Biodiesel Market 2034 Forecast Report | Size, Share, Demand, Growth & Trend Analysis
- Pallavi Garudkar
- Jan 12
- 3 min read
According to Fortune Business Insights the global biodiesel market size was valued at USD 40.26 billion in 2025 and increased to USD 42.67 billion in 2026, with the market projected to reach USD 67.4 billion by 2034, growing at a CAGR of 6.75% during 2026–2034. The global biodiesel market encompasses the production, distribution, and consumption of biodiesel, an environmentally friendly, renewable alternative to petroleum-based diesel.
Biodiesel is manufactured through the transesterification of vegetable oils, animal fats, and waste oils and can be blended with conventional diesel in varying proportions such as B5, B10, and B20. It is widely used across transportation, agriculture, power generation, and industrial sectors due to its lower carbon emissions and compatibility with existing diesel engines.
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Market Share Analysis
Europe holds a leading share of the global biodiesel market, supported by strong climate regulations and renewable fuel targets
North America represents a significant share due to blending mandates and government incentives
Asia Pacific is emerging as the fastest-growing region, driven by aggressive biodiesel blending programs in countries such as Indonesia and India
Key Market Drivers
Stringent environmental regulations aimed at reducing greenhouse gas emissions
Government biodiesel blending mandates across developed and emerging economies
Rising demand for clean and renewable fuels in the transportation and industrial sectors
Energy security concerns encouraging reduced dependence on imported fossil fuels
Market Segmentation Analysis
By Feedstock
Vegetable Oils (soybean oil, palm oil, rapeseed oil)
Animal Fats
Waste Cooking Oil and Others
Vegetable oils remain the dominant feedstock due to established supply chains and production efficiency.
By Blend Type
B5 and Lower
B6–B20
Above B20
The B6–B20 segment accounts for the largest market share owing to widespread regulatory approvals and engine compatibility.
By Application
On-Road Transportation (commercial vehicles, buses, trucks)
Off-Road Equipment (agriculture, construction, marine)
Stationary Power Generation
On-road transportation dominates consumption, driven by fleet mandates and emissions reduction goals.
Regional Insights
Europe
Europe leads the global biodiesel market due to strong renewable energy directives, high diesel vehicle penetration, and well-established biofuel infrastructure.
North America
Growth is supported by renewable fuel standards, tax incentives, and increasing use of biodiesel in commercial fleets.
Asia Pacific
Rapid expansion is fueled by government-driven blending mandates, rising energy demand, and increasing domestic biodiesel production.
Latin America
Countries such as Brazil continue to expand biodiesel usage as part of broader bioenergy and agricultural development strategies.
Competitive Landscape
Key companies operating in the global biodiesel market include:
Ag Processing, Inc. (U.S.)
Archer Daniels Midland Company (ADM) (U.S.)
Bunge Ltd. (U.S.)
Cargill, Inc. (U.S.)
Ecodiesel Colombia S.A. (Colombia)
FutureFuel Corp. (U.S.)
Manuelita S.A. (Colombia)
Key Industry Development:
April 2025- Vast Infraestrutura and Be8, a prominent company in biodiesel production, have entered into a Memorandum of Understanding (MoU) to advance the biofuels market for the maritime industry at the Port of Açu in Rio de Janeiro. Currently, the port holds the second position in vessel traffic across Brazil. In 2024, over 7,300 ships are expected to dock at Açu.
March 2025- D&L Industries Inc., a company that produces food ingredients and industrial chemicals, is considering the establishment of a second biodiesel facility to support the government's initiative to raise the biodiesel blend from the current 3% (B3) to 4% (B4) by October of this year.
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