Europe Biodiesel Market Size and Share Analysis – Growth Trends and Forecast Report 2025–2033
Market Overview
The Europe Biodiesel Market is projected to reach US$ 18.72 Billion by 2033, expanding from US$ 11.44 Billion in 2024, growing at a CAGR of 5.62% during the forecast period 2025 to 2033. This growth is fueled by increased government initiatives supporting renewable energy, rising environmental awareness, and technological advancements in biodiesel production.
The market analysis is segmented by Application (Fuel, Power Generation, Others), Feedstock (Vegetable Oil, Animal Fats), and Countries. It also includes an in-depth Company Analysis of major players shaping the European biodiesel landscape.
What is Biodiesel?
Biodiesel is a renewable, biodegradable fuel produced from various feedstocks such as vegetable oils, animal fats, and used cooking oil through a chemical process known as transesterification. The result is Fatty Acid Methyl Esters (FAME), which can replace or blend with traditional diesel fuels.
Common blends in Europe include B7 (7% biodiesel) and B20 (20% biodiesel), with B100 representing pure biodiesel. The fuel can be used across multiple sectors including transportation, industrial heating, and power generation.
Key Market Drivers
- Renewable Energy Mandates by the European Union
Under the Renewable Energy Directive (RED II), the EU mandates that 14% of transport fuel must be derived from renewable sources by 2030. Biodiesel plays a pivotal role in achieving this target. The directive also includes sustainability criteria that promote the use of advanced biofuels and waste-based biodiesel, creating strong tailwinds for market expansion.
- Focus on Sustainability and Carbon Reduction
As Europe intensifies its commitment to the Paris Agreement and Net Zero goals, biodiesel emerges as a crucial tool to lower greenhouse gas (GHG) emissions. The shift to biodiesel helps decarbonize high-emission sectors like transportation and logistics, while also supporting circular economies through the reuse of waste fats and oils.
- Technological Innovations
Significant advancements have enhanced biodiesel conversion technologies, reducing operational costs and improving scalability. For instance, Argent Energy’s facility in Amsterdam, launched in October 2024, converts crude glycerin (a biodiesel byproduct) into 99.7% pure, technical-grade glycerin — a step toward valorizing waste and improving profitability.
Market Challenges
- Feedstock Supply Constraints
The market faces supply chain disruptions due to seasonal agricultural volatility, geopolitical tensions, and rising competition for vegetable oils and animal fats. These limitations make feedstock sourcing unpredictable and increase production costs.
- Price Competitiveness and Rising Alternatives
While biodiesel is a greener fuel, it remains costlier than petroleum-based diesel. The rise of green hydrogen, e-fuels, and electric mobility also presents strong competition, potentially hindering long-term adoption of biodiesel in certain applications.
Related Report
United States Biodiesel Market
Segment Analysis
By Application
- Fuel: The largest segment, dominated by use in transportation. Biodiesel reduces emissions from passenger vehicles, buses, and freight transport.
- Power Generation: Growing demand for low-emission backup and off-grid power systems is boosting biodiesel-based generator installations.
- Others: Includes uses in industrial heating, marine applications, and agriculture machinery.
By Feedstock
- Vegetable Oil: Includes rapeseed, soybean, palm, and sunflower oils. Rapeseed oil remains the most utilized in Europe due to its favorable cold-flow properties and local availability.
- Animal Fats: Used in waste-based biodiesel, gaining traction due to its sustainability credentials and ability to meet RED II advanced biofuel targets.
Country-Level Market Insights
🇬🇧 United Kingdom
The UK market is witnessing fast-paced growth due to strong government decarbonization targets, widespread EV-biodiesel hybrid models, and rising industrial adoption. Incentives such as the Renewable Transport Fuel Obligation (RTFO) are key growth enablers.
🇩🇪 Germany
Germany remains Europe’s biodiesel frontrunner. With stringent emissions norms and active support from the Federal Environment Agency, Germany is leveraging biodiesel for both domestic consumption and exports. The use of second-generation biodiesel is rising in urban transport systems.
🇫🇷 France
France’s push toward climate neutrality has led to increased biodiesel usage in public transportation and agricultural sectors. Strong policy support and local production of feedstock, particularly sunflower oil, drive the market.
🇪🇸 Spain
Spain is aggressively diversifying its energy mix. The government’s green policies and investments in waste-to-biodiesel plants are propelling biodiesel as a clean energy substitute for fossil fuels in commercial transport and logistics.
🇮🇹 Italy
Italy’s biodiesel industry is expanding due to increasing consumer awareness and the growth of bio-refineries across the country. As part of its 2030 National Energy and Climate Plan (NECP), Italy aims to enhance biofuel contributions to reduce carbon intensity.
Competitive Landscape
Major Companies:
- Archer Daniels Midland Company
- Future Fuel
- Neste
- Renewable Energy Group, Inc.
- Bunge Global SA
- Wilmar
- Shell
These companies are investing in sustainable sourcing, advanced refining processes, and international collaborations to expand biodiesel production capacities across Europe.
Each company is analyzed based on:
- Overview
- Recent Developments
- Revenue Analysis
Europe Biodiesel Market – Forecast, Segments & Countries
Forecast Period:
- 2025 to 2033
Market Size (in US$ Billion):
- 2024: US$ 11.44 Billion
- 2033: US$ 18.72 Billion
Market Segments:
- Applications: Fuel, Power Generation, Others
- Feedstocks: Vegetable Oil, Animal Fats
- Countries: France, Germany, Italy, Spain, United Kingdom, Belgium, Netherlands, Turkey, Rest of Europe
Key Questions Answered in the Report
- What is the expected market size of the Europe biodiesel market by 2033?
- What is the projected CAGR from 2025 to 2033?
- What are the main drivers and challenges in this market?
- How does RED II influence biodiesel consumption?
- Which countries are leading in biodiesel production and consumption?
- What role do feedstocks play in production dynamics?
- Who are the major players shaping the competitive landscape?
- How is technology influencing the adoption of biodiesel in Europe?
Customization and Support
- Customization Scope: Up to 20% Free
- Post-Sale Analyst Support: 1 Year (52 Weeks)
- Delivery Format: PDF + Excel (Editable formats available on request)
Pricing
| License Type | Price (USD) |
| Dashboard (Excel) | $2,490 |
| Single User License (PDF) | $2,990 |
| Five User License + Excel | $3,490 |
| Corporate License: Multi User | $3,990 |
Contact Us
📞 USA: +1-678-302-0700
📞 India: +91-120-421-9822
📧 Email: info@renub.com
🌐 Website: www.renub.com
More Stories
Essential Safety Equipment Protecting Yourself in a Hazardous World
What to Look for in High-Quality Embroidery Digitizing Services
Energy Bills Higher With Outdated Rooftop HVAC Systems?