Biodiesel Market Size
|Fastest Growing Market:||Asia Pacific|
|CAGR:||> 8 %|
*Disclaimer: Major Players sorted in no particular order
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Biodiesel Market Analysis
The biodiesel market is expected to register a CAGR of more than 8% during the forecast period.
- Over the medium term, factors such as the increasing demand for environment-friendly fuels that reduce greenhouse gas emissions and government support for biodiesel production by providing subsidies are expected to drive the biodiesel market during the forecast period.
- On the other hand, the need for more feedstock availability for bio-diesel generation and declining crude prices globally may hinder the growth of the bio-diesel market.
- Nevertheless, countries like the United States, Germany, and the United Kingdom are stressing biodiesel blending. More countries, like India and China, are adopting such initiatives, which are expected to create ample market opportunities in the coming years.
- The Asia-Pacific region will likely grow significantly during the forecast period due to growing production in Indonesia, Thailand, China, and Malaysia. It is expected to drive the biodiesel market in the region.
Biodiesel Industry Segmentation
Biodiesel is a renewable fuel from vegetable oils, animal fats, or cooking oils. It is produced through a chemical process called transesterification, which converts these feedstocks into a fuel that can be used in diesel engines without any modifications. Biodiesel is a cleaner-burning alternative to petroleum-based diesel fuel, as it produces lower emissions of greenhouse gases and air pollutants. It can be used independently or blended with petroleum diesel in varying proportions, depending on the desired properties and performance. Biodiesel is considered a sustainable and environmentally friendly fuel option, as it reduces reliance on fossil fuels and helps decrease overall carbon emissions.
The biodiesel market is segmented by feedstock, application, and geography. Feedstock segments the market into animal fat, vegetable oil, and others. By application, the market is segmented into transportation, power generation, and other applications. The report also covers the market size and forecasts for the biodiesel market across major regions, such as Asia-Pacific, North America, Europe, South America, the Middle East, and Africa. The market sizing and forecasts for each segment are based on revenue (in USD billion).
Biodiesel Market Trends
The Transportation Segment Expected to Dominate the Market
- The transportation segment is anticipated to lead the market during the forecast period due to increasing demand for environmentally friendly fuels such as biodiesel from this segment to reduce carbon emissions.
- The awareness among people is increasing regarding environmental safety as the transportation sector emits carbon in the atmosphere that pollutes the air and causes breathing problems and heart diseases among the population. Biodiesel is a renewable diesel replacement utilized in existing diesel engines without modification. It increases the demand for biodiesel in the transportation segment.
- The US is one of the major consumers of biodiesel. Some local, state, and federal government agencies use biodiesel blends (B20) with fleets of school and transit buses, snowplows, garbage trucks, mail trucks, and military vehicles. Fuelling stations that sell biodiesel blends of B20 or higher to the public are available in almost every state.
- According to US Energy Information Administration, biodiesel production in the United States will reach approximately 1.6 billion gallons in 2021. Biodiesel can be used in standard diesel engines as a standalone fuel or in combination with petroleum.
- In Q1 2021, Germany exported around 933,117 metric tons of biodiesel. The primary consumers of German biodiesel were EU countries (88%), headed by the Netherlands, Poland, and Belgium.
- According to Fachagentur Nachwachsende Rohstoffe e.V., approximately 4% of German fuel consumption was attributed to biodiesel fuel in 2021.
- Moreover, in May 2021, the German government introduced new biofuel law. As per the new law, obligated oil companies will significantly increase biodiesel, bioethanol, and biomethane use in transportation to reduce carbon emissions.
- The Global biodiesel consumption was around 787 thousand barrels of oil equivalent per day in 2021. The growing favorable policies for the production and supply of biodiesel increase biodiesel utilization in the transportation segment. Thus, it drives growth in the segment during the forecast period.
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Asia-Pacific to Witness a Significant Growth
- The Asia-Pacific region is likely to expand significantly during the forecast period. The region is one of the largest consumers of biodiesel across the world. In 2021, the region consumed around 209 thousand barrels of oil equivalent daily and produced 239 thousand barrels daily. Countries such as India, China, Indonesia, and Vietnam are supporting the utilization of biodiesel to reduce greenhouse gas emissions.
- The governments of several countries in this region are implementing several laws to support biodiesel fuel. For instance, Indonesia became the first country to mandate a B30 blend of palm-based fuel. The government allocated 9.59 million kl of fatty acid methyl ester (FAME) for the B30 mandate in 2020.
- In January 2022, Malaysia planned to implement a mandate to adopt the B20 palm oil biofuel program by the year’s end. The mandate involves manufacturing biofuel with a 20% palm oil component known as B20 for the transport sector.
- Increasing government support will likely boost the production and consumption of biodiesel in the region. According to the Ministry of Energy and Mineral Resources (Indonesia), Indonesia's biodiesel production reached 10.24 million kl in 2021.
- Moreover, the number of biodiesel plants is also increasing in the region. For instance, in December 2021, LRE Petroleum received a letter of intent (LOI) from Indian Oil to set up a biodiesel manufacturing plant in India. The plant is in Karnataka and can produce 4 million l of biodiesel (B-100) annually.
- Hence, with the increasing blend percentage in countries such as Indonesia, Malaysia, Thailand, and India, the Asia-Pacific region is expected to witness the highest growth rate in the forecast period.
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Biodiesel Industry Overview
The biodiesel market is fragmented. Some key players in this market (not in a particular order) include Renewable Energy Group, Inc., Archer Daniels Midland Company, Bangchak Corporation Public Company Limited, Wilmar International Ltd, and Neste Oyj.
Biodiesel Market Leaders
Renewable Energy Group, Inc
Archer Daniels Midland Company
Wilmar International Ltd
Bangchak Corporation Public Company Limited
*Disclaimer: Major Players sorted in no particular order
Biodiesel Market News
- November 2022: Technip Energies received a contract from TotalEnergies to produce Sustainable Aviation Fuel (SAF) at the Grandpuits platform in France. The contract covers the EPC assistance for converting the refinery into a zero-crude platform focused on SAF. This facility can produce around 210,000 tons per year.
- October 2022: Fluor Corporation was awarded a reimbursable front-end engineering and detailed EPC services contract for Imperial as the company plans to develop a world-class renewable diesel complex at Strathcona refinery near Canada.
- February 2022: SLD Pumps & Power (SLD) announced that it switched to using biodiesel fuel to power its nationwide equipment fleet. The change will likely displace the consumption of about 1 million l of highly polluting mineral diesel each year.
Biodiesel Market Report - Table of Contents
1.1 Scope of Study
1.2 Market Definition
1.3 Study Assumptions
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET OVERVIEW
4.2 Market Size and Demand Forecast in USD billion, till 2028
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.6 Supply Chain Analysis
4.7 Porter's Five Forces Analysis
4.7.1 Bargaining Power of Suppliers
4.7.2 Bargaining Power of Consumers
4.7.3 Threat of New Entrants
4.7.4 Threat of Substitutes Products and Services
4.7.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1.1 Animal Fat
5.1.2 Vegetable Oil
5.1.3 Other Feedstocks
5.2.2 Power Generation
5.2.3 Other Applications
5.3.1 North America
184.108.40.206 United States
220.127.116.11 United Kingdom
18.104.22.168 Rest of Europe
22.214.171.124 Rest of Asia-Pacific
5.3.4 South America
126.96.36.199 Rest of South America
5.3.5 Middle-East and Africa
188.8.131.52 Saudi Arabia
184.108.40.206 United Arab Emirates
220.127.116.11 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Renewable Energy Group Inc.
6.3.2 Archer Daniels Midland Company
6.3.3 Bangchak Corporation Public Company Limited
6.3.4 Wilmar International Ltd
6.3.5 Neste Oyj
6.3.6 Cargill Inc.
6.3.7 BIOX Corporation
6.3.8 Ag Processing Inc.
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Biodiesel Market Research FAQs
What is the study period of this market?
The Biodiesel Market is studied from 2019 - 2028.
What is the growth rate of Biodiesel Market?
The Biodiesel Market is growing at a CAGR of >8% over the next 5 years.
Which region has highest growth rate in Biodiesel Market?
Asia Pacific is growing at the highest CAGR over 2021 - 2026.
Which region has largest share in Biodiesel Market?
Europe holds highest share in 2022.
Who are the key players in Biodiesel Market?
Renewable Energy Group, Inc, Archer Daniels Midland Company , Wilmar International Ltd, Bangchak Corporation Public Company Limited, Neste Oyj are the major companies operating in Biodiesel Market.
Biodiesel Industry Report
Statistics for the 2023 Biodiesel market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Biodiesel analysis includes a market forecast outlook to for 2023 to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.