Download Sample
Add to CartGlobal Biodiesel Market Growth, Share, Size, Trends and Forecast (2025 - 2031)
By Blend;
B100, B20, B10, and B5.By Production Technology;
Pyrolysis, Trans-Esterification, and Others(Including Dilution & Micro-Emulsification).By Feedstock Type;
Vegetable Oils, Animal Fats, and Others.By Application;
Fuel, Power Generation, and Others.By 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%.
Global Biodiesel Market Growth, Share, Size, Trends and Forecast
*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
Global 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
-
In 2021,Policy Initiatives: Many countries introduced or enhanced policies supporting the use of biodiesel, including blending mandates, tax incentives, and carbon pricing mechanisms.
-
In 2022, Technological Innovations: Continued research and development efforts led to advancements in biodiesel production technologies.
-
In 2023,Shift Towards Advanced Biofuels: The focus on advanced biofuels, including second-generation biodiesel produced from non-food feedstocks, intensified as stakeholders sought to overcome limitations associated with first-generation feedstocks.
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.
Market Trends
This report provides an in depth analysis of various factors that impact the dynamics of Global Biodiesel Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.
Drivers, Restraints and Opportunity Analysis
Drivers
- Environmental Regulations
- Volatile Crude Oil Prices
- Technological Advancements
-
Growing Awareness of Climate Change: The growing awareness of climate change has emerged as a significant driver propelling the global biodiesel market forward. With heightened concerns about the environmental impact of traditional fossil fuels, governments, businesses, and consumers are increasingly seeking cleaner and more sustainable alternatives. Biodiesel, derived from renewable resources and producing lower greenhouse gas emissions compared to conventional diesel, has garnered attention as a viable solution to mitigate climate change.
As the urgency to address climate change intensifies, policies promoting the use of biodiesel as part of broader renewable energy strategies have gained momentum worldwide. Initiatives such as carbon pricing mechanisms, renewable fuel standards, and tax incentives incentivize the adoption of biodiesel, fostering market growth. Moreover, the increasing public awareness of the role of transportation in carbon emissions and air quality degradation has spurred consumer demand for greener fuel options, further driving the expansion of the biodiesel market.
Restraints
- Feedstock Price Volatility
- Land Use Concerns
- Competition with Food Production
-
Infrastructure Limitations: Infrastructure limitations pose a significant challenge to the widespread adoption and scalability of biodiesel within the global energy landscape. One of the primary infrastructure constraints is the need for specialized distribution and storage facilities to accommodate biodiesel blends. Existing petroleum infrastructure may require modification or retrofitting to handle biodiesel, which can increase costs and logistical complexities for market participants. Additionally, the availability of refueling stations offering biodiesel blends remains limited, particularly in regions where conventional diesel dominates the fuel market, hindering consumer access and adoption.
The transportation and logistics infrastructure for feedstock sourcing and distribution presents challenges. Biodiesel production relies on a steady supply of feedstocks such as vegetable oils and animal fats, which may be geographically dispersed and require efficient transport networks. Insufficient transportation infrastructure and inadequate logistical support can lead to supply chain disruptions, affecting production volumes and market stability. Addressing infrastructure limitations requires coordinated efforts from policymakers, industry stakeholders, and investors to invest in infrastructure development and modernization initiatives that support the expansion of the biodiesel market while ensuring reliability and efficiency across the entire value chain.
Opportunities
- Emerging Markets Expansion
- Advanced Biofuel Technologies
- Sustainable Feedstock Sourcing
-
Government Incentives and Policies : Government incentives and policies play a pivotal role in shaping the growth trajectory of the biodiesel market. Across the globe, governments are implementing a range of measures to encourage the production and consumption of biodiesel as part of broader strategies to reduce greenhouse gas emissions and enhance energy security. These policies often include blending mandates, tax incentives, subsidies, and renewable fuel standards, which incentivize biodiesel production and increase its competitiveness relative to conventional diesel. Additionally, carbon pricing mechanisms and emission reduction targets create further impetus for biodiesel adoption by internalizing the environmental costs associated with fossil fuels.
Government support extends beyond financial incentives to regulatory frameworks that provide stability and certainty for market participants. Clear and consistent policies regarding feedstock sourcing, production standards, and emissions criteria enable businesses to make long-term investment decisions and drive innovation in biodiesel technology. Moreover, public procurement programs and research funding initiatives stimulate market growth and technological advancement, fostering a conducive environment for the development of a sustainable and resilient biodiesel industry. As governments continue to prioritize decarbonization and sustainable development goals, their role in providing incentives and policies will remain instrumental in unlocking the full potential of the biodiesel market.
Competitive Landscape Analysis
Key players in Global Biodiesel Market include
- Archer Daniels Midland Company (ADM)
- Wilmar International Limited
- Bunge Limited
- Neste Corporation
- Renewable Energy Group Inc.
- Cargill Inc.
- Louis Dreyfus Company
- Biox Corporation
In this report, the profile of each market player provides following information:
- Company Overview and Product Portfolio
- 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
- Environmental Regulations
- Volatile Crude Oil Prices
- Technological Advancements
- Growing Awareness of Climate Change
- Restraints
- Feedstock Price Volatility
- Land Use Concerns
- Competition with Food Production
- Infrastructure Limitations
- Opportunities
- Emerging Markets Expansion
- 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(Including Dilution and Micro-Emulsification).
- 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
- Archer Daniels Midland Company (ADM)
- Wilmar International Limited
- Bunge Limited
- Neste Corporation
- Renewable Energy Group Inc.
- Cargill Inc.
- Louis Dreyfus Company
- Biox Corporation
- Company Profiles
- Analyst Views
- Future Outlook of the Market