Biodiesel Market Size

Biodiesel Market size was valued at USD 50 billion in 2023 and is predicted to reach USD 135.9 billion by the end of 2036, registering around 8% CAGR during the forecast period i.e., between 2024-2036. In 2024, the industry size of biodiesel is assessed at USD 54 billion.     

The market is poised to witness remarkable growth fueled by increasing concerns about the environment and the growing need for renewable energy sources. Due to global efforts to mitigate carbon emissions from human activities while swiftly moving away from fossil fuel dependence, biodiesel has slowly been put in the limelight as a durable alternative fuel. It is made from renewable raw materials such as vegetable oils and animal fats, hence tagged environment-friendly by different industries. Factors for the increase in biodiesel market movements include awareness about climate change and government incentives toward clean energy.

Companies in the biodiesel sector are scaling up production and joining forces with other companies to take full advantage of this burgeoning market. In April 2023, Neste Corporation declared a renewable diesel agreement with Marathon Petroleum to make solar-compatible fuel in California. It is expected that the joint venture will result in a substantial increase in biodiesel output to cope with surging demand for more environmentally friendly fuels. It is part of a trend toward alliances to improve market positioning and meet demand from customers for renewable power.