Bio LPG - Global Strategic Business Report

The global market for Bio LPG was valued at US$819.1 Million in 2024 and is projected to reach US$5.2 Billion by 2030, growing at a CAGR of 35.9% from 2024 to 2030. This comprehensive report provides an in-depth analysis of market trends, drivers, and forecasts, helping you make informed business decisions. The report includes the most recent global tariff developments and how they impact the Bio LPG market.

Global Bio LPG (Liquefied Petroleum Gas) Market - Key Trends & Drivers Summarized

Why Is Bio LPG Emerging as a Key Renewable Fuel in the Decarbonization of Residential, Commercial, and Off-Grid Energy Use?

Bio LPG is gaining traction as a renewable, drop-in alternative to fossil-based LPG, offering a low-carbon solution for heating, cooking, transportation, and industrial energy in both urban and off-grid applications. Chemically identical to conventional LPG, Bio LPG is produced through various renewable pathways - most notably via the hydroprocessing of bio-oils, waste fats, and used cooking oils, or as a co-product in bio-refinery operations. Its compatibility with existing LPG infrastructure makes it a pragmatic, scalable option for immediate emissions reduction without requiring changes to end-user appliances or distribution systems.

As the global energy transition moves beyond electricity and targets the decarbonization of gaseous fuels, Bio LPG offers a renewable energy vector for sectors where electrification remains costly or impractical. It plays a critical role in rural energy access, off-grid hospitality, agricultural operations, and mobile energy services. With a significantly lower lifecycle carbon footprint compared to fossil LPG and the ability to be blended or used standalone, Bio LPG is gaining strategic relevance in government policy, industry transition planning, and household energy resilience frameworks.

How Are Technology Pathways and Production Models Expanding Bio LPG Supply Potential?

Bio LPG production is advancing through multiple technology routes, including hydrotreated vegetable oil (HVO) processing, biomass gasification with Fischer-Tropsch synthesis, and microbial conversion of industrial waste streams. HVO biorefineries - already producing renewable diesel - are the primary commercial-scale source of Bio LPG, with propane emerging as a co-product. Process optimization and feedstock diversification are enhancing output yields and improving cost competitiveness. R&D efforts in thermochemical conversion, algae-based synthesis, and power-to-gas approaches are also unlocking new frontiers in sustainable Bio LPG generation.

Refiners and energy companies are leveraging existing LPG logistics - bottling plants, cylinders, storage depots, and distribution fleets - to integrate Bio LPG seamlessly into supply chains. Blending strategies are being implemented to allow for gradual substitution in residential and commercial markets, while traceability and sustainability certification systems (e.g., ISCC, RSB) are being adopted to validate carbon reduction claims. These developments are lowering the barrier to entry for producers and accelerating Bio LPG’s commercialization across geographies and use cases.

Where Is Demand for Bio LPG Growing and Which Applications Are Leading Market Uptake?

Europe is currently the epicenter of Bio LPG demand, driven by stringent emissions targets, green energy incentives, and active LPG market reform across countries such as the UK, Netherlands, France, and Sweden. North America is showing early momentum, with regional propane suppliers and biofuel producers forming partnerships to supply renewable propane for rural heating and transport fuel applications. Asia-Pacific is positioned for medium-term growth, particularly in countries like Japan, South Korea, and India, where LPG is widely used in residential cooking and clean energy policies are evolving rapidly.

Leading demand is emerging from residential heating and cooking, particularly in off-grid and rural communities seeking cleaner energy options without electrification. Bio LPG is also gaining interest in hospitality, mobile catering, and small-scale industrial heat applications where portability and low emissions are crucial. Fleet operators in logistics and agriculture are exploring Bio LPG as a low-emission vehicle fuel alternative under renewable transport mandates. The blend-ready nature of the fuel and its drop-in compatibility across multiple use cases are making it an attractive transition option for both utility providers and consumers.

What Is Fueling the Global Growth of the Bio LPG Market?

The global Bio LPG market is expanding rapidly on the strength of decarbonization mandates, circular economy initiatives, and the increasing need to green gaseous fuels without overhauling infrastructure. Government support in the form of biofuel blending mandates, tax credits, and renewable energy certification is driving supply-side investments, while demand is rising among end-users seeking low-carbon, reliable, and scalable energy alternatives. Public-private partnerships and co-located biorefineries are optimizing production economics and supply logistics.

With the dual benefit of carbon savings and infrastructure compatibility, Bio LPG is gaining favor among energy distributors, policymakers, and ESG-focused enterprises. As green molecules gain parity with green electrons in the energy transition dialogue, a pivotal question emerges: Can Bio LPG production scale rapidly and sustainably to meet growing global demand - while ensuring feedstock availability, lifecycle integrity, and competitive pricing for wide-scale adoption across urban and off-grid energy markets?

Report Scope

The report analyzes the Bio LPG market, presented in terms of market value (US$ Thousand). The analysis covers the key segments and geographic regions outlined below.

Segments: Feedstock (Bio Oil, Cellulosic Organic Waste, Municipal Solid Waste, Other Feedstocks); Application (Residential Heating, Industrial Heating, Cooking & Catering, Transportation, Power Generation, Other Applications); End-Use (Residential, Commercial, Industrial).

Geographic Regions/Countries: World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Key Insights:

• Market Growth: Understand the significant growth trajectory of the Bio Oil Feedstock segment, which is expected to reach US$2.5 Billion by 2030 with a CAGR of a 33.9%. The Cellulosic Organic Waste Feedstock segment is also set to grow at 34.0% CAGR over the analysis period.
• Regional Analysis: Gain insights into the U.S. market, valued at $223.2 Million in 2024, and China, forecasted to grow at an impressive 43.8% CAGR to reach $1.2 Billion by 2030. Discover growth trends in other key regions, including Japan, Canada, Germany, and the Asia-Pacific.

Why You Should Buy This Report:

• Detailed Market Analysis: Access a thorough analysis of the Global Bio LPG Market, covering all major geographic regions and market segments.
• Competitive Insights: Get an overview of the competitive landscape, including the market presence of major players across different geographies.
• Future Trends and Drivers: Understand the key trends and drivers shaping the future of the Global Bio LPG Market.
• Actionable Insights: Benefit from actionable insights that can help you identify new revenue opportunities and make strategic business decisions.

Key Questions Answered:

• How is the Global Bio LPG Market expected to evolve by 2030?
• What are the main drivers and restraints affecting the market?
• Which market segments will grow the most over the forecast period?
• How will market shares for different regions and segments change by 2030?
• Who are the leading players in the market, and what are their prospects?

Report Features:

• Comprehensive Market Data: Independent analysis of annual sales and market forecasts in US$ Million from 2024 to 2030.
• In-Depth Regional Analysis: Detailed insights into key markets, including the U.S., China, Japan, Canada, Europe, Asia-Pacific, Latin America, Middle East, and Africa.
• Company Profiles: Coverage of players such as AvantiGas, BioLPG LLC, Cavagna Group, Diamond Green Diesel, Eni S.p.A. and more.
• Complimentary Updates: Receive free report updates for one year to keep you informed of the latest market developments.

Some of the 44 companies featured in this Bio LPG market report include:

• AvantiGas
• BioLPG LLC
• Cavagna Group
• Diamond Green Diesel
• Eni S.p.A.
• Irving Oil
• Linde plc
• Neste Corporation
• Oberon Fuels
• Preem AB
• Primagas GmbH
• Puxin Biogas
• Renewable Energy Group, Inc.
• Repsol S.A.
• SHV Energy
• Shell plc
• TotalEnergies SE
• Ultrapar Participações S.A.
• UGI International
• Westfalen AG

Tariff Impact Analysis: Key Insights for 2025

Global tariff negotiations across 180+ countries are reshaping supply chains, costs, and competitiveness. This report reflects the latest developments as of April 2025 and incorporates forward-looking insights into the market outlook.

The analysts continuously track trade developments worldwide, drawing insights from leading global economists and over 200 industry and policy institutions, including think tanks, trade organizations, and national economic advisory bodies. This intelligence is integrated into forecasting models to provide timely, data-driven analysis of emerging risks and opportunities.

What's Included in This Edition:

• Tariff-adjusted market forecasts by region and segment
• Analysis of cost and supply chain implications by sourcing and trade exposure
• Strategic insights into geographic shifts

Buyers receive a free July 2025 update with:

• Finalized tariff impacts and new trade agreement effects
• Updated projections reflecting global sourcing and cost shifts
• Expanded country-specific coverage across the industry