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By Blend;
B100, B20, B10 and B5By Production Technology;
Pyrolysis, Trans-Esterification and OthersBy Feedstock Type;
Vegetable Oils, Animal Fats and OthersBy Application;
Fuel, Power Generation and OthersBy Geography;
North America, Europe, Asia Pacific, Middle East & Africa and Latin America - Report Timeline (2021 - 2031)Biodiesel Market Overview
Biodiesel Market (USD Million)
Biodiesel Market was valued at USD 50,639.24 million in the year 2024. The size of this market is expected to increase to USD 70,309.85 million by the year 2031, while growing at a Compounded Annual Growth Rate (CAGR) of 4.8%.
Biodiesel Market
*Market size in USD million
CAGR 4.8 %
| Study Period | 2025 - 2031 |
|---|---|
| Base Year | 2024 |
| CAGR (%) | 4.8 % |
| Market Size (2024) | USD 50,639.24 Million |
| Market Size (2031) | USD 70,309.85 Million |
| Market Concentration | High |
| Report Pages | 340 |
Major Players
- Archer Daniels Midland Company (ADM)
- Wilmar International Limited
- Bunge Limited
- Neste Corporation
- Renewable Energy Group Inc.
- Cargill Inc.
- Louis Dreyfus Company
- Biox Corporation
Market Concentration
Consolidated - Market dominated by 1 - 5 major players
Biodiesel Market
Fragmented - Highly competitive market without dominant players
The biodiesel market is gaining strong traction as global energy consumption increasingly favors sustainable and renewable sources. Produced from feedstocks like vegetable oil and animal fats, biodiesel is establishing itself as a green alternative to traditional diesel fuels. Currently, biodiesel accounts for over 30% of the demand for cleaner energy substitutes, underscoring its importance in modern energy strategies.
Eco-Friendly Attributes Driving Market Growth
Biodiesel’s ability to significantly reduce carbon emissions positions it as a preferred choice among industries focused on environmental compliance. When compared to petroleum-based diesel, biodiesel lowers harmful emissions by up to 85%. This has led to its adoption across various sectors, with more than 40% of commercial and government fleets incorporating biodiesel blends into their fuel usage.
Advancements in Production Techniques
The biodiesel sector is experiencing substantial technological progress, particularly in conversion efficiency and feedstock versatility. Newer methods, such as enzymatic processing, have improved yield and lowered operational costs by nearly 35%. This has enhanced the commercial viability of biodiesel, attracting increased interest from large-scale fuel distributors.
Rising Eco-Consciousness Among Consumers
Shifting consumer preferences toward environmentally responsible energy choices are bolstering biodiesel’s market position. Reports suggest that over 45% of fuel consumers now favor renewable fuel options. This rising demand is prompting suppliers to include biodiesel blends, ensuring greater market integration and sustained growth potential.
Biodiesel Market Recent Developments
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In June 2025, Brazil raised its mandatory biodiesel blend in diesel from 14% to 15%, following a drop in vegetable oil prices and affirming the sector’s readiness to support the move without raising consumer costs.
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In June 2025, Brazil’s National Energy Policy Council increased biofuel mandates to 30% ethanol in gasoline and 15% biodiesel in diesel—marking a stride toward energy self‑sufficiency and reinforcing the country’s leadership in renewable fuels.
Biodiesel Market Segment Analysis
In this report, the Biodiesel Market has been segmented by Blend, Production Technology, Feedstock Type, Application and Geography.
Biodiesel Market, Segmentation by Blend
The Biodiesel Market has been segmented by Blend into B100, B20, B10 and B5.
B100
B100, or pure biodiesel, accounts for approximately 20% of the market. It is used primarily in heavy-duty vehicles and industrial applications where high renewable content is prioritized. B100 offers a significant reduction in greenhouse gas emissions and supports energy independence, though it requires engine compatibility.
B20
B20 blend, consisting of 20% biodiesel and 80% petroleum diesel, holds the largest share at nearly 40%. It offers a balanced solution with reduced emissions and engine compatibility without significant modifications. B20 is widely adopted in the transportation and agriculture sectors for its cost-efficiency and availability.
B10
B10 represents around 25% of the market and is commonly used in light-duty vehicles and municipal fleets. It helps reduce carbon monoxide and particulate emissions while ensuring smooth engine performance. Its lower biodiesel content offers greater fuel stability in colder climates.
B5
B5 accounts for nearly 15% of the biodiesel market and is often used as a lubricity additive in standard diesel engines. It requires no engine modifications and is supported by most OEM warranties. B5 serves as an ideal entry-level blend to promote the transition toward renewable fuels.
Biodiesel Market, Segmentation by Production Technology
The Biodiesel Market has been segmented by Production Technology into Pyrolysis, Trans-Esterification and Others(Including Dilution and Micro-Emulsification).
Pyrolysis
Pyrolysis accounts for around 10% of the biodiesel production market. This process thermally decomposes organic materials at high temperatures in the absence of oxygen to produce bio-oil and syngas. It is gaining interest for its ability to convert waste biomass into fuel, although commercial scalability remains a challenge.
Trans-Esterification
Trans-esterification dominates the market with a share of nearly 80%, making it the most widely used production method. This chemical process converts vegetable oils or animal fats into fatty acid methyl esters (FAME) and glycerol. It is favored for its cost-efficiency, high yield, and compatibility with existing infrastructure.
Others (Including Dilution and Micro-Emulsification)
The 'Others' category, including dilution and micro-emulsification, contributes approximately 10% to the market. These techniques are used to improve fuel properties such as viscosity and ignition quality without undergoing full trans-esterification. While less common, they offer low-cost solutions in niche applications and emerging regions.
Biodiesel Market, Segmentation by Feedstock Type
The Biodiesel Market has been segmented by Feedstock Type into Vegetable Oils, Animal Fats and Others.
Vegetable Oils
Vegetable oils dominate the biodiesel feedstock market, contributing over 70% of global production. Common sources include soybean oil, rapeseed oil, and palm oil. These oils are preferred for their high lipid content, availability, and well-established trans-esterification compatibility.
Animal Fats
Animal fats account for approximately 20% of the market, offering a cost-effective and sustainable alternative to vegetable oils. Derived from rendered fats such as tallow and lard, they are widely used in industrial-grade biodiesel due to their high energy density and contribution to waste valorization.
Others
The 'Others' category, including used cooking oil, algae, and municipal waste, holds around 10% of the market. These emerging feedstocks are gaining traction for their sustainability and potential to reduce land-use impact. They support circular economy initiatives and help diversify supply chains.
Biodiesel Market, Segmentation by Application
The Biodiesel Market has been segmented by Application into Fuel, Power Generation and Others.
Fuel
The fuel segment dominates the biodiesel market with a share of approximately 80%. Biodiesel is widely used in automobiles, trucks, and public transportation fleets as a renewable alternative to petroleum diesel. It reduces carbon emissions, improves lubricity, and enhances engine performance without requiring significant engine modifications.
Power Generation
Power generation accounts for nearly 15% of the market and is gaining traction in regions with limited energy infrastructure. Biodiesel is used in diesel generators for backup power and off-grid applications, offering a clean-burning and reliable energy source in remote or environmentally sensitive areas.
Others
The 'Others' category contributes about 5% and includes uses in marine, agricultural equipment, and heating systems. These applications benefit from biodiesel’s non-toxic nature, biodegradability, and ability to meet emissions compliance in specialized and niche markets.
Biodiesel Market, Segmentation by Geography
In this report, the Biodiesel Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa and Latin America.
Regions and Countries Analyzed in this Report
Biodiesel Market Share (%), by Geographical Region
North America
North America accounts for approximately 25% of the global biodiesel market. The U.S. leads the region due to strong government mandates, renewable fuel standards, and growing fleet-level adoption of biodiesel blends. Increasing interest in decarbonizing the transportation sector continues to fuel market expansion.
Europe
Europe leads the global biodiesel market with a share of over 35%, driven by aggressive climate policies and stringent biofuel blending mandates. Countries like Germany, France, and Italy have established strong supply chains supported by domestic feedstock production and advanced biodiesel infrastructure.
Asia Pacific
Asia Pacific holds about 25% of the market, fueled by increasing energy demand, population growth, and supportive government initiatives, particularly in India, China, and Indonesia. The region is also a leading producer of vegetable oil-based feedstocks, such as palm oil, boosting biodiesel output.
Middle East and Africa
This region represents nearly 7% of the market and is emerging as a potential growth area due to rising interest in renewable energy and fuel diversification. Countries in the Gulf and parts of Africa are exploring local feedstock utilization and off-grid power applications using biodiesel.
Latin America
Latin America contributes around 8% to the global market, led by countries like Brazil and Argentina. Strong agricultural output and favorable biofuel policies support regional growth. Biodiesel is widely used in transportation and agricultural machinery as a cleaner alternative to conventional diesel.
Biodiesel Market Trends
This report provides an in depth analysis of various factors that impact the dynamics of Biodiesel Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.
Comprehensive Market Impact Matrix
This matrix outlines how core market forces—Drivers, Restraints, and Opportunities—affect key business dimensions including Growth, Competition, Customer Behavior, Regulation, and Innovation.
| Market Forces ↓ / Impact Areas → | Market Growth Rate | Competitive Landscape | Customer Behavior | Regulatory Influence | Innovation Potential |
|---|---|---|---|---|---|
| Drivers | High impact (e.g., tech adoption, rising demand) | Encourages new entrants and fosters expansion | Increases usage and enhances demand elasticity | Often aligns with progressive policy trends | Fuels R&D initiatives and product development |
| Restraints | Slows growth (e.g., high costs, supply chain issues) | Raises entry barriers and may drive market consolidation | Deters consumption due to friction or low awareness | Introduces compliance hurdles and regulatory risks | Limits innovation appetite and risk tolerance |
| Opportunities | Unlocks new segments or untapped geographies | Creates white space for innovation and M&A | Opens new use cases and shifts consumer preferences | Policy shifts may offer strategic advantages | Sparks disruptive innovation and strategic alliances |
Drivers, Restraints and Opportunity Analysis
Drivers
- Volatile Crude Oil Prices
- Technological Advancements
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Growing Awareness of Climate Change - The increasing awareness of climate change is a key driver accelerating the growth of the green hydrogen market. As global temperatures rise and extreme weather events become more frequent, governments, businesses, and individuals are seeking cleaner energy alternatives to reduce greenhouse gas emissions and transition toward carbon neutrality.
Green hydrogen, produced through electrolysis powered by renewable energy, offers a zero-emission solution for sectors traditionally dependent on fossil fuels. Industries such as transportation, steel, cement, and chemicals are under growing pressure to decarbonize, and green hydrogen presents a viable pathway to achieving this goal.
Public discourse and scientific consensus around climate science have pushed governments to act decisively, introducing carbon taxes, emissions trading systems, and clean energy mandates. This regulatory momentum further increases demand for clean fuels like green hydrogen, which aligns with Paris Agreement targets and national climate strategies.
As sustainability moves from niche to mainstream, the role of green hydrogen as a cornerstone of the low-carbon economy is becoming more prominent. It enables deep decarbonization across hard-to-abate sectors, supporting both economic growth and environmental protection.
Restraints
- Feedstock Price Volatility
- Land Use Concerns
- Competition with Food Production - Rising use of crops like soy and corn for automotive-grade plastics can unintentionally drive up food prices. When materials that could be consumed are diverted to manufacturing, agricultural feedstock availability tightens, pushing consumers and manufacturers into higher-cost alternatives. Even crops not used directly for food—like jute or hemp—may displace farmland, reducing land available for staple crops.
Pushback intensifies when food-based plastics scale up globally. In the U.S., ethanol policies already show how industrial crop use inflates food costs. If automotive producers follow similar patterns, market volatility could ripple through global food systems, especially in regions lacking crop surplus.
Supporters argue that adding industrial crops on idle farmland may reduce competition with food. But this assumes unused land exists and won’t impact ecosystems or local food supply—an assumption that often fails in rapidly developing regions. Land-use changes remain a serious concern.
Moreover, long-distance supply chains for non-food crops increase environmental costs, which may offset emissions benefits from lighter vehicles. Without sustainable sourcing and transparent land practices, the promise of eco-plastics risks undermining both food security and agricultural resilience.
Opportunities
- Advanced Biofuel Technologies
- Sustainable Feedstock Sourcing
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Government Incentives and Policies - Government incentives and supportive policies are opening up substantial opportunities for green hydrogen adoption. Around the world, national and regional governments are deploying subsidies, grants, tax credits, and public-private partnerships to encourage the production and use of green hydrogen.
Initiatives such as the EU Green Deal, U.S. Inflation Reduction Act, and India’s National Hydrogen Mission are channeling billions of dollars into R&D, pilot projects, and large-scale deployments. These policies are reducing entry barriers, de-risking investments, and accelerating technology development in the hydrogen ecosystem.
Regulatory frameworks are also being introduced to establish green hydrogen standards, certification schemes, and carbon pricing mechanisms that create long-term market stability. These moves are critical for attracting institutional investors and catalyzing cross-sector collaboration.
As more countries commit to hydrogen strategies, the alignment of financial support and legislative action is fostering an environment where green hydrogen can transition from niche to mainstream, unlocking new applications in power generation, transport, and industrial energy.
Biodiesel Market Competitive Landscape Analysis
Key players in Biodiesel Market include:
- Renewable Energy Group, Inc.
- Neste
- Diamond Green Diesel (Valero & Darling JV)
- Wilmar International
- Archer Daniels Midland (ADM)
- Bunge
- Cargill
- PBF Energy
- Valero Energy
- Algenol
- FutureFuel Chemical Company
- Musim Mas
- PT Pertamina
- Blue Marble Energy
In this report, the profile of each market player provides following information:
- Company Overview and Product Portfolio
- Market Share Analysis
- Key Developments
- Financial Overview
- Strategies
- Company SWOT Analysis
- Introduction
- Research Objectives and Assumptions
- Research Methodology
- Abbreviations
- Market Definition & Study Scope
- Executive Summary
- Market Snapshot, By Blend
- Market Snapshot, By Production Technology
- Market Snapshot, By Feedstock Type
- Market Snapshot, By Application
- Market Snapshot, By Region
- Biodiesel Market Dynamics
- Drivers, Restraints and Opportunities
- Drivers
- Volatile Crude Oil Prices
- Technological Advancements
- Growing Awareness of Climate Change
- Restraints
- Feedstock Price Volatility
- Land Use Concerns
- Competition with Food Production
- Opportunities
- Advanced Biofuel Technologies
- Sustainable Feedstock Sourcing
- Government Incentives and Policies
- Drivers
- PEST Analysis
- Political Analysis
- Economic Analysis
- Social Analysis
- Technological Analysis
- Porter's Analysis
- Bargaining Power of Suppliers
- Bargaining Power of Buyers
- Threat of Substitutes
- Threat of New Entrants
- Competititve Rivalry
- Drivers, Restraints and Opportunities
- Market Segmentation
- Biodiesel Market, By Blend, 2021 - 2031 (USD Million)
- B100
- B20
- B10
- B5
- Biodiesel Market, By Production Technology, 2021 - 2031 (USD Million)
- Pyrolysis
- Trans-Esterification
- Others
- Biodiesel Market, By Feedstock Type, 2021 - 2031 (USD Million)
- Vegetable Oils
- Animal Fats
- Others
- Biodiesel Market, By Application, 2021 - 2031 (USD Million)
- Fuel
- Power Generation
- Others
- Biodiesel Market, By Geography, 2021 - 2031 (USD Million)
- North America
- United States
- Canada
- Europe
- Germany
- United Kingdom
- France
- Italy
- Spain
- Nordic
- Benelux
- Rest of Europe
- Asia Pacific
- Japan
- China
- India
- Australia & New Zealand
- South Korea
- ASEAN (Association of South East Asian Countries)
- Rest of Asia Pacific
- Middle East & Africa
- GCC
- Israel
- South Africa
- Rest of Middle East & Africa
- Latin America
- Brazil
- Mexico
- Argentina
- Rest of Latin America
- North America
- Biodiesel Market, By Blend, 2021 - 2031 (USD Million)
- Competitive Landscape
- Company Profiles
- Renewable Energy Group, Inc.
- Neste
- Diamond Green Diesel (Valero & Darling JV)
- Wilmar International
- Archer Daniels Midland (ADM)
- Bunge
- Cargill
- PBF Energy
- Valero Energy
- Algenol
- FutureFuel Chemical Company
- Musim Mas
- PT Pertamina
- Blue Marble Energy
- Company Profiles
- Analyst Views
- Future Outlook of the Market