The mean B20 retail fuel prices in the United States amounted to three U.S. dollars per gasoline gallon equivalent on January 1, 2024. This compared to 3.16 U.S. dollars for regular diesel fuel, making it the lowest price for such fuels since October 2021. B20 fuel is a diesel blend with 20 percent with biodiesel content. The higher the biodiesel content, the more expensive the fuel on the retail market. B100 sold for a mean retail price of 3.85 U.S. dollars in January 2025. B20 has been the cheapest option since October 2017.

Learn about the various factors that influence biodiesel fuel prices per gallon, including feedstock costs, production expenses, and demand. Find out why some biodiesel fuels are cheaper than others and discover the average price of biodiesel and diesel fuel in the United States, as well as how biodiesel can be a greener alternative to petroleum-based fuels.

In the 18th calendar week of 2025 (April 28 to May 4) the wholesale price of biodiesel in Germany stood at ****** euro cents per liter. Throughout 2024 and 2025, prices were a lot less volatile than in previous years. In the period of consideration, figures peaked at ****** euro cents per metric ton in the calendar week 44 of 2021, and reached a low of ***** euro cents per metric ton in the first calendar week of 2021. Germany’s producer price of biodiesel is often regarded as the global benchmark for the fuel. Germany’s role in the biodiesel economy Germany is among the leading producers of biodiesel worldwide. With a production of more than **** billion liters, it ranks only behind producing giants like Indonesia, Brazil, and the United States. Biodiesel use is especially prevalent in the European Union, where mandates stipulate the exact share of renewable fuel that needs to be included in transportation fuels. Germany is the second largest consumer of biodiesel in the EU, following France. FAME biodiesel and renewable diesel Besides the more ubiquitous FAME (fatty acid methyl ester) biodiesel, Finnish oil refiner Neste introduced a different kind of vegetable oil-based renewable diesel, also called HVO (hydrotreated vegetable oil), that results in an even purer quality product. Unlike FAME biodiesel, renewable diesel may be used as a drop-in for conventional diesel, making it especially attractive to the transportation industry. Since first appearing on the market, Neste’s renewable diesel sales volume has reached more than ***** million liters per year. In 2024, Germany followed other EU countries and adopted a new law that would allow the sale of *** percent renewable diesel fuel at pump stations.

Brazil BR: Consumer Fuel Price: Diesel: Minimum data was reported at 5.470 BRL/l in Mar 2025. This records a decrease from the previous number of 5.580 BRL/l for Feb 2025. Brazil BR: Consumer Fuel Price: Diesel: Minimum data is updated monthly, averaging 1.949 BRL/l from Jul 2001 (Median) to Mar 2025, with 284 observations. The data reached an all-time high of 6.240 BRL/l in Aug 2022 and a record low of 0.658 BRL/l in Jan 2002. Brazil BR: Consumer Fuel Price: Diesel: Minimum data remains active status in CEIC and is reported by National Petroleum, Natural Gas and Biofuels Agency. The data is categorized under Global Database’s Brazil – Table BR.PF002: Consumer Fuel Price: Brazil: Monthly. Note:The Survey of Price and Margin Fuels Marketing covers gasoline, hydrated ethanol fuel, diesel oil without additive, compressed natural gas (CNG) and liquefied petroleum gas (LPG) which have been surveyed in 555 locations, about 10% municipalities in Brazil, in accordance with procedures established by the Brazilian National Agency of Petroleum, Natural Gas and Biofuels.The results of the Survey of Price and Margin Fuels Marketing contain selling price to the final consumer and purchasing price from the wholesaler of gasoline, hydrated ethanol fuel, diesel oil without additive, CNG and LPG observed in each municipality which has participated in the survey.

Argentina's biodiesel prices soared in recent years, having surpassed 1.15 million Argentine pesos per metric ton in March 2025. This was more than triple the price reported in the same month of the previous year. These prices refer to sales for the mandated diesel fuel blend in the country.

Brazil BR: Consumer Fuel Price: Gasoline: Minimum data was reported at 5.190 BRL/l in Mar 2025. This stayed constant from the previous number of 5.190 BRL/l for Feb 2025. Brazil BR: Consumer Fuel Price: Gasoline: Minimum data is updated monthly, averaging 2.329 BRL/l from Jul 2001 (Median) to Mar 2025, with 284 observations. The data reached an all-time high of 6.180 BRL/l in May 2022 and a record low of 1.170 BRL/l in Feb 2002. Brazil BR: Consumer Fuel Price: Gasoline: Minimum data remains active status in CEIC and is reported by National Petroleum, Natural Gas and Biofuels Agency. The data is categorized under Global Database’s Brazil – Table BR.PF002: Consumer Fuel Price: Brazil: Monthly. Note:The Survey of Price and Margin Fuels Marketing covers gasoline, hydrated ethanol fuel, diesel oil without additive, compressed natural gas (CNG) and liquefied petroleum gas (LPG) which have been surveyed in 555 locations, about 10% municipalities in Brazil, in accordance with procedures established by the Brazilian National Agency of Petroleum, Natural Gas and Biofuels.The results of the Survey of Price and Margin Fuels Marketing contain selling price to the final consumer and purchasing price from the wholesaler of gasoline, hydrated ethanol fuel, diesel oil without additive, CNG and LPG observed in each municipality which has participated in the survey.

Learn about the various factors that affect the cost of biodiesel per gallon, including feedstock, production method, location, taxes, and government incentives. Discover how biodiesel prices compare to traditional diesel fuel and how demand for renewable fuels can impact pricing.

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Biodiesel Market Size 2024-2028

The biodiesel market size is forecast to increase by USD 16.71 billion at a CAGR of 7.38% between 2023 and 2028.

The market is experiencing significant growth due to the increasing demand for renewable and sustainable energy sources. One of the key drivers is the growing use of algae for biodiesel production, which offers numerous advantages such as high oil yield and reduced greenhouse gas emissions. Soy oil and palm oil are the most commonly used feedstocks due to their availability and cost-effectiveness. Another trend in the market is the utilization of spent bleaching earth as a feedstock for biodiesel production, which not only reduces waste but also lowers production costs. However, the high operating costs of biodiesel production remain a major challenge for market growth. Producers must continuously explore ways to improve efficiency and reduce costs to remain competitive in the market. Overall, the market is expected to witness steady growth in the coming years, driven by increasing environmental awareness and government regulations promoting the use of renewable energy sources.

What will be the Size of the Biodiesel Market During the Forecast Period?

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The market represents a significant segment of the renewable biofuels industry, driven by the growing demand for environmentally friendly fuels In the transportation sector. With the increasing global population and the subsequent rise in vehicles on the road, there is a pressing need to reduce carbon emissions and dependence on fossil fuels. Biodiesel, derived from vegetable oils such as soybean oil, corn oil, canola oil, and animal tallow, among others, is a viable alternative to petroleum-based diesel fuels. The market is influenced by various factors, including feedstock selection, production capacity, and crude prices.
The market's size and direction are influenced by the adoption rate of biodiesel by Original Equipment Manufacturers (OEMs) and the availability of raw materials. The use of biodiesel in diesel engines reduces greenhouse gas emissions, making it an attractive option for consumers and governments alike. Global biodiesel consumption is expected to grow as more countries shift towards sustainable biofuels to mitigate their carbon footprint.

How is the Biodiesel Industry segmented and which is the largest segment?

The industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Application

  Transport fuel
  Power generation
  Others


Type

  Vegetable oil
  Animal fats
  Others


Geography

  APAC

    India
    Thailand


  North America

    US


  Europe



  South America

    Brazil


  Middle East and Africa

By Application Insights

The transport fuel segment is estimated to grow significantly during the forecast period. Biodiesel serves as an eco-friendly alternative to traditional diesel fuel for internal combustion engines. In Europe, biodiesel dominates the biofuel market, accounting for over 80% of consumption, driven by its increasing adoption in the automotive sector. In India, the biodiesel industry is poised for growth due to substantial investments in manufacturing, with several states, such as Karnataka, utilizing biodiesel in public transportation to reduce greenhouse gas emissions. Vegetable oils, including soybean oil, corn oil, canola oil, animal fats like poultry fat and tallow, and feedstocks like palm oil and palm kernel oil, serve as raw materials for biodiesel production. The shift towards sustainable biofuels is driven by environmental concerns and increasing crude oil prices. Biodiesel is also used in power generation applications, further expanding its market reach.

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The Transport fuel segment was valued at USD 25.90 billion in 2018 and showed a gradual increase during the forecast period.

Regional Analysis

APAC is estimated to contribute 49% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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Biodiesel production in Indonesia and India is experiencing growth due to government subsidies and mandates. In Indonesia, production has increased since 2016, driven by new subsidy calculations and domestic blending requirements. Exports remain marginal. In India, the expansion of biofuel plants and government incentives for oil manufacturing companies will boost biodiesel production during the forecast period. Vegetable oils, such as soybean oil, corn oil, and canola oil animal fats, incl

Learn about the complex set of factors that determine the price of biodiesel per ton, including feedstock prices, production costs, market demand, and government policies. See how biodiesel compares to conventional diesel fuel and why it's a compelling alternative for many consumers and businesses.

Brazil BR: Wholesale Fuel Price: Gasoline: Minimum data was reported at 3.110 BRL/l in Aug 2020. This records an increase from the previous number of 2.650 BRL/l for Jul 2020. Brazil BR: Wholesale Fuel Price: Gasoline: Minimum data is updated monthly, averaging 2.000 BRL/l from Jul 2001 (Median) to Aug 2020, with 230 observations. The data reached an all-time high of 3.599 BRL/l in Oct 2018 and a record low of 0.690 BRL/l in Jan 2002. Brazil BR: Wholesale Fuel Price: Gasoline: Minimum data remains active status in CEIC and is reported by National Petroleum, Natural Gas and Biofuels Agency. The data is categorized under Global Database’s Brazil – Table BR.PF009: Distributor Fuel Price: Brazil: Monthly (Discontinued). Note:The Survey of Price and Margin Fuels Marketing covers gasoline, hydrated ethanol fuel, diesel oil without additive, compressed natural gas (CNG) and liquefied petroleum gas (LPG) which have been surveyed in 555 locations, about 10% municipalities in Brazil, in accordance with procedures established by the Brazilian National Agency of Petroleum, Natural Gas and Biofuels.The results of the Survey of Price and Margin Fuels Marketing contain selling price to the final consumer and purchasing price from the wholesaler of gasoline, hydrated ethanol fuel, diesel oil without additive, CNG and LPG observed in each municipality which has participated in the survey.

Learn about B100 biodiesel, a renewable fuel made from agricultural crops or waste products. Discover factors that impact its price and how it compares to traditional diesel fuel.

The global biodiesel fuel market is experiencing robust growth, driven by increasing environmental concerns and stringent government regulations aimed at reducing carbon emissions from the transportation and industrial sectors. The market, valued at approximately $50 billion in 2025, is projected to exhibit a Compound Annual Growth Rate (CAGR) of 7% from 2025 to 2033. This growth is fueled by several key factors, including the rising demand for renewable and sustainable energy sources, government incentives promoting biodiesel adoption (such as tax credits and subsidies), and advancements in biodiesel production technologies leading to cost reductions and improved efficiency. The increasing awareness of the negative environmental impacts of fossil fuels is further driving the shift towards cleaner alternatives like biodiesel. Significant growth is expected across various applications, including transportation fuels (heavy-duty vehicles and passenger cars) and industrial fuels (heating and power generation). However, the market faces certain challenges. Fluctuations in feedstock prices (e.g., vegetable oils, animal fats) can significantly impact biodiesel production costs and profitability. Furthermore, the availability and cost of suitable feedstock can vary regionally, impacting market growth. Infrastructure limitations for biodiesel distribution and storage also present an obstacle to wider adoption. Despite these restraints, the long-term outlook for the biodiesel fuel market remains positive, with continued technological advancements and supportive government policies expected to mitigate these challenges and further accelerate market expansion. The diverse segmentations, encompassing pure and non-pure biodiesel fuels and various application sectors, offer significant opportunities for market players to capitalize on specific niches and emerging trends. This report provides a detailed analysis of the global biodiesel fuel market, projecting significant growth driven by increasing environmental concerns and supportive government policies. The market, valued at approximately $50 billion in 2023, is expected to surpass $80 billion by 2030. This in-depth study delves into production, consumption patterns, technological advancements, and key players shaping this dynamic sector. Keywords: Biodiesel Fuel Market Size, Biodiesel Production, Biodiesel Fuel Price, Biodiesel Sustainability, Renewable Diesel, Green Diesel.

Biodiesel Feedstock Market Outlook

The global biodiesel feedstock market size is set to witness substantial growth, with estimates suggesting a valuation boost from $38.5 billion in 2023 to approximately $62.7 billion by 2032, driven by a CAGR of 5.7%. This market expansion is propelled by several key factors, such as the increasing global demand for renewable energy sources, the push for sustainable fuel alternatives, and supportive governmental policies favoring eco-friendly energy solutions. Coupled with technological advancements in biodiesel production, these elements are set to enhance the efficiency and economic viability of biodiesel feedstock, thereby fostering market growth over the forecast period.

One of the primary growth factors for the biodiesel feedstock market is the escalating awareness and commitment towards reducing carbon footprints globally. As climate change concerns become more pronounced, there is increasing pressure on industries and governments to minimize greenhouse gas emissions. Biodiesel, known for its ability to reduce emissions significantly compared to traditional fossil fuels, is gaining traction. Furthermore, various governments are implementing policies and mandates that require the blending of biodiesel with conventional diesel, further propelling the demand for biodiesel feedstock. Such regulatory frameworks are critical in ensuring consistent demand and creating a robust market for biodiesel feedstock.

Technological advancements in biodiesel production processes are also playing a significant role in market growth. The development of more efficient and cost-effective production technologies, such as advanced transesterification processes, has made biodiesel a more competitive alternative to conventional fuels. These innovations not only enhance the yield of biodiesel from raw materials but also reduce production costs, making biodiesel more economically attractive. Additionally, improvements in feedstock processing and conversion technologies have expanded the range of usable raw materials, including non-traditional and waste materials, thus broadening the scope of the feedstock market.

The diversification of feedstock sources is another crucial factor contributing to market expansion. As the industry progresses, there is a noticeable shift towards using a variety of feedstocks, including soybean oil, rapeseed oil, palm oil, animal fats, and used cooking oil. This diversification helps mitigate supply risks and stabilizes prices, ensuring a steady supply chain for biodiesel producers. Moreover, the use of waste oils and fats not only provides a cost-effective feedstock option but also contributes to waste reduction and enhances the sustainability of biodiesel production, aligning with global sustainability goals.

Biodiesel Fuel is increasingly being recognized as a pivotal component in the transition towards sustainable energy solutions. As the world grapples with the adverse effects of climate change, the role of biodiesel as a cleaner alternative to conventional fossil fuels becomes ever more critical. Derived from renewable sources such as vegetable oils and animal fats, biodiesel offers a significant reduction in greenhouse gas emissions, thus contributing to global efforts in minimizing environmental impact. The integration of biodiesel into existing fuel infrastructures is seamless, allowing for immediate benefits without the need for extensive modifications. This adaptability, coupled with its renewable nature, positions biodiesel as a key player in the global energy landscape, driving further research and investment into its development and application.

Regionally, the biodiesel feedstock market exhibits a diverse growth pattern. North America and Europe are leading the charge, largely due to stringent environmental regulations and significant investments in renewable energy infrastructure. The Asia Pacific region is also witnessing rapid growth, driven by increasing energy consumption and governmental initiatives to reduce reliance on fossil fuels. Latin America and the Middle East & Africa, while still developing markets, are showing promise due to rising environmental awareness and the availability of raw materials. These regional dynamics are shaping the global landscape of the biodiesel feedstock market, with each region contributing to market growth in unique ways.

Feedstock Type Analysis

Soybean oil remains one of the most prominent feedstocks in the biodiesel industry, accounting for a signifi

In Brazil, biodiesel sales for November/December 2021 reached an average price of 5.9 thousand Brazilian reals per cubic meter, a year-over-year growth of more than six percent. That was also the highest figure recorded in the indicated period. In 2021, the minimum biodiesel blend in commercialized diesel fuel in Brazil oscillated between 10 and 13 percent. Biodiesel sales in the country are conducted through bi-monthly auctions.

Get the latest insights on price movement and trend analysis of Biodiesel in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East Africa).

The global corn-based renewable fuel market is expected to reach a staggering $79,040 million by 2033, registering an impressive 8.3% CAGR during the forecast period (2025-2033). The surging demand for eco-friendly energy sources, coupled with stringent government regulations aimed at mitigating carbon emissions, is driving the market's growth. The transportation sector, in particular, is witnessing a significant shift towards corn-based biofuels, such as biodiesel and alcohol fuels, which offer cleaner alternatives to fossil fuels without compromising vehicle performance. Factors such as rising fuel prices and the increasing availability of corn-based feedstocks are further contributing to the market's growth. Technological advancements in biofuel production methods, such as the development of enzymes and biocatalysts, are improving efficiency and reducing production costs. Additionally, strategic initiatives by leading industry players, including mergers and acquisitions, are expected to accelerate the market's expansion. Key market players include Neste Oil, ADM, Infinita Renovables, Biopetrol, Cargill, and Ital Green Oil. Regionally, North America is anticipated to dominate the market, followed by Asia Pacific and Europe, owing to the presence of robust feedstock supply chains and supportive government policies.

Brazil BR: Consumer Fuel Price: Ethanol: Average data was reported at 4.350 BRL/l in Mar 2025. This records a decrease from the previous number of 4.380 BRL/l for Feb 2025. Brazil BR: Consumer Fuel Price: Ethanol: Average data is updated monthly, averaging 2.011 BRL/l from Jul 2001 (Median) to Mar 2025, with 284 observations. The data reached an all-time high of 5.370 BRL/l in Nov 2021 and a record low of 0.912 BRL/l in Aug 2002. Brazil BR: Consumer Fuel Price: Ethanol: Average data remains active status in CEIC and is reported by National Petroleum, Natural Gas and Biofuels Agency. The data is categorized under Global Database’s Brazil – Table BR.PF002: Consumer Fuel Price: Brazil: Monthly. Note:The Survey of Price and Margin Fuels Marketing covers gasoline, hydrated ethanol fuel, diesel oil without additive, compressed natural gas (CNG) and liquefied petroleum gas (LPG) which have been surveyed in 555 locations, about 10% municipalities in Brazil, in accordance with procedures established by the Brazilian National Agency of Petroleum, Natural Gas and Biofuels.The results of the Survey of Price and Margin Fuels Marketing contain selling price to the final consumer and purchasing price from the wholesaler of gasoline, hydrated ethanol fuel, diesel oil without additive, CNG and LPG observed in each municipality which has participated in the survey.

Learn about the factors that influence the cost of biodiesel fuel per gallon, including raw materials, refinery location, government incentives, and more. Despite the slightly higher cost, biodiesel's environmental benefits and use of domestic feedstocks make it a popular choice for many consumers and businesses.

The global biodiesel fuel market is experiencing robust growth, driven by increasing environmental concerns, stringent emission regulations, and government incentives promoting renewable energy sources. The market, currently valued at approximately $50 billion in 2025 (this is an estimated figure based on typical market sizes for similar industries and the provided CAGR), is projected to witness a Compound Annual Growth Rate (CAGR) of 8% from 2025 to 2033. This expansion is fueled by rising demand for sustainable transportation fuels, particularly in developed nations committed to reducing their carbon footprint. The shift towards biofuels is further accelerated by the escalating prices of fossil fuels and the growing awareness of their detrimental environmental impact. Key market segments include pure and non-pure biodiesel fuels, with applications spanning industrial fuels, transportation fuels, and the chemical industry. The dominance of certain geographical regions, like North America and Europe, is expected to continue, although emerging economies in Asia-Pacific are showing significant potential for growth, driven by increasing industrialization and vehicle ownership. Major players in the biodiesel fuel market are actively investing in research and development to enhance production efficiency and explore new feedstocks. The industry is also witnessing a trend towards integrating biodiesel production with existing refining infrastructure, reducing overall operational costs. However, challenges remain, including fluctuating feedstock prices, technological limitations in certain production processes, and the need for consistent government policies supporting the widespread adoption of biodiesel. The competitive landscape is characterized by a mix of established players and emerging companies, each vying for market share through innovative technologies, strategic partnerships, and efficient supply chain management. The market's trajectory reflects a growing need for environmentally friendly energy alternatives, presenting both opportunities and challenges for industry stakeholders in the coming years. This in-depth report provides a comprehensive overview of the global biodiesel fuel market, analyzing production, consumption, and industry trends. With a projected market value exceeding $50 billion by 2028, this report is an essential resource for investors, industry players, and policymakers seeking to understand this dynamic sector. Keywords: Biodiesel Fuel, Renewable Energy, Sustainable Fuel, Biofuel Production, Market Analysis, Industry Trends, Biodiesel Market Size, Green Energy.

Biodiesel Fuel Market Outlook

As of 2023, the biodiesel fuel market size is estimated to be around USD 35 billion and is projected to reach approximately USD 70 billion by 2032, growing at a Compound Annual Growth Rate (CAGR) of about 8%. The primary factor fueling this growth is the increasing demand for renewable energy sources, driven by environmental concerns and government policies aimed at reducing greenhouse gas emissions.

One of the most significant growth factors for the biodiesel fuel market is the increasing environmental awareness and the subsequent rise in demand for cleaner, sustainable energy sources. Governments worldwide are implementing stringent regulations to reduce carbon footprints, thereby encouraging the adoption of biodiesel. The transportation sector, a major contributor to carbon emissions, is particularly inclined towards biodiesel because it can be used in existing diesel engines with little or no modification. This compatibility, coupled with biodiesel's potential to reduce greenhouse gas emissions by up to 86%, makes it an attractive alternative to conventional fossil fuels.

Technological advancements in biodiesel production processes are also playing a crucial role in market growth. Innovations in transesterification and other production techniques have led to more efficient and cost-effective methods of producing biodiesel. This, in turn, has made biodiesel more competitive with traditional diesel fuels. Furthermore, the development of advanced enzymes and catalysts has improved the yield and quality of biodiesel, making it a more viable and economically feasible option for various end-users.

Another significant factor driving the biodiesel fuel market is the increasing use of agricultural feedstocks. Vegetable oils, animal fats, and used cooking oils are commonly used as raw materials for biodiesel production. The agricultural sector benefits from this demand through increased crop prices and additional revenue streams from waste products. Additionally, the use of used cooking oil and other waste materials aligns with the principles of a circular economy, reducing waste and promoting sustainability. This trend is likely to continue, further boosting the biodiesel market.

Regionally, North America and Europe are currently leading the biodiesel market, primarily due to rigorous environmental regulations and substantial government subsidies. However, Asia-Pacific is expected to witness the fastest growth during the forecast period. The burgeoning industrial sector, coupled with increasing energy demands and rising awareness about environmental issues, is driving the market in this region. Countries like China and India are focusing on renewable energy sources to reduce their reliance on fossil fuels, thereby offering lucrative opportunities for market expansion.

Feedstock Analysis

The biodiesel fuel market can be segmented by feedstock into vegetable oils, animal fats, used cooking oil, and others. Vegetable oils, including soybean oil, palm oil, and canola oil, are the most commonly used feedstocks for biodiesel production. These oils are favored due to their high oil content and ease of processing. The agricultural sector plays a significant role here, as the cultivation of these oilseeds provides both food and fuel. However, the use of vegetable oils for biodiesel has been met with some criticism due to the potential impact on food prices and land use.

Animal fats are another significant feedstock for biodiesel production. These include tallow, lard, and poultry fat, among others. Animal fats are often by-products of the meat industry and are considered a more sustainable option compared to vegetable oils. They are generally cheaper and help in waste management, making them an attractive feedstock option. However, the quality of biodiesel produced from animal fats can vary, impacting its commercial viability.

Used cooking oil, often referred to as waste vegetable oil, is gaining traction as a biodiesel feedstock. This option is particularly appealing due to its low cost and the environmental benefits associated with waste recycling. Using used cooking oil helps in reducing waste disposal issues and provides a sustainable alternative to virgin oils. Many small-scale biodiesel producers rely heavily on this feedstock due to its affordability and availability.

Other feedstocks for biodiesel production include algae and various non-edible oilseeds like Jatropha and Camelina. Algae are considered a promising feedstock due to their high oil yield an