
Europe Biodiesel Market Forecast by 2033
Market Size in 2024: USD 19.5 Billion
Market Forecast in 2033: USD 32.2 Billion
Market Growth Rate 2025-2033: 5.7%
The Europe biodiesel market surpassed USD 19.5 billion in 2024 and is projected to reach USD 32.2 billion by 2033, expanding at a compound annual growth rate of 5.7%. This steady ascent is driven by stringent decarbonization mandates, greater feedstock diversification, and continuous technological upgrades across the value chain.
Growth Drivers Behind the European Biodiesel Market
RED II Mandate and National Blending Quotas
The updated Renewable Energy Directive (RED II) says that by 2030, 14 percent of transport fuels must come from renewable energy. Germany raised its biodiesel blending rate to 7 percent (B7) starting in January 2024. France will make fleets in the city use more biodiesel, moving toward B10, and this starts in July 2025. The 2024 report from the European Commission shows that 21 out of 27 member countries have now made this rule part of their own law. This helps make sure there will always be some demand. It gives companies good reason to plan and put money into long-term fuel production.
Corporate SAF Off-take Agreements
Airlines are making deals for long-term sustainable aviation fuel (SAF). Most of these deals use hydrotreated vegetable oil (HVO). In March 2025, Lufthansa Group made plans with Neste. They agreed to buy 800,000 tonnes of SAF from 2025 to 2030. This fuel comes from European HVO plants and uses waste-type biodiesel. Their agreement is worth over EUR 2 billion. It makes sure they have a steady supply. It also helps refiners want to grow and boosts more biodiesel for flight use.
Advanced Refinery Capacity Expansions
European refiners are putting money into new pretreatment and hydrotreating systems. These will help them use more lower-quality waste oils. In November 2024, Eni said it would spend EUR 300 million to upgrade its Livorno plant. This work will let the plant make twice the HVO each year, reaching 500,000 tonnes. At the same time, it will lower carbon output by 15 percent compared to normal biodiesel. At the same time, Shell’s Rhineland plant got a new pretreatment line that cost EUR 150 million. This new line can take in 250,000 tonnes of used cooking oil each year. These bigger and better plants are giving the industry more choices on what waste oils they can use. They also help make the supply chain stronger for everyone.
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Europe Biodiesel Market Segmentation
Analysis by Feedstock
Vegetable Oil
Animal Fats
Others
Breakup by Application:
Fuel
Power Generation
Others
Breakup by Type:
B100
B20
B10
B5
Breakup by Production Technology:
Conventional Alcohol Trans-esterification
Pyrolysis
Hydro Heating
Breakup by Country:
Germany
France
United Kingdom
Italy
Spain
Others
Competitive Landscape
The competitive landscape of the industry has also been examined along with the profiles of the key players.
Europe Biodiesel Market News
March 2025: Lufthansa Group and Neste signed an 800,000-tonne SAF supply agreement sourced from European HVO refineries.
November 2024: Eni invested EUR 300 million to double HVO capacity at its Livorno refinery while lowering carbon intensity.
July 2024: Germany raised its national biodiesel blending quota to 7 percent (B7) ahead of the 2030 RED II target.
April 2024: Shell commissioned a EUR 150 million used-cooking-oil pretreatment line at the Rhineland refinery.
Key highlights of the Report:
Market Performance (2019-2024)
Market Outlook (2025-2033)
COVID-19 Impact on the Market
Porter’s Five Forces Analysis
Strategic Recommendations
Historical, Current and Future Market Trends
Market Drivers and Success Factors
SWOT Analysis
Structure of the Market
Value Chain Analysis
Comprehensive Mapping of the Competitive Landscape
Note: If you need specific information that is not currently within the scope of the report, we can provide it to you as part of the customization.
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IMARC Group is a global management consulting firm that helps the world’s most ambitious changemakers to create a lasting impact. The company provide a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.
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