The global biodiesel market reached a volume of almost 46.71 Billion Liters in the year 2025. The biodiesel industry is further expected to grow at a CAGR of 6.00% between 2026 and 2035 to reach a volume of almost 83.65 Billion Liters by 2035.
Base Year
Historical Period
Forecast Period
Compound Annual Growth Rate
6%
Value in Billion Liters
2026-2035
*this image is indicative*
| Global Biodiesel Market Report Summary | Description | Value |
| Base Year | Billion Liters | 2025 |
| Historical Period | Billion Liters | 2019-2025 |
| Forecast Period | Billion Liters | 2026-2035 |
| Market Size 2025 | Billion Liters | 46.71 |
| Market Size 2035 | Billion Liters | 83.65 |
| CAGR 2019-2025 | Percentage | XX% |
| CAGR 2026-2035 | Percentage | 6.00% |
| CAGR 2026-2035 - Market by Region | North America | 6.7% |
| CAGR 2026-2035 - Market by Country | UK | 6.9% |
| CAGR 2026-2035 - Market by Country | USA | 6.8% |
| CAGR 2026-2035 - Market by Technology | Hydro Heating | 7.2% |
| CAGR 2026-2035 - Market by Application | Fuel | 6.6% |
| Market Share by Country 2025 | Italy | 2.3% |
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The United States is an important market in the industry, growing at a robust pace. Europe too presents itself as a significant market, especially Germany, which is expected to enhance the market growth of biodiesel in the forecast period. The market in these regions is being supported by the rising adoption of eco-friendly regulations and the prominent presence of the automotive industry. China is also emerging as a significant market for biodiesel due to a robustly growing economy and burgeoning automotive industry.
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Biodiesel is the diesel fuel based on vegetable oil or animal fat, constituting long-chain alkyl (ethyl, methyl, or propyl) esters. Generally, the product is developed by chemically reacting lipids, such as vegetable oil, soybean oil, or animal fat, with alcohol generating fatty acid esters as a result.
The market is divided on the basis of feedstock into:
On the basis of type, the industry is divided into:
The market is segmented on the basis of application into:
By technology, the industry is segmented into:
On the basis of region, the industry is divided into:
| CAGR 2026-2035 - Market by | Country |
| UK | 6.9% |
| USA | 6.8% |
| Germany | 6.2% |
| China | 6.1% |
| India | 5.9% |
| Canada | XX% |
| France | XX% |
| Italy | XX% |
| Japan | XX% |
| Australia | XX% |
| Brazil | 5.7% |
| Mexico | XX% |
| Saudi Arabia | 5.4% |
The global market for biodiesel is being driven by the growing need for energy independence and rising environmental concerns all over the world. The product is biodegradable and enables the production of renewable liquid fuel for transportation purposes, making it an ideal fuel. Other benefits include its domesticity, which helps in reducing the dependency on the imported petroleum, aiding the market growth.
Further, governments are encouraging and helping promote the use of the product by introducing policies and tax incentives on the use of the product, enhancing the market growth for biodiesel over the forecast period. Governments have taken active action in initiating regulations and policies in countries within the Asia Pacific and Latin America, creating a surge in opportunities, such as exports, feedstock development, and enhanced production.
The biodiesel industry is experiencing transformation in terms of rapid growth and development, presenting new opportunities in the forthcoming years globally. The wavering petrochemical reserves in oil rigs across the world will probably increase the biodiesel demand in the forecast period.
The report gives a detailed analysis of the following key players in the global biodiesel market, covering their competitive landscape, capacity, and latest developments like mergers, acquisitions, and investments, expansions of capacity, and plant turnarounds:
The comprehensive EMR report provides an in-depth assessment of the market based on the Porter's five forces model along with giving a SWOT analysis.
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In 2025, the global biodiesel market attained a volume of nearly 46.71 Billion Liters.
The market is projected to grow at a CAGR of 6.00% between 2026 and 2035.
The major drivers of the market include the introduction of favourable policies and tax incentives by governments of various countries, wavering petrochemical reserves in oil rigs across the world, rising adoption of eco-friendly regulations, prominent presence of the automotive market, and the growing economy.
The growing need for energy independence and rising environmental concerns are the key trends propelling the market's growth.
The major regions in the market are North America, Latin America, the Middle East and Africa, Europe, and the Asia Pacific.
The various feedstocks in the market include vegetable oil, and animal oil, among others.
The different types of biodiesels in the market are B100, B20, B5, and B2, among others.
Biodiesels find their major applications in fuel, and power generation, among others.
The various technologies in the market are pyrolysis, hydro heating, and conventional alcohol transesterification, among others.
The key players in the global biodiesel market are Archer Daniels Midland Company, Louis Dreyfus Company B.V., Ag Processing Inc., RB Fuels, Renewable Energy Group, Inc., and Novozymes A/S, among others.
Explore our key highlights of the report and gain a concise overview of key findings, trends, and actionable insights that will empower your strategic decisions.
| REPORT FEATURES | DETAILS |
| Base Year | 2025 |
| Historical Period | 2019-2025 |
| Forecast Period | 2026-2035 |
| Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
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| Breakup by Feedstock |
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| Breakup by Type |
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| Breakup by Technology |
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| Breakup by Application |
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| Breakup by Region |
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| Market Dynamics |
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| Competitive Landscape |
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| Companies Covered |
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| Report Price and Purchase Option | Explore our purchase options that are best suited to your resources and industry needs. |
| Delivery Format | Delivered as an attached PDF and Excel through email, with an option of receiving an editable PPT, according to the purchase option. |
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