Renewable Diesel Market Report 2026

Renewable Diesel Market Overview

• Renewable Diesel market size has reached to $24.51 billion in 2025 • Expected to grow to $38.85 billion in 2030 at a compound annual growth rate (CAGR) of 9.6% • Growth Driver: Rising Demand For Sustainable Fuels Driving The Growth Of The Market Due To Environmental Regulations And Low-Emission Alternatives • Market Trend: Advancements In Lower-GHG Emission Fuels Driving Sustainability In The Renewable Diesel Market • North America was the largest region in 2025 and Asia-Pacific is the fastest growing region.

What Is Covered Under Renewable Diesel Market?

Renewable diesel is an eco-friendly, clean-burning fuel produced from renewable resources. It has the same chemical composition as petroleum diesel, enabling its use in existing diesel engines and infrastructure without the need for modifications. Through a specialized refining process, it delivers a high cetane number, superior combustion performance, and significantly reduced greenhouse gas emissions compared to conventional fossil diesel. The main renewable diesel feedstocks include soybean oil, palm oil, animal fats, vegetable oils, and used cooking oil. Soybean oil refers to the refined oil extracted from soybeans that is used as a primary renewable raw material for producing hydrotreated vegetable oil (HVO), offering a sustainable alternative to petroleum-based diesel. It uses various production processes such as hydrotreating, fischer-tropsch (FT) process, pyrolysis, and others, and is distributed through direct sales and distributors. It is used for various end uses, including automotive, marine, aerospace, power generation, and others.

What Is The Renewable Diesel Market Growth Forecast?

The renewable diesel market size is expected to see strong growth in the next few years. It will grow to $38.85 billion in 2030 at a compound annual growth rate (CAGR) of 9.6%. The growth in the forecast period can be attributed to stricter emission regulations, growth of renewable fuel standards, expansion of aviation and marine fuels, increased feedstock availability, investment in advanced biofuel plants. Major trends in the forecast period include rising adoption of low carbon fuels, expansion of drop in diesel alternatives, growing use in heavy duty transport, increased investment in bio refineries, focus on waste based feedstocks.

What Is The Driver Of The Renewable Diesel Market?

The rising demand for sustainable fuels is anticipated to fuel the growth of the renewable diesel market going forward. Sustainable fuels are renewable or low-carbon energy sources that reduce environmental impact and support long-term energy security. The demand for sustainable fuels is rising as industries face increasing pressure from stringent environmental regulations to reduce emissions and achieve climate goals. Rising demand for sustainable fuels boosts renewable diesel as it’s a low-emission, ready-to-use alternative that helps meet climate goals without changing current diesel systems. For instance, in November 2024, according to the Department for Transport, a UK-based government department, the UK supplied 3,700 million liters equivalent of renewable fuel in 2023, accounting for 7.5% of all fuel used in road and non-road mobile machinery, up from 6.8% in 2022. Therefore, the rising demand for sustainable fuels will drive the growth of the renewable diesel industry.

Key Players In The Global Renewable Diesel Market

Major companies operating in the renewable diesel market are Neste Oyj, Valero Energy Corporation, Marathon Petroleum Corporation, Chevron Corporation, Phillips 66, BP p.l.c., Shell plc, TotalEnergies SE, Eni S.p.A., Repsol S.A., Exxon Mobil Corporation, PBF Energy Inc., Calumet Inc., Par Pacific Holdings Inc., Preem AB, UPM-Kymmene Corporation, Petrobras, Ampol Limited, OMV AG, Saras S.p.A., CEPSA, HF Sinclair Corporation

Global Renewable Diesel Market Trends and Insights

Major companies operating in the renewable diesel market are focusing on developing innovative solutions, such as lower-GHG emission fuels, to reduce their carbon footprint. Lower-GHG emission fuels are energy sources that produce fewer greenhouse gases compared to conventional fossil fuels, helping to reduce environmental impact and mitigate climate change. For instance, in August 2024, ExxonMobil Hong Kong Limited (EMHK), a China-based provider of petroleum products, launched the Esso Renewable Diesel R20 for use on public roads in Hong Kong. Esso Renewable Diesel R20 is a premium fuel formulated with a minimum of 20% renewable content, delivering approximately 15.4% lower lifecycle greenhouse gas emissions compared to traditional diesel. Fully compatible with existing diesel engines, it ensures dependable performance and engine cleanliness through the use of Esso’s proprietary Synergy additive. This launch underscores Esso’s dedication to providing lower-emission fuel solutions for Hong Kong’s transportation sector.

What Are Latest Mergers And Acquisitions In The Renewable Diesel Market?

In November 2023, Neste Corporation, a Finland-based provider of renewable diesel, sustainable aviation fuel, and renewable feedstock for polymers and chemicals, entered a strategic partnership with Hightowers Petroleum to supply renewable diesel to customers in the U.S. Midwest region. Through this partnership, Neste aims to expand market reach, enhance the availability of lower-emission fuels, and support businesses in reducing greenhouse gas emissions across a high-demand area. Hightowers Petroleum is a US-based wholesale fuel supplier serving commercial and industrial customers with high-quality fuel products.

What Defines the Renewable Diesel Market?

The renewable diesel market consists of sales of biochar, green hydrogen, renewable lubricants, solvents, and asphalt. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

How is Market Value Defined and Measured?

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified). The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

What Key Data and Analysis Are Included in the Renewable Diesel Market Report 2026?

The renewable diesel market research report is one of a series of new reports from The Business Research Company that provides market statistics, including industry global market size, regional shares, competitors with the market share, detailed market segments, market trends and opportunities, and any further data you may need to thrive in the renewable diesel industry. The market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future state of the industry.