Biodiesel Market Regional Analysis

Why Europe is Dominating Biodiesel Market?

Europe dominates the biodiesel market share, holding roughly 28 % of the global share in 2023 Strict EU regulations—like RED II mandates for blending biodiesel in transport—combined with national policies (e.g., Germany’s B7, Sweden’s expansion to B45 by 2025) support this leadership. Governments continuously invest in infrastructure upgrades and feedstock diversification, reinforcing Europe's dominant position.

Germany Biodiesel Market

Germany leads Europe’s biodiesel production due to strong federal mandates and high consumption in transport. Verbio, a top player, expanded capacity using agricultural residues. In 2024, Germany enforced stricter CO₂ limits under the Fuel Emissions Trading Act, incentivizing advanced biodiesel adoption, especially in heavy-duty transport and fleet vehicles.

France Biodiesel Market

France holds a significant share driven by its rapeseed oil production. Saipol dominates through sustainable biodiesel (Diester) aligned with France’s low-carbon energy policies. In 2024, France updated its Energy and Climate Law to prioritize low ILUC-risk biofuels, boosting local demand and integrating traceability tools across its biodiesel market supply chain.

Italy Biodiesel Market

Italy is advancing with second-generation biodiesel from waste via Eni’s biorefineries. Eni converted old fossil refineries into biofuel plants in Venice and Gela. In 2023, Italy’s Ministry of Environment approved €500M in incentives for waste-based biodiesel, aligning with Fit-for-55 targets and enhancing supply chain innovation.

How is North America is Largest Single in Biodiesel Industry?

North America stands as the largest regional biodiesel market growth, the U.S. leads due to strong policy support like the Renewable Fuel Standard and biodiesel tax incentives. REG, acquired by Chevron, expanded its production to over 340 million gallons. In 2024, the U.S. DOE committed $118M for biofuel R&D to decarbonize transport and strengthen domestic fuel security.

U.S. Biodiesel Market

The U.S. leads the region due to robust policies like the Renewable Fuel Standard (RFS) and Biodiesel Tax Credit. In 2024, REG expanded its Iowa facility to 340 million gallons annually. The U.S. Department of Energy invested $118M in biofuel R&D, focusing on reducing transport emissions and boosting domestic energy security​.

Canada Biodiesel Market

Canada’s biodiesel market demand is expanding, driven by its Clean Fuel Regulations (CFR), which mandate increasing biofuel content. BIOX operates facilities in Ontario and Quebec. In 2024, Canada launched a national Bioeconomy Strategy, aiming for 15% low-carbon fuel blend by 2030 and supporting regional biodiesel infrastructure with $200M in federal funding.

Why Asia Pacific Leading Biodiesel Market in 2024?

Asia Pacific is the region with the fastest growth, growing between 2024 and 2030, with revenues increasing from USD 19.8 billion in 2023 to USD 43.9 billion by 2030. Favorable government policies like Thailand's B5 biodiesel mandate and growing liquid Biodiesel segment are responsible for the increase.

China Biodiesel Market

China is a growing biodiesel market trends with emphasis on waste oil and animal fat feedstocks. In 2023, the government introduced tax incentives for biodiesel from recycled sources. China Clean Energy has scaled production to align with pilot blending projects in major cities under the 14th Five-Year Renewable Energy Plan.

India Biodiesel Market

India is pushing biodiesel from used cooking oil (UCO) and non-edible sources. In 2024, the government launched 200+ UCO biodiesel collection centers under the Repurpose Used Cooking Oil (RUCO) program. IOC leads with strategic refinery integration and aims to meet India’s 5% biodiesel blending target by 2030.

Indonesia Biodiesel Market

Indonesia dominates biodiesel market growth in Asia-Pacific due to abundant palm oil feedstock and strong B40 blending mandates. In March 2025, the government fully implemented B40 nationwide, with plans for B50 by 2028. Wilmar, a key player, expanded refining capacity to meet domestic blending and regional export demand.