Biodiesel Market Report 2026

The biodiesel market size has grown strongly in recent years. It will grow from $61.01 billion in 2025 to $64.54 billion in 2026 at a compound annual growth rate (CAGR) of 5.8%. The growth in the historic period can be attributed to government support for renewable fuels, expansion of agricultural feedstock availability, growth of diesel-powered vehicle fleets, increasing fuel diversification efforts, development of biodiesel production facilities.

The biodiesel market size is expected to see strong growth in the next few years. It will grow to $81.84 billion in 2030 at a compound annual growth rate (CAGR) of 6.1%. The growth in the forecast period can be attributed to increasing decarbonization targets, rising demand for sustainable transportation fuels, expansion of renewable energy policies, growing investment in advanced biodiesel technologies, increasing adoption of biodiesel in power generation. Major trends in the forecast period include increasing adoption of bio-based fuels, rising use of waste and residue feedstocks, expansion of biodiesel blending mandates, growing focus on low-carbon fuel production, enhanced process efficiency in biodiesel plants.

The rising energy demand is expected to drive the growth of the biodiesel market. Energy demand refers to the total energy required, consumed, or requested within a specific period in a given region. Biodiesel plays a key role in meeting this demand while promoting environmental sustainability. As a renewable and cleaner-burning alternative to fossil fuels, biodiesel helps reduce greenhouse gas emissions and mitigates the environmental impact of transportation. Its use across various sectors, particularly transportation, diversifies the energy mix and reduces dependence on conventional fuels. For example, in March 2025, according to the International Energy Agency, a Austria-based organization, global energy demand grew by 2.2% in 2024, well above the decade average of 1.3%, driven by rising electricity consumption, industrial growth, and expanding energy use in emerging economies. Therefore, increasing energy demand is boosting the biodiesel market.

Key companies in the biodiesel market are forming strategic partnerships to strengthen their market position. Business partnerships involve structured affiliations between two or more companies, typically formalized through agreements or contracts. For instance, in July 2023, Indian Oil Corporation Limited, an India-based oil and gas company, partnered with Praj Industries Limited to produce biofuels, including Sustainable Aviation Fuel (SAF), ethanol, Compressed Bio-Gas (CBG), biodiesel, bio-bitumen, and other products. Praj Industries Limited is an India-based process and project engineering company.

In February 2025, Sasol, a South Africa-based provider of integrated energy and chemical solutions, partnered with Anglo American to accelerate South Africa’s sustainable energy transition through renewable feedstock innovation. This collaboration aims to expand renewable diesel production by evaluating the technical and commercial feasibility of vegetable oil-based feedstock, leveraging land, resources, and expertise for sustainable cultivation. Anglo American, based in the UK, is a mining company involved in biodiesel.

Major companies operating in the biodiesel market are Archer-Daniels-Midland Company, Cargill Incorporated, Renewable Energy Group Inc., Wilmar International Limited, Bunge Limited, Neste Corporation, BIOX Corporation, Munzer Bioindustrie GmbH, Emami Agrotech Limited, Louis Dreyfus Company B.V., Crimson Renewable Energy L.P., Green Energy Biofuel LLC, FutureFuel Corp., Delta American Fuel LLC, HERO BX LLC, Western Dubuque Biodiesel LLC, Iowa Renewable Energy LLC, Flint Hills Resources LLC, World Energy Alternatives LLC, Lake Erie Biofuels LLC, Pacific Biodiesel Technologies LLC, SeQuential LLC, White Mountain Biodiesel LLC, Blue Sun Biodiesel LLC, Community Fuels Inc., Newport Biodiesel LLC, Piedmont Biofuels Industrial LLC, Verbio Vereinigte BioEnergie AG.

Western Europe was the largest region in the biodiesel market share in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the biodiesel market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the biodiesel market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The biodiesel market consists of sales of biodiesel produced from canola oil, soybean oil, palm oil, and corn oil. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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