Biodiesel Market Size and Forecast 2025–2033

The global biodiesel market is entering a transformative growth phase, driven by accelerating energy transition goals and climate commitments worldwide. The market is projected to expand from US$ 41.62 billion in 2024 to US$ 70.61 billion by 2033, registering a CAGR of 6,05% during 2025–2033. This strong upward trajectory reflects growing demand for renewable fuels, favorable biofuel blending mandates, and heightened awareness regarding carbon emission reduction.

As governments tighten environmental regulations and industries seek sustainable alternatives to fossil fuels, biodiesel is emerging as a practical and scalable solution within the global energy mix.

Download Free Sample Report:https://www.renub.com/request-sample-page.php?gturl=biodiesel-market-p.php

What is Biodiesel and Why It Matters

Biodiesel is a renewable, biodegradable fuel produced from vegetable oils, animal fats, and recycled cooking grease. Through a chemical process known as transesterification, these feedstocks are converted into fatty acid methyl esters (FAME), which can be used directly in diesel engines with little to no modification.

Unlike conventional petroleum diesel, biodiesel offers several environmental advantages:

·        Lower greenhouse gas emissions

·        Reduced particulate matter and sulfur content

·        Biodegradability and lower toxicity

·        Improved lubricity for engine performance

As climate change concerns intensify, biodiesel has become a key contributor to cleaner air and sustainable transportation. Many countries have introduced blending mandates that require diesel fuel to contain a certain percentage of biodiesel, stimulating consistent market demand.

Beyond environmental benefits, biodiesel enhances energy security by utilizing locally sourced feedstocks. This reduces dependence on imported crude oil and supports domestic agricultural economies.

Key Market Drivers Accelerating Growth

1. Government Support and Policy Mandates

Incentives, tax credits, renewable fuel standards, and low-carbon fuel programs are fueling biodiesel adoption. Countries across North America, Europe, Asia-Pacific, and Latin America are promoting biofuels as part of their decarbonization strategies.

2. Rising Corporate Sustainability Commitments

Businesses are increasingly integrating ESG (Environmental, Social, and Governance) frameworks into operations. Fleet operators, logistics providers, and industrial users are shifting toward biodiesel and renewable diesel to reduce Scope 1 and Scope 3 emissions.

3. Advancements in Feedstock Flexibility

Technological innovation allows producers to utilize waste oils, animal fats, and non-food crops, improving sustainability and reducing production costs.

4. Growing Consumer Awareness

Public support for renewable energy solutions is pushing policymakers and corporations to accelerate adoption of cleaner fuels.

Top Leading Biodiesel Manufacturers Worldwide

Archer Daniels Midland Company

Established: 1902
Headquarters: United States

ADM is one of the largest agricultural processors globally, converting oilseeds and grains into food ingredients, animal feed, and biofuels. With a vast logistics and storage network, ADM plays a crucial role in biodiesel production and distribution. Its vertically integrated supply chain enhances efficiency and feedstock reliability.

FutureFuel Corp

Established: 2005
Headquarters: United States

FutureFuel manufactures biodiesel and specialty chemicals. Its biodiesel operations utilize a blend of vegetable oils and grease feedstocks. The company benefits from diversified revenue streams across chemicals and renewable fuels.

Renewable Energy Group, Inc.

Established: 1996
Headquarters: United States

A subsidiary of Chevron, Renewable Energy Group (REG) transforms renewable feedstocks into lower-carbon fuels. Its EnDura Fuels portfolio supports customers in achieving emission reduction targets. REG also produces renewable co-products such as glycerin and renewable naphtha.

Bunge Global SA

Established: 1818
Headquarters: United States
Revenue (2023): US$ 53.1 billion

Bunge is a global agribusiness leader engaged in oilseed processing and vegetable oil production—key feedstocks for biodiesel manufacturing. Its diversified operations across continents strengthen its supply chain resilience.

Wilmar International Ltd.

Established: 1991
Headquarters: Singapore
Revenue (2023): US$ 67.4 billion

Wilmar operates across oil palm cultivation, edible oil refining, and biodiesel production. Its integrated agribusiness model enables feedstock control and global distribution efficiency.

Recent Product Launches Strengthening Market Presence

Shell

In September 2025, Shell Hong Kong launched Shell Renewable Diesel (SRD) and Renewable Diesel Blend R33. The hydrotreated vegetable oil (HVO) fuel can reduce lifecycle CO₂ emissions by up to 90% compared to conventional diesel. Notably, it is fully compatible with existing diesel engines, eliminating the need for costly modifications.

Cargill, Inc.

In June 2022, Cargill began operating a new waste-to-biodiesel facility in Ghent, Belgium. With a production capacity of 35 million gallons annually, the plant utilizes flexible feedstock technology to convert used cooking oils and animal fats into advanced biodiesel.

SWOT Insights: Competitive Positioning

Valero Energy Corporation

Strength: Extensive refining infrastructure and integrated renewable capabilities.

Valero leverages its large refining network and strategic partnerships to scale biodiesel and renewable diesel production efficiently. Its integrated logistics and feedstock flexibility reduce costs and enhance competitiveness under low-carbon fuel standards.

Ag Processing Inc.

Strength: Strong agricultural integration and feedstock control.

As a farmer-owned cooperative, AGP ensures reliable soybean oil supply, minimizing exposure to raw material price volatility. Its vertically integrated operations optimize production efficiency and distribution strength.

Recent Market Developments

Greenergy

In January 2024, Greenergy completed expansion projects at biodiesel plants in the UK and Amsterdam. Upgraded pre-treatment systems now allow broader waste-based feedstock use, increasing Amsterdam plant output by 25%.

Louis Dreyfus Company

In March 2025, Louis Dreyfus Company renewed a 10-year collaboration to expand Camelina cultivation in South America. The initiative supports sustainable oil production for advanced biofuels and high-protein animal feed.

Sustainability Goals Shaping Industry Transformation

China Clean Energy, Inc.

China Clean Energy focuses on converting waste oils and agricultural by-products into biodiesel, supporting circular economy principles and reducing reliance on fossil fuels. The company emphasizes efficient production technologies and responsible sourcing practices.

TotalEnergies SE

TotalEnergies aims to achieve carbon neutrality by 2050. The company is investing heavily in advanced biofuels, renewable energy, and sustainable mobility solutions. Its diversified energy strategy supports global decarbonization efforts.

Market Segmentation and Analytical Coverage

The Biodiesel Market analysis includes:

·        Historical Trends

·        Forecast Analysis (2025–2033)

·        Market Share Analysis

·        Competitive Landscape

·        Company Profiling

·        SWOT Analysis

·        Revenue Analysis

·        Sustainability Evaluation

·        Product Benchmarking

·        Strategic Initiatives

Comprehensive company coverage includes Archer Daniels Midland Company; FutureFuel; Neste Corporation; Renewable Energy Group, Inc.; Bunge Global SA; Wilmar; Shell; Cargill, Inc.; Valero Energy Corporation; Ag Processing Inc.; Greenergy; China Clean Energy, Inc.; Louis Dreyfus Company; TotalEnergies SE; and Eni S.p.A.

Market Outlook: The Road Ahead

The biodiesel industry stands at the intersection of environmental responsibility and economic opportunity. As nations pursue net-zero commitments and transportation decarbonization, biodiesel offers an immediate, scalable solution that integrates seamlessly with existing diesel infrastructure.

Advances in waste-based feedstocks, improved refining technologies, and stronger policy frameworks will continue driving expansion. While competition from electric mobility and other renewable fuels exists, biodiesel remains a critical component of the transitional energy mix—particularly in heavy transport, maritime, and industrial sectors.

Final Thoughts

With projections reaching US$ 70.61 billion by 2033, the global biodiesel market demonstrates robust, sustainable growth potential. Driven by environmental urgency, supportive policy environments, and technological progress, biodiesel is positioned as a cornerstone of the renewable fuel revolution.

Companies that prioritize feedstock sustainability, operational efficiency, and innovation will likely dominate the evolving energy landscape. As global decarbonization efforts intensify, biodiesel’s role in shaping a cleaner, more resilient energy future will only grow stronger.