Biodiesel Market Size, Share, and Growth Analysis

Global Biodiesel Market

Biodiesel Market By Type (Methanol, Biohydrogen, Cellulosic Ethanol), By Blend (B100 B20, B10, B5), By Production Technology (Pyrolysis, Transesterification), By Feedstock type (Vegetable Oils, Animal Fats), By Application (Transportation, Power Generation, Heating, Industrial Use), By End User (Automotive, Aerospace, Marine, Power Utilities), By Distribution Channel, By Region - Industry Forecast 2025-2032


Report ID: SQMIG10F2029 | Region: Global | Published Date: June, 2025
Pages: 197 |Tables: 209 |Figures: 79

Format - word format excel data power point presentation

Biodiesel Market Insights

Global Biodiesel Market size was valued at USD 42.69 billion in 2023 and is poised to grow from USD 44.91 billion in 2024 to USD 67.37 billion by 2032, growing at a CAGR of 5.2% during the forecast period (2025-2032).

The biodiesel industry is exhibiting strong growth fueled by a number of core drivers such as increasing environmental consciousness, stringent fuel emission laws, and the worldwide trend toward renewable energy. Governments of regions like North America, Europe, and Asia-Pacific are actively encouraging biodiesel through mandates and subsidies. For instance, the European Union's Renewable Energy Directive (RED II) obliges a minimum of 14% transport renewable energy by 2030, which is driving biodiesel demand. Likewise, the U.S. Renewable Fuel Standard (RFS) promotes blending biodiesel with conventional diesel for lowering greenhouse gas emissions. All these regulatory systems, in addition to increasing crude oil prices and demand for clean, domestically sourced fuel, are promoting biodiesel market growth.

On the restraint side, the biodiesel industry faces availability and volatility of feedstock concerns. Biodiesel is primarily derived from vegetable oils, animal fats, and recycled greases from production waste, all of which are required for consumption. This presents a food vs. fuel dilemma that creates pressure on policymakers to restrict biodiesel production. Besides, the higher price of biodiesel compared to petroleum diesel, especially where there is minimal support from subsidies, limits mass commercial acceptance.

Technology constraints on cold flow characteristics and engine compatibility in some cases also limit broader use, particularly under colder climates and older diesel engines. Against these limitations, opportunities for new growth are being fueled by technological developments and innovation in second- and third-generation biodiesel. Low-impact waste-based and algae-based biodiesel are gathering momentum since they have minimal environmental impact and do not disrupt the food chain significantly. Strategic collaborations between governments, oil majors, and biofuel start-ups are also fueling R&D efforts towards economically and operationally making biodiesel a reality. Overall, the biodiesel market will grow gradually, and the growing economies in Asia-Pacific and Latin America have untapped potential in the face of increasing energy demand and renewable uptake targets.

How AI is Transforming Biodiesel Market?

Artificial intelligence (AI) and the Internet of Things (IoT) are transforming the biodiesel sector significantly by making production more intelligent and efficient. AI models—e.g., neural networks and random forests—are utilized to predict fatty acid profiles, reaction parameters, and fuel properties (cetane number, cold filter plugging point) with high precision (R² 0.85–0.99). AI-enabled sensors are installed throughout plants to monitor temperature, pressure, and quality of feedstocks in real time, providing inputs to AI platforms that adjust process variables in real time for yields and energy savings.

Research in January 2025 in the journal Sustainable Energy Technologies and Assessments demonstrated that AI/ML-based algorithms optimized the transesterification of animal and plant fats with yields of over 90% consistently. The research emphasized the point that advanced AI algorithms are not only predictive but can actually be used to optimize process parameters such as temperature, catalyst loading, and reaction time in order to achieve maximum yield and quality of biodiesel. ANN and ANFIS models gave predictive efficiencies between R² = 0.85 to 0.99, a milestone in bringing high accuracy together with economic feasibility in commercial-scale biodiesel production.

Market snapshot - 2025-2032

Global Market Size

USD 42.69 billion

Largest Segment

Vegetable Oils

Fastest Growth

Vegetable Oils

Growth Rate

5.2% CAGR

Global Biodiesel Market ($ Bn)
Country Share for North America Region (%)

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Biodiesel Market Segments Analysis

The global biodiesel market is segmented by Type, Blend, Production Technology, Feedstock type, Application, End User, Distribution Channel and region. Based on Type, the market is segmented into Methanol, Biohydrogen and Cellulosic Ethanol. Based on Blend, the market is segmented into B100, B20, B10, B5 and Others. Based on Production Technology, the market is segmented into Pyrolysis, Trans-esterification and Others. Based on Feedstock type, the market is segmented into Vegetable Oils, Animal Fats and Others. Based on Application, the market is segmented into Transportation, Power Generation, Heating, Industrial Use and Others. Based on End User, the market is segmented into Automotive Industry, Aerospace Industry, Marine Industry, Power Utilities and Others. Based on Distribution Channel, the market is segmented into Direct Sales, Third-party Distributors and Retail Fuel Stations. Based on region, the biodiesel market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.

Why Are Vegetable Oils Dominating While Animal Fats Are Emerging as the Fastest-Growing Feedstock in the Biodiesel Market?

As per global biodiesel market outlook, the vegetable oils segment is dominant in the market. Vegetable oils, such as soybean, rapeseed, palm, and sunflower oil, are widely produced globally for food consumption, resulting in a readily available and cost-effective source for biodiesel production. Additionally, the compatibility of vegetable oils with existing biodiesel production technologies contributes to their dominance. Moreover, government policies and incentives often favor the use of vegetable oils for biodiesel production due to their lower carbon intensity and potential positive impact on agricultural sectors. Besides this, consumers and industries are increasingly demanding sustainable and environmentally friendly products, which align with the use of vegetable oils as a renewable feedstock. 

As per global biodiesel market analysis, animal fats segment is the fastest growing as it offers a sustainable and cost-effective alternative to vegetable oils in biodiesel production. Animal fats, such as tallow, lard, and poultry fat, are byproducts of the meat processing industry and are readily available at a lower cost compared to traditional feedstocks like soybean or palm oil. Their high lipid content and efficiency in producing biodiesel make them an attractive option for manufacturers aiming to reduce production costs. Additionally, the use of animal fats in biodiesel contributes to waste management and environmental sustainability by repurposing byproducts that would otherwise be discarded.

Why Is Transportation the Dominant Application Segment in the Biodiesel Market, and Why Is Power Generation Emerging as the Fastest Growing Use Case?

The Application segment holds the largest share in the biodiesel market due to the government regulations and policies mandating the blending of biodiesel with Transportation. Governments worldwide target transportation as the primary sector for biodiesel due to its compatibility with existing diesel engines and infrastructure. Policies like the US Renewable Fuel Standard and DOE’s $118 million biofuels investment, the EU’s RED II mandates for transport blends, and Asia-Pacific mandates have made transportation responsible for the lion’s share of global biodiesel demand—approximately 65.9 Mt in 2023—with transportation fuels accounting for over 58 % of application share. Emerging economy mandates in Brazil, India, and Indonesia, focused on decarbonizing heavyduty transport, reinforce this dominance.   

Power generation is the fastest growing segment in the biodiesel market as global efforts to transition toward cleaner energy sources intensify. Biodiesel is being adopted as a sustainable alternative to conventional fossil fuels in power plants and distributed energy systems. Its ability to reduce greenhouse gas emissions and particulate matter, while being compatible with existing diesel engines, makes it an attractive choice for electricity generation. Additionally, biodiesel's biodegradability and non-toxic nature address environmental concerns associated with Transportation, aligning with global energy and climate goals. In off-grid and rural regions, biodiesel-powered generators are proving to be a reliable solution for energy access, especially where grid infrastructure is inadequate.

Global Biodiesel Market Analysis by Feedstock Type

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Biodiesel Market Regional Insights

Why Europe is Dominating Biodiesel Market?

Europe dominates the biodiesel market share, holding roughly 28 % of the global share in 2023 Strict EU regulations—like RED II mandates for blending biodiesel in transport—combined with national policies (e.g., Germany’s B7, Sweden’s expansion to B45 by 2025) support this leadership. Governments continuously invest in infrastructure upgrades and feedstock diversification, reinforcing Europe's dominant position.

Germany Biodiesel Market

Germany leads Europe’s biodiesel production due to strong federal mandates and high consumption in transport. Verbio, a top player, expanded capacity using agricultural residues. In 2024, Germany enforced stricter CO₂ limits under the Fuel Emissions Trading Act, incentivizing advanced biodiesel adoption, especially in heavy-duty transport and fleet vehicles.

France Biodiesel Market

France holds a significant share driven by its rapeseed oil production. Saipol dominates through sustainable biodiesel (Diester) aligned with France’s low-carbon energy policies. In 2024, France updated its Energy and Climate Law to prioritize low ILUC-risk biofuels, boosting local demand and integrating traceability tools across its biodiesel market supply chain.

Italy Biodiesel Market

Italy is advancing with second-generation biodiesel from waste via Eni’s biorefineries. Eni converted old fossil refineries into biofuel plants in Venice and Gela. In 2023, Italy’s Ministry of Environment approved €500M in incentives for waste-based biodiesel, aligning with Fit-for-55 targets and enhancing supply chain innovation.

How is North America is Largest Single in Biodiesel Industry?

North America stands as the largest regional biodiesel market growth, the U.S. leads due to strong policy support like the Renewable Fuel Standard and biodiesel tax incentives. REG, acquired by Chevron, expanded its production to over 340 million gallons. In 2024, the U.S. DOE committed $118M for biofuel R&D to decarbonize transport and strengthen domestic fuel security.

U.S. Biodiesel Market

The U.S. leads the region due to robust policies like the Renewable Fuel Standard (RFS) and Biodiesel Tax Credit. In 2024, REG expanded its Iowa facility to 340 million gallons annually. The U.S. Department of Energy invested $118M in biofuel R&D, focusing on reducing transport emissions and boosting domestic energy security​.

Canada Biodiesel Market

Canada’s biodiesel market demand is expanding, driven by its Clean Fuel Regulations (CFR), which mandate increasing biofuel content. BIOX operates facilities in Ontario and Quebec. In 2024, Canada launched a national Bioeconomy Strategy, aiming for 15% low-carbon fuel blend by 2030 and supporting regional biodiesel infrastructure with $200M in federal funding.

Why Asia Pacific Leading Biodiesel Market in 2024?

Asia Pacific is the region with the fastest growth, growing between 2024 and 2030, with revenues increasing from USD 19.8 billion in 2023 to USD 43.9 billion by 2030. Favorable government policies like Thailand's B5 biodiesel mandate and growing liquid Biodiesel segment are responsible for the increase.

China Biodiesel Market

China is a growing biodiesel market trends with emphasis on waste oil and animal fat feedstocks. In 2023, the government introduced tax incentives for biodiesel from recycled sources. China Clean Energy has scaled production to align with pilot blending projects in major cities under the 14th Five-Year Renewable Energy Plan.

India Biodiesel Market

India is pushing biodiesel from used cooking oil (UCO) and non-edible sources. In 2024, the government launched 200+ UCO biodiesel collection centers under the Repurpose Used Cooking Oil (RUCO) program. IOC leads with strategic refinery integration and aims to meet India’s 5% biodiesel blending target by 2030.

Indonesia Biodiesel Market

Indonesia dominates biodiesel market growth in Asia-Pacific due to abundant palm oil feedstock and strong B40 blending mandates. In March 2025, the government fully implemented B40 nationwide, with plans for B50 by 2028. Wilmar, a key player, expanded refining capacity to meet domestic blending and regional export demand.

Global Biodiesel Market By Geography
  • Largest
  • Fastest

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Biodiesel Market Dynamics

Biodiesel Market Drivers

Government Policies and Incentives

  • Governments around the world are implementing policies to encourage the use of renewable energy sources, such as biodiesel. For example, the US Environmental Protection Agency (EPA) noted that the Renewable Fuel Standard (RFS) requires increased biodiesel production. The RFS aims for 2.43 billion gallons of biomass-based fuel in 2022, demonstrating the commitment to biodiesel as a vital renewable energy source.

Rising Environmental Concerns

  • Increasing knowledge of climate change and its consequences is driving the transition to cleaner fuels. According to an International Energy Agency (IEA) report, biofuels, including biodiesel, accounted for around 4% of worldwide transport fuel demand in 2020, with growth expected as countries work to reduce greenhouse gas emissions. The growing emphasis on decreasing carbon footprints feeds the need for biodiesel.

Biodiesel Market Restraints

Feedstock Availability and Cost

  • The cost and availability of feedstock, such as vegetable oils and animal fats, have a significant impact on biodiesel prices. Fluctuations in agricultural output or competition from food production might raise prices, making biodiesel less viable. Furthermore, fluctuations associated with petroleum prices and supply issues associated with crude oil are further anticipated to negatively impact the global biodiesel market growth.

Infrastructure and Distribution Limitations

  • Blending, storing, and distributing biodiesel necessitates the use of infrastructure. The lack of extensive infrastructure in certain places impedes biodiesel adoption, restricting its growth potential. The expansion of biodiesel feedstock cultivation raises concerns about land use change and potential deforestation. These environmental and sustainability concerns pose restraints on market growth, prompting the industry to address and mitigate the ecological impact associated with biodiesel production.

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Biodiesel Market Competitive Landscape

The competitive landscape of the biodiesel market features a diverse array of players, ranging from established multinational corporations to innovative startups. These companies are actively engaged in biodiesel production, distribution, and research and development. The market's competitive dynamics are influenced by factors such as technological advancements, feedstock availability, production capacity, and geographical presence. Key players are continuously investing in research to enhance production efficiency and explore new feedstock sources.

Top Player’s Company Profiles in Biodiesel Market

  • Neste Corporation (Finland)
  • BIOX Corporation (Canada)
  • Emami Agrotech Ltd. (India)
  • Biodiesel Misr (Egypt)
  • Greenergy International Ltd. (United Kingdom)
  • FutureFuel Corp. (USA)
  • ADM Biodiesel (USA)
  • Cargill Bioindustrial (USA)
  • Louis Dreyfus Company (Netherlands)
  • Munzer Bioindustrie GmbH (Austria)
  • Delta American Fuel, LLC (USA)
  • Eversa (Denmark)
  • Petrotec AG (Germany)
  • Biopetrol Industries AG (Switzerland)
  • Ag Processing Inc (AGP) (USA)
  • Eco Eriania S.p.A. (Italy)
  • Bunge Iberica S.A. (Spain)
  • Jatropower AG (Switzerland)
  • Saka Energi Indonesia (Indonesia)

Recent Developments in Biodiesel Market

  • October 2024, The ORLEN Group started sales of its HVO100 fuel at two service stations in Germany. HVO100 is a second-generation biofuel, made from vegetable oils and waste products from the food and hospitality industries. The fuel can be used in most diesel engine vehicles without any modifications.
  • September 2024, Indian Oil Corporation achieved a biodiesel blending ratio of 0.49 percent, blending 23.24 crore liters of biodiesel with regular diesel. This surpassed the 0.43 percent blending ratio achieved by other oil marketing companies.
  • August 2024, Petrobras, Brazil’s state energy corporation, has expressed interest in repurchasing the Bahia biofuel facility that it sold to Mubadala. This emphasizes the strategic importance of biofuels in Brazil’s energy future.

Biodiesel Key Market Trends

Biodiesel Market SkyQuest Analysis

SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected using Primary Exploratory Research backed by robust Secondary Desk research.

According to SkyQuest analysis, the rising demand for biodiesel in the transportation industry as a fuel that provides better efficiency as compared to gasoline and is environment friendly. Besides this, the growing adoption of high-quality biodiesel in construction and mining equipment is offering a positive market outlook in the country. Additionally, the Government of India is encouraging the adoption of cleaner fuels to reduce the harmful greenhouse gas (GHG) emissions in the environment. This, coupled with the rising demand for domestic fuel alternatives, such as biodiesel, due to the inflating crude oil prices, is propelling the growth of the market. Apart from this, various benefits offered by biodiesel, such as enhanced air quality and improved energy security, are offering lucrative growth opportunities to industry investors. Moreover, the increasing energy demand, along with the rising utilization of biodiesel as heating oil in domestic and commercial boilers, is bolstering the growth of the market in India. Compatibility issues with existing diesel engines and infrastructure challenges hinder the seamless integration of biodiesel into conventional fuel systems, affecting its widespread adoption and market penetration.

Report Metric Details
Market size value in 2023 USD 42.69 billion
Market size value in 2032 USD 67.37 billion
Growth Rate 5.2%
Base year 2024
Forecast period 2025-2032
Forecast Unit (Value) USD Billion
Segments covered
  • Type
    • Methanol
    • Biohydrogen
    • Cellulosic Ethanol
  • Blend
    • B100
    • B20
    • B10
    • B5
    • Others
  • Production Technology
    • Pyrolysis
    • Trans-esterification
    • Others
  • Feedstock Type
    • Vegetable Oils
    • Animal Fats
    • Others
  • Application
    • Transportation
    • Power Generation
    • Heating
    • Industrial Use
    • Others
  • End User
    • Automotive Industry
    • Aerospace Industry
    • Marine Industry
    • Power Utilities
    • Others
  • Distribution Channel
    • Direct Sales
    • Third-party Distributors
    • Retail Fuel Stations
Regions covered North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA)
Companies covered
  • Neste Corporation (Finland)
  • BIOX Corporation (Canada)
  • Emami Agrotech Ltd. (India)
  • Biodiesel Misr (Egypt)
  • Greenergy International Ltd. (United Kingdom)
  • FutureFuel Corp. (USA)
  • ADM Biodiesel (USA)
  • Cargill Bioindustrial (USA)
  • Louis Dreyfus Company (Netherlands)
  • Munzer Bioindustrie GmbH (Austria)
  • Delta American Fuel, LLC (USA)
  • Eversa (Denmark)
  • Petrotec AG (Germany)
  • Biopetrol Industries AG (Switzerland)
  • Ag Processing Inc (AGP) (USA)
  • Eco Eriania S.p.A. (Italy)
  • Bunge Iberica S.A. (Spain)
  • Jatropower AG (Switzerland)
  • Saka Energi Indonesia (Indonesia)
Customization scope

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Table Of Content

Executive Summary

Market overview

  • Exhibit: Executive Summary – Chart on Market Overview
  • Exhibit: Executive Summary – Data Table on Market Overview
  • Exhibit: Executive Summary – Chart on Biodiesel Market Characteristics
  • Exhibit: Executive Summary – Chart on Market by Geography
  • Exhibit: Executive Summary – Chart on Market Segmentation
  • Exhibit: Executive Summary – Chart on Incremental Growth
  • Exhibit: Executive Summary – Data Table on Incremental Growth
  • Exhibit: Executive Summary – Chart on Vendor Market Positioning

Parent Market Analysis

Market overview

Market size

  • Market Dynamics
    • Exhibit: Impact analysis of DROC, 2021
      • Drivers
      • Opportunities
      • Restraints
      • Challenges
  • SWOT Analysis

KEY MARKET INSIGHTS

  • Technology Analysis
    • (Exhibit: Data Table: Name of technology and details)
  • Pricing Analysis
    • (Exhibit: Data Table: Name of technology and pricing details)
  • Supply Chain Analysis
    • (Exhibit: Detailed Supply Chain Presentation)
  • Value Chain Analysis
    • (Exhibit: Detailed Value Chain Presentation)
  • Ecosystem Of the Market
    • Exhibit: Parent Market Ecosystem Market Analysis
    • Exhibit: Market Characteristics of Parent Market
  • IP Analysis
    • (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
  • Trade Analysis
    • (Exhibit: Data Table: Import and Export data details)
  • Startup Analysis
    • (Exhibit: Data Table: Emerging startups details)
  • Raw Material Analysis
    • (Exhibit: Data Table: Mapping of key raw materials)
  • Innovation Matrix
    • (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
  • Pipeline product Analysis
    • (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
  • Macroeconomic Indicators

COVID IMPACT

  • Introduction
  • Impact On Economy—scenario Assessment
    • Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
  • Revised Market Size
    • Exhibit: Data Table on Biodiesel Market size and forecast 2021-2027 ($ million)
  • Impact Of COVID On Key Segments
    • Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
  • COVID Strategies By Company
    • Exhibit: Analysis on key strategies adopted by companies

MARKET DYNAMICS & OUTLOOK

  • Market Dynamics
    • Exhibit: Impact analysis of DROC, 2021
      • Drivers
      • Opportunities
      • Restraints
      • Challenges
  • Regulatory Landscape
    • Exhibit: Data Table on regulation from different region
  • SWOT Analysis
  • Porters Analysis
    • Competitive rivalry
      • Exhibit: Competitive rivalry Impact of key factors, 2021
    • Threat of substitute products
      • Exhibit: Threat of Substitute Products Impact of key factors, 2021
    • Bargaining power of buyers
      • Exhibit: buyers bargaining power Impact of key factors, 2021
    • Threat of new entrants
      • Exhibit: Threat of new entrants Impact of key factors, 2021
    • Bargaining power of suppliers
      • Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
  • Skyquest special insights on future disruptions
    • Political Impact
    • Economic impact
    • Social Impact
    • Technical Impact
    • Environmental Impact
    • Legal Impact

Market Size by Region

  • Chart on Market share by geography 2021-2027 (%)
  • Data Table on Market share by geography 2021-2027(%)
  • North America
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • USA
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Canada
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Europe
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • Germany
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Spain
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • France
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • UK
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of Europe
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Asia Pacific
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • China
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • India
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Japan
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • South Korea
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of Asia Pacific
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Latin America
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • Brazil
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of South America
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Middle East & Africa (MEA)
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • GCC Countries
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • South Africa
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of MEA
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)

KEY COMPANY PROFILES

  • Competitive Landscape
    • Total number of companies covered
      • Exhibit: companies covered in the report, 2021
    • Top companies market positioning
      • Exhibit: company positioning matrix, 2021
    • Top companies market Share
      • Exhibit: Pie chart analysis on company market share, 2021(%)

Methodology

For the Biodiesel Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:

1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.

2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Biodiesel Market.

3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.

4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.

Analyst Support

Customization Options

With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Biodiesel Market:

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FAQs

The global biodiesel market was valued at USD 44.91 billion in 2024 and is projected to reach USD 67.37 billion by 2032, growing at a CAGR of 5.2% from 2025 to 2032.

Major players include Neste Corporation (Finland), BIOX Corporation (Canada), Emami Agrotech Ltd. (India), biodiesel Misr (Egypt), Greenergy International Ltd. (United Kingdom), FutureFuel Corp. (USA), ADM biodiesel (USA), Cargill Bioindustrial (USA), Louis Dreyfus Company (Netherlands), Munzer Bioindustrie GmbH (Austria), Delta American Fuel, LLC (USA), Eversa (Denmark), Petrotec AG (Germany), Biopetrol Industries AG (Switzerland), Ag Processing Inc (AGP) (USA), Eco Eriania S.p.A. (Italy), Bunge Iberica S.A. (Spain), Jatropower AG (Switzerland), Saka Energi Indonesia (Indonesia), and more.

Increased environmental concerns and related government support, as well as renewable fuel requirements, and the compelling need for cleaner energy alternatives, are the main growth drivers that are increasing biodiesel opportunities in transportation, power, and industrial applications.

Europe is the top region with a 28% market share due to restrictive EU mandates such as RED II, national blending targets (e.g. B7 in Germany and B45 in Sweden), sector infrastructure investments, and advanced feedstock use resulting in a greater biodiesel presence across the continent.

The trends we are seeing in the biodiesel industry revolve around adopting second- and third-generation biodiesel (e.g., algae, waste oils), AI-based process optimization, and sustainable feedstocks that meet targets for climate change while avoiding food vs. fuel types of conflicts.

Government regulations are stimulating the biodiesel industry's growth via mandates (e.g., RED II, RFS), tax incentives and biofuels targets because they increase blending requirements and range of R&D for fuels (biodiesel). This enables biodiesel to be more feasible and more competitive internationally.

Bins feedstock price fluctuation concerns, food vs. fuel issues, infrastructure limitations, and also cold weather - as well as production costs of biodiesel being more than petroleum diesel are the largest restraints on the wider adoption of biodiesel.

Advances in technology, such as AI/ML used for process control, catalytic processing improvements and optimized transesterification processes are improving yield potential and cost efficiencies, and other development while allowing biodiesel to be made in a large and efficient process that includes the use of new feedstocks.

Sustainability goals and mandates for emission reduction create demand for biodiesel. Its biodegradability, lower carbon intensity, and role in GHG reduction fit well within global climate and environmental policy frameworks.

Transportation has the most demand due to global blending mandates, while power generation is the fastest growing sector due to biodiesel's clean-burning properties/Diesel infrastructure compatibility.

The price of the feedstock materials for biodiesel are the primary cost. The high levels of dependence on vegetable oils and animal fats creates price slipping that is impacted by agricultural trends which affects food demand. That dependence can create uncertainty and concern for the viability of commercial growth.

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Global Biodiesel Market
Biodiesel Market

Report ID: SQMIG10F2029

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