The global biodiesel market is projected to reach USD 41.18 billion by 2021, at a CAGR of 3.8% from 2016 to 2021. Biodiesel is a used as a fuel in pure form B100 or by forming blends with conventional petroleum diesel. These blends include B2, B5, and B20 that contain 2%, 5%, and 20% biodiesel, respectively. Biodiesel is environmental-friendly, non-toxic, and readily biodegradable fuel, as it is produced from natural elements such as vegetable oils, animal fats, and greases. It finds usage in end-use industries, such as automotive, power generation, marine, railway, agriculture, and mining. The growing demand for biodiesel from these end-use industries is expected to lead to its increased demand in the biodiesel market.
The demand for biodiesel is increasing from the transportation industry, as it increases lubricity, ensures complete fuel combustion, and reduces greenhouse gas emissions. Government initiatives to control air pollution have increased the consumption of biodiesel as a substitute for petroleum-based fuels.
The use of vegetable oils, such as soybean, rapeseed, and palm for producing biodiesel is increasing due to their easy availability in different countries. Vegetable oils are preferred feedstock, as they contain less saturated fat that makes them easy to process, thus reducing the manufacturing cost.
Europe is the largest market for biodiesel, followed by North America. The high demand in the Europe region can be attributed to the rising environmental awareness and government measures to reduce greenhouse gas emissions. The biodiesel market in Asia-Pacific is projected to witness highest growth from 2016 to 2021, due to the easy availability of feedstocks such as palm oil, waste cooking oil, and animal fat in the region.
Major players in the Biodiesel Market employed organic as well as inorganic growth strategies, such as expansions, acquisitions, agreements & joint ventures, and new product developments to expand their business. The key companies operating in this market are enhancing their presence in the emerging markets and strengthening their distribution network, globally. The growth strategies used by the market players are expected to lead to the sustainable growth of the biodiesel market in the future.
Archer Daniels Midland Company (U.S.), Wilmar International Limited (Malaysia), Bunge Limited (U.S.), Neste Corporation (Finland), Renewable Energy Group Inc. (U.S.), Louis Dreyfus Company (Netherlands), Cargill Inc. (U.S.), BIOX Corporation (Canada), Munzer Bioindustrie (Austria), and TerraVia Holdings Inc. (U.S.) are the key companies manufacturing biodiesel and have a strong foothold in the biodiesel market.
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