Biodiesel market seen reaching $89.3 billion by 2033

Persistence Market Research projects the global biodiesel fuel market will grow from $54.9 billion in 2026 to $89.3 billion by 2033, driven by climate rules, renewable fuel mandates and demand for lower-carbon transport. The forecast points to broader adoption in transportation, industrial uses and agriculture as countries push energy security and decarbonization. Why it matters: - Biodiesel is gaining ground as governments and industries look for lower-carbon fuel options that can work with existing diesel engines and infrastructure. - The forecast suggests biodiesel could become a bigger part of energy, transport and industrial fuel strategies as climate targets tighten. - Waste-based feedstocks such as used cooking oil and animal fats could also support circular economy goals while lowering production costs. What happened: - Persistence Market Research projects the global biodiesel fuel market will rise from US$ 54.9 billion in 2026 to US$ 89.3 billion by 2033. - The market is forecast to expand at a 7.2% CAGR from 2026 through 2033. - The report links growth to stricter environmental rules, renewable fuel mandates, decarbonization goals and rising demand for cleaner transportation fuels. - The research was released June 16, 2026, from London. - The report includes a free sample and a customized market view . The details: - Governments in several markets are requiring biodiesel blending with petroleum diesel, which supports steady demand. - Net-zero policies and energy security programs are expected to increase biodiesel use in commercial, industrial and public transportation. - National energy strategies are adding biofuels to renewable energy portfolios. - Investment is flowing into renewable fuel infrastructure, production facilities and distribution networks. - Vegetable oils remain the dominant feedstock, but the market is shifting toward UCO, animal fats and grease derivatives. - Advancements in trans-esterification, automation and feedstock optimization are improving yields, fuel quality and cost efficiency. - Biodiesel use is expanding beyond transportation into power generation, marine transport, industrial operations and agricultural equipment. - The market is segmented by feedstock type, application, production process and region. - Feedstock categories include vegetable oil, animal oil and UCO. - Application categories include fuel, power generation and agriculture. - Production processes include alcohol trans-esterification and hydro-heating. - Regional coverage includes North America, Europe, East Asia, South Asia and Oceania, Latin America, and the Middle East and Africa. Between the lines: - The report points to a market that is becoming less dependent on conventional crop-based inputs and more tied to waste valorization. - Energy security concerns and volatile fossil fuel prices are reinforcing biodiesel’s appeal as a domestic supply option. - The competitive landscape remains moderately consolidated, which suggests scale, feedstock access and technology will matter most. - Key companies listed in the report include Cargill, Renewable Energy Group (Chevron), VERBIO SE, MOL Group, Archer Daniels Midland, Ag Processing, Emami Group, HERO BX, Meroco and Rossi Biofuel. What’s next: - Biodiesel demand will likely track future blending rules, renewable fuel incentives and investments in supply-chain capacity. - The report expects production technology improvements and broader industrial adoption to support growth through 2033. - More strategic partnerships, mergers and capacity expansion deals are likely as producers race to secure feedstock and distribution. - The report argues biodiesel will remain a key part of the global renewable energy mix as sustainability goals intensify.