As stated in our extensive report; providing insights on feedstock Type, Blend, Production Technology, and Application, the Global Biodiesel Market accounted for USD 38.7 Billion in 2021.
GrowingDemand for Environmentally-Friendly Fuels That Reduce Greenhouse Gas Emissions
Biodiesel has several benefits such as being easy to use, non-toxic in nature, and biodegradable. Also, it is free of aromatics, and sulphur compounds. It discharges lesser greenhouse gases and air pollutants that can be used in most diesel engines as well as reduces toxic carbon-based emissions. Thus, increasing the demand in the market, further propelling the market growth.
Additionally, increasing government regulations regarding greenhouse gas emissions through the use of fossil fuels is increasing the demand for Biodiesel. This is owing to the fact that the Biodiesel reduces the emission of greenhouse gases by up to 50% as compared to petroleum diesel. Thus, increasing the demand for Biodiesel, in turn, further propelling the market growth over the forecast period. For instance,in 2021, the government in German introduced new biofuel law. According to the law, obligated oil companies will have to significantly increase the use of Biodiesel, bioethanol, and biomethane in the transportation sector to reduce carbon emissions. Thus, driving the market growth over the forecast period.
Additionally, Biodiesel also has low toxic and carcinogenic aromatic carbon content, which is further increasing the demand in the market. According to the U.S. Energy Information Administration, 2021, there were six operating U.S. renewable diesel and other biofuels production facilities with a total production capacity of about 791 million gallons per year. In 2020, U.S. R100 production equalled about 533 million gallons and consumption equalled about 822 million gallons, which included about 280 million gallons of imports. California uses most of U.S. imported renewable diesel fuel mainly to meet itsLow Carbon Fuel Standard(LCFS). Hence, fueling the market growth over the forecast period.
Europeholds the major share in the market. However,Europeis projected to grow at a very low Compound Annual Growth Rate (CAGR) in terms of volume owing to the saturation of the market in the region.
Some of the key players in the GlobalBiodiesel MarketincludeArcher Daniels Midland Company (U.S.), Wilmar International Limited (Malaysia), Bunge Limited (U.S.), Neste Corporation (Finland), Renewable Energy Group Inc. (U.S.), Louis Dreyfus Company (Netherlands), Cargill Inc. (U.S.), BIOX Corporation (Canada), Munzer Bioindustrie (Austria), Emami Group (India) and others.