

• North America
  • U.S.
  • Canada 
• Europe
  • Germany
  • France
  • UK
  • Spain
  • Italy
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • South Africa
• Latin America
  • Brazil
  • Argentina