The global biodiesel market is projected to grow from US$ 41.62 billion in 2025 to US$ 70.92 billion by 2034, at a CAGR of 6.1%, according to Renub Research. Rising demand for renewable energy, government blending mandates, and adoption across transportation and industrial sectors are driving this growth. Biodiesel, made from vegetable oils, animal fats, and used cooking oil, offers a drop-in solution for existing diesel engines, making it a practical near-term decarbonization tool. Key trends include continued dominance of the transportation sector, expanding use in power generation, and growing interest in waste-based feedstocks like animal fat. Policy support remains critical, with countries like Germany approving biofuel blending legislation to meet greenhouse gas targets. As electrification progresses slowly in heavy transport, biodiesel serves as a transitional fuel that reduces emissions without requiring major infrastructure changes.
