Biodiesel Market Size, Share, & Growth Report by Production Process (Alcohol Trans-Esterification, Hydro-Heating), By Feedstock Type (Vegetable Oil, Animal Oil, Used Cooking Oil), By Application (Fuel, Power Generation, Agriculture) and By Region – Global and Regional Industry Overview, Market Intelligence, Premium Insights, Complete Analysis, Historical Data, and Forecasts 2023 – 2032
The Global Biodiesel Market, Valued At USD 38.27 Billion In 2023, Is Projected To Reach USD 88.04 Billion By 2032, With An Estimated Compound Annual Growth Rate (CAGR) Of Approximately 9.70% During The Forecast Period From 2023 To 2032.
Biodiesel Market Overview:
Biodiesel, a type of diesel fuel, consists of long-chain alkyl esters (such as ethyl, methyl, or propyl) derived from vegetable or animal fats. Typically, lipids like vegetable oil, soybean oil, or animal fat undergo a chemical reaction with alcohol to produce fatty acid esters, resulting in biodiesel. The increasing demand for energy independence and growing environmental concerns worldwide are driving the global biodiesel market. Biodiesel’s biodegradability and its capacity to generate renewable liquid fuel for transportation make it an ideal choice. Other advantages include reduced dependence on petroleum imports, promoting domestic production, and market expansion. Governments are further incentivizing biodiesel use through legislation and tax breaks, contributing to market growth. The biodiesel market is witnessing a transformation with rapid expansion and development, promising new opportunities for the industry worldwide in the coming years. The projected period is also expected to see increased demand for biodiesel due to fluctuations in petrochemical stocks in global oil rigs.
Impact of COVID-19 on the Biodiesel Market:
The COVID-19 pandemic had varying impacts on biodiesel demand and the global economy. In 2020, key biodiesel end consumers, such as automobiles and agriculture, experienced declines. However, future market growth is anticipated due to increasing demand from various industries. Factors contributing to market expansion include government subsidies for biodiesel usage and rising consumer demand for environmentally friendly fuels with reduced greenhouse gas emissions.
Drivers of the Biodiesel Market:
The global biodiesel market’s growth is primarily driven by its adoption as a substitute for fossil fuels in automotive and power generation sectors, as well as increasing public awareness of environmental concerns, including greenhouse gas emissions. Biodiesel is used in various transportation machinery, including buses, trains, automobiles, and trucks, owing to its high energy density, non-toxicity, biodegradability, and ease of transport. In the United States alone, over 3 billion gallons of biodiesel were used in 2019, resulting in the reduction of more than 25 million metric tonnes of carbon emissions. The biodiesel market’s expansion is mainly attributed to the growing adoption of biodiesel as a fossil fuel alternative in transportation.
Restraints in the Biodiesel Market:
Biodiesel faces challenges due to higher operational costs compared to crude oil. Its adoption on the global market is influenced by these elevated operational expenses. The use of biodiesel may become more challenging in developing nations, where a significant portion of the population relies on petrochemical products as their primary fuel source, especially when crude oil prices fall. Additionally, biodiesel production costs using raw materials like soybean oil and vegetable oils, which cost approximately $1 per barrel, can be impacted by fluctuations in crude oil prices. In 2020, the average crude oil price was $39.68 per barrel, dropping to less than $11.24 per barrel on April 21, 2020, making biodiesel adoption more difficult during the projection period.
Segmentation of the Biodiesel Market:
The global biodiesel market is segmented based on the production process, feedstock type, and application.
Feedstock Type: The market is categorized into vegetable oil, animal oil, and used cooking oil. In 2022, vegetable oil dominated the global market due to its increased use as a renewable resource for biodiesel production, lower greenhouse gas emissions, high oil yield, and lower production costs resulting from a lower percentage of saturated fat. Most biodiesel products are derived from vegetable oils, with variations depending on the region. Used cooking oil is expected to grow rapidly during the forecast period due to its contribution to waste management, economic development, and environmental preservation.
Application: The market is divided into fuel, power generation, and agriculture. In 2022, the fuel category had the largest market share as industries such as marine, automotive, railway, and agriculture increasingly used biodiesel as a fuel. Biodiesel is favored for its higher lubricity (50:1) compared to traditional petroleum diesel. The power generation category is expected to grow rapidly as more generators adopt biodiesel to reduce carbon monoxide and particulate emissions. Government initiatives to promote sustainable energy sources are also expected to drive growth in biodiesel companies.
Regional Landscape of the Biodiesel Market:
In 2022, Europe dominated the biodiesel market, attributed to government support and increasing public demand for renewable energy sources. The demand for biodiesel from various end-user industries, including automotive, power generation, marine, railway, and agriculture, is expected to further fuel market growth in Europe. Common feedstocks used for biodiesel production in Europe include rapeseed oil, used cooking oil (UCO), palm oil, soybean oil, animal fats, and sunflower oil. Germany, the largest producer of feedstock in Europe, plays a significant role in driving product demand in the region.
Competitive Landscape of the Biodiesel Market:
Key competitors in the global biodiesel market include Archer Daniels Midland, Marathon Petroleum Corporation, VERBIO, Renewable Energy Group, Inc., NOVAOL, Italy, ARGENT ENERGY, MOL Group, Neste, Shell Plc, HERO BX, AG Processing Inc, and Cargill Inc.
Recent Developments:
In January 2022, POET, LLC, a U.S.-based biofuel company, completed an expansion at its Portland facility. This expansion allows the capture and sale of renewable carbon dioxide, a co-product of the ethanol production process. The liquid carbon dioxide is of the highest quality and is part of the all-natural POET pure line of bioproducts.
In December 2020, Neste announced a partnership with Carson. Neste was one of the first companies to offer renewable diesel in Oregon, USA, following the establishment of the state’s Clean Fuels Program. Neste is the world’s largest producer of renewable diesel and sustainable aviation fuel.
The Global Biodiesel Market is segmented as follows:
Biodiesel Market by Production Process
Alcohol Trans-Esterification
Hydro-Heating
Biodiesel Market by Feedstock Type
Vegetable Oil
Animal Oil
Used Cooking Oil
Biodiesel Market by Application
Fuel
Power Generation
Agriculture
Biodiesel Market by Region
North America
The U.S.
Canada
Mexico
Europe
France
The UK
Spain
Germany
Italy
Rest of Europe
Asia Pacific
China
Japan
India
New Zealand
Australia
South Korea
Southeast Asia
Rest of Southeast Asia
The Middle East & Africa
Saudi Arabia
UAE
Egypt
Kuwait
South Africa
Rest of the Middle East & Africa
Latin America
Brazil
Argentina
Rest of Latin America
Biodiesel Market Report Scope
Report Attribute
Details
Market Size Value in 2022
USD 34.88 billion
Revenue Forecast in 2032
USD 88.04 billion
Growth Rate
CAGR of 9.7 % from 2023 to 2032
Base Year for Estimation
2022
Historical Data
2017 – 2022
Forecast Years
2023 – 2032
Quantitative Units
Revenue in USD million and CAGR from 2023 to 2032
Report Coverage
Revenue forecast, company ranking, Trends
competitive landscape, and growth factors
Segments Covered
Production Process, Feedstock Type, Application, and Region
Regional Scope
North America; Europe; Asia Pacific; Latin America; Middle East & Africa
Archer Daniels Midland, Marathon Petroleum Corporation, VERBIO, Renewable Energy Group, Inc., NOVAOL, Italy, ARGENT ENERGY, MOL Group, Neste, Shell Plc, HERO BX, AG Processing Inc, and Cargill Inc.
Table of Content
Biodiesel Market Size, Share, and Growth Report
Archer Daniels Midland
Marathon Petroleum Corporation
VERBIO
Renewable Energy Group, Inc.
NOVAOL
Italy
ARGENT ENERG
MOL Group
Neste
Shell Plc
HERO BX
AG Processing Inc
Cargill Inc.
Biodiesel Market by Production Process
Alcohol Trans-Esterification
Hydro-Heating
Biodiesel Market by Feedstock Type
Vegetable Oil
Animal Oil
Used Cooking Oil
Biodiesel Market by Application
Fuel
Power Generation
Agriculture
Research Methodology
Frequently Asked Questions
Which key factors will influence biodiesel market growth over 2023-2032?
The increasing demand for energy independence and growing environmental concerns around the world are driving the global market for biodiesel.
What will be the value of the biodiesel market during 2023-2032?
According to the report, the global biodiesel market size was worth USD 38.27 billion in 2023 and is estimated to grow to USD 88.04 billion by 2032, with a compound annual growth rate (CAGR) of approximately 9.70 percent over the forecast period.
Which region will contribute notably toward the biodiesel market value?
In 2022, the Europeans dominated the market for biodiesel due to the government’s expanding support and the public’s growing desire for renewable energy sources.
Which are the major players leveraging the biodiesel market growth?
Some of the main competitors dominating the global biodiesel market include – Archer Daniels Midland, Marathon Petroleum Corporation, VERBIO, Renewable Energy Group, Inc., NOVAOL, Italy, ARGENT ENERGY, MOL Group, Neste, Shell Plc, HERO BX, AG Processing Inc and Cargill Inc.