Biodiesel Market Size, Share, Growth Analysis, By Feedstock(Vegetable Oils, Animal Fats, and others), By Application(Fuel, Power Generation, Transportation, and others), By Region - Industry Forecast 2024-2031

Biodiesel Market size was valued at USD 40 billion in 2022 and is poised to grow from USD 42.69 billion in 2023 to USD 64.27 billion by 2031, growing at a CAGR of 5.25% in the forecast period (2024-2031).

Increasing demand for biodiesel to replace traditional fossil fuels in power generation and automotive applications is projected to bring an extensive growth in the global biodiesel market. The growing demand for environment friendly fuels that ensure complete combustion and can help to reduce greenhouse gas emissions is another major factor likely to have a positive impact on the market. Also, government aid like subsidies and imposing mandates indicates a continuous of the biodiesel market growth.

In 2021, the demand for biodiesel declined to 39.5M tonnes after five years of solid growth, mainly a result of reduced transport activities during the pandemic. However, in 2019, global consumption of biodiesel started to recover robustly. Despite the low prices for conventional types of fuel, the global energy market is striving to adhere to the Paris Agreement by reducing greenhouse gas emissions and shifting towards using sustainable forms of energy, which is likely to promote the use of biodiesel across the globe.

Biodiesel has a high demand in the automotive industry as it emits less greenhouse gasses. As a result, the demand in the global biodiesel market is expected to witness a rise during the forecast period. For instance, Volvo CE India has announced that its customers across the country will have access to select biodiesel blends to run their Volvo machines.

US Biodiesel Market is poised to grow at a sustainable CAGR for the next forecast year.