BCC Research Presents: Biodiesel Feedstocks - A Global Market Analysis

Biodiesel feedstocks are the raw materials used to produce biodiesel, a renewable and clean energy source They vary in their technologies, synthesis methods, efficiency levels, and policies that regulate their production and use.

February 19, 2024

Boston: “According to the latest BCC Research study, the demand for Biodiesel Feedstocks: Technologies, Synthesis, Efficiency and Policies is estimated to increase from $46.3 billion in 2022 to reach $51.6 billion by 2028, at a compound annual growth rate (CAGR) of 3.7% from 2022 through 2028.”

Embark on a journey through the dynamic biodiesel market landscape with BCC Research's latest report, meticulously crafted to unveil the intricate developments shaping the industry. Delving into the core of biodiesel production, the report meticulously categorizes feedstock types, ranging from versatile vegetable oils like rapeseed, palm oil, soybean oil, sunflower oil, corn oil, to the sustainable repurposing of used cooking oil, alongside the utilization of animal fats. By dissecting the market based on applications and regions, readers gain invaluable insights into the diverse uses and geographical demands of biodiesel. Each segment evaluation not only provides comprehensive market size estimations but also offers a forward-looking forecast, guiding stakeholders through growth projections up to 2028. The journey culminates in a panoramic view of the competitive landscape, featuring insightful company profiles of key players steering the global biodiesel market towards a greener future.

The dynamics of the biodiesel industry are undergoing a significant shift, characterized by stagnation in production within traditional markets like the U.S. and EU, contrasted with the burgeoning growth of the renewable diesel sector. While biodiesel faces challenges in established markets, developing nations such as Indonesia, Malaysia, China, and Brazil are witnessing a surge in both production and consumption. Notably, China has emerged as a major player in the renewable diesel market, surpassing Argentina as the largest exporter to Europe. In 2023 alone, China's exports to Europe experienced a remarkable spike, soaring by nearly 40%. This trend has led to a notable transformation in the U.S., where approximately 13 biodiesel plants have shuttered operations due to the allure of investments in renewable diesel. As the global energy landscape continues to evolve, these shifts underscore the need for industry stakeholders to adapt to changing market dynamics and explore new avenues for sustainable fuel production.

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Key Drivers of Biodiesel Feedstocks: Technologies, Synthesis, Efficiency and Policies

Stringent Policies: Numerous nations have enacted policies aimed at promoting biodiesel usage and curbing reliance on fossil fuels. For instance, the European Union has set ambitious targets, aiming for 10% renewable energy in transportation by 2020, escalating to 14% by 2030. Meanwhile, the United States has implemented the Renewable Fuel Standard, mandating the blending of specified volumes of biofuels with gasoline and diesel. These regulations foster a demand for biodiesel, incentivizing its production and distribution.

Environmental Policies and Incentives: Biodiesel stands out as a cleaner and more eco-friendly alternative to conventional diesel, significantly reducing carbon dioxide emissions, particulate matter, and other pollutants. Moreover, biodiesel's utilization of waste materials like used cooking oil and animal fats prevents their disposal in landfills or water bodies, benefiting the environment. In response, many governments and organizations have introduced environmental policies and incentives to bolster the biodiesel industry. For example, the European Commission's proposal of a carbon border adjustment mechanism would impose taxes on carbon-intensive imports like fossil fuels, rendering biodiesel more competitive and appealing. Similarly, the U.S. Environmental Protection Agency's assignment of higher values to renewable identification numbers for biodiesel offers economic incentives for producers and blenders, further supporting the industry.

Energy Security: Biodiesel emerges as a key player in enhancing a nation's energy security by diminishing its reliance on imported fossil fuels and diversifying energy sources. With the flexibility to be produced from various locally or regionally sourced feedstocks, biodiesel mitigates risks associated with supply disruptions, price fluctuations, and geopolitical tensions affecting fossil fuel availability and affordability. Additionally, biodiesel's superior properties, including a higher cetane number, lubricity, and oxygen content compared to traditional diesel, not only enhance engine performance and efficiency but also contribute to prolonging engine life and reducing maintenance costs.

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Report Synopsis

Report Metrics


Base Year Considered


Forecast Period Considered


Base Year Market Size

$46.3 billion

Market Size Forecast

$51.6 billion

Growth Rate

CAGR of 3.7% from 2023 to 2028

Segment Covered

By Feedstock Type, Application, and Geographic Region

Regions Covered

North America, EMEA (Europe, the Middle East and Africa), Asia-Pacific, and South America

Key Market Drivers

  • Stringent Policies
  • Environmental Policies and Incentives
  • Energy Security


Biodiesel Feedstocks: Technologies, Synthesis, Efficiency and Policies Segmentation:

Feedstock Type Segmentation

This segment intricately classifies the biodiesel market based on the specific raw materials utilized in biodiesel production. Key categories include vegetable oils, animal fats, and other waste sources. Vegetable oils encompass a wide range of oils such as rapeseed, palm, soybean, sunflower, and corn oil, each contributing unique properties to the biodiesel produced. Animal fats consist of materials like tallow, lard, and poultry fat, offering alternative sources for biodiesel production. Additionally, other waste sources like used cooking oil, grease, and algae present innovative avenues for sustainable biodiesel production. The choice of feedstock type significantly impacts the quality, cost, availability, and sustainability of biodiesel, thereby influencing market dynamics and consumer preferences.

Application Type Segmentation

This segment divides the biodiesel market according to the specific end uses or purposes of biodiesel. Primarily, applications are categorized into transport and other miscellaneous uses. Within transport, biodiesel finds applications in automotive, aviation, marine, and rail sectors, each with distinct performance requirements and regulatory frameworks. Meanwhile, other uses encompass diverse sectors such as power generation, heating, and industrial processes, reflecting the versatility of biodiesel beyond transportation. The application type plays a pivotal role in determining demand patterns, performance characteristics, and regulatory considerations governing biodiesel usage across various sectors.

Region Segmentation

This segment delineates the biodiesel market based on geographical regions encompassing production, consumption, and trade activities. Major regions include North America, EMEA (Europe, Middle East, and Africa), South America, and Asia-Pacific, each exhibiting unique market dynamics shaped by regional policies, technologies, and growth trends. The regional factor significantly influences market size, growth trajectories, policy landscapes, and technological advancements within the biodiesel industry, reflecting the diverse socio-economic and environmental contexts across different global regions.

This report on the Biodiesel Feedstocks Technologies, Synthesis, Efficiency and Policies provides comprehensive insights and analysis, addressing the following key questions:

1.      What is the projected market size and growth rate of the market?

  • The global biodiesel market is expected to grow from $46.3 billion in 2022 to $51.6 billion in 2028. The market is expected to witness a CAGR of 3.7% from 2023 to 2028.

2.      What are the key factors driving the growth of the market?

  • Increasing Demand for Low-Carbon Intensive Feedstock.
  • Government policies and incentives.

3.      What segments are covered in the market?

  • This BCC Research report studies the developments in the biodiesel market worldwide. It analyzes the type of feedstock used in the market and their future scope, analyzing three feedstock: vegetable oil, animal fat, and other wastes. An analysis of major geographical markets, North America, EMEA, South America, and Asia-Pacific, is also provided. Each segment evaluation includes market size estimates for biodiesel and a forecast for 2028.

4.      By feedstock type, which segment will dominate the market by the end of 2028?

  • The vegetable oil sector will dominate by the end of 2028 because of well-established technology and easy feedstock access.

5.      Which region has the highest market share in the market?

  • In 2022, the EMEA had the highest market share, followed by North America and Asia-Pacific. Transport sectors’ growing demand, stringent biofuel policies, and incentives derived the market.

Some of the Key Market Players Are:

  • ENI S.P.A.

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Biodiesel Feedstocks: Technologies, Synthesis, Efficiency and Policies( EGY171B )
Publish Date: Jan 2024    

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