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North America Biodiesel Market Size - By Feedstock (Animal Fat, Vegetable Oil), By Application (Transportation, Power Generation), Country Outlook & Forecast, 2024 – 2032

  • Report ID: GMI9999
  • Published Date: Jun 2024
  • Report Format: PDF

North America Biodiesel Market Size

North America Biodiesel Market was valued at USD 14.7 billion in 2023 and is anticipated to grow at a CAGR of 7.4% from 2024 to 2032, owing to the increasing environmental awareness and supportive governmental policies. Rising concerns over greenhouse gas emissions and the need for sustainable energy solutions have led to greater adoption of biodiesel, a renewable, cleaner-burning alternative to traditional fossil fuels.

North America Biodiesel Market

Technological advancements in biodiesel production and a growing emphasis on energy independence further propel the market. Major industries, including transportation and agriculture, are increasingly integrating biodiesel to reduce carbon footprints and comply with environmental regulations. Additionally, investments in biodiesel infrastructure and research into more efficient production methods are enhancing the market's growth potential, positioning North America as a significant player in the global biodiesel sector.

North America Biodiesel Market Trends

Governments worldwide are implementing stringent regulations to reduce carbon emissions and promote renewable energy sources. In the U.S., the Renewable Fuel Standard (RFS) mandates increasing volumes of renewable fuel to be blended with transportation fuel. Similarly, the European Union’s Renewable Energy Directive (RED) sets ambitious targets for renewable energy use in transport. These policies are pivotal in driving biodiesel demand as they create a steady market for biofuels through blending requirements.

Technological innovations in biodiesel production are enhancing efficiency and reducing costs. Advancements in feedstock processing, such as the use of waste oils, algae, and non-food crops, are making biodiesel production more sustainable and economically viable. Innovations in transesterification processes and enzymatic catalysts are also improving yield and quality, further supporting market growth.

The diversification of feedstock sources is a critical trend. Traditional feedstocks like soybean oil and rapeseed oil are now supplemented by alternative sources such as used cooking oil, animal fats, and algae. This diversification reduces dependency on specific crops, lowers feedstock costs, and minimizes the impact on food supply chains. The development of next-generation feedstocks, such as lignocellulosic biomass, is also gaining traction, promising a more sustainable and abundant resource base.

North America Biodiesel Market Analysis

North America Biodiesel Market Revenue Size, By Feedstock, 2022 - 2032 (USD Billion)

Based on feedstock, the vegetable oil segment is anticipated to cross USD 24 billion by 2032 since soybean oil, palm oil, and rapeseed oil, are widely available and produced in large quantities in North America. The extensive cultivation of oilseed crops provides a consistent and reliable supply of raw materials for biodiesel production. This abundance supports large-scale biodiesel manufacturing and contributes to market stability.

North America Biodiesel Market Revenue Share, By Application, 2023

Based on application, the transportation segment is anticipated to grow with CAGR of more than 7.5% through 2032, owing to the increasingly implementing stringent emission regulations to combat air pollution and reduce greenhouse gas emissions. Regulations such as the U.S. Renewable Fuel Standard (RFS) and Canada’s Clean Fuel Standard (CFS) mandate the use of renewable fuels in transportation, driving the demand for biodiesel as a cleaner alternative to traditional diesel.

U.S. Biodiesel Market Revenue Size, 2022 - 2032, (USD Billion)

The U.S. biodiesel market is anticipated to surpass USD 20.5 billion by 2032, due to the strong The RFS mandates for the blending of renewable fuels, such as biodiesel, with petroleum-based fuels. This regulation not only ensures a steady demand for biodiesel but also encourages production and investment in the sector. Additionally, state-level mandates and incentives further bolster biodiesel adoption. The U.S. government’s commitment to reducing greenhouse gas emissions and combating climate change is a significant driver of biodiesel market growth. Biodiesel's lower carbon footprint compared to conventional diesel aligns with national and state-level climate goals, prompting increased usage across various sectors.

Similarly, the Canada has a diverse and abundant supply of feedstocks for biodiesel production, including soybean oil, used cooking oil, and animal fats. The availability of these feedstocks supports large-scale biodiesel production and helps stabilize prices, contributing to market growth. The development of new feedstocks, such as algae and other non-traditional sources, is also expanding the resource base for biodiesel.

North America Biodiesel Market Share

North America Biodiesel Company Market Share Analysis, 2023

Companies like Chevron and Total Energies hold significant market share in the biodiesel market due to their substantial investments in renewable energy and extensive distribution networks. Their established infrastructure and global reach enable efficient production and distribution of biodiesel. Additionally, their commitment to sustainability and reducing carbon emissions aligns with market demands and regulatory requirements. These companies leverage their financial resources, technological expertise, and strategic partnerships to innovate and scale biodiesel production, maintaining a competitive edge in the rapidly growing renewable energy sector.

North America Biodiesel Market Companies

  • AG Processing, Inc.
  • Abellon Clean Energy
  • Archer Daniels Midland Company (ADM)
  • Anellotech
  • Bunge Ltd.
  • Cargill
  • Clariant
  • Chevron Corporation
  • FutureFuel Corporation
  • Greenergy
  • Manuelita S.A.
  • Renewable Energy Group
  • Renewable Biofuels, Inc.
  • TerraVia Holdings, Inc.
  • Total Energies
  • Universal Biofuels Private Limited
  • Wilmar International Ltd.
  • Washwell Biodiesel

North America Biodiesel Industry News

  • In March 2024, Chevron has idled two biodiesel production facilities of production in the U.S. Chevron has acquired Renewable Energy Group for USD 3.15 billion in 2022 to boost its biofuels production to 1 lakh barrels per day by 2030.
  • In November 2022, UAV (United Airlines Ventures) invested in NEXT Renewable Fuels to develop a bio refinery in U.S., set to start production in 2026. NEXT's main facility, strategically located, is well-positioned for effective biofuel distribution across the West Coast.

This North America biodiesel market research report includes in-depth coverage of the industry with estimates & forecast in terms of “USD Million” from 2021 to 2032, for the following segments:

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Market, By Feedstock

  • Animal fat
  • Vegetable oil
  • Others

Market, By Application

  • Transportation
  • Power generation
  • Others

The above information has been provided for the following countries across the regions:

  • U.S.
  • Canada


Authors: Ankit Gupta, Utkarsh Mahajan

Frequently Asked Questions (FAQ) :

The market size of North America biodiesel was crossed USD 14.7 billion in 2023 and is anticipated to grow at 7.4% CAGR during 2024 to 2032, owing to the increasing environmental awareness and supportive governmental policies.

The vegetable oil segment of North America biodiesel market is anticipated to cross USD 24 Bn by 2032, since soybean oil, palm oil, and rapeseed oil, are widely available and produced in large quantities.

The U.S. biodiesel market is projected to surpass USD 20.5 billion by 2032, due to the RFS mandates for the blending of renewable fuels, such as biodiesel, with petroleum-based fuels.

AG Processing, Inc, Abellon Clean Energy, ALTRET GREENFUELS LIMITED, Archer Daniels Midland Company (ADM), Anellotech, Bunge Ltd, Cargill, Clariant, Chevron Corporation among others.

North America Biodiesel Market Scope

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Premium Report Details

  • Base Year: 2023
  • Companies covered: 19
  • Tables & Figures: 15
  • Countries covered: 2
  • Pages: 350
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