Renewable Diesel Market Report 2026

The renewable diesel market size has grown strongly in recent years. It will grow from $24.51 billion in 2025 to $26.88 billion in 2026 at a compound annual growth rate (CAGR) of 9.7%. The growth in the historic period can be attributed to government biofuel mandates, volatility of fossil fuel prices, development of hydrotreating technology, demand for cleaner fuels, early adoption in fleets.

The renewable diesel market size is expected to see strong growth in the next few years. It will grow to $38.85 billion in 2030 at a compound annual growth rate (CAGR) of 9.6%. The growth in the forecast period can be attributed to stricter emission regulations, growth of renewable fuel standards, expansion of aviation and marine fuels, increased feedstock availability, investment in advanced biofuel plants. Major trends in the forecast period include rising adoption of low carbon fuels, expansion of drop in diesel alternatives, growing use in heavy duty transport, increased investment in bio refineries, focus on waste based feedstocks.

The increasing demand for sustainable fuels is expected to propel the growth of the renewable diesel market in the coming years. Sustainable fuels are low-carbon or renewable energy sources that minimize environmental impact and promote long-term energy resilience. As industries face mounting pressure from strict environmental regulations to cut emissions and align with climate targets, the need for sustainable fuel alternatives continues to grow. Renewable diesel benefits from this trend as a low-emission, drop-in replacement that supports climate objectives without requiring modifications to existing diesel infrastructure. For example, in November 2024, the UK Department for Transport reported that in 2023, the UK supplied 3.7 billion liters equivalent of renewable fuel, making up 7.5% of all fuel used in road transport and non-road mobile machinery - an increase from 6.8% in 2022. Thus, the growing demand for sustainable fuels is set to drive the renewable diesel market's expansion.

Leading companies in the renewable diesel industry are prioritizing the development of innovative approaches, such as low-GHG emission fuels, to minimize their carbon emissions. These fuels generate fewer greenhouse gases than traditional fossil fuels, contributing to environmental preservation and climate change mitigation. For example, in August 2024, ExxonMobil Hong Kong Limited (EMHK), a petroleum products provider based in China, introduced Esso Renewable Diesel R20 for public road use in Hong Kong. This premium fuel contains at least 20% renewable content and offers about 15.4% lower lifecycle greenhouse gas emissions compared to conventional diesel. It is fully compatible with current diesel engines and maintains reliable performance and engine cleanliness with Esso’s proprietary Synergy additive. This initiative highlights Esso’s commitment to delivering low-emission fuel options for Hong Kong’s transport industry.

In November 2023, Neste Corporation, a Finland-based provider of renewable diesel, sustainable aviation fuel, and renewable feedstocks for polymers and chemicals, formed a strategic partnership with Hightowers Petroleum to supply renewable diesel to customers in the U.S. Midwest region. Through this collaboration, Neste aims to expand its market presence, increase the availability of lower-emission fuels, and help businesses reduce greenhouse gas emissions in a high-demand area. Hightowers Petroleum is a US-based wholesale fuel supplier catering to commercial and industrial customers with high-quality fuel products.

Major companies operating in the renewable diesel market are Neste Oyj, Valero Energy Corporation, Marathon Petroleum Corporation, Chevron Corporation, Phillips 66, BP p.l.c., Shell plc, TotalEnergies SE, Eni S.p.A., Repsol S.A., Exxon Mobil Corporation, PBF Energy Inc., Calumet Inc., Par Pacific Holdings Inc., Preem AB, UPM-Kymmene Corporation, Petrobras, Ampol Limited, OMV AG, Saras S.p.A., CEPSA, HF Sinclair Corporation.

North America was the largest region in the renewable diesel market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the renewable diesel market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the renewable diesel market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The renewable diesel market consists of sales of biochar, green hydrogen, renewable lubricants, solvents, and asphalt. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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