Renewable Naphtha Market Outlook:
Renewable Naphtha Market size was valued at USD 698.11 million in 2025 and is set to exceed USD 1.88 billion by 2035, registering over 10.4% CAGR during the forecast period i.e., between 2026-2035. In the year 2026, the industry size of renewable naphtha is estimated at USD 763.45 million.
The primary driver propelling the growth of the market stems from the increasingly stringent regulations and government policies aimed at fostering a transition towards sustainable and renewable energy sources. Governments worldwide are actively seeking to reduce carbon emissions, mitigate climate change, and enhance energy security. This has resulted in a concerted effort to incentivize and mandate the adoption of renewable alternatives across various industries. Governments play a pivotal role in steering industries towards eco-friendly practices through regulatory frameworks and incentives. For instance, the European Union (EU) has been at the forefront of implementing robust policies to promote renewable energy. The Renewable Energy Directive (RED II) sets ambitious targets for the use of renewable energy in the transport sector, aiming for a 14% share of renewable energy by 2030.
This growth is attributed to the rising adoption of renewable energy and the stringent regulatory landscape pushing industries towards sustainable practices. Renewable naphtha is derived from sustainable and renewable sources, such as biomass, waste, or other organic feedstocks, as opposed to traditional fossil fuels. This shift towards renewable naphtha aligns with global efforts to reduce dependence on fossil fuels, mitigate climate change, and transition towards a more sustainable and circular economy.
