The global biodiesel market size is estimated at USD 45.87 billion in 2025 and is predicted to reach around USD 92.45 billion by 2034, accelerating at a CAGR of 8.10% from 2025 to 2034. The Europe biodiesel market size accounted for USD 232.02 billion in 2025 and is expanding at a CAGR of 8.20% during the forecast period. The market sizing and forecasts are revenue-based (USD Million/Billion), with 2024 as the base year.
The global biodiesel market size was estimated at USD 42.43 billion in 2024 and is predicted to increase from USD 45.87 billion in 2025 to approximately USD 92.45 billion by 2034, expanding at a CAGR of 8.10% from 2025 to 2034.
The Europe biodiesel market size was evaluated at USD 20.36 billion in 2024 and is predicted to be worth around USD 44.84 billion by 2034, rising at a CAGR of 8.20% from 2025 to 2034.
The Europe region has captured highest market share in 2024. It has traditionally been the major market for the product due to early acceptance of the product in the region and government focus on switching to bio-based sources from carbon-emitting ones. In Europe, urea-coated oil, palm oil, animal fats, rapeseed oil, soybean oil, and sunflower oil are the most often utilised feedstocks for the production of biodiesel. Germany, the European country with the highest percentage of feedstock production, is the main driver of the region's product demand.
The less interest rate for procuring raw materials is predicted to increase consumption, accelerating market growth throughout the projection period in the region. Asia Pacific is similarly expected to grow at a rapid pace between 2025 and 2034.
The biodiesel market of India is motivated by growing use of sustainable fuels, governmental programs for renewable energy, and an escalating emphasis on lowering carbon emissions in the transportation and industrial sectors. Investment in the biodiesel industry is rising as it provides significant gains and rewards for participants in the renewable energy sector.
India's government-owned oil marketing companies have launched a new tendering process for biodiesel acquisition, aiming to procure around 200 million liters for the initial quarter of the next financial year, in April 2025.
It is anticipated that production would rise, which will probably fuel market expansion throughout the course of the projection year. However, market growth is anticipated to be constrained because palm oil is also used in the food industry. In order to reduce pollution and dependence on crude oil, the government's drive to promote green fuels is expected to spur market development throughout the anticipated timeframe. Additionally, by 2023, the Indian government plans to blend more than 5% biodiesel, which is anticipated to spur development during the course of the projection period. South and Central America will generate 10,960.1 million liters in 2023. The rise was attributed to higher domestic consumption as a result of higher levels of blending to use up extra palm oil production.
Due to the vigorous promotion of biodiesel production and consumption in the first half of the last decade, Germany's biodiesel market emerged as the largest national biodiesel market globally. Germany generates considerably more biodiesel than any other EU nation and thus has a crucial role in providing it to the U.S.
Germany's biodiesel exports rose by nearly 16% in the first half of this year compared to the same timeframe in 2023, according to a report from the Union for the Promotion of Oil and Protein Plants (UFOP). As per data released by the German Federal Statistical Office, Germany exported approximately 1.7 million tonnes of biodiesel in the first half of 2024, while imports totalled 906,719 tonnes.
It is a renewable and clean-burning diesel alternative that may be utilized in current diesel engines that too without requiring any alterations. It usually includes recycled oils for cooking, feedstock, and animal fats. The market is anticipated to expand as demand for biodiesel to replace conventional fossil fuels in the transportation and power generation sectors rises. The market is quite fragmented since there are so many different suppliers and dealers.
On the other hand, the lack of production capacity and the high potential for R&D in the choice of feedstock for product manufacturing are likely to create chances for new market competitors. An important aspect driving the sector is the increased need for clean fuels that permit complete combustion while reducing Greenhouse Gas (GHG) emissions. Another factor boosting demand is biodiesel's excellent compatibility with modern diesel engines. The demand for biodiesel is anticipated to increase as a result of the growing population, an increase in the number of biodiesel-using automobiles, and other factors. In the automobile sector, biodiesel is highly sought after since it produces less GHGs. As a result, demand inside the United States is anticipated to rise during the course of the projection period.
A rising preference for biofuel, which is renewable and biodegradable, over fossil fuels, which are associated with higher GHG emissions are influencing the market demand. COVID-19 has an impact on biodiesel usage in the first half of 2020. Furthermore, increased demand for ecologically friendly and GHG emission-reducing gas is likely to drive market growth. Furthermore, government help such as subsidies and mandates suggest that the industry will continue to flourish.
Report Coverage | Details |
Market Size in 2024 | USD 42.43 Billion |
Market Size in 2025 | USD 45.87 billion |
Market Size by 2034 | USD 92.45 Billion |
Growth Rate from 2025 to 2034 | CAGR of 8.10% |
Base Year | 2024 |
Forecast Period | 2025 to 2034 |
Segments Covered | Feedstock, Application, Production Process, and Geography |
Increasing demand for cleaner fuels to stimulate the global biodiesel market
Growing demand by the automotive sector
Depleting petrochemicals
Environmental concerns as well as depleting conventional energy sources
The feedstock segment for vegetable oils is further subdivided into soybean oil, canola oil, palm oil, corn oil, etc. Concurrently, animal fats section is divided into tallow, poultry, white grease, etc. The vegetable oil category accounted 96.4% of global revenue in 2024. But selection of raw materials usually varies by area, depending on feedstock availability and cost. The palm oil, which has been widely utilised in the manufacturing of biodiesel in nations such as Thailand, Germany, Indonesia, France is likely to be a key feedstock for the industry.
Indonesia & Thailand dominate production of palm oil, contributing for more than 79% of global output, along with a significant amount of the commodity utilised to produce biofuel. Whereas Europe was relying on feedstock imports from these Asian countries for biofuel manufacturing.
Based on application the fuel application sector accounted highest revenue share in 2024. In 2024, the automobile gasoline industry dominated product demand. Because it emits less Volatile Organic Compounds (VOCs) than traditional fuels such as diesel, the sector is projected to gain from rising demand for fuel in commercial automobiles as a substitute for crude oil.
The product is used in the marine industry and is anticipated to grow at a sizable CAGR throughout the course of the forecast period due to its biodegradability, lack of aromatics and sulphur, and lack of hazardous properties. Additionally, during the projection period, product sales in agricultural applications are projected to be driven by the development of the agricultural sector and increased automation. Governments all over the globe are constantly working to reduce GHG emissions by generating power from renewable sources. The demand for the product in power producing applications is therefore anticipated to grow at a high CAGR between 2025 and 2034.
By Feedstock
By Application
By Production Process
By Geography
For inquiries regarding discounts, bulk purchases, or customization requests, please contact us at sales@precedenceresearch.com
No cookie-cutter, only authentic analysis – take the 1st step to become a Precedence Research client