Biodiesel Market Outlook:
Biodiesel Market size was valued at USD 48.06 billion in 2025 and is likely to cross USD 108.66 billion by 2035, expanding at more than 8.5% CAGR during the forecast period i.e., between 2026-2035. In the year 2026, the industry size of biodiesel is assessed at USD 51.74 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.
