Biodiesel Market Outlook - Supply and Demand Analysis 2025-2034

Biodiesel Market

Biodiesel is a biodegradable and a renewable liquid fuel that is widely used as a sustainable alternative to petroleum-based diesel (prepared from crude oil). This non-toxic and ecofriendly liquid is obtained from biological sources like vegetable oils, used cooking oil, or animal fats via the process of transesterification. It is commonly used as a diesel additive; however, it can also be used as a vehicle fuel in its pure form. It is also used in generators, for heating, and cleaning oil spills. The fuel industry is the leading consumer of biodiesel, accounting for nearly 80% of the market share.

Global Supply/Demand Outlook

The global biodiesel market stood at a volume of around 60 billion liters in 2023. The market is estimated to grow at a CAGR of 6.10% between 2025 and 2034 to reach a volume of about 102.5 billion liters by 2032. The biodiesel market is being driven by the increasing demand for sustainable fuel, increasing environmental concerns, and the growing energy demands. Due to its environmental benefits, it is increasingly being adopted to power vehicles, in combination with traditional fuels. Its use as a fuel additive helps lower emissions of toxic gases including carbon monoxide, carbon dioxide, sulfur oxides, and particulate matter. Besides the high demand for biodiesel from the fuel industry, its applications in the field of power generation and marine are also witnessing a significant growth.

Regional Market Analysis

In terms of consumption, Europe leads the global market for biodiesel, accounting for nearly 42% market share. It is followed by the Asia Pacific with around 23% market share. The market growth in Europe can be attributed to favourable government policies and the increased awareness regarding climate change. The aggressive carbon reduction goals set by the government are boosting the adoption of sustainable energy sources like biodiesel in several applications.

Key Market Players

Some of the leading global manufacturers of biodiesel are Tamoil Italia S.p.A, Italiana Petroli S.p.A., Bunge, Esso Italiana S.r.l, Renewable Energy Group, Inc., PT Wilmar Bioenergi Indonesia, and Cargill Inc.

Cargill stands as one of the leading integrated manufacturers of biodiesel in the US, with its production facilities located in the Midwest: Kansas City, Missouri and Iowa Falls, Iowa. The company provides refiners and blenders with high-grade biodiesel to help fulfil their road blending needs, serving as a reliable biodiesel source.

Other significant players operating in the market are Archer Daniels Midland Company, Louis Dreyfus Company B.V., RB Fuels, Novozymes A/S, Ag Processing Inc., Neste Oyj, and Bangchak Corporation Public Company Ltd.

Key Questions Answered in the Report:

• What are the high-growth opportunities and markets for biodiesel by application and region?

• What are the feedstocks of biodiesel available by region?

• Which segments and regions are projected to grow at a faster pace and why in the biodiesel market?

• What is the nameplate capacity of biodiesel by region from 2018 to 2032?

• How does the plant capacity utilisation of biodiesel vary by region between 2018 and 2034?

• Who are the major players in the biodiesel market by capacity and region?

• What major plant shutdowns and expansions have occurred in the biodiesel market in the last year and the last quarter?

• What major plant shutdowns and expansions are planned in the biodiesel market over the next year and quarters?

• How did export and import dynamics of biodiesel vary by region in terms of value between 2018 and 2023?

• How did export and import dynamics of biodiesel vary by region in terms of volume between 2018 and 2023?

• What impacts have shutdowns, force majeure events, and plant closures had on demand and pricing of biodiesel?

• What are the environmental considerations and regulatory impacts affecting the biodiesel market?

• What technological innovations are having an impact on the production and application of biodiesel?

• What are the key trends and innovations in the biodiesel market?

• What are the challenges and opportunities faced by biodiesel manufacturers?

• What are the potential risks and barriers to entry for new players in the biodiesel market?

• What strategic investments and expansions have major players made in the biodiesel market?

• How are geopolitical factors and international trade policies affecting the global biodiesel market?

• What are the price trends for biodiesel, and how are they expected to change?

• How does the supply chain of biodiesel operate, and what are its key components?