Europe Biodiesel Market (2025-2031) | Forecast, Companies, Revenue, Trends, Analysis, Value, Growth, Size, Share & Industry

Europe Biodiesel Market Size & Growth Rate

According to 6Wresearch internal database and industry insights, the Europe Biodiesel Market was valued at USD 20.94 billion in 2024 and is projected to reach nearly USD 37.86 billion by 2031, exhibiting a compound annual growth rate (CAGR) of 9.15% during the forecast period (2025–2031).

Europe Biodiesel Market Highlights

Topics Covered in the Europe Biodiesel Market Report

The Europe Biodiesel Market report thoroughly covers the market by countries, feedstocks, and applications. The market report provides an unbiased and detailed analysis of ongoing market trends, opportunities/high-growth areas, and market drivers, which would help stakeholders devise and align their market strategies according to the current and future market dynamics.

Europe Biodiesel Market Synopsis

The Europe Biodiesel Market is witnessing consistent growth due to rising emphasis on renewable energy adoption and the reduction of carbon emissions from conventional fossil fuels. Governments across Europe are implementing strict emission norms and providing incentives for biofuel production and usage. The growing demand for cleaner alternatives in transportation, power generation, and industrial applications has accelerated biodiesel consumption. Furthermore, the rising use of advanced feedstocks such as waste cooking oils and animal fats is supporting the shift toward sustainable energy solutions.

Evaluation of Growth Drivers in the Europe Biodiesel Market

Below mentioned are some prominent drivers and their influence on the market dynamics:

Europe Biodiesel Market is anticipated to witness significant expansion, registering a CAGR of 9.15% during the forecast period of 2025-2031. The Europe Biodiesel Market is growing steadily as renewable fuel incentives, tighter carbon laws, and biofuel blending mandates gain momentum. Europe Biodiesel Market Growth is fueled by favorable government actions and steady technological innovation in refining processes. Several Countries like Germany, France, and Italy dominate regional consumption due to their advanced refinery setups, efficient production networks, and supportive subsidy mechanisms designed to boost energy transition goals and foster eco-friendly fuel alternatives across transport and power sectors.

Evaluation of Restraints in the Europe Biodiesel Market

Below mentioned are some major restraints and their influence on the market dynamics:

Europe Biodiesel Market Challenges

The Europe Biodiesel Industry encounters several challenges such as fluctuating feedstock supply, inconsistent government policies, and elevated production costs caused by volatile raw material prices. As infrastructure challenges persist and electric mobility expands rapidly, biodiesel adoption across Europe remains restricted. For continuous growth, the sector must enhance production efficiency, optimize costs, and adopt a broader feedstock base. These efforts will ensure secure supply chains and sustained resilience, solidifying the biodiesel market position within Europe renewable energy and low-carbon fuel landscape.

Europe Biodiesel Market Trends

Several prominent trends reshaping the market growth include:

• Shift Toward Advanced Feedstocks: Biodiesel producers are focusing on second-generation fuel made from waste oils and animal fats, cutting expenses and reducing pressure on food-based resources.
• Expansion of Biodiesel Blending: To achieve renewable fuel targets, European nations are implementing higher blending ratios such as B7, B10, and B20, improving overall biofuel adoption.
• Industrial Diversification: Use of biodiesel is increasing in diverse fields, including energy production, maritime operations, and construction, due to its cleaner and more sustainable burning nature.
• Advances in Refining Technologies: Integration of cutting-edge refining methods like HVO technology is improving biodiesel energy yield, fuel stability, and operational performance in various sectors.

Investment Opportunities in the Europe Biodiesel Industry

Some prominent investment opportunities in the market include:

• Waste-to-Biofuel Facility Development: Investing in facilities that convert waste cooking oils and animal fats into biodiesel offers a cost-effective and eco-friendly production pathway.
• Integration of Green Hydrogen: Utilizing green hydrogen in combination with biodiesel can improve combustion efficiency and lower lifecycle greenhouse gas emissions.
• Diversification of Feedstock Sources: Funding projects that focus on algae-based and inedible oil feedstocks will strengthen production sustainability and cost optimization.
• Public-Private Infrastructure Partnerships: Partnerships between public institutions and private sector players are essential to expanding biodiesel refining, storage, and distribution infrastructure throughout the value chain.

Top 5 Leading Players in the Europe Biodiesel Market

Some leading players operating in the Europe Biodiesel Market Share include:

1. Neste Corporation

Neste is a global leader in renewable fuels, specializing in advanced biodiesel production from waste and residue-based feedstocks for transportation and industry.

2. Cargill, Incorporated

Cargill produces biodiesel from vegetable oils and animal fats, focusing on sustainable sourcing and efficient processing technologies.

3. ADM (Archer Daniels Midland Company)

ADM is a key supplier of biodiesel across Europe, utilizing oilseeds and renewable feedstocks while investing in low-emission refining processes.

4. BP Biofuels (BP p.l.c.)

BP Biofuels is an integrated renewable energy player developing biodiesel and advanced biofuels through strategic collaborations and green technology initiatives.

5. TOTAL Energies SE

Total Energies manufactures biodiesel using vegetable oils and waste residues and is heavily investing in renewable fuel refineries to meet EU climate targets.

Government Regulations Introduced in the Europe Biodiesel Market

The European Union’s Renewable Energy Directive II (RED II) mandates that member states achieve at least 14% renewable energy usage in transport by 2030, promoting biodiesel production and consumption. Under Germany National Biofuel Quota Act, fuel distributors are required to blend renewable fuels with conventional ones. France Energy Transition Law drives increased biodiesel blending levels, and Italy National Energy Strategy (SEN) prioritizes biofuel use to cut transportation emissions. Furthermore, both the Netherlands and Spain are offering fiscal incentives and subsidies to accelerate the construction and expansion of biofuel refineries and production plants.

Future Insights of the Europe Biodiesel Market

The Europe Biodiesel Market is set for sustained growth, supported by expanding renewable energy targets, technological advancements in refining, and the broader adoption of advanced biofuels. Due to strong governmental policies, diverse feedstock development, and increased investments in waste-to-energy initiatives are driving production capacity across the region. In the coming years, the transition toward second-generation biofuels and integrated green energy frameworks will reinforce long-term sustainability and enhance Europe energy independence.

Market Segmentation Analysis

The report offers a comprehensive study of the subsequent market segments and their leading categories.

Germany to Dominate the Market – By Countries

According to Ritika Kalra, Senior Research Analyst at 6Wresearch, Germany leads the European biodiesel market, accounting for approximately 25.4% share in 2024. The country’s dominance is supported by robust government policies, including the National Biofuel Quota Act, which mandates biofuel blending in diesel. 

Vegetable Oils to Dominate the Market – By Feedstock

In 2024, the Vegetable Oils segment dominated the European market with a share of 61.7%. The abundance of rapeseed, sunflower, and soybean oil in countries like France, Germany, and Italy drives this dominance. 

Fuel to Dominate the Market – By Application

The Fuel segment holds the largest share of 68.9% in 2024, driven by growing usage of biodiesel blends (B7, B10, and B20) in the transportation sector. The adoption of renewable fuels to comply with EU emission standards has led to widespread integration of biodiesel in diesel engines, particularly for commercial and freight transport.

Key Attractiveness of the Report

• 10 Years of Market Numbers
• Historical Data Starting from 2021 to 2024
• Base Year: 2024
• Forecast Data until 2031
• Key Performance Indicators Impacting the Market
• Major Upcoming Developments and Projects

Key Highlights of the Report:

• Europe Biodiesel Market Outlook
• Market Size of Europe Biodiesel Market, 2024
• Forecast of Europe Biodiesel Market, 2031
• Historical Data and Forecast of Europe Biodiesel Revenues & Volume for the Period 2021 - 2031
• Europe Biodiesel Market Trend Evolution
• Europe Biodiesel Market Drivers and Challenges
• Europe Biodiesel Price Trends
• Europe Biodiesel Porter's Five Forces
• Europe Biodiesel Industry Life Cycle
• Historical Data and Forecast of Europe Biodiesel Market Revenues & Volume By Feedstock for the Period 2021 - 2031
• Historical Data and Forecast of Europe Biodiesel Market Revenues & Volume By Vegetable Oils for the Period 2021 - 2031
• Historical Data and Forecast of Europe Biodiesel Market Revenues & Volume By Animal Fats for the Period 2021 - 2031
• Historical Data and Forecast of Germany Biodiesel Market Revenues & Volume By Feedstock for the Period 2021 - 2031
• Historical Data and Forecast of Germany Biodiesel Market Revenues & Volume By Vegetable Oils for the Period 2021 - 2031
• Historical Data and Forecast of Germany Biodiesel Market Revenues & Volume By Animal Fats for the Period 2021 - 2031
• Historical Data and Forecast of United Kingdom Biodiesel Market Revenues & Volume By Feedstock for the Period 2021 - 2031
• Historical Data and Forecast of United Kingdom Biodiesel Market Revenues & Volume By Vegetable Oils for the Period 2021 - 2031
• Historical Data and Forecast of United Kingdom Biodiesel Market Revenues & Volume By Animal Fats for the Period 2021 - 2031
• Historical Data and Forecast of France Biodiesel Market Revenues & Volume By Feedstock for the Period 2021 - 2031
• Historical Data and Forecast of France Biodiesel Market Revenues & Volume By Vegetable Oils for the Period 2021 - 2031
• Historical Data and Forecast of France Biodiesel Market Revenues & Volume By Animal Fats for the Period 2021 - 2031
• Historical Data and Forecast of Italy Biodiesel Market Revenues & Volume By Feedstock for the Period 2021 - 2031
• Historical Data and Forecast of Italy Biodiesel Market Revenues & Volume By Vegetable Oils for the Period 2021 - 2031
• Historical Data and Forecast of Italy Biodiesel Market Revenues & Volume By Animal Fats for the Period 2021 - 2031
• Historical Data and Forecast of Russia Biodiesel Market Revenues & Volume By Feedstock for the Period 2021 - 2031
• Historical Data and Forecast of Russia Biodiesel Market Revenues & Volume By Vegetable Oils for the Period 2021 - 2031
• Historical Data and Forecast of Russia Biodiesel Market Revenues & Volume By Animal Fats for the Period 2021 - 2031
• Historical Data and Forecast of Spain Biodiesel Market Revenues & Volume By Feedstock for the Period 2021 - 2031
• Historical Data and Forecast of Spain Biodiesel Market Revenues & Volume By Vegetable Oils for the Period 2021 - 2031
• Historical Data and Forecast of Spain Biodiesel Market Revenues & Volume By Animal Fats for the Period 2021 - 2031
• Historical Data and Forecast of Rest of Europe Biodiesel Market Revenues & Volume By Feedstock for the Period 2021 - 2031
• Historical Data and Forecast of Rest of Europe Biodiesel Market Revenues & Volume By Vegetable Oils for the Period 2021 - 2031
• Historical Data and Forecast of Rest of Europe Biodiesel Market Revenues & Volume By Animal Fats for the Period 2021 - 2031
• Historical Data and Forecast of Europe Biodiesel Market Revenues & Volume By Applications for the Period 2021 - 2031
• Historical Data and Forecast of Europe Biodiesel Market Revenues & Volume By Power Generation for the Period 2021 - 2031
• Historical Data and Forecast of Europe Biodiesel Market Revenues & Volume By Fuel for the Period 2021 - 2031
• Historical Data and Forecast of Europe Biodiesel Market Revenues & Volume By Others for the Period 2021 - 2031
• Historical Data and Forecast of Germany Biodiesel Market Revenues & Volume By Applications for the Period 2021 - 2031
• Historical Data and Forecast of Germany Biodiesel Market Revenues & Volume By Power Generation for the Period 2021 - 2031
• Historical Data and Forecast of Germany Biodiesel Market Revenues & Volume By Fuel for the Period 2021 - 2031
• Historical Data and Forecast of Germany Biodiesel Market Revenues & Volume By Others for the Period 2021 - 2031
• Historical Data and Forecast of United Kingdom Biodiesel Market Revenues & Volume By Applications for the Period 2021 - 2031
• Historical Data and Forecast of United Kingdom Biodiesel Market Revenues & Volume By Power Generation for the Period 2021 - 2031
• Historical Data and Forecast of United Kingdom Biodiesel Market Revenues & Volume By Fuel for the Period 2021 - 2031
• Historical Data and Forecast of United Kingdom Biodiesel Market Revenues & Volume By Others for the Period 2021 - 2031
• Historical Data and Forecast of France Biodiesel Market Revenues & Volume By Applications for the Period 2021 - 2031
• Historical Data and Forecast of France Biodiesel Market Revenues & Volume By Power Generation for the Period 2021 - 2031
• Historical Data and Forecast of France Biodiesel Market Revenues & Volume By Fuel for the Period 2021 - 2031
• Historical Data and Forecast of France Biodiesel Market Revenues & Volume By Others for the Period 2021 - 2031
• Historical Data and Forecast of Italy Biodiesel Market Revenues & Volume By Applications for the Period 2021 - 2031
• Historical Data and Forecast of Italy Biodiesel Market Revenues & Volume By Power Generation for the Period 2021 - 2031
• Historical Data and Forecast of Italy Biodiesel Market Revenues & Volume By Fuel for the Period 2021 - 2031
• Historical Data and Forecast of Italy Biodiesel Market Revenues & Volume By Others for the Period 2021 - 2031
• Historical Data and Forecast of Russia Biodiesel Market Revenues & Volume By Applications for the Period 2021 - 2031
• Historical Data and Forecast of Russia Biodiesel Market Revenues & Volume By Power Generation for the Period 2021 - 2031
• Historical Data and Forecast of Russia Biodiesel Market Revenues & Volume By Fuel for the Period 2021 - 2031
• Historical Data and Forecast of Russia Biodiesel Market Revenues & Volume By Others for the Period 2021 - 2031
• Historical Data and Forecast of Spain Biodiesel Market Revenues & Volume By Applications for the Period 2021 - 2031
• Historical Data and Forecast of Spain Biodiesel Market Revenues & Volume By Power Generation for the Period 2021 - 2031
• Historical Data and Forecast of Spain Biodiesel Market Revenues & Volume By Fuel for the Period 2021 - 2031
• Historical Data and Forecast of Spain Biodiesel Market Revenues & Volume By Others for the Period 2021 - 2031
• Historical Data and Forecast of Rest of Europe Biodiesel Market Revenues & Volume By Applications for the Period 2021 - 2031
• Historical Data and Forecast of Rest of Europe Biodiesel Market Revenues & Volume By Power Generation for the Period 2021 - 2031
• Historical Data and Forecast of Rest of Europe Biodiesel Market Revenues & Volume By Fuel for the Period 2021 - 2031
• Historical Data and Forecast of Rest of Europe Biodiesel Market Revenues & Volume By Others for the Period 2021 - 2031
• Europe Biodiesel Market - Key Performance Indicators
• Europe Biodiesel Market - Import Export Trade Statistics
• Europe Biodiesel Market - Opportunity Assessment By Countries
• Europe Biodiesel Market - Opportunity Assessment By Feedstock
• Europe Biodiesel Market - Opportunity Assessment By Applications
• Europe Biodiesel Market - Top Companies Market Share
• Europe Biodiesel Market - Top Companies Profiles
• Europe Biodiesel Market - Comparison of Players in Technical and Operating Parameters
• Europe Biodiesel Market - Strategic Recommendations

Market Covered

The report offers a comprehensive study of the subsequent market segments:

By Countries:

• Germany
• United Kingdom
• France
• Italy
• Russia
• Spain
• Rest of Europe

By Feedstock:

• Vegetable Oils
• Animal Fats

By Applications:

• Power Generation
• Fuel
• Others