Biodiesel Market Analysis | 2024-2030

Market Insights

The biodiesel market was estimated at USD 38.7 billion in 2023 and is likely to grow at a CAGR of 9.95% during 2024-2030 to reach USD 75.34 billion in 2030.

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Market Dynamics

Introduction

Biodiesel is a renewable, clean-burning diesel substitute that can be used in existing diesel engines without the need for changes. It is made up of an expanding range of recycled cooking oils, animal fats, and agricultural feedstock. The market is expected to increase as a result of rising demand for biodiesel to replace conventional fossil fuels in power generation and automotive applications. The market is very fragmented because there are so many suppliers and dealers.

Market Drivers

Due to increased awareness regarding climate change, expectations for the use of biodiesel in the transport sector are looking positive in the United States over the analysis period. Soybean is grown in excess in the U.S.; the other countries' non-soy bean oils producing biodiesel will also fall under this category. In March 2017, the largest biodiesel feedstock was soybean oil, in which approximately 360 million pounds out of the total of 857 million pounds of feedstocks used to produce biodiesel were contributed by corn oil, including canola oil, followed by corn. Countries such as India, China, Brazil, and a few nations in the European Union are on course to use biodiesel in the transportation sector to reduce crude oil usage by 10-15% of total fossil-based fuels.

In addition, in these nations, there is also an increasing trend towards the replacement of fuels that emit higher CO2 emissions with renewable, environmentally friendly biofuels. Demand stood low during the first half of the COVID-19 pandemic period. Demand however waned with the outbreak of the coronavirus pandemic. Apart from that, the ratification of measures to promote the use of green gases and gases with low levels of greenhouse gas emissions would also help the market to expand. In addition, government assistance such as subsidies and the introduction of reprographics services signifies that the market will expand consistently.

Key Players

The following are the key players in the biodiesel Market (arranged alphabetically)

• Ag Processing, Inc.
• Archer Daniels Midland Company (ADM)
• Bunge Limited
• Cargill, Inc.
• Ecodiesel Colombia S.A.
• FutureFuel Corporation
• Manuelita S.A.
• Renewable Biofuels, Inc.
• TerraVia Holdings Inc.
• Wilmar International Limite

Segment Analysis

By Feedstock Type

"Vegetable oil is expected to remain the larger and faster-growing feedstock in the market during the forecast period"

• Based on the feedstock type, the biodiesel market is segmented into vegetable oils and animal fats
• Vegetable oil is expected to remain the larger and faster-growing feedstock in the market during the forecast period
• The feedstock segment for vegetable oils is further divided into subsegments for canola oil, soybean oil, palm oil, corn oil, and others. The section for animal fats is further divided into sub-segments for poultry, tallow, white grease, and others
• However, based on availability and feedstock costs, raw material selection differs by region
• Palm oil has been extensively used in the manufacturing of biodiesel in nations like Indonesia, Thailand, Germany, France, and Colombia and is anticipated to be a significant feedstock for the industry.

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By Application Type

 "Fuel is expected to remain the dominant as well as the faster-growing application in the market during the forecast period"

• Based on the application type, the market is segmented into fuel and power generation.
• Fuel is expected to remain the dominant as well as the faster-growing application in the market during the forecast period
• Since it emits fewer volatile organic compounds (VOCs) than conventional fuels, such as diesel, the industry is anticipated to gain from an increase in demand for fuel in commercial vehicles as a substitute for crude oil.
• The product finds use in the marine industry since it is biodegradable, free of aromatics and sulfur, and non-toxic. It is anticipated to rise at a considerable CAGR over the projected period.

Regional Analysis

"Europe is expected to remain the largest market for biodiesel during the forecast period"

• In terms of regions, Europe is expected to remain the largest market for biodiesel during the forecast period due to the region's early adoption of the product and the government's emphasis on using bio-based sources instead of carbon-emitting ones.
• It has historically been the product's largest market. The most popular feedstocks used to make biodiesel in Europe include rapeseed oil, UCO, palm oil, soybean oil, animal fats, and sunflower oil. Germany, which produces the most feedstock among the European nations, is the main force behind the product demand in the area.

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Research Methodology

• This strategic assessment report, from Stratview Research, provides a comprehensive analysis that reflects today’s biodiesel market realities and future market possibilities for the forecast period.
• The report segments and analyzes the market in the most detailed manner to provide a panoramic view of the market.
• The vital data/information provided in the report can play a crucial role for market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate growth strategies to expedite their growth process.
• This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.
• More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data.
• We conducted more than 15 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Report Features

This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:

• Market structure: Overview, industry life cycle analysis, supply chain analysis.
• Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
• Market trend and forecast analysis.
• Market segment trend and forecast.
• Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.
• COVID-19 impact and its recovery curve
• Attractive market segments and associated growth opportunities.
• Emerging trends.
• Strategic growth opportunities for the existing and new players.
• Key success factors.

Market Segmentation

This report studies the market covering 12 years of trend and forecast. The report provides detailed insights into the market dynamics to enable informed business decision-making and growth strategy formulation based on the opportunities present in the market.

The biodiesel market is segmented into the following categories:

By Feedstock Type 

• Vegetable Oils
• Animal Fats

By Application Type 

• Fuel
• Power Generation

By Region

• North America (Country Analysis: The USA, Canada, and Mexico)
• Europe (Country Analysis: Germany, France, The UK, Russia, and the Rest of Europe)
• Asia-Pacific (Country Analysis: China, India, Australia, South Korea, and the Rest of Asia-Pacific)
• Rest of the World (Country Analysis: Saudi Arabia, Brazil, and Others)

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Customization Option

With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to three players)
• SWOT analysis of key players (up to three players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances.

Custom Research:

Stratview research offers custom research services across sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to sales@stratviewresearch.com.