United States Biodiesel Market Share, Size, In-Depth Insights, Trends and Forecast 2025-2033

IMARC Group has recently released a new research study titled “United States Biodiesel Market Report by Feedstock (Vegetable Oils, Animal Fats, and Others), Application (Fuel, Power Generation, and Others), Type (B100, B20, B10, B5), Production Technology (Conventional Alcohol Trans-esterification, Pyrolysis, Hydro Heating), and Region 2025-2033”, offers a detailed analysis of the market drivers, segmentation, growth opportunities, trends and competitive landscape to understand the current and future market scenarios.

Market Overview

The United States biodiesel market was valued at USD 15.2 Billion in 2024 and is projected to reach USD 23.7 Billion by 2033, growing at a CAGR of 4.81% during the forecast period 2025-2033. The market growth is driven by rising environmental consciousness, stricter regulations, and increasing adoption of biodiesel for fuel and power generation. Strategic investments and a surge in imports also underpin the expanding capacity and consumption trends in the sector.

Study Assumption Years

• Base Year: 2024
• Historical Year/Period: 2019-2024
• Forecast Year/Period: 2025-2033

United States Biodiesel Market Key Takeaways

• The market size stood at USD 15.2 Billion in 2024.
• The CAGR is expected at 4.81% during 2025-2033.
• The forecast period spans 2025 to 2033.
• The annual biodiesel production capacity exceeded 23.8 billion gallons in 2023.
• Biodiesel consumption surpassed production in 2023, with consumption at 1,939 million gallons compared to production of 1,699 million gallons.
• Biodiesel imports doubled in 2023, reaching 1.4 million gallons per day.
• The market is driven by environmental regulations and increasing renewable energy adoption by government and corporate bodies.

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United States Biodiesel Market Growth Factors

Increasing emphasis on reducing greenhouse gas emissions is a primary driver of the United States biodiesel market. In 2023, biodiesel consumption surged to over 1,939 million gallons, exceeding production volume of 1,699 million gallons. Imports doubled to 1.4 million gallons per day, sustained into 2024, influenced by low European prices. The biofuel production capacity expanded by over 1.7 billion gallons in 2023 compared to 2022, reaching 23.8 billion gallons per year, providing strong supply-side support for market growth.

The domestic production of biodiesel feedstocks such as soybean oil, recycled cooking oil, and animal fats has increased significantly, benefitting biodiesel production by easing access and lowering costs. Federal biofuel policies like the Renewable Fuel Standard (RFS) and Biomass-Based Diesel Volume Obligation mandate biofuel volumes in fuels, fostering a favorable regulatory environment for production and consumption growth.

Strategic investments and collaborations among key stakeholders, including energy value chain participants and technology innovators, are accelerating advancements in biodiesel production facilities and technologies. These partnerships promote technology exchange, infrastructure development, and market expansion, strengthening the market and supporting sustained growth across the United States biodiesel sector.

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United States Biodiesel Market Segmentation

Breakup by Feedstock:

• Vegetable Oils: Primary feedstocks due to high oil content and availability; demand driven by eco-friendly fuels and technological improvements.
• Animal Fats: Low-cost, widely available feedstock with high energy content; promotes sustainable fuel usage.
• Others

Breakup Application:

• Fuel: Dominates market share; biodiesel serves as a drop-in fuel compatible with diesel engines, improving engine performance and efficiency.
• Power Generation: Growing due to demand for sustainable, clean energy; biodiesel offers lower emissions and renewable alternatives.
• Others

Breakup Type:

• B100: Gains traction for maximum greenhouse gas emission reduction and suitability in diesel engines.
• B20: Largest market share; balance of environmental benefit and performance with wide engine compatibility.
• B10: Moderate blend; transition fuel with lower emissions and engine compatibility.
• B5: Entry blend, compatible with all diesel engines; reduced emissions and affordability drive demand.

Breakup Production Technology:

• Conventional Alcohol Trans-esterification: Most common, high conversion and cost-effective; scalable and compatible with multiple feedstocks.
• Pyrolysis: Converts biomass and waste into biodiesel, producing byproducts like biochar; aligns with circular economy.
• Hydro Heating: Converts wet biomass, including waste and algae, eliminating drying needs; higher energy yield.

Breakup Region:

• Northeast
• Midwest
• South
• West: Largest market share due to strong agriculture, stringent regulations (e.g., California's LCFS), progressive policies, innovation, and robust transportation sector.

Regional Insights

The Western region dominates the U.S. biodiesel market, attributed to its vast agricultural resources providing biodiesel feedstock like soybean oil and animal fats. Stringent environmental regulations such as California's Low Carbon Fuel Standards incentivize cleaner fuel use. The West's progressive renewable energy policies and innovation leadership further facilitate biodiesel production and consumption, complemented by a strong transportation sector that ensures ready markets for biodiesel.

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Competitive Landscape

The competitive landscape of the industry has also been examined along with the profiles of the key players.

Customization Note

If you require any specific information that is not covered currently within the scope of the report, we will provide the same as a part of the customization.

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