Biodiesel Market (By Feedstock: Vegetable Oil, Animal Fats; By Application: Fuel, Power Generation, Others; By Production Process: Alcohol Trans-Esterification, Hydro-Heating) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2023-2032
The global biodiesel market size was estimated at USD 36.48 billion in 2022 and it is expected to hit around USD 79.12 billion by 2032, expanding at a notable CAGR of 8.1% from 2023 to 2032.
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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 2023 |
USD 39.25 Billion |
Market Size by 2032 |
USD 79.12 Billion |
Growth Rate from 2023 to 2032 | CAGR of 8.1% |
Base Year | 2022 |
Forecast Period | 2023 to 2032 |
Segments Covered | Feedstock, Application, Production Process, and Geography |
Companies Mentioned | FutureFuel Corp, Ecodiesel Colombia S.A., Manuelita S.A., TerraVia Holdings, Inc.,Renewable Biofuels, Inc., Ag Processing, Inc., Archer Daniels Midland Company (ADM), Wilmar International Ltd, Bunge Ltd., Cargill, Inc., Louis Dreyfus Company; Biox Corp, Munzer Bioindustrie GmbH, Neste Oyj, Renewable Energy Group, Inc. |
Key Market Drivers
Increasing demand for cleaner fuels to stimulate the global biodiesel market
Growing demand by the automotive sector
Key Market Challenges
Key Market Opportunities
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 2022. 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 2022. In 2022, 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 2023 and 2032.
Biodiesel Market Share, By Region, 2022 (%)
Regions | Revenue Share in 2022 (%) |
North America | 21% |
Asia Pacific | 25% |
Europe | 48% |
Latin America | 4% |
MEA | 2% |
The Europe region has captured highest market share in 2022. 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 2023 and 2032.
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 2022, 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 2022. The rise was attributed to higher domestic consumption as a result of higher levels of blending to use up extra palm oil production.
Segments Covered in the Report
By Feedstock
By Application
By Production Process
By Geography
Chapter 1. Introduction
1.1. Research Objective
1.2. Scope of the Study
1.3. Definition
Chapter 2. Research Methodology
2.1. Research Approach
2.2. Data Sources
2.3. Assumptions & Limitations
Chapter 3. Executive Summary
3.1. Market Snapshot
Chapter 4. Market Variables and Scope
4.1. Introduction
4.2. Market Classification and Scope
4.3. Industry Value Chain Analysis
4.3.1. Raw Material Procurement Analysis
4.3.2. Sales and Distribution Channel Analysis
4.3.3. Downstream Buyer Analysis
Chapter 5. COVID 19 Impact on Biodiesel Market
5.1. COVID-19 Landscape: Biodiesel Industry Impact
5.2. COVID 19 - Impact Assessment for the Industry
5.3. COVID 19 Impact: Global Major Government Policy
5.4. Market Trends and Opportunities in the COVID-19 Landscape
Chapter 6. Market Dynamics Analysis and Trends
6.1. Market Dynamics
6.1.1. Market Drivers
6.1.2. Market Restraints
6.1.3. Market Opportunities
6.2. Porter’s Five Forces Analysis
6.2.1. Bargaining power of suppliers
6.2.2. Bargaining power of buyers
6.2.3. Threat of substitute
6.2.4. Threat of new entrants
6.2.5. Degree of competition
Chapter 7. Competitive Landscape
7.1.1. Company Market Share/Positioning Analysis
7.1.2. Key Strategies Adopted by Players
7.1.3. Vendor Landscape
7.1.3.1. List of Suppliers
7.1.3.2. List of Buyers
Chapter 8. Global Biodiesel Market, By Feedstock
8.1. Biodiesel Market, by Feedstock, 2023-2032
8.1.1 Vegetable Oil
8.1.1.1. Market Revenue and Forecast (2021-2032)
8.1.2. Animal Fats
8.1.2.1. Market Revenue and Forecast (2021-2032)
Chapter 9. Global Biodiesel Market, By Application
9.1. Biodiesel Market, by Application, 2023-2032
9.1.1. Fuel
9.1.1.1. Market Revenue and Forecast (2021-2032)
9.1.2. Power Generation
9.1.2.1. Market Revenue and Forecast (2021-2032)
9.1.3. Others
9.1.3.1. Market Revenue and Forecast (2021-2032)
Chapter 10. Global Biodiesel Market, By Production Process
10.1. Biodiesel Market, by Production Process, 2023-2032
10.1.1. Alcohol Trans-Esterification
10.1.1.1. Market Revenue and Forecast (2021-2032)
10.1.2. Hydro-Heating
10.1.2.1. Market Revenue and Forecast (2021-2032)
Chapter 11. Global Biodiesel Market, Regional Estimates and Trend Forecast
11.1. North America
11.1.1. Market Revenue and Forecast, by Feedstock (2021-2032)
11.1.2. Market Revenue and Forecast, by Application (2021-2032)
11.1.3. Market Revenue and Forecast, by Production Process (2021-2032)
11.1.4. U.S.
11.1.4.1. Market Revenue and Forecast, by Feedstock (2021-2032)
11.1.4.2. Market Revenue and Forecast, by Application (2021-2032)
11.1.4.3. Market Revenue and Forecast, by Production Process (2021-2032)
11.1.5. Rest of North America
11.1.5.1. Market Revenue and Forecast, by Feedstock (2021-2032)
11.1.5.2. Market Revenue and Forecast, by Application (2021-2032)
11.1.5.3. Market Revenue and Forecast, by Production Process (2021-2032)
11.2. Europe
11.2.1. Market Revenue and Forecast, by Feedstock (2021-2032)
11.2.2. Market Revenue and Forecast, by Application (2021-2032)
11.2.3. Market Revenue and Forecast, by Production Process (2021-2032)
11.2.4. UK
11.2.4.1. Market Revenue and Forecast, by Feedstock (2021-2032)
11.2.4.2. Market Revenue and Forecast, by Application (2021-2032)
11.2.4.3. Market Revenue and Forecast, by Production Process (2021-2032)
11.2.5. Germany
11.2.5.1. Market Revenue and Forecast, by Feedstock (2021-2032)
11.2.5.2. Market Revenue and Forecast, by Application (2021-2032)
11.2.5.3. Market Revenue and Forecast, by Production Process (2021-2032)
11.2.6. France
11.2.6.1. Market Revenue and Forecast, by Feedstock (2021-2032)
11.2.6.2. Market Revenue and Forecast, by Application (2021-2032)
11.2.6.3. Market Revenue and Forecast, by Production Process (2021-2032)
11.2.7. Rest of Europe
11.2.7.1. Market Revenue and Forecast, by Feedstock (2021-2032)
11.2.7.2. Market Revenue and Forecast, by Application (2021-2032)
11.2.7.3. Market Revenue and Forecast, by Production Process (2021-2032)
11.3. APAC
11.3.1. Market Revenue and Forecast, by Feedstock (2021-2032)
11.3.2. Market Revenue and Forecast, by Application (2021-2032)
11.3.3. Market Revenue and Forecast, by Production Process (2021-2032)
11.3.4. India
11.3.4.1. Market Revenue and Forecast, by Feedstock (2021-2032)
11.3.4.2. Market Revenue and Forecast, by Application (2021-2032)
11.3.4.3. Market Revenue and Forecast, by Production Process (2021-2032)
11.3.5. China
11.3.5.1. Market Revenue and Forecast, by Feedstock (2021-2032)
11.3.5.2. Market Revenue and Forecast, by Application (2021-2032)
11.3.5.3. Market Revenue and Forecast, by Production Process (2021-2032)
11.3.6. Japan
11.3.6.1. Market Revenue and Forecast, by Feedstock (2021-2032)
11.3.6.2. Market Revenue and Forecast, by Application (2021-2032)
11.3.6.3. Market Revenue and Forecast, by Production Process (2021-2032)
11.3.7. Rest of APAC
11.3.7.1. Market Revenue and Forecast, by Feedstock (2021-2032)
11.3.7.2. Market Revenue and Forecast, by Application (2021-2032)
11.3.7.3. Market Revenue and Forecast, by Production Process (2021-2032)
11.4. MEA
11.4.1. Market Revenue and Forecast, by Feedstock (2021-2032)
11.4.2. Market Revenue and Forecast, by Application (2021-2032)
11.4.3. Market Revenue and Forecast, by Production Process (2021-2032)
11.4.4. GCC
11.4.4.1. Market Revenue and Forecast, by Feedstock (2021-2032)
11.4.4.2. Market Revenue and Forecast, by Application (2021-2032)
11.4.4.3. Market Revenue and Forecast, by Production Process (2021-2032)
11.4.5. North Africa
11.4.5.1. Market Revenue and Forecast, by Feedstock (2021-2032)
11.4.5.2. Market Revenue and Forecast, by Application (2021-2032)
11.4.5.3. Market Revenue and Forecast, by Production Process (2021-2032)
11.4.6. South Africa
11.4.6.1. Market Revenue and Forecast, by Feedstock (2021-2032)
11.4.6.2. Market Revenue and Forecast, by Application (2021-2032)
11.4.6.3. Market Revenue and Forecast, by Production Process (2021-2032)
11.4.7. Rest of MEA
11.4.7.1. Market Revenue and Forecast, by Feedstock (2021-2032)
11.4.7.2. Market Revenue and Forecast, by Application (2021-2032)
11.4.7.3. Market Revenue and Forecast, by Production Process (2021-2032)
11.5. Latin America
11.5.1. Market Revenue and Forecast, by Feedstock (2021-2032)
11.5.2. Market Revenue and Forecast, by Application (2021-2032)
11.5.3. Market Revenue and Forecast, by Production Process (2021-2032)
11.5.4. Brazil
11.5.4.1. Market Revenue and Forecast, by Feedstock (2021-2032)
11.5.4.2. Market Revenue and Forecast, by Application (2021-2032)
11.5.4.3. Market Revenue and Forecast, by Production Process (2021-2032)
11.5.5. Rest of LATAM
11.5.5.1. Market Revenue and Forecast, by Feedstock (2021-2032)
11.5.5.2. Market Revenue and Forecast, by Application (2021-2032)
11.5.5.3. Market Revenue and Forecast, by Production Process (2021-2032)
Chapter 12. Company Profiles
12.1. FutureFuel Corp
12.1.1. Company Overview
12.1.2. Product Offerings
12.1.3. Financial Performance
12.1.4. Recent Initiatives
12.2. Ecodiesel Colombia S.A.
12.2.1. Company Overview
12.2.2. Product Offerings
12.2.3. Financial Performance
12.2.4. Recent Initiatives
12.3. Manuelita S.A.
12.3.1. Company Overview
12.3.2. Product Offerings
12.3.3. Financial Performance
12.3.4. Recent Initiatives
12.4. TerraVia Holdings, Inc.
12.4.1. Company Overview
12.4.2. Product Offerings
12.4.3. Financial Performance
12.4.4. Recent Initiatives
12.5. Renewable Biofuels, Inc.
12.5.1. Company Overview
12.5.2. Product Offerings
12.5.3. Financial Performance
12.5.4. Recent Initiatives
12.6. Ag Processing, Inc.
12.6.1. Company Overview
12.6.2. Product Offerings
12.6.3. Financial Performance
12.6.4. Recent Initiatives
12.7. Archer Daniels Midland Company (ADM)
12.7.1. Company Overview
12.7.2. Product Offerings
12.7.3. Financial Performance
12.7.4. Recent Initiatives
12.8. Wilmar International Ltd
12.8.1. Company Overview
12.8.2. Product Offerings
12.8.3. Financial Performance
12.8.4. Recent Initiatives
12.9. Bunge Ltd.
12.9.1. Company Overview
12.9.2. Product Offerings
12.9.3. Financial Performance
12.9.4. Recent Initiatives
12.10. Cargill, Inc.
12.10.1. Company Overview
12.10.2. Product Offerings
12.10.3. Financial Performance
12.10.4. Recent Initiatives
Chapter 13. Research Methodology
13.1. Primary Research
13.2. Secondary Research
13.3. Assumptions
Chapter 14. Appendix
14.1. About Us
14.2. Glossary of Terms
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