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Europe Biodiesel Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

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  • 120 Pages
  • January 2022
  • Region: Europe
  • Mordor Intelligence
  • ID: 5530005

The European biodiesel market is expected to rise at a CAGR of more than 3% during the forecast period of 2020-2025. Factors such as concerns about the environment, peak oil, energy security, fuel diversity, and sustainability, and there is considerable interest around Europe in renewable sources, are likely to drive the biodiesel market in the region. Moreover, in 2019, the European Union (EU) and Climate Change Package (CCP) with Fuel Quality Directive (FQD) announced the mandatory goals for 2020 is a 20 percent binding target for renewable energy in the overall energy mix of the EU and a ten percent renewable energy blending target (energy basis) for the transport sector. This, in turn, the above factors are likely to propel the European biofuel market during the forecast period. However, the initial cost of providing energy through biofuel is much higher than fossil fuels, which may act as a restraint on the market.

Key Highlights

  • Vegetable oil is likely to dominate the European biodiesel market owing to the massive production of biodiesel majorly from Rapeseed oil.
  • In 2019, the EU announced the mandatory goal for group countries is a ten percent renewable energy blending target for the transport sector. The region is witnessing significant growth in the investment for the infrastructure of biodiesel and related markets. This, in turn, the above factors are likely to provide ample opportunity for the Biodiesel market in the coming future.
  • Germany is expected to be the largest market for biodiesel for the last three years, and it is the most significant producer of biofuel in the EU.

Key Market Trends

Vegetable Oil Is Likely To Dominate The Market

  • Europe is the largest consumer of biofuels in the form of biodiesels and ethanol. In 2019, total biodiesels blending with fossil fuels were reached 6.4 percent. In Europe, biodiesel is used with mixing 20% of total fossil fuel.
  • Vegetable oil, the major source of biodiesel, especially Rapeseed oil, is still the dominant biodiesel feedstock in the EU, accounting for 39 percent of total production in 2018. Rapeseed oil share in the feedstock mix had continuously decreased since its peak in 2008 when it accounted for 72 percent. This is partly due to the higher use of recycled vegetable oil/used cooking oil (UCO) and palm oil in Europe.
  • Moreover, palm oil is the third-largest source for biodiesel, which is 19% of the total production in 2018. Palm oil was mainly used in Spain, Italy, France, and the Netherlands, and to a much lesser extent in Finland, Germany, and Portugal.
  • Besides, the United Kingdom witness gradual reduction of the cap on crop-based biofuels, which means that vegetable oil biodiesel is likely preferred above domestically produced wheat and sugar beet ethanol or any other biofuels.
  • Therefore, with the increase in the production and consumption for vegetable oil, the market of biodiesels is expected to propel during the forecast period 2019-2025.

Germany to Dominate the Market

  • Germany is the second-largest consumer of biodiesels. In 2019, the country biodiesel production was about 3000 million liters,s and consumption is about 2600 annually. Germany is also an exporter of biodiesels.
  • Moreover, the country is the third-largest producer of wood pellets in Europe. As the Germany government does not support wood pellets used in the generation of electricity, it can be used to produce biodiesel in the country.
  • Besides, in 2018, Germany is one of the largest producers of UCO-methyl ester (UCOME). Nearly 72% of UCOME is used in the production of biodiesel in the country.
  • This, in turn, factor mention above, is likely to boost the biodiesel market in the country, which is expected to support the growth of the European biodiesel market during the forecast period.

Competitive Landscape

The Europe biodiesel market is fragmented. Some of the key players in this market include, UPM-Kymmene Oyj, Green Fuel Nordic Oy, Svenska Cellulosa AB, Preem AB, SunPine AB, Galp Energia, SGPS, S.A., Biomethanol Chemie Nederland B.V., Beta Renewables S.p.A., Borregaard ASA and others.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

This product will be delivered within 2 business days.

Table of Contents

1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
4.1 Introduction
4.2 Market Size and Demand Forecast in million liters, until 2025
4.3 Recent Trends and Developments
4.4 Market Dynamics
4.4.1 Drivers
4.4.2 Restraints
4.5 Supply-Chain Analysis
4.6 Porter's Five Forces Analysis
4.6.1 Bargaining Power of Suppliers
4.6.2 Bargaining Power of Consumers
4.6.3 Threat of New Entrants
4.6.4 Threat of Substitute Products and Services
4.6.5 Intensity of Competitive Rivalry
5.1 Feedstock
5.1.1 Coarse Grain
5.1.2 Sugar Crop
5.1.3 Vegetable Oil
5.1.4 Others
5.2 Geography
5.2.1 Germany
5.2.2 United Kingdom
5.2.3 France
5.2.4 Rest of Europe
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 UPM-Kymmene Oyj
6.3.2 Green Fuel Nordic Oy
6.3.3 Svenska Cellulosa AB
6.3.4 Preem AB
6.3.5 SunPine AB
6.3.6 Galp Energia, SGPS., S.A
6.3.7 Biomethanol Chemie Nederland B.V.
6.3.8 Beta Renewables S.p.A.
6.3.9 Borregaard ASA