Biodiesel Market Generated Revenue ~ $39 Billion in 2020
- Published: July 2021
The increasing need to reduce greenhouse gas emissions, government initiatives and mandatory regulations regarding the use of biodiesel, and increasing demand for biodiesel to replace crude oil are boosting the growth of the market for biodiesel. Due to the aforementioned factors, the industry is projected to witness significant growth during the forecast period (2021–2030).
The COVID-19 pandemic had a major impact on the manufacturing, freight, and logistics industries, including the market for biodiesel. Due to the stringent lockdown measures enforced by the governments of several countries, the demand for fuel has plummeted since 2020. This was primarily due to the disruptions in the transportation of goods and low need for daily transportation due to the shutdown of factories and offices in order to curb the spread of the virus.
Vegetable Oils Category Dominated the Market in 2020
The biodiesel market is categorized into vegetable oils and animal oils, based on feedstock. Of these, the vegetable oils category held the larger share in the market in 2020. This is attributed to the wide availability of vegetables as a raw material and the easy manufacturing process vegetable oils require to be converted to biodiesel.
The biodiesel market is categorized into fuel, power generation, and others, based on application. Among these, the fuel category held the dominating share in the market, both in terms of volume and revenue, in the past few years. Moreover, the category is expected to advance at a significant growth rate during the forecast period owing to the rising demand for biodiesel as a fuel in the maritime, automotive, railways, and agriculture industries.
Geographically, Europe accounted for the largest share in the global biodiesel market in 2020. This is attributed to the rising focus of governments on improving the air quality, for which they have implemented regulations to lower the greenhouse gas emissions.
Industry Players Focusing on Partnerships and Collaborations to Better their Position
The major players in the biodiesel industry are involved in partnerships and collaborations to gain a competitive edge. For instance, in May 2019, a biodiesel producer named Renewable Energy Group (REG) entered into a partnership with Broco Oil Company to provide clean fuel options to heating oil dealers in Northeast U.S. The companies will provide Bioheat, a blend of biodiesel and ultra-low-sulphur heating oil, from the facility in Haverhill.
Some of the key players operating in the biodiesel market are Archer Daniels Midland Company, Wilmar International Limited, Bunge Limited, Neste Oyj, Renewable Energy Group Inc., Louis Dreyfus Company B.V., Cargill Inc., BIOX Corporation, Münzer Bioindustrie GmbH, and Emami Group.