Europe Biodiesel Market to Surpass US$ 18.72 Billion by 2033 – Driven by Renewable Energy Push and Climate Goals

Sustainable Energy Demand, Government Policies, and Emission Reduction Strategies Boost Market Growth

Renub Research predicts that the Europe Biodiesel Market will grow from US$ 11.44 Billion in 2024 to approximately US$ 18.72 Billion by 2033, registering a robust CAGR of 5.62% during the forecast period 2025 to 2033. This expansion is primarily attributed to Europe’s aggressive transition toward renewable energy, supportive regulatory frameworks, and efforts to cut greenhouse gas (GHG) emissions in line with climate goals.

The comprehensive research study from Renub Research titled “Europe Biodiesel Market: Industry Trends, Share, Size, Growth, Opportunity, and Forecast 2025–2033” offers critical insights into policy drivers, technological trends, market segmentation, and country-level opportunities shaping the European biofuel landscape.

Access the full report here:
? Europe Biodiesel Market Report

Biodiesel: Central to Europe’s Renewable Energy Transformation

Biodiesel, a biodegradable fuel made from vegetable oils, animal fats, or recycled restaurant grease, is a vital part of Europe’s clean energy matrix. As the EU pushes for climate neutrality by 2050, bio-based fuels are seen as a crucial solution to decarbonize sectors like transportation, agriculture, and manufacturing, where electrification alone is insufficient.

The implementation of EU directives such as the Renewable Energy Directive (RED II and RED III), which mandates a growing share of renewables in energy consumption, is catalyzing biodiesel adoption. Moreover, the push for energy independence in the wake of geopolitical instability has added urgency to accelerating domestic biofuel production.

Key Growth Drivers of the Europe Biodiesel Market

1. Strong Regulatory Support and Emission Targets

Governments across Europe are enacting robust biofuel mandates to meet their carbon neutrality and energy security goals. National policies supporting blending mandates (e.g., B7, B10, B20) and subsidies for biofuel producers are directly fueling demand.

In countries like Germany, France, and the Netherlands, biofuels are an essential part of efforts to reduce emissions from freight and public transport. EU-wide measures, such as Fit for 55, are driving increased investment into renewable fuels of non-biological origin (RFNBOs) and advanced biodiesel.

2. Rising Transportation and Industrial Demand

As the EU transitions to sustainable transportation, diesel vehicles remain a dominant mode in logistics, heavy-duty transport, and agriculture. Biodiesel blending is an immediate and scalable way to reduce carbon footprints in these segments without needing significant infrastructure changes.

Additionally, biodiesel is increasingly used in stationary engines, heating systems, and power generation in rural or off-grid areas, contributing to its versatility and market penetration.

3. Technological Advancements and Feedstock Diversification

The industry is innovating rapidly with second- and third-generation biodiesels, such as hydrotreated vegetable oil (HVO) and algae-based biodiesel, which offer superior performance and lower environmental impact.

Europe is also leading the way in feedstock diversification, utilizing waste cooking oils (UCOs), tallow, animal fats, and non-food crops, thus reducing competition with food supply and boosting sustainability metrics.

4. Circular Economy and Energy Independence Goals

Biodiesel production fits well within the EU’s circular economy framework, especially with increased recycling of used cooking oils and agricultural waste. As Europe seeks alternatives to imported fossil fuels, investing in local biodiesel facilities helps reduce reliance on global energy markets and enhances regional energy resilience.

Market Segmentation Overview

According to Renub Research, the Europe biodiesel market is segmented by feedstock, application, country, and blend type:

By Feedstock: Includes vegetable oils (rapeseed, soybean, palm), animal fats, waste oils, and algae. Rapeseed oil dominates due to its high yield and local availability.
By Application: Key sectors include transportation, power generation, agriculture, and industrial machinery. Transportation accounts for the largest consumption.
By Blend Type: From low blends (B5, B7) to high blends (B20, B30) and pure biodiesel (B100), adoption varies based on national regulations and infrastructure readiness.
By Country: Germany, France, Spain, Italy, and the UK are among the largest producers and consumers of biodiesel in Europe.

Regional Highlights

Germany: A Market Leader in Biodiesel

Germany holds the largest share of the European biodiesel market, supported by strong industrial capabilities and progressive fuel policies. The country blends biodiesel into diesel fuel at various levels and is aggressively developing HVO and advanced biofuels.

France: Promoting Sustainable Agriculture and Biofuel Use

France has integrated biodiesel into its climate and energy roadmap, promoting locally sourced feedstocks and biodiesel-blended diesel in agriculture and transport sectors.

Netherlands & Scandinavia: Innovation in Waste-to-Fuel

The Netherlands, Sweden, and Finland are pioneers in producing biodiesel from waste streams and advanced feedstocks, contributing to innovation and best practices in biofuel sustainability.

Eastern Europe: Emerging Growth Potential

Countries like Poland, Hungary, and Romania are rapidly scaling up biodiesel adoption, driven by EU funding, rural development programs, and new local production facilities.

Key Industry Players and Competitive Landscape

Europe’s biodiesel market is competitive and technology-driven. Leading players are focusing on:

Expanding biodiesel capacity
Securing sustainable feedstock supply
Complying with RED III requirements
Integrating AI and automation in production

Key players profiled by Renub Research include:

Neste Oyj (Finland)
Cargill
TotalEnergies SE
Renewable Energy Group (now part of Chevron)
Louis Dreyfus Company
ADM Europe
Münzer Bioindustrie GmbH
VERBIO Vereinigte BioEnergie AG
Bio-Oils Energy
Greenergy International Ltd.

These companies are heavily investing in advanced biodiesel technologies, sustainable logistics, and low-emission certifications to strengthen market presence and meet future EU directives.

Challenges in the European Biodiesel Market

Despite positive momentum, several challenges must be addressed:

Feedstock price volatility, especially due to global supply chain disruptions
Indirect land use change (ILUC) concerns, especially with palm oil
Public debate over food vs. fuel
Rising competition from electric mobility

However, these concerns are being mitigated by technological innovation, better regulation, and a shift toward non-food-based and waste-derived biodiesel.

Future Outlook: A Low-Carbon, Resilient Fuel Economy

The future of the European biodiesel market is closely tied to the continent’s green transition goals and energy diversification strategies. With increasing investments in renewable infrastructure, and a focus on decarbonizing hard-to-electrify sectors, biodiesel will continue to play a pivotal role.

According to Renub Research, stakeholders who invest in feedstock sustainability, policy compliance, and circular bioeconomy practices will emerge as market leaders in this fast-evolving space.

For complete data insights, market sizing, and forecast details, access the full report:
? Europe Biodiesel Market Report by Renub Research

New Publish Report:

About the Company

Renub Research is a Market Research and Consulting Company with more than 15 years of experience, especially in international Business-to-Business Research, Surveys, and Consulting. We provide a wide range of business research solutions that help companies make better business decisions. We partner with clients across all sectors and regions to identify their highest-value opportunities, address their most critical challenges, and transform their businesses.

Our wide clientele includes key players in Healthcare, Travel & Tourism, Food & Beverages, Power & Energy, Information Technology, Telecom & Internet, Chemicals, Logistics & Automotive, Consumer Goods & Retail, Building & Construction, and Agriculture. Our core team comprises experienced professionals with graduate, postgraduate, and Ph.D. qualifications in Finance, Marketing, Human Resources, Bio-Technology, Medicine, Information Technology, Environmental Science, and more.

Media Contact:

Company Name: Renub Research
Contact Person: Rajat Gupta, Marketing Manager
Phone No: +91-120-421-9822 (IND) | +1-478-202-3244 (USA)
Email: rajat@renub.com