What Has Been the Growth of the Biodiesel Market So Far?
The biodiesel market has seen considerable growth due to a variety of factors.
• The size of the biodiesel market has seen substantial growth in recent years, increasing from $57.91 billion in 2024 to an expected $61.52 billion in 2025, reflecting a compound annual growth rate (CAGR) of 6.2%. Factors contributing to this growth during this historic period include escalating crude oil costs, environmental regulatory measures, fluctuating supply of fossil fuels, worries over energy security, heightened consumer awareness and preferences, and the demand in the transportation sector.
How Will the Biodiesel Market Size Evolve over the Forecast Period?
The Biodiesel market is expected to maintain its strong growth trajectory in upcoming years.
• Predictions indicate a robust expansion of the biodiesel market in the coming years, with its valuation projected to reach $77.94 billion by 2029, expanding at a compound annual growth rate (CAGR) of 6.1%.
Factors contributing to this growth include worldwide development of biodiesel production capabilities, emphasis on eco-friendly aviation fuels, mandates for biodiesel blending, advancements in biodiesel distribution methods, and expansion of sustainable farming. Key trends that will shape the market during this period are the incorporation of technology in biodiesel production, advancements in feedstock technology, cooperative ventures and partnerships, investments in biodiesel infrastructure, and the establishment of quality standards and certifications for biodiesel.
Which Factors Are Boosting Growth In The Biodiesel Market?
The growth of the biodiesel market is anticipated to be driven by a surge in demand for biofuels. These are greener alternatives produced from renewable resources, comprising both new and used vegetable oils, as well as animal fats. The escalating concern about the environment and the growing requirement for renewable and sustainable energy sources heighten the need for biofuel. Biodiesel is such a biofuel, minimizing the carbon footprint of the transportation sector and other industries. For instance, in September 2024, IFP Energies Nouvelles (IFPEN), a US organization, reported a rise by over 2.7% in the share of alternative energies to conventional gasoline and diesel fuels, such as biofuels, LPG1, NGV2, and electricity. In 2022, these accounted for 8.4% of the total fuel consumption. Consequently, the escalating demand for biofuel is propelling the growth of the biodiesel market.
What Key Areas Define The Segmentation Of The Global Biodiesel Market?
The biodiesel market covered in this report is segmented –
1) By Feedstock: Vegetable Oil, Animal Fats
2) By Production Process: Alcohol Trans Esterification, Hydro-Heating
3) By Application: Fuel, Power Generation, Agriculture
Subsegments:
1) By Vegetable Oil: Soybean Oil, Canola Oil, Palm Oil, Sunflower Oil, Other Vegetable Oils
2) By Animal Fats: Tallow, Poultry Fat, Fish Oil, Other Animal Fats
Pre-Book The Biodiesel Global Market Report 2025 Report For Swift Delivery And Comprehensive Insights:
How Are Emerging Trends Reshaping The Dynamics Of The Biodiesel Market?
The rise in technological innovation is currently a notable trend within the biodiesel market. Main players within the biofuel industry are pivoting their focus towards devising new tech solutions to solidify their market standing. A prime example of this is Crown Iron Works, an American firm specializing in oilseed extraction technology, refining plants, and equipment. They unveiled the Advanced Catalyst Reduction and Economization (ACRE) in January 2022, a sophisticated enhancement to refine their existing biodiesel process technology. ACRE uses an additional transesterification reactor to lengthen residence time and execute stoichiometric reactions, thus maximizing the potential for catalyst reuse. Besides the catalyst reduction, ACRE is highly energy efficient, enabling biodiesel manufacturers to cut costs on steam and electricity. The technique reduces the need for fresh steam injection by using economizers and heat exchangers to take advantage of extra process heat. Crown Iron Works considers ACRE as one of their groundbreaking creations. Hence, continuous technological advancements in biodiesel processing offer the potential to boost productivity and bring down costs through improved efficiency.
Who Are the Key Players In The Biodiesel Market?
Major companies operating in the biodiesel market include:
• Archer-Daniels-Midland Company
• Cargill Incorporated
• Renewable Energy Group Inc.
• Wilmar International Limited
• Bunge Limited
• Neste Corporation
• BIOX Corporation
• Munzer Bioindustrie GmbH
• Emami Agrotech Limited
• Louis Dreyfus Company B.V.
• Crimson Renewable Energy L.P.
• Green Energy Biofuel LLC
• FutureFuel Corp.
• Delta American Fuel LLC
• HERO BX LLC
• Western Dubuque Biodiesel LLC
• Iowa Renewable Energy LLC
• Flint Hills Resources LLC
• World Energy Alternatives LLC
• Lake Erie Biofuels LLC
• Pacific Biodiesel Technologies LLC
• SeQuential LLC
• White Mountain Biodiesel LLC
• Blue Sun Biodiesel LLC
• Community Fuels Inc.
• Newport Biodiesel LLC
• Piedmont Biofuels Industrial LLC
• Verbio Vereinigte BioEnergie AG
What Is The Most Dominant Region In The Biodiesel Market?
Western Europe was the largest region in the biodiesel market share in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the biodiesel market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
