United States Biodiesel Market Insights Forecasts to 2033

• The Market Size is Growing at a CAGR of 5.46% from 2023 to 2033 
• The United States Biodiesel Market Size is Expected to Hold a Significant Share by 2033

The United States Biodiesel Market Size is Anticipated to hold a significant share by 2033, Growing at a CAGR of 5.46% from 2023 to 2033. Increasing domestic production of biodiesel.

Market Overview

Biodiesel is a renewable, bio-based fuel designed to perform well in diesel engines while generating fewer pollutants and offering a more sustainable alternative to traditional diesel. Biodiesel, which is generally made from plant oils, animal fats, and used cooking oils, can be directly replaced or blended with petroleum diesel in many applications without requiring significant engine modifications. It has greater lubricity, biodegradability, and a significantly lower emissions profile, making it an excellent choice for the transportation industry, agriculture, and a variety of industrial uses. Biofuels are fuels derived directly or indirectly from organic matter, such as plant materials and animal manure. The most common biofuels are ethanol and biodiesel, which are used as replacements or additions to petroleum-based transportation fuels. Biofuels help to reduce reliance on imported petroleum, lower greenhouse gas emissions, and promote rural economic growth. The growing focus on lowering greenhouse gas emissions is the main factor driving the industry in the US. This can be related to the increased use of biodiesel due to stricter environmental laws.

Report Coverage

This research report categorizes the market for the United States biodiesel market based on various segments and regions and forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the United States biodiesel market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the United States biodiesel market.

Driving Factors

The rise in domestic manufacturing of various biodiesel feedstocks, such as animal fats, recycled cooking oil, and soybean oil, is one of the major factors propelling the U.S. biodiesel market. As these essential ingredients become more widely available domestically, the convenience of access and resulting lower costs have given biodiesel production a significant boost, which in turn has catalyzed the growth of the market as a whole. The market is further boosted by the inflow of strategic investments and the formation of profitable relationships within the sector. Major groups across the energy value chain, from technology developers to manufacturers and oil corporations, are actively involved in improving biodiesel manufacturing facilities.

Restraining Factors

Biodiesel production faces possible challenges due to limited agricultural land, rising demand for oil and fats, and an expanding population. Market growth is predicted to be negatively affected by different rules, restrictions, and volatility in crude oil prices. The high operational expenses associated with biodiesel pose a substantial barrier to the market, potentially impeding further growth.

Market Segmentation

The United States biodiesel market share is classified into feedstock and type.

• The vegetable oils segment is expected to hold a significant market share through the forecast period.    

The United States biodiesel market is segmented by feedstock into vegetable oils, animal fats, and others. Among these, the vegetable oils segment is expected to hold a significant market share through the forecast period. Vegetable oils are the principal feedstock for biodiesel production due to their significant oil content and ease of availability. The market is being propelled by rising demand for environmentally friendly fuels, as well as government measures to promote biofuel use. Furthermore, technological developments have improved the efficiency with which vegetable oils are converted to biodiesel, increasing their utilization.

• The B20 segment is expected to hold a significant market share of the United States biodiesel market during the forecast period.         

Based on the type, the United States biodiesel market is divided into B100, B20, B10, and B5. Among these, the B20 segment is expected to hold a significant market share of the United States biodiesel market during the forecast period. B20 is renowned due to its excellent mix of environmental benefits and performance. It may be utilized in many diesel engines without modification, which encourages its widespread adoption. Furthermore, B20's lower emissions than normal diesel fuel increases its market appeal, propelling the industry.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the United States biodiesel market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Archer Daniels Midland Company
• FutureFuel
• Neste’s
• Renewable Energy Group, Inc.,
• Bunge Global SA
• Wilmar
• Shell
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Developments

• In June 2022, Chevron acquired Renewable Energy Group (REG), a major US biodiesel producer, to assist develop its renewable fuels company and offer lower-carbon transportation options. Chevron plans to raise its renewable fuel manufacturing capacity to 100,000 barrels per day by 2030.

Market Segment

This study forecasts revenue at the US, regional, and country levels from 2020 to 2033. Spherical Insights has segmented the United States Biodiesel Market based on the below-mentioned segments:

United States Biodiesel Market, By Feedstock

• Vegetable Oils
• Animal Fats
• Others

United States Biodiesel Market, By Type

• B100
• B20
• B10
• B5