Europe Biodiesel Market 2025 – 2034

As per the Europe Biodiesel Market analysis conducted by the CMI Team, the Europe Biodiesel Market is expected to record a CAGR of 3.94% from 2025 to 2034. In 2025, the market size is projected to reach a valuation of USD 16.72 Billion. By 2034, the valuation is anticipated to reach USD 23.74 Billion.

Overview

Biodiesel refers to a group of esterified vegetable oils manufactured by using various oil-containing crops. The main feedstocks used for the biodiesel production are vegetable oils, animal fats, and lard & white grease. The biodiesel is manufactured by using different oil-containing crops. Biodiesel includes a methyl ester produced from vegetable or animal oil and bio-dimethyl ether. It can also be manufactured by using the cold-pressed bio-oil and all other liquid biofuels, which are added to, blended with, or used straight as transport diesel.

The Europe Biodiesel market is expected to grow at a significant pace during the forecast period owing to the growing environmental awareness and biodegradability of the biodiesel.

Key Trends & Drivers

The Europe Biodiesel Market Trends has tremendous growth opportunities due to several reasons:

• Increasing popularity as an eco-friendly fuel for road transportation: Europe has stringent regulations regarding environmental pollution and carbon dioxide emissions. The automotive industry in Europe is well established and is expected to grow at a significant pace during the forecast period. There are millions of cars, vans, trucks, and buses moving people and goods around on Europe’s extensive road transport infrastructure. Despite the growing shift towards electric vehicles in recent years, most vehicles in the EU still rely on petrol and diesel, which release air pollutants that harm our health and greenhouse gas emissions that contribute to climate change. The European Union is encouraging the usage of biodiesel as an alternative for transport.

• Benefits of the Biodiesel and Growing Environmental Awareness: The growing awareness about biodiesel across the globe and increasing supportive initiatives such as annual climate conferences are expected to drive the demand for biodiesel across the various industry verticals. In the recent Paris climate conference, several European Union countries have described global warming as the number one global threat. Public opinion has changed as the public mind-set has shifted to an aversion to large diesel engines. And trends such as the private purchase of electric vehicles seem unstoppable. The awareness about biodiesel is also increasing across the globe due to its nontoxic and biodegradable nature. Using biodiesel lowers particulate matter by 47%, reduces hydrocarbon emissions by up to 67%, and reduces smog. Its environmental benefits don’t stop there. The production of biodiesel, in lieu of petroleum diesel, reduces wastewater by 79% and hazardous waste by 96%. Thus, such factors are expected to drive the market growth of Europe Biodiesel during the forecast period.

• Technological Advancements in Biodiesel Production: The stakeholders operating in the Europe biodiesel landscape are investing in the new technological advancements and development to enhance the efficiency and effectiveness of biodiesel production from waste biomass through a biomethanol route. Some of the notable technological advancements include
  • Fuel from Algae to Oils: This is initial technological advancement
  • Waste to Energy: Transforming trash into transportable fuel.
  • Synthetic Biology: Designing the future molecules of green energy.
  • Electrofuels: A Spark-Ignited revolution in green hydrogen.

These technological advancements aim to enhance production efficiency, reduce costs, and improve sustainability, moving beyond traditional feedstock’s like vegetable oils. Thus, such increasing technological advancements coupled with the supportive government policies is expected to drive the Europe biodiesel market during the forecast period.

Overall, these growth opportunities are expected to fuel the expansion of the Europe Biodiesel Market in the coming years

Key Threats

The Europe Biodiesel Market has several primary threats that will influence its profitability and future development. Some of the threats are:

• High Cost of the Biodiesel: The biodiesel is manufactured by using various feedstocks such as animal fats, vegetable oil, and grease, etc. The cost of these is very high due to increasing inflation and raw material shortages. The cost of the biodiesel is comparatively higher than the diesel and petrol. Increasing prices of the feedstocks, such as palm oil and soybean oil, are impacting the biodiesel market. Various factors such as the ongoing trade war, geopolitical conflicts, increasing tariffs on feedstocks, and growing inflation and supply chain disturbances created the uncertainty and increased the overall production cost. For instance, biodiesel costs are currently 70% to 130% higher than petrol and diesel on the wholesale market depending on the crop used. Thus, such factors are expected to restrain the overall market growth during the forecast period.

• Competition from Alternative Fuels: Biodiesel is comparatively more costly than traditional diesel and petrol. Biodiesel is facing heavy competition from various alternative fuels and energy sources such as electricity, hydrogen, natural gas, and other biofuels. These alternative fuels and energy sources offer different advantages and disadvantages, impacting biodiesel’s market share. Thus, in many cost sensitive applications, biodiesel is facing heavy competition, thereby restraining the market growth.

Thus, such aforementioned factors are restraining the overall market growth during the forecast period.

Opportunities

• Growing Integration of the Biodiesel in Aviation and Maritime: The growing usage of the

Another emerging trend is the integration of biofuels with other sectors, such as aviation and maritime transport, as part of efforts to decarbonize these industries. Moreover, there’s a growing awareness about the importance of ensuring the sustainability of biofuel feedstocks, leading to increased demand for certified sustainable biofuels. These trends collectively signify a maturing and evolving Europe biofuels market towards greater environmental sustainability and efficiency.

Category Wise Insights

The Europe Biodiesel market is segmented by service type, by end users, by expansion type, and by region.

By Blend

• B100: This blend is expected to hold significant market share during the forecast period. B100 (pure biodiesel) is 100% biodiesel without any additive; it is a renewable fuel made from vegetable oils, animal fats, or recycled cooking oil. This blend is mainly used to produce lower percentage blends and is rarely used as a transportation fuel.

• B20: This blend is the most common blend among all the biodiesel blends because it represents a good balance of cost, controlled emissions, high performance in cold weather, and compatibility with conventional engines. The most biodiesel customers purchase B20 from their normal fuel distributors or from biodiesel marketers. Regulated fleets that use biodiesel blends of 20%.
• B10: B10 is one of the most readily available blends at many fuel stations. The B10 blends emit less pollutant as compared to the remaining blends, contributing to cleaner air. The economic benefits associated with the B10 blend are expected to support local economies by creating demand for agricultural products used in its production. The easy engine compatibility of many vehicles and end users with B10 blends because it doesn’t require modifications.

• B5: The B5 segment is expected to grow at a significant pace during the forecast period. B5 biodiesel is a mixture of 5% biodiesel and 95% petroleum diesel. It is a low-level biofuel blend consisting of less than or equal to 5 percent pure biodiesel. B5 has been approved for use by most diesel automobile and truck manufacturers.

By Production Technology

• Pyrolysis: This segment is expected to grow at a substantial pace during the forecast period. The pyrolysis involves a thermochemical process, which includes heating biomass to 400 to 500 degrees Celsiusin the absence of oxygen to create bio-oil that resembles crude oil. This is hydrotreating, and hydrocracking techniques are mainly used to convert bio-oil to usable transportation fuels; the bio-oil is upgraded through hydrotreating and hydrocracking.

• Trans-esterification: Transesterification production technology segment is expected to hold substantial market share during the forecast period. The transesterification is catalysed reaction of oil and fat with alcohol to produce an ester and glycerol. Biodiesel production using transesterification is an economical and time-saving method and produces fuel with a higher cetane number and improved performance.

• Others (Dilution, Micro-Emulsification, etc.): The other segment includes dilution and microemulsification methods for biodiesel production. The dilution method for biodiesel production involves mixing vegetable or animal oils with diesel fuel to reduce viscosity and lower the overall cost of fuel.

Impact of Latest Tariff Policies on the Europe Biodiesel Market

The tariff policies on the Europe Biodiesel industry are continuously evolving and are expected to impact positively and negatively on the Europe Biodiesel industry. The increasing tariff policies are creating implications for the EU biodiesel industry because the global vegetable oil landscape driven by US tariffs could drive prices higher, impacting both the EU biodiesel sector and food industries that use vegetable oils as key ingredients.

The global and European biodiesel industry is facing significant disruption due to Trump’s declaration of a US economic emergency and implementation of sweeping tariff measures. These tariffs are creating disturbances across the renewable fuel supply chains, particularly impacting Used Cooking Oil (UCO) and Fatty Acid Methyl Ester (FAME) markets.

Recently, the European Union has imposed the provisional anti-dumping duties on Chinese imports of biofuels. These duties range from 12.8% to 36.4%. These duties will create a positive and conducive business environment for the EU biodiesel producers, though the region has built up such an ample supply of biodiesel that any immediate impacts could be muted.

Report Scope

Regional Perspective

The Europe Biodiesel Market can be divided across different regions such as the U.S., Canada, and Mexico.

This is a cursory overview of each region:

• Germany: Germany serves as the largest market for the Europe Biodiesel market. According to data from the International Grain Council (IGC) reported by Germany’s Union for the Promotion of Plants and Protein (UFOP), global biodiesel production has reached a record level. The increase in production was primarily fuelled by increased soybean cultivation in the USA and South America. Furthermore, the presence of well-established end-use industries is coupled with the increasing supportive initiatives across the region.

• France: France is expected to hold significant market share during the forecast period. The supportive government initiatives coupled with growing stringent regulations on the petrol and diesel usage are mainly driving the demand for the biodiesel during the forecast period.

Key Developments

In recent years, the Europe Biodiesel Market has experienced several crucial changes as the players in the market strive to grow their geographical footprint and improve their product line and profits by using synergies.

• Recently, Argent Energy announced that they will invest in new technologies to enhance byproducts such as glycerine. The European Union’s Renewable Energy Directive II (RED II) is encouraging the use of biodiesel, with a 14% renewable energy objective in transportation by 2030.

• In June 2025, Argent Fuels extended their biodiesel supply for bus, coach, and HGV fleets, as well as rail in the south of the United Kingdom. Through this program, the corporation is stepping up its efforts to help a greener future by increasing its high blend. This expansion aligns with the company’s goal of reducing CO₂ emissions in the transportation industry.

• In February 2022, BDI-BioEnergy International GmbH announced the upgrade of two biodiesel plants in Germany using cutting-edge feedstock pre-treatment technology, demonstrating the industry’s dedication to technological innovation and operational efficiency.

Leading Players

The Europe Biodiesel Market is highly competitive, with a large number of product providers

Some of the key players in the market include:

• Archer Daniels Midland Company (ADM)
• Cargill Inc.
• BDI-BioEnergy International GmbH
• Argent Energy (UK) Limited
• Olleco
• Abengoa SA
• Ecodiesel Colombia S.A.
• FutureFuel Corp.
• Manuelita S.A.
• Renewable Biofuels Inc.
• TerraVia Holdings Inc.
• Wilmar International Ltd.
• Neste Corporation
• Munzer Industries
• TotalEnergies
• Ekobenz Sp. z.o.o
• Galp Energia SGPS S.A.
• Compañía Española de Petróleos S.A. (CEPSA)
• Others

These firms apply a sequence of strategies to enter the market, including innovations, mergers, and acquisitions, as well as collaboration.

The Europe Biodiesel Market is led by industry giants such as Archer Daniels Midland Company (ADM), Cargill, Inc., Argent Energy (UK) Limited, Olleco, Abengoa SA, Ecodiesel Colombia S.A., FutureFuel Corp., and Manuelita S.A. These companies are focusing on developing innovative product solutions and increasing product efficiency.

The Europe Biodiesel Market is segmented as follows:

By Blend

• B100
• B20
• B10
• B5

By Production Technology

• Pyrolysis
• Trans-esterification
• Others (Dilution, Micro-Emulsification, etc.)

By Feedstock type

• Vegetable Oils
  • Edible Oils (Rapeseed/Canola, Soybean, Palm)
  • Others
• Animal Fats
  • Poultry
  • Tallow
• Lard & White Grease

By Application

• Fuel
• Power Generation
• Others

By End Use Industries

• Automotive
• Marine
• Agriculture
• Others

Regional Coverage:

Europe

• Germany
• France
• U.K.
• Russia
• Italy
• Spain
• Netherlands
• Rest of Europe

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