The global biodiesel market is forecasted to reach a value of US$ 226.6 billion by the end of 2034, up from US$ 116.3 billion in 2024. Worldwide demand for biodiesel is forecasted to increase at a CAGR of 6.9% through 2034.

Report Attributes	Details
Biodiesel Market Size (2024E)	US$ 116.3 Billion
Projected Market Value (2034F)	US$ 226.6 Billion
Global Market Growth Rate (2024 to 2034)	6.9% CAGR
China Market Value (2034F)	US$ 31.9 Billion
Canada Market Growth Rate (2024 to 2034)	5% CAGR
North America Market Share (2024E)	21.6%
East Asia Market Value (2034F)	US$ 55.7 Billion
Key Companies Profiled	Bunge Ltd. Cargill Inc. Neste Oyj Wilmar International Ltd. Renewable Energy Group Inc. Louis Dreyfus Company BIOX Corporation Emami Group

Country-wise Insights

Attribute	United States
Market Value (2024E)	US$ 18 Billion
Growth Rate (2024 to 2034)	4.9% CAGR
Projected Value (2034F)	US$ 29.1 Billion

Attribute	China
Market Value (2024E)	US$ 14.8 Billion
Growth Rate (2024 to 2034)	8% CAGR
Projected Value (2034F)	US$ 31.9 Billion

Category-wise Insights

Attribute	Soybean
Segment Value (2024E)	US$ 15.2 Billion
Growth Rate (2024 to 2034)	6.7% CAGR
Projected Value (2034F)	US$ 29.2 Billion

Attribute	Fuel
Segment Value (2024E)	US$ 14.1 Billion
Growth Rate (2024 to 2034)	7.6% CAGR
Projected Value (2034F)	US$ 29.2 Billion

The global biofuels production market was valued at nearly 120 billion U.S. dollars in 2023. Figures are projected to continuously increase until 2030 when the biofuels market is forecast to amount to more than 175 billion U.S. dollars. More information on the global biofuels production market can be found here. Largest biofuel producers Biofuels are especially prevalent in the transportation sector and have been marketed as a renewable alternative to petroleum-based motor fuels such as gasoline and diesel. Ethanol and biodiesel are the most common biofuel types, which are won from distilling and refining feedstocks such as crops, vegetable oils, and cooking fats. Although biofuel adoption has increased, they are usually blended with gasoline and diesel in order for them to work in regular combustion engines. The United States is the leading biofuel producing country in the world, followed by Brazil and Indonesia. Biofuels production to exceed 200bn liters Both ethanol and biodiesel production is forecast to increase in the coming years. In 2024, a biofuel production forecast suggests worldwide output could edge close to 200 billion liters per annum.

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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

The Report Covers Global Biodiesel Market Size & Share and It is Segmented by Feedstock (Animal Fat, Vegetable Oil, and Other Feedstocks), Application (Transportation, Power Generation, and Other Applications), and Geography (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa). The Report Offers the Market Size and Forecasts in Revenue (USD) for all the Above Segments.

The global biodiesel market size reached USD 46.1 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 63.4 Billion by 2033, exhibiting a growth rate (CAGR) of 3.6% during 2025-2033. Government regulations promoting renewable energy, surging concerns over energy security and oil price volatility, continuous technological advancements in production processes, increasing public awareness of environmental issues, and escalating efforts to combat climate change are some of the factors propelling the market.

Report Attribute	Key Statistics
Base Year	2024
Forecast Years	2025-2033
Historical Years	2019-2024
Market Size in 2024	USD 46.1 Billion
Market Forecast in 2033	USD 63.4 Billion
Market Growth Rate (2025-2033)	3.6%

IMARC Group provides an analysis of the key trends in each segment of the global biodiesel market report, along with forecasts at the global and regional levels from 2025-2033. Our report has categorized the market based on feedstock, application, type and production technology.

The India biodiesel market size reached USD 461.6 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 936.1 Million by 2033, exhibiting a growth rate (CAGR) of 7.76% during 2025-2033. The rising demand for sustainable and cleaner fuel, increasing adoption of biodiesel in transportation sector, and government initiatives to lower emissions represent some of the key factors driving the market in India.

Report Attribute	Key Statistics
Base Year	2024
Forecast Years	2025-2033
Historical Years	2019-2024
Market Size in 2024	USD 461.6 Million
Market Forecast in 2033	USD 936.1 Million
Market Growth Rate (2025-2033)	7.76%

IMARC Group provides an analysis of the key trends in each sub-segment of the India biodiesel market report, along with forecasts at the country and regional level from 2025-2033. Our report has categorized the market based on feedstock, application, type and production technology.

The Report Covers Europe Biodiesel Market Size & Share and It is Segmented by Feedstock (Coarse Grain, Sugar Crop, Vegetable Oil, and Others) and Geography (Germany, United Kingdom, France, and Rest of Europe). The Report Offers the Market Size and Forecasts for Europe Biodiesel in Volume for all the Above Segments.

The global Biodiesel market size reached USD 32.05 Billion in 2021 and is expected to reach USD 75.57 Billion in 2030 registering a CAGR of 9.9%. Biodiesel market growth is primarily driven owing to growing environmental concerns, and increased need for sustainable fuels in power generation and tran...

North America is the largest biofuels production market in the world. In 2023, the North American biofuels market was worth some 44.76 billions U.S. dollars and is forecast to exceed 60 billion U.S. dollars by 2030. More information on the biofuels production market can be found here.

As per Cognitive Market Research's latest published report, the Global Biodiesel market size was $32.09 Billion in 2022. Biodiesel Industry's Compound Annual Growth Rate will be 9.8% from 2023 to 2030. Factors Affecting Biodiesel Industry Growth

Increasing preference for renewable energy sources due to environmental concerns, and increasing demand for cleaner fuels are the major driving factors for the global biodiesel market. The growing automotive industry is demanding biodiesel as it is environment friendly and cost-effective option compared to other fuels, which is fuelling the growth of the market. In addition, biodiesel production has a large scope for R&D in feedstock selection is expected to create opportunities for the market in the forecast period. A high demand-supply gap caused by insufficient production capacity, and the presence of alternative products can hamper the growth of the market. What is Biodiesel?

Biodiesel is a renewable, biodegradable fuel produced locally from vegetable oils, animal fats, or recycled restaurant grease. Biodiesel meets both the biomass-based diesel and overall advanced biofuel requirements of the Renewable Fuel Standard. Renewable diesel, also known as “green diesel,” is distinct from biodiesel. Biodiesel is a liquid fuel often referred to as B100 or neat biodiesel in its pure, unblended form.

The global Biodiesel market has expanded to reach approximately 68 million tonnes in 2024 and is expected to grow at a CAGR of 3.95% during the forecast period until 2035.

Global Biodiesel market size is expected to reach $76.9 billion by 2029 at 6%, the surge in biofuel demand propels growth in the biodiesel market

The global biodiesel market had a value of approximately ** billion U.S. dollars in 2019. Biodiesel is a variety of diesel that is produced from plant or animal matter, typically by chemically reacting lipids with an alcohol to produce a methyl, ethyl, or propyl ester. It is forecast that by 2024, the worldwide market value of this fuel will reach just over ** billion U.S. dollars.

The Report Covers Biofuels Market Size & Share and It is Segmented by Type (Biodiesel, Ethanol, and Other Types), Feedstock (Palm Oil, Jatropha, Sugar Crop, Coarse Grain, and Other Feedstock), and Geography (North America, Europe, Asia-Pacific, South America, the Middle East, and Africa). The Report Offers Market Size and Forecasts for the Biofuels Market in Volume for all the Above Segments.

The size of the Europe Biodiesel Market was valued at USD XX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of 3.24% during the forecast period. Large-scale expansions are taking place in the Europe biodiesel market due to increasing preference by the region to attain renewable energies to defeat climate change and to reduce levels of greenhouse gas emissions. Being produced from vegetable oils, animal fats, and waste oils, biodiesel is used as a sustainable fuel alternative by industries exploiting fossil fuels mainly in transportation industries. Through strict regulations and ambitious targets put by European countries to achieve increased use of biofuels, biodiesel becomes an essential part of their energy policies. Government policies comprise of Renewable Energy Directive (RED II) that facilitates the growth of biodiesel consumption by introducing blending targets of biofuels with transport fuel. A whole host of incentives and subsidies drive development for biodiesel as an energy source and therefore promote more growth in the market. Technological development such as second and third-generation biodiesel processes improve its efficiency and sustainability, reducing competition with food crops. Despite this, the market is replete with issues dealing with the availability and price volatility of feedstock, concerns regarding land use and sustainability. However, growing public concern over environmental matters as well as increased demand for energy independence will likely propel the biodiesel market forward. Europe's further shift toward a low-carbon economy will significantly rely on biodiesel to achieve its renewable energy and climate goals, making this sector crucial to lead the way toward a greener, more sustainable future. Recent developments include: January 2023, Germany's Ministry of Environment announced plans to send proposals to the cabinet soon for the country to withdraw from the usage of crop-based biofuels to accomplish decreases in greenhouse gases., March 2022: Rossi Biofuel Zrt, a subsidiary of the ENVIEN Group, inaugurated a new biodiesel plant in Hungary. This plant was built by BDI-BioEnergy International GmbH. The facility is a multi-feedstock plant in Komárom, Hungary. The new plant has 60,000 tons per annum capacity, and thus, the total biodiesel production capacity of the company increased from 150,000 to 210,000 tons per annum.. Key drivers for this market are: 4., Government Supportive Policies and Regulations4.; Energy Security. Potential restraints include: 4., Feedstock Availability and Price Volatility. Notable trends are: Palm Oil Is Likely To Dominate The Market.

The global biodiesel market reached a volume of almost 44.07 Billion Liters in the year 2024. The biodiesel industry is further expected to grow at a CAGR of 6.00% between 2025 and 2034 to reach a volume of almost 78.92 Billion Liters by 2034.

The report covers Biofuel Companies in Brazil and it is segmented by Type (Biodiesel, Ethanol, and Other Types) and Feedstock (Coarse Grain, Sugar Crop, Vegetable Oil, and Other Feedstocks). The report offers the production forecasts in million cubic meters (MCM) for all the above segments.

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Biofuels Market Size 2025-2029

The biofuels market size is forecast to increase by USD 32.6 billion at a CAGR of 3.8% between 2024 and 2029.

The market is experiencing significant growth due to the increasing adoption of renewable energy sources as a response to reducing greenhouse gas emissions. Key biofuels include those derived from corn, sugarcane, vegetable oil, and biomass. This shift towards sustainable energy solutions is being fueled by both environmental concerns and regulatory mandates. However, market expansion is not without challenges. Fluctuations in oil prices pose a significant threat to the competitiveness of biofuels, as they can impact the cost-effectiveness of production. Additionally, regulatory hurdles impact adoption, particularly in regards to the approval and implementation of new biofuel technologies and standards.
Supply chain inconsistencies, including the availability and cost of raw materials, also temper growth potential. Companies seeking to capitalize on market opportunities must navigate these challenges effectively, focusing on innovation, cost reduction, and regulatory compliance. By doing so, they can position themselves as leaders in the rapidly evolving biofuels landscape.

What will be the Size of the Biofuels Market during the forecast period?

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The market is experiencing dynamic shifts driven by environmental concerns, regulatory frameworks, and technological advancements. Biofuel environmental impact is a critical factor influencing consumer awareness and public perception. Regulatory environments, such as renewable fuel mandates, shape the market landscape and drive investment opportunities in advanced biofuels like cellulosic ethanol. Biofuel lifecycle analysis and sustainability are key considerations for biofuel certification and consumer acceptance. Sustainable aviation fuel and drop-in fuels are gaining traction due to their reduced carbon footprint and compatibility with existing infrastructure. Biomass conversion and feedstock supply chain are essential components of the biofuel industry, with innovation ecosystems fostering breakthroughs in biofuel technology and biomass utilization.
Biofuel adoption rates are influenced by cost competitiveness and blending ratios, while infrastructure development and industry consolidation shape market penetration. Biofuel standards and certification play a crucial role in ensuring transparency and trust in the market. Social impact assessments and continuous innovation are essential for addressing challenges and seizing opportunities in the evolving biofuels landscape. Biofuels are derived from renewable sources, including plants, algae, and organic waste, and are utilized to fuel various vehicles, such as cars, trucks, ships, and airplanes. The market's expansion is driven by environmental regulations, the need for GHG reductions, and energy security concerns. Key biofuels include ethanol, biodiesel, renewable diesel, hydrogenated oil, biojet, and sustainable aviation fuel. Feedstocks for biofuel production include vegetable oil, molasses, coarse grain, sugar crops, and biomass, among others.

How is this Biofuels Industry segmented?

The biofuels industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Application

  Transportation
  Aviation
  Heating
  Energy generation
  Others


Product

  Ethanol
  Biodiesel


Material

  Starch crops and sugar crops
  Agricultural residues
  Oil crops
  Waste oils and fats
  Algae and non-food crops


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    UK


  APAC

    China
    India
    Indonesia


  South America

    Argentina
    Brazil


  Rest of World (ROW)

By Application Insights

The transportation segment is estimated to witness significant growth during the forecast period.

The transportation market has witnessed substantial expansion in the last decade, fueled by growing concerns over climate change, the imperative to decrease greenhouse gas emissions, and the pursuit of energy security. Governments worldwide have enacted regulations and policies to encourage biofuel adoption, contributing to market growth. Biofuels, derived from renewable sources such as plants, algae, and organic waste, are used to power various vehicles, including automobiles, heavy-duty trucks, ships, and aircraft. These alternative fuels offer improved fuel efficiency, reduced carbon emissions, and contribute to a low-carbon economy and circular economy. Biofuel production processes include the conversion of waste biomass into bioethanol, biodiesel, renewable diesel, biojet fuel, and other advanced biofuels.

The industrial sector and agricultural sector are significan

South-East Asia Biodiesel Market is segmented by Feedstock (Animal Fat, Vegetable Oil, and Others), Application (Transportation, Industrial & Commercial, Other Applications), and Geography (Thailand, Malaysia, Indonesia, Rest of South-East Asia). The report offers the market size and forecasts for South-East Asia Biodiesel Market in USD billion for all the above segments.

Gaseous biofuels have the highest market value worldwide. In 2023, the market value for gaseous biofuels production was estimated at 52.03 billion U.S. dollars. This compared to a market size of 24.71 billion U.S. dollars for solid biofuels production. More information on the biofuels production market can be found here.