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).

Why did the Biodiesel Price Change in July 2025? The Price Index of Biodiesel rose by 1.4% quarter-on-quarter, closing at USD 1550/MT UCO CFR Houston by late June. Fluctuated mid-quarter with stable gains in May and June.

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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 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.

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.

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.

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 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

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

For the fourth consecutive year, the Chinese biodiesel market recorded growth in sales value, which increased by 44% to $691M in 2024. Over the period under review, consumption, however, showed a relatively flat trend pattern. Biodiesel consumption peaked at $1.6B in 2014; however, from 2015 to 2024, consumption failed to regain momentum.

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.

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.

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 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...

The global biodiesel market size was worth over USD 38.64 billion in 2024 and is poised to grow at a CAGR of around 10.1%, reaching USD 134.98 billion revenue by 2037. Vegetable Oil segment is likely to account for 91.8% share by 2037, fueled by availability and high yield of production, along with the reuse of waste vegetable oils in biodiesel production.

US Biodiesel Market is projected to grow around USD 7.1 billion by 2031, at a CAGR of 16.7% during the forecast period.

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.

The Advanced Biofuel Market report segments the industry into By Raw Material (Jatropha, Lignocellulose, Algae, Other Raw Materials), By Biofuel Type (Cellulosic Biofuel, Biodiesel, Biogas, Biobutanol, Other Biofuel Types), By Technology (Biochemical, Thermochemical), and By Geography (North America, Europe, Asia-Pacific, South America, Middle East and Africa). Get five years of historical data alongside five-year market forecasts.

In 2024, the global biodiesel market decreased by -4.9% to $54.6B, falling for the second consecutive year after seven years of growth. Over the period under review, consumption enjoyed a prominent increase. Global consumption peaked at $64.9B in 2022; however, from 2023 to 2024, consumption stood at a somewhat lower figure.

Unlock lucrative growth opportunities in the Biodiesel market with our business intelligence report. Stay informed about the latest trends and overcome industry challenges