• The adoption of renewable naphtha as a drop-in feedstock for petrochemicals and circular-economy plastics is gaining strong traction as brands and producers aim for lower-carbon supply chains.

• Light naphtha remains the dominant product form, capturing more than 68 % of the market, reflecting its compatibility with existing refinery and cracker infrastructure.

• Feedstock sourcing is becoming a competitive differentiator, with used cooking oil and waste fats emerging to claim over 43 % of feedstock share as sustainability tracking becomes critical.

• Geographically, Europe leads the market and together with North America accounts for more than 60 % of global share, indicating that high-regulation regions are pulling ahead.

• Technological advances support market growth: integrated biorefineries, co-processing units and traceability certifications are scheduled to drive major expansion after 2030.

• The market is still early stage with double-digit annual growth expected, signalling that entrants and vertical integration (feedstock-to-polymer) strategies can still yield strategic advantage.

• Key structural challenges persist: feedstock collection logistics, ensuring consistent drop-in performance, and navigating cost pressures relative to fossil naphtha remain key barriers to full-scale roll-out.

In this report, Renewable Naphtha Market has been segmented by Product Type, Feedstock, Application, and Geography.

Renewable Naphtha Market, Segmentation by Product Type

The Product Type segmentation defines the form of renewable naphtha produced and supplied, including Light Naphtha and Heavy Naphtha.

Light Naphtha

Light naphtha consists of lower boiling fractions which are typically used as feedstock in petrochemical cracking processes. This product offers enhanced volatility and is suited for production of ethylene and other light olefins. Light naphtha also finds blending use where energy density and volatility play a critical role.

Heavy Naphtha

Heavy naphtha contains higher boiling components and is often used where a more stable, less volatile fraction is desired. It can support processes requiring prolonged thermal stability, such as cracking for aromatics and heavier chemical intermediates, and can be blended for improved combustion characteristics in specific fuel formulations.

Renewable Naphtha Market, Segmentation by Feedstock

The Feedstock segmentation highlights raw materials used for renewable naphtha production such as Used Cooking Oil, Wood Pulp Residue, Vegetable Oil Waste, Animal Fat, and Others.

Used Cooking Oil

Used cooking oil is a sustainable feedstock that is collected from food service establishments and households. It is processed via hydrotreating and catalytic cracking to yield renewable naphtha with a reduced carbon footprint and lower lifecycle emissions compared to fossil naphtha.

Wood Pulp Residue

Wood pulp residue is a lignocellulosic biomass feedstock generated from forestry and paper production. Its use in renewable naphtha production supports waste valorization, converting residual biomass into high-value hydrocarbon streams.

Vegetable Oil Waste

Vegetable oil waste includes post‑consumer vegetable oils that are repurposed for renewable fuel and chemical production. These feedstocks help reduce environmental waste while providing a renewable source for naphtha generation.

Animal Fat

Animal fat is derived from slaughterhouse and rendering operations and used as a feedstock due to its high lipid content. Converting animal fat into renewable naphtha provides a use for by‑products while reducing dependency on fossil resources.

Others

The Others category includes miscellaneous sustainable feedstocks such as algae oils, municipal solid waste derivatives, and other agricultural residues that can be processed into renewable naphtha through advanced conversion technologies.

Renewable Naphtha Market, Segmentation by Application

The Application segmentation identifies market opportunities across end uses including Fuel Blending, Feed for H₂ Production, and Feed for Plastic Production such as Ethylene, Propylene, Butadiene, and Others.

Fuel Blending

Renewable naphtha can be blended with conventional naphtha or other fuels to improve sustainability profiles in gasoline and industrial fuel applications. Blending helps reduce lifecycle greenhouse gas emissions while maintaining performance specifications.

Feed for H₂ Production

Renewable naphtha is used as a renewable feedstock for hydrogen production via steam reforming or other advanced methods, providing a lower‑carbon alternative to fossil hydrogen and supporting decarbonization of industrial processes and transportation energy systems.

Feed for Plastic Production [Ethylene, Propylene, Butadiene, and Others]

Renewable naphtha serves as a key hydrocarbon feedstock in steam cracking and catalytic processes to produce base monomers such as ethylene, propylene, and butadiene, which are essential building blocks for plastics and synthetic chemicals.

Renewable Naphtha Market, Segmentation by Geography

In this report, Renewable Naphtha Market has been segmented by Geography into five regions: North America, Europe, Asia Pacific, Middle East & Africa, and Latin America.

North America

North America is a key market for renewable naphtha demand, supported by strong investment in biofuels and chemical feedstock sustainability. Increasing regulatory pressure to reduce carbon emissions and expanding bio‑refinery capacity boost demand across fuel blending and petrochemical applications.

Europe

Europe has a well‑established renewable fuels policy framework and ambitious climate targets, driving adoption of renewable naphtha in fuel blending, hydrogen production, and plastics feedstock. The EU’s focus on circular economy and advanced bio‑based chemicals further accelerates market growth.

Asia Pacific

Asia Pacific is a rapidly growing market for renewable naphtha, driven by expanding petrochemical capacity, increasing energy demand, and government initiatives incentivizing renewable feedstocks. Industrial growth in China, India, and Southeast Asia supports increased consumption.

Middle East & Africa

Middle East & Africa presents emerging opportunities for renewable naphtha adoption, especially in regions with large refining capacity seeking cleaner alternatives to traditional naphtha. Investments in sustainable fuels and petrochemicals underpin regional growth.

Latin America

Latin America is witnessing increasing interest in renewable naphtha driven by abundant agricultural feedstocks, supportive biofuel policies, and initiatives to develop low‑carbon industrial value chains. Markets such as Brazil and Argentina play a pivotal role.

This report provides an in depth analysis of various factors that impact the dynamics of Renewable Naphtha Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.

Drivers, Restraints and Opportunity Analysis

Renewable Naphtha Market is witnessing significant growth driven by increasing demand for sustainable energy solutions and strategic collaboration among key chemical and fuel producers. Companies are actively engaging in merger and partnerships to expand product portfolios, strengthen market presence, and capture a substantial share in renewable fuel and chemical applications.

Market Structure and Concentration
The market exhibits a moderately concentrated structure, with top manufacturers holding nearly 60% of total market share. Smaller players contribute through niche innovation, while leading firms focus on strategic expansion and collaborative strategies to maintain competitiveness and ensure sustained growth in sustainable hydrocarbon solutions.

Brand and Channel Strategies
Key companies implement robust strategies to enhance brand recognition and optimize distribution channels. Around 65% of the market leverages multi-channel approaches and strategic partnerships to reach chemical and fuel end-users effectively. Strong brand positioning combined with targeted collaboration drives market penetration and consistent growth.

Innovation Drivers and Technological Advancements
Continuous innovation and investment in advanced technological advancements remain key market drivers. Nearly 70% of new renewable naphtha solutions feature improved energy efficiency and reduced emissions. These initiatives enable strategic collaboration, strengthen competitive positioning, and support long-term growth in sustainable fuels and chemicals.

Regional Momentum and Expansion
Certain regions contribute approximately 55% of market revenue due to rising adoption of renewable fuels and sustainable chemicals. Companies focus on regional expansion and local partnerships to maximize penetration. Collaborative strategies and adoption of innovative technologies further enhance growth and reinforce market presence in strategic territories.

Future Outlook
The future outlook for the renewable naphtha market is promising, with projected growth driven by rising demand for eco-friendly fuel solutions and ongoing technological advancements. Strategic merger and partnerships are expected to shape competitive strategies, while continuous innovation ensures sustainable expansion and long-term market value creation.

Key players in Renewable Naphtha Market include:

• Neste Oyj
• UPM Biofuels
• Amyris Inc.
• Eni SpA
• Honeywell UOP
• Shell plc
• Renewable Energy Group, Inc.
• Chevron Renewable Energy Group
• Preem AB
• SolvChem
• Galp Energia
• Indian Oil Corporation Ltd
• PAO NOVATEK
• Braskem
• Clean Planet Energy

In this report, the profile of each market player provides following information:

• Market Share Analysis
• Company Overview and Product Portfolio
• Key Developments
• Financial Overview
• Strategies
• Company SWOT Analysis