Biodiesel Market Share

ID: MRFR/E&P/0992-HCR

185 Pages

Priya Nagrale

October 2025

Biodiesel Market Research Report Information By Application (Fuel, Power Generation, Others), by Type (Methanol, Biohydrogen and Cellulosic Ethanol), And By Region (North America, Europe, Asia-Pacific, And Rest Of The World) – Market Forecast Till 2035

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Market Share

Biodiesel Market Share Analysis

Market share positioning strategies are critical for players in the biodiesel market as they seek to establish a strong presence, compete effectively, and capitalize on the growing demand for sustainable energy sources. One prominent strategy is differentiation through feedstock selection. Biodiesel producers strategically choose their feedstock sources to distinguish themselves in the market. This can involve opting for advanced feedstocks such as algae or using waste products like used cooking oil. By selecting unique and sustainable feedstocks, companies can carve out a niche and attract environmentally conscious consumers and businesses. Government rules and policies are crucial in determining the biodiesel industry. Policies encouraging the use of biofuels, such as biodiesel, are being implemented in many nations as part of larger plans to lower carbon emissions and improve energy security. Governments use a variety of policy instruments to promote the production and use of biodiesel, including tax breaks, subsidies, and mandates for biofuel. Market dynamics are greatly impacted by the regulatory environment, which also affects production levels, investment choices, and biodiesel's overall competitiveness in the energy sector. Another key positioning strategy is geographic diversification. Biodiesel producers strategically expand their operations into different regions, taking advantage of varying market conditions and local preferences. This approach not only mitigates risks associated with regional economic fluctuations or regulatory changes but also allows companies to tap into diverse feedstock sources. Geographic diversification enables market players to adapt to evolving market demands and ensures a more resilient market position. Strategic partnerships and collaborations are essential components of market share positioning in the biodiesel industry. By forming alliances with feedstock suppliers, technology providers, and distributors, companies can strengthen their supply chains, access new markets, and benefit from shared resources and expertise. Collaborations can also facilitate research and development efforts, driving innovation in biodiesel production processes and enhancing overall competitiveness.

Market Highlights

Author

Priya Nagrale

Senior Research Analyst

With an experience of over five years in market research industry (Chemicals & Materials domain), I gather and analyze market data from diverse sources to produce results, which are then presented back to a client. Also, provide recommendations based on the findings. As a Senior Research Analyst, I perform quality checks (QC) for market estimations, QC for reports, and handle queries and work extensively on client customizations. Also, handle the responsibilities of client proposals, report planning, report finalization, and execution

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FAQs

What is the current valuation of the Biodiesel Market as of 2024?

The Biodiesel Market was valued at 42.35 USD Billion in 2024.

What is the projected market valuation for the Biodiesel Market in 2035?

The projected valuation for the Biodiesel Market in 2035 is 91.95 USD Billion.

What is the expected CAGR for the Biodiesel Market during the forecast period 2025 - 2035?

The expected CAGR for the Biodiesel Market during the forecast period 2025 - 2035 is 7.3%.

Which companies are considered key players in the Biodiesel Market?

Key players in the Biodiesel Market include Biodiesel Industries, Neste, Renewable Energy Group, Cargill, Bunge, ADM, Green Plains, Valero Energy, and World Energy.

What are the main segments of the Biodiesel Market by type?

The main segments by type include Methanol, Biohydrogen, and Cellulosic Ethanol, with valuations ranging from 15.0 to 35.0 USD Billion for Methanol.

How does the application segment of the Biodiesel Market break down?

The application segment includes Fuel, Power Generation, and Others, with Fuel valued between 30.0 and 65.0 USD Billion.

1. Market Overview

2. Market Trends

3. Market Segment Insights

4. Key Players and Competitive Insights

5. Industry Developments

6. Market Segmentation

7. Report Scope

8. Market Highlights

9. FAQs

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Market Summary

As per MRFR analysis, the Biodiesel Market Size was estimated at 42.35 USD Billion in 2024. The Biodiesel industry is projected to grow from 45.44 USD Billion in 2025 to 91.95 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 7.3 during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The biodiesel market is experiencing a robust growth trajectory driven by sustainability and technological advancements.

North America remains the largest market for biodiesel, propelled by strong regulatory support and consumer demand for sustainable energy solutions.
The Asia-Pacific region is emerging as the fastest-growing market, reflecting increasing investments in renewable energy and environmental initiatives.
In the biodiesel segments, methanol continues to dominate, while biohydrogen is rapidly gaining traction due to its potential for cleaner energy applications.
Key market drivers include rising environmental concerns and regulatory support, which are fostering innovation and economic viability in the biodiesel sector.

Market Size & Forecast

2024 Market Size	42.35 (USD Billion)
2035 Market Size	91.95 (USD Billion)
CAGR (2025 - 2035)	7.3%
Largest Regional Market Share in 2024	North America

Major Players

Biodiesel Industries (IT), Neste (FI), Renewable Energy Group (US), Cargill (US), Bunge (BR), ADM (US), Green Plains (US), Valero Energy (US), World Energy (US)

Market Trends

The Biodiesel Market is currently experiencing a dynamic evolution, driven by a confluence of environmental policies, technological advancements, and shifting consumer preferences. As nations increasingly prioritize sustainability, the demand for renewable energy sources, particularly biodiesel, appears to be on the rise. This trend is further bolstered by government incentives aimed at reducing greenhouse gas emissions and promoting cleaner fuel alternatives. The market landscape is characterized by a growing number of producers and innovations in feedstock utilization, which may enhance production efficiency and reduce costs. Moreover, the Biodiesel Market is witnessing a diversification of feedstock sources, including waste oils and non-food crops, which could mitigate competition with food supply chains. This shift not only addresses food security concerns but also aligns with the global push towards circular economy principles. As the market continues to mature, it seems poised for further growth, with potential expansions into emerging economies where energy demands are escalating. The interplay of regulatory frameworks and technological breakthroughs will likely shape the future trajectory of this sector, making it a focal point for investors and stakeholders alike.

Sustainability Initiatives

The Biodiesel Market is increasingly influenced by sustainability initiatives that encourage the adoption of renewable energy sources. Governments worldwide are implementing policies that promote biodiesel as a viable alternative to fossil fuels, which may lead to heightened market activity.

Technological Advancements

Innovations in production technologies are transforming the Biodiesel Market, enhancing efficiency and reducing costs. These advancements could facilitate the use of diverse feedstocks, thereby broadening the scope of biodiesel production.

Consumer Preferences

Shifting consumer preferences towards environmentally friendly products are impacting the Biodiesel Market. As awareness of climate change grows, consumers are more inclined to support sustainable fuel options, which may drive demand for biodiesel.

The Global Biodiesel Market is poised for growth as nations increasingly prioritize renewable energy sources to meet sustainability goals and reduce greenhouse gas emissions.

U.S. Department of Energy

Biodiesel Market Market Drivers

Economic Viability

The economic viability of biodiesel is a significant driver for the Biodiesel Market. As fossil fuel prices fluctuate, biodiesel presents a stable and often more affordable alternative. The cost of production has been decreasing due to advancements in technology and economies of scale, making biodiesel more competitive with traditional diesel fuels. Additionally, the increasing availability of feedstocks, such as vegetable oils and animal fats, is further enhancing the economic landscape for biodiesel production. Market data indicates that biodiesel can be produced at a lower cost than in previous years, which is likely to attract more investors and producers to the Biodiesel Market, fostering growth and innovation.

Regulatory Support

The Biodiesel Market benefits from increasing regulatory support aimed at promoting renewable energy sources. Governments worldwide are implementing policies that encourage the use of biodiesel as a cleaner alternative to fossil fuels. For instance, mandates for blending biodiesel with conventional diesel fuel are becoming more common, which is likely to drive demand. In many regions, tax incentives and subsidies are also being introduced to support biodiesel production and consumption. This regulatory framework not only enhances the market's attractiveness but also provides a stable environment for investment in biodiesel technologies. As a result, the Biodiesel Market is poised for growth, with projections indicating a compound annual growth rate of over 5% in the coming years.

Diverse Applications

The versatility of biodiesel is a notable driver for the Biodiesel Market. Biodiesel can be utilized in various applications, including transportation, heating, and power generation, making it a flexible energy source. In the transportation sector, biodiesel is increasingly being adopted by fleets and individual consumers as a cleaner alternative to conventional diesel. Additionally, its use in agricultural machinery and as a heating fuel in residential and commercial settings is expanding. This broad range of applications not only enhances the market's appeal but also contributes to its resilience against economic fluctuations. As more industries recognize the benefits of biodiesel, the Biodiesel Market is expected to experience sustained growth.

Technological Innovations

Technological advancements play a crucial role in shaping the Biodiesel Market. Innovations in production processes, such as improved feedstock conversion techniques and more efficient refining methods, are enhancing the viability and cost-effectiveness of biodiesel. For example, the development of advanced catalysts and enzyme technologies has the potential to increase yield and reduce production costs significantly. Furthermore, research into alternative feedstocks, such as algae and waste oils, is expanding the range of materials available for biodiesel production. These technological improvements not only bolster the competitiveness of the Biodiesel Market but also contribute to its sustainability by minimizing waste and maximizing resource utilization.

Rising Environmental Concerns

Growing awareness of environmental issues is a key driver for the Biodiesel Market. As climate change and air pollution become increasingly pressing concerns, consumers and businesses are seeking sustainable alternatives to traditional fossil fuels. Biodiesel, derived from renewable resources, offers a lower carbon footprint and reduced greenhouse gas emissions compared to petroleum diesel. This shift in consumer preferences is reflected in market data, which shows a steady increase in biodiesel consumption across various sectors, including transportation and agriculture. The Biodiesel Market is likely to see continued growth as more stakeholders prioritize sustainability in their operations and fuel choices.

Market Segment Insights

By Type: Methanol (Largest) vs. Biohydrogen (Fastest-Growing)

The Biodiesel Market shows a diverse composition among its major segments, with Methanol holding the largest market share. This is largely attributed to its cost-effectiveness and well-established production processes. Biohydrogen, while currently smaller in market share, is rapidly gaining attention due to its potential as a clean fuel alternative, characterized by zero carbon emissions when burned. Cellulosic Ethanol, on the other hand, is also emerging as a promising component in this sector, facilitating energy production from non-food biomass, although it lags behind in overall market penetration. Growth trends indicate a significant shift towards sustainable options in the Biodiesel Market. As environmental regulations become stricter, the demand for cleaner, renewable biofuels such as Biohydrogen is expected to rise sharply. The technological advancements in producing renewable biofuels also highlight a trend towards increased efficiency and decreased production costs. Overall, while Methanol maintains its leading position, Biohydrogen is projected to capture a larger share as innovation and eco-conscious policies propel its development and adoption.

Methanol (Dominant) vs. Cellulosic Ethanol (Emerging)

Methanol stands as the dominant player in the Biodiesel Market, primarily due to its widespread usage and established supply chain. Its production is relatively straightforward, making it an attractive choice for biodiesel producers. In contrast, Cellulosic Ethanol represents an emerging segment with significant growth potential. It is derived from non-food sources, which aligns well with sustainability initiatives aimed at reducing competition with food resources. While the production costs for Cellulosic Ethanol are still high, ongoing research into technological improvements and efficiency gains may pave the way for its broader adoption. As consumer preferences shift towards more environmentally-friendly fuels, Cellulosic Ethanol is poised to become an important alternative, complementing traditional biodiesel sources.

By Application: Fuel (Largest) vs. Power Generation (Fastest-Growing)

The Biodiesel Market exhibits a diverse application landscape, with Fuel being the largest segment, capturing a significant portion of the overall market. This dominant share is attributed to the increasing adoption of biodiesel in transportation and logistics sectors, where it serves as a sustainable alternative to traditional fossil fuels. Additionally, the Fuel segment benefits from strong regulatory support and incentives promoting renewable energy use, reinforcing its substantial market presence.

Fuel (Dominant) vs. Power Generation (Emerging)

Within the Biodiesel Market, the Fuel segment stands out as the dominant application, primarily due to its established infrastructure and widespread acceptance in various domains. This segment includes biodiesel blended with diesel for automotive and industrial applications, contributing to reduced greenhouse gas emissions. Conversely, the Power Generation segment, though currently emerging, is gaining momentum due to advances in technology and increasing investments in renewable energy sources. As energy producers seek sustainable options, biodiesel is being explored for use in power plants and as a backup fuel, positioning it as a noteworthy competitor in the energy sector.

Get more detailed insights about Biodiesel Market Research Report - Forecast to 2035

Regional Insights

North America : Leading Innovation and Production

North America is the largest market for biodiesel, accounting for approximately 40% of the global share. The region's growth is driven by stringent environmental regulations, increasing demand for renewable energy, and government incentives promoting biofuels. The U.S. is the primary contributor, with California and the Midwest leading in production and consumption. The Renewable Fuel Standard (RFS) plays a crucial role in supporting biodiesel adoption, ensuring a steady demand for the product. The competitive landscape in North America is robust, featuring key players such as Renewable Energy Group, Cargill, and ADM. These companies are investing in advanced technologies to enhance production efficiency and reduce costs. The presence of a well-established supply chain and distribution network further strengthens the market. Additionally, the growing consumer awareness regarding sustainability is propelling the demand for biodiesel, making it a vital component of the energy mix in the region.

Europe : Sustainable Energy Transition

Europe is the second-largest market for biodiesel, holding around 30% of the global share. The region's growth is significantly influenced by the European Union's Renewable Energy Directive, which mandates a substantial increase in renewable energy usage. Countries like Germany and France are at the forefront, driven by ambitious climate goals and a strong push for sustainable transport solutions. The EU's commitment to reducing greenhouse gas emissions is a key regulatory catalyst for biodiesel adoption. Germany leads the European biodiesel market, with a well-established infrastructure for production and distribution. Major players include Neste and Biodiesel Industries, who are innovating to meet the rising demand. The competitive landscape is characterized by a mix of large corporations and smaller producers, all striving to enhance sustainability. The increasing focus on circular economy principles is also shaping the market, encouraging the use of waste oils and fats in biodiesel production.

Asia-Pacific : Emerging Market Potential

Asia-Pacific is rapidly emerging as a significant player in the biodiesel market, accounting for approximately 20% of the global share. The region's growth is driven by rising energy demands, government policies promoting renewable energy, and increasing awareness of environmental issues. Countries like Indonesia and Malaysia are leading the charge, supported by favorable regulations and abundant feedstock availability. The region's biodiesel market is expected to grow as governments implement stricter emissions standards and promote biofuels as a sustainable alternative. Indonesia is the largest producer in the region, with a strong focus on palm oil-based biodiesel. The competitive landscape features both local and international players, including Bunge and Cargill, who are investing in production capacity and technology. The presence of a diverse range of feedstocks, including waste oils, is enhancing the market's sustainability. As the region continues to urbanize, the demand for cleaner fuels is expected to rise, further driving biodiesel adoption.

Middle East and Africa : Resource-Rich Opportunities

The Middle East and Africa region is gradually recognizing the potential of biodiesel, currently holding about 10% of the global market share. The growth is primarily driven by the need for energy diversification and the increasing focus on renewable energy sources. Countries like South Africa and Kenya are beginning to implement policies that support biodiesel production, aiming to reduce reliance on fossil fuels and enhance energy security. The region's abundant agricultural resources provide a unique opportunity for biodiesel feedstock production. South Africa is leading the way in the region, with initiatives aimed at promoting biofuels as part of its energy strategy. The competitive landscape is still developing, with local companies exploring partnerships with international players to enhance production capabilities. The presence of key players is limited but growing, as the region seeks to capitalize on its natural resources to foster a sustainable biodiesel market. As awareness of environmental issues increases, the demand for biodiesel is expected to rise significantly.

Key Players and Competitive Insights

The Biodiesel is currently characterized by a dynamic competitive landscape, driven by increasing demand for renewable energy sources and stringent environmental regulations. Key players are actively engaging in strategic initiatives to enhance their market positioning. Companies such as Neste (FI), Renewable Energy Group (US), and Cargill (US) are focusing on innovation and sustainability, which appear to be pivotal in shaping their operational strategies. Neste, for instance, emphasizes the development of advanced biofuels, while Renewable Energy Group is enhancing its production capabilities through technological advancements. Cargill, on the other hand, is leveraging its extensive supply chain to optimize biodiesel production, thereby contributing to a more competitive environment.

The business tactics employed by these companies reflect a concerted effort to localize manufacturing and optimize supply chains. The Biodiesel Market is moderately fragmented, with several players vying for market share. However, the collective influence of major companies like ADM (US) and Valero Energy (US) is notable, as they continue to expand their operational footprints and enhance production efficiencies. This competitive structure suggests that while there is room for smaller players, the dominance of established firms is likely to shape market dynamics significantly.

In August 2025, Neste (FI) announced a strategic partnership with a leading agricultural firm to enhance its feedstock supply chain. This collaboration is expected to bolster Neste's ability to source sustainable raw materials, thereby reinforcing its commitment to sustainability and innovation in biodiesel production. Such partnerships are crucial as they not only improve supply chain reliability but also align with global sustainability goals.

In September 2025, Renewable Energy Group (US) unveiled a new facility aimed at increasing its biodiesel production capacity by 30%. This expansion is strategically significant as it positions the company to meet the growing demand for renewable fuels, particularly in North America. The investment in new technology at this facility is likely to enhance production efficiency and reduce operational costs, thereby strengthening its competitive edge.

In July 2025, Cargill (US) launched a new biodiesel product line derived from waste oils, which is anticipated to cater to the rising demand for sustainable fuel alternatives. This initiative not only diversifies Cargill's product offerings but also underscores its commitment to environmental stewardship. The introduction of such innovative products may serve to differentiate Cargill in a crowded market, appealing to environmentally conscious consumers and businesses alike.

As of October 2025, the Biodiesel Market is witnessing trends that emphasize digitalization, sustainability, and the integration of advanced technologies. Strategic alliances among key players are increasingly shaping the competitive landscape, fostering innovation and enhancing operational efficiencies. The shift from price-based competition to a focus on technological advancement and supply chain reliability is becoming evident. Companies that prioritize innovation and sustainability are likely to emerge as leaders in this evolving market, suggesting a future where competitive differentiation hinges on these critical factors.

Key Companies in the Biodiesel Market market include

Industry Developments

Q2 2024: Neste expands Singapore renewable diesel refinery to double its production capacity Neste announced the expansion of its Singapore renewable diesel refinery, effectively doubling its production capacity to strengthen its global supply capabilities for aviation, transport, and industrial biodiesel applications.
Q2 2025: quarterly US renewable diesel and biodiesel production In January 2025, U.S. biodiesel production fell to 60,000 barrels per day, the lowest since January 2015, due to uncertainty related to federal biofuel tax credits and negative profit margins. Production partially recovered in February and March, but remained over 30% lower than the same period in 2024.
Q3 2025: EIA cuts 2025 US biofuel outlook, ups 2026 view The U.S. Energy Information Administration reduced its outlook for 2025 domestic biomass-based diesel production and consumption, citing thin margins and policy uncertainty. A new law signed in July 2025 extends biofuel tax credits through 2029 and increases subsidies for crop-based fuels while limiting eligibility to North American feedstocks.

Future Outlook

Biodiesel Market Future Outlook

The Biodiesel Market is projected to grow at a 7.3% CAGR from 2024 to 2035, driven by increasing demand for renewable energy and stringent environmental regulations.

New opportunities lie in:

Expansion of biodiesel production facilities in emerging markets.
Development of advanced feedstock technologies for higher yield.
Partnerships with logistics companies for biodiesel distribution networks.

By 2035, the Biodiesel Market is expected to achieve substantial growth, positioning itself as a key player in renewable energy.

Market Segmentation

Biodiesel Market Type Outlook

Methanol
Biohydrogen
Cellulosic Ethanol

Biodiesel Market Application Outlook

Fuel
Power Generation
Others

Report Scope

MARKET SIZE 2024	42.35(USD Billion)
MARKET SIZE 2025	45.44(USD Billion)
MARKET SIZE 2035	91.95(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)	7.3% (2024 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
Market Forecast Period	2025 - 2035
Historical Data	2019 - 2024
Market Forecast Units	USD Billion
Key Companies Profiled	Market analysis in progress
Segments Covered	Market segmentation analysis in progress
Key Market Opportunities	Growing demand for sustainable fuels drives innovation in the Biodiesel Market.
Key Market Dynamics	Rising regulatory support and technological advancements drive biodiesel adoption amid shifting consumer preferences for sustainable fuels.
Countries Covered	North America, Europe, APAC, South America, MEA