Biodiesel Market

Biodiesel is a fuel similar to fossil or conventional diesel. It is the best alternative for conventional diesel and can be used in vehicles without making any changes or modification to the regular diesel engines. It is renewable and clean burning fuel. Biodiesel is better for environment compared to the petroleum diesel owing to its properties such as clean-burning diesel, biodegradable, non-toxic, and produces fewer toxic pollutants & greenhouse gases. The feedstocks used for manufacturing of biodiesel are animal fats, recycled cooking oil, and vegetable oil. The process used for conversion of raw material such as vegetable oil into biodiesel is known as transesterification. In this process triglyceride (oil) reacts with alcohol in presence of strong alkaline catalyst such as sodium hydroxide to form glycerol and ester or biodiesel. Biodiesel has gained importance due to energy sustainability, rise in crude oil prices, growth in automobile industry, government support, and their low carbon emissions. However, the disadvantages of biodiesel include its incompatibility for use in low temperatures, clogging in engine, slight increase in nitrogen oxide emissions and others. In global biodiesel market, different blends of biodiesel are available such as B2, B5, B20, and B100 represent the amount of biodiesel and petrodiesel present in the fuel. For instance, in B2 the amount of biodiesel is 2% and amount of petrodiesel is 98% while in B100 the amount of biodiesel is 100% and amount of petrodiesel is 0%.

Factors such as government policies promoting biodiesel, need for energy independence, rise in environmental concerns, demand for military defense aircrafts, increase in concerns about greenhouse gas emissions, demand for renewable and clean source of energy and growth of automotive & aviation industries drive the global biodiesel market growth. However, high production cost of biofuels as compared to conventional fuels, rise in competition among key players, stringent rules and regulations, barriers in distribution& retailing, volatility in oil prices, surge in oil & fat demand, and reduction in agricultural land are the factors that restrain the global biodiesel market growth. Further, supply for future needs with new and improved technologies, alternative raw materials with higher yields such as algae and jatropha, enhancements in production capacity, improvement in distribution & supply chain strategies, and innovative risk management strategies are the biodiesel market opportunities for the growth.

The global biodiesel market is segmented into source, blend, end-use industry, and region. Further, based on source, the market is classified into vegetable oil, animal fats, recycled cooking oil, and others. On the basis of blend, the market is categorized into B2, B5, B20 and B100. Based on end-use industry, the market is divided into automotive, aviation, marine, agriculture, power generation, and others. On the basis of region, the global biodiesel market is studied across North America, Europe, Asia-Pacific, and LAMEA. 

Key players operating in the global biodiesel market include Archer Daniels Midland Company, Wilmar International Ltd., Renewable Energy Group Inc., Crimson Renewable Energy LLC., Caramuru, Minnesota Soybean Processors, Flint Hills Resources, Neste Oil Rotterdam, Enerkem, and Green Fuels Ltd. Major players have acquired various strategies such as acquisitions, partnerships, collaboration, joint ventures, agreements, expansions and new product launches to create a strong consumer base in the market. For instance, in 2018, Renewable Energy Group Inc. launches REG Ultra Clean™ Diesel, a blend of biodiesel and renewable diesel. This product launch helped Renewable Energy Group Inc. to expand its product portfolio range and strengthen its brand name in the global market.

KEY BENEFITS FOR STAKEHOLDERS:

• The market size has been analyzed across all regions
• Porter’s five force analysis helps to analyze the potential of buyers & suppliers and the competitive scenario of the industry for strategy building
• The report outlines the current biodiesel market trends and future scenario of the market size to understand the prevailing opportunities and potential investment pockets. 
• Major countries in the region have been mapped according to their individual revenue contribution to the regional market
• The key drivers, restraints, and market opportunities and their detailed impact analysis are elucidated in the study
• The biodiesel market analysis covers in-depth information of major industry participants

 Biodiesel Market Report Highlights