Global Biodiesel Market

Biodiesel Market Size, Share, Growth Analysis, By Feedstock (Vegetable Oils, Animal Fats), By Type (Methanol, Biohydrogen & Cellulosic Ethanol), By Application (Fuel, Power Generation), By Region - Industry Forecast 2025-2032


Report ID: SQMIG10D2025 | Region: Global | Published Date: December, 2024
Pages: 242 | Tables: 64 | Figures: 75

Biodiesel Market Dynamics

Biodiesel Market Drivers 

Government Policies and Incentives 

  • Governments around the world are implementing policies to encourage the use of renewable energy sources, such as biodiesel. For example, the US Environmental Protection Agency (EPA) noted that the Renewable Fuel Standard (RFS) requires increased biodiesel production. The RFS aims for 2.43 billion gallons of biomass-based fuel in 2022, demonstrating the commitment to biodiesel as a vital renewable energy source. 

Rising Environmental Concerns 

  • Increasing knowledge of climate change and its consequences is driving the transition to cleaner fuels. According to an International Energy Agency (IEA) report, biofuels, including biodiesel, accounted for around 4% of worldwide transport fuel demand in 2020, with growth expected as countries work to reduce greenhouse gas emissions. The growing emphasis on decreasing carbon footprints feeds the need for biodiesel. 

Biodiesel Market Restraints 

Feedstock Availability and Cost 

  • The cost and availability of feedstock, such as vegetable oils and animal fats, have a significant impact on biodiesel prices. Fluctuations in agricultural output or competition from food production might raise prices, making biodiesel less viable. Furthermore, fluctuations associated with petroleum prices and supply issues associated with crude oil are further anticipated to negatively impact the global biodiesel market growth 

Infrastructure and Distribution Limitations 

  • Blending, storing, and distributing biodiesel necessitates the use of infrastructure. The lack of extensive infrastructure in certain places impedes biodiesel adoption, restricting its growth potential. The expansion of biodiesel feedstock cultivation raises concerns about land use change and potential deforestation. These environmental and sustainability concerns pose restraints on market growth, prompting the industry to address and mitigate the ecological impact associated with biodiesel production.

$5,300
BUY NOW GET FREE SAMPLE
Want to customize this report?

Our industry expert will work with you to provide you with customized data in a short amount of time.

REQUEST FREE CUSTOMIZATION

FAQs

Biodiesel Market size was valued at USD 42.69 Billion in 2023 and is poised to grow from USD 44.93 Billion in 2024 to USD 67.64 Billion by 2032, growing at a CAGR of 5.25% during the forecast period (2025-2032).

The competitive landscape of the global biodiesel industry features a diverse array of players, ranging from established multinational corporations to innovative startups. These companies are actively engaged in biodiesel production, distribution, and research and development. The market's competitive dynamics are influenced by factors such as technological advancements, feedstock availability, production capacity, and geographical presence. Key players are continuously investing in research to enhance production efficiency and explore new feedstock sources.   'Renewable Energy Group, Inc. ', 'Archer Daniels Midland Company ', 'Neste Oyj ', 'Wilmar International Ltd ', 'Cargill, Inc. ', 'Bangchak Corporation Public Company Limited ', 'Ag Processing Inc. ', 'BIOX Corporation ', 'Novozymes A/S ', 'Green Plains Inc. ', 'Rapsoila ', 'Mid-America Biofuels, LLC ', 'U.S. Freedom Bio Fuels LLC ', 'Champway Technology Ltd. ', 'Green Biofuels ', 'Vegas Renewable Diesel Inc. ', 'GeoGreen Biofuels, Inc. ', 'SBI BioEnergy Inc. ', 'TECHNOILOGY ', 'EcoCeres Inc.'

Rising Demand for Renewable Energy: There is a growing global push for renewable energy sources to prevent climate change. Countries are establishing aggressive carbon neutrality targets, which is driving up the adoption of biodiesel as a sustainable alternative to fossil fuels. This trend is encouraged by a variety of government incentives and laws aimed at boosting greener fuels. 

North America is the dominating region in the market owing to the spending done on renewable energy sources and the technological advancements taking place in the region. Another factor that has driven the market in both regions has been the availability of the required feedstock. Government support to reduce the carbon emissions via tax rebates over biofuels is the other factor that has led to growth of both the regions. The biodiesel market is experiencing substantial expansion due to North America’s strong regulatory framework and renewable fuel mandates. Thus, the regulatory guidance is projected to enable the region hold dominant position. 

Request Free Customization

Want to customize this report? This report can be personalized according to your needs. Our analysts and industry experts will work directly with you to understand your requirements and provide you with customized data in a short amount of time. We offer $1000 worth of FREE customization at the time of purchase.

logo-images

Feedback From Our Clients

Global Biodiesel Market

Report ID: SQMIG10D2025

$5,300
BUY NOW GET FREE SAMPLE