NEW YORK – The burgeoning requirement for reducing greenhouse gas emissions, implementation of government initiatives, enactment of mandatory regulations regarding the usage of biodiesel, nd soaring demand for biodiesel for replacing crude oil are fueling the expansion of the biodiesel market. Because of these factors, the market is predicted to exhibit huge expansion during 2021–2030, according to P&S Intelligence.
The COVID-19 pandemic has massively hampered the progress of the biodiesel market by disrupting the operations of freight, logistics, and manufacturing industries. Because of the implementation of strict lockdown measures by the governments of many countries, the demand for fuel has fallen massively since 2020. This was mainly because of the disruptions in transportation operations and the reduced requirement for daily transportation, on account of the closing down of offices and factories to mitigate the spread of the virus.
Depending on feedstock, the biodiesel market is divided into animal oils and vegetable oils. Between these, the vegetable oils category dominated the market in 2020. This was because of the abundant availability of vegetables as raw materials and the easy process required for converting vegetable oils into biodiesel.
The biodiesel market is also classified into power generation, fuel, and others, on the basis of application. Out of these, the fuel category led the market, both in terms of revenue and volume, in the past few years. Moreover, this category is predicted to expand rapidly during the forecast period, due to the increasing demand for biodiesel as a fuel in the automotive, agriculture, railways, and maritime industries.
Browse detailed report with COVID-19 impact analysis on Biodiesel Market Research Report: By Feedstock (Vegetable Oils, Animal Oils), Blend (B100, B20, B10, B5), Production Technology (Pyrolysis, Transesterification), Application (Fuel, Power Generation) – Global Industry Analysis and Growth Forecast to 2030
Across the globe, Europe held the largest share in the biodiesel market in 2020. This is credited to the increasing implementation of regulations by the governments of many countries for reducing greenhouse gas emissions, on account of their surging focus on improving air quality.
The players operating in the biodiesel market are focusing on collaborations and partnerships for gaining a competitive edge. For example, Renewable Energy Group (REG), which is a biodiesel producer, launched a partnership with Broco Oil Company in May 2019 for providing clean fuel options to heating oil dealers based in Northeast U.S. The firms will provide Bioheat, which is a blend of ultra-low sulphur heating oil and biodiesel, from the production facility located in Haverhill.
Some of the major biodiesel market players are Wilmar International Limited, Archer Daniels Midland Company, Bunge Limited, Münzer Bioindustrie GmbH, Emami Group, Neste Oyj, BIOX Corporation, Renewable Energy Group Inc., Cargill Inc., and Louis Dreyfus Company B.V.