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Biodiesel Industry Report | Market Size, Growth Rate & Key Players | DataM Intelligence

Biodiesel Market Size

Biodiesel Market Size

Biodiesel market grows as demand for renewable fuels rises, driven by energy security and sustainability goals

The U.S. biodiesel market is expanding as cleaner fuel demand and government renewable energy mandates drive sustainable growth.”
— DataM Intelligence 4Market Research LLP
AUSTIN, NJ, UNITED STATES, August 18, 2025 /EINPresswire.com/ -- Market Overview

The biodiesel market is moving into an exciting growth phase. With governments pushing for greener energy and industries focusing on sustainability, biodiesel is no longer just an alternative it’s becoming a key part of the world’s fuel mix. From transportation to power generation, biodiesel is playing a vital role in cutting emissions and reducing dependence on fossil fuels.

Market Size and Growth:

The global biodiesel market is set to expand steadily between 2024 and 2031, reflecting rising demand for cleaner fuel alternatives.

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Key Market Drivers & Opportunities

1. Green Policies Driving Adoption: Climate change commitments and net-zero targets are pushing countries to embrace biodiesel.

2. Government Incentives: Tax credits, fuel standards, and clean fuel programs are making biodiesel more attractive for producers and consumers alike.

3. Energy Security: With volatile oil prices, nations are turning to biodiesel as a reliable, homegrown energy source.

4. Innovation in Production: Advances in technology are lowering costs and improving efficiency, making biodiesel more competitive than ever.

Geographical Trends

1. North America: Strong mandates and incentives keep the U.S. at the forefront of biodiesel use.

2. Europe: Leading the global share with widespread adoption and diverse feedstocks.

3. Asia-Pacific: The fastest-growing region, with Japan making major strides in biodiesel innovation and carbon-neutral energy.

Leading Players

Archer Daniels Midland Company
Cargill
Royal Dutch Shell
Wilmar International Limited
Bunge Limited
Solvay SA
Ineos Group
Mitsui
Louis Dreyfus
TerraVia Holdings

Market Segments:

By Feedstock Type: (Vegetable Oils, Animal Fats, Grease, Other (Algae Oils))

By End-User: ( Automotive industry, Agriculture industry, Mining, Marine sector, Power, Others)

By Blend type (B100, B20, B5, B2, and others)

By Region: (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa)

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Recent Developments

United States

2025 – Production Challenges: U.S. biodiesel output fell to its lowest in nearly a decade, largely due to policy uncertainty and tough margins. Producers are calling for more clarity in long-term incentives.

In 2024, even with hurdles, the U.S. biodiesel sector fueled the economy by adding more than $40 billion in value. economy and supported thousands of jobs showing its importance beyond just energy.

Japan

2025 – Idemitsu’s Bold Move: Idemitsu began supplying imported biodiesel, delivering fuels that cut emissions by over 80% compared to conventional diesel.

2024 – Revo’s Green Breakthrough: Revo International opened a next-generation facility in Aichi, producing both biodiesel and sustainable aviation fuel (SAF) , a first-of-its-kind initiative in Japan.

Conclusion

The biodiesel market is proving to be more than just an eco-friendly alternative; it's a fast-growing, job-creating, and innovation-driven industry. While the U.S. is grappling with policy clarity, Japan and Europe are setting benchmarks in technology and adoption. Looking ahead, biodiesel is expected to remain a critical piece of the clean energy puzzle, helping nations balance economic growth with environmental responsibility.

Related Reports:

Bioethanol Market

Small Scale LNG Market

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Sai Kiran
DataM Intelligence 4Market Research LLP
877-441-4866
sai.k@datamintelligence.com
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