India Biodiesel Market (2025-2031) | Growth, Industry, Revenue, Value, Forecast, Companies, Size, Share, Outlook, Analysis & Trends

India Biodiesel Market Growth Rate

According to 6Wresearch internal database and industry insights, the India Biodiesel Market is growing at a compound annual growth rate (CAGR) of 7.75% during the forecast period (2025–2031).

India Biodiesel Market Highlights

Topics Covered in the India Biodiesel Market Report

The India Biodiesel Market report thoroughly covers the market by feedstock and application. The report provides an unbiased and detailed analysis of ongoing market trends, opportunities/high growth areas, and market drivers, which would help stakeholders devise and align their market strategies according to the current and future market dynamics.

India Biodiesel Market Synopsis

The India Biodiesel Market is expected to witness robust growth over the forecast period. Support for biodiesel blending in transport fuels, growing attention to energy independence, and environmental priorities are key market drivers. Interest is rising in waste-derived fuels from used cooking oil and non-edible oil sources. Advancements in processing technology and regulatory frameworks such as the National Policy on Biofuels play a central role in encouraging expansion. These factors collectively position the India biodiesel market for strong and sustained long-term growth.

Evaluation of Growth Drivers in the India Biodiesel Market

Below mentioned are some major growth drivers and their impact on market dynamics.

Evaluation of Restraints in the India Biodiesel Market

Below mentioned are some major restraints and their influence on market dynamics:

India Biodiesel Market Challenges

The India Biodiesel Market faces several challenges, including an inconsistent supply of affordable feedstocks such as used cooking oil and fluctuating raw material prices. Competition from conventional diesel and electric vehicles impacts market demand. Moreover, limited blending, storage, and distribution infrastructure slows down widespread adoption. High capital investment requirements and policy uncertainties further restrain growth, making it difficult for both public and private entities to scale operations effectively across the country.

India Biodiesel Market Trends

Some major trends driving the India Biodiesel Market Growth include:

• Growing Waste-to-Fuel Conversion – Increased investments in the collection and conversion of used cooking oil and animal fats into biodiesel.
• Non-Edible Oil Feedstock Adoption – Higher utilization of non-edible oils such as jatropha and pongamia to promote sustainable fuel production.
• Blending Mandates – Government’s goal of achieving 5% biodiesel blending by 2030 is generating strong market demand.
• Integration with Power Generation – Expanding use of biodiesel in backup generators and off-grid energy systems.
• Technological Innovation – Adoption of advanced catalysts and pre-treatment processes to improve yields and cut production costs.

Investment Opportunities in the India Biodiesel Industry

Key investment opportunities in the India Biodiesel Industry include:

• Expanding Feedstock Networks – Developing structured collection systems for waste oils and fats to ensure consistent supply.
• Integrated Processing Facilities – Establishing end-to-end biodiesel production plants from feedstock sourcing to fuel processing.
• Power Generation Sector – Targeting industrial captive power and rural microgrids as high-potential biodiesel users.
• Public-Private Partnerships – Partnering with the government to achieve blending targets and access available subsidy schemes.
• R&D for Next-Gen Fuels – Investing in algae-based biodiesel and low-energy conversion technologies to boost efficiency and sustainability.

Top 5 Leading Players in the India Biodiesel Market

Top companies contributing to the India Biodiesel Market Share include:

1. Archer Daniels Midland (ADM)

ADM operates in India with a focus on agricultural commodities and biofuel production. The company leverages its global experience to contribute to India’s biodiesel supply using advanced processing facilities.

2. Neste

Neste is a global leader in renewable diesel and sustainable aviation fuel. It supports Indian partners with technical expertise and supply chain models for biodiesel development.

3. Wilmar International

Wilmar is active in edible and non-edible oils across India, supplying feedstock for biodiesel. It integrates backward into farming and forward into processing units.

4. Bunge India

Bunge operates across India’s edible oil market and supports biodiesel projects via joint ventures and procurement of feedstock.

5. Renewable Energy Group (REG)

REG specializes in biodiesel and renewable diesel production, focusing on low-carbon fuels. It is engaged in licensing technology and collaborating on clean fuel programs in India.

Government Regulations Introduced in the India Biodiesel Market

According to Indian government data, the National Policy on Biofuels (2018, Revised) has been implemented to promote the use of non-edible oils, used cooking oil, and animal fats for biodiesel production. The RUCO (Repurpose Used Cooking Oil) initiative by FSSAI supports safe collection and conversion of used cooking oil into biodiesel. The government has set a target of 5% biodiesel blending in diesel by 2030 and reduced GST on biodiesel to 5% to encourage adoption. Additionally, oil marketing companies are mandated to procure biodiesel through transparent tendering processes, ensuring consistent and fair demand across the market.

Future Insights of the India Biodiesel Market

The India Biodiesel Market is expected to grow consistently, supported by favorable government policies, expanding demand in transport and power generation, and better access to waste-based feedstocks. The emergence of fuel delivery e-commerce platforms, improved collection networks, and technological advancements will define future trends. The focus will remain on cost efficiency, product consistency, and achieving blending targets through strong collaboration between public and private stakeholders.

Market Segmentation Analysis

The report offers a comprehensive study of the following market segments and their leading categories:

Animal Fats to Lead the Market – By Feedstock

According to Guneet Kaur, Senior Research Analyst, 6Wresearch, the animal fats segment is witnessing the fastest growth due to its cost-effectiveness and wide availability. It’s increasingly being utilized in biodiesel production for its better combustion properties and environmental benefits.

Power Generation to Lead the Market – By Applications

The power generation segment is expected to dominate the market, driven by rising demand for cleaner energy alternatives. Biodiesel’s use in power generation improves fuel efficiency and reduces emissions, aligning with India’s sustainability and emission reduction goals.

Key Attractiveness of the Report

• 10 Years Market Numbers
• Historical Data Starting from 2021 to 2024
• Base Year: 2024
• Forecast Data until 2031
• Key Performance Indicators Impacting the Market
• Major Upcoming Developments and Projects

Key Highlights of the Report:

• India Biodiesel Market Outlook
• Market Size of India Biodiesel Market, 2024
• Forecast of India Biodiesel Market, 2031
• Historical Data and Forecast of India Biodiesel Revenues & Volume for the Period 2021-2031
• India Biodiesel Market Trend Evolution
• India Biodiesel Market Drivers and Challenges
• India Biodiesel Price Trends
• India Biodiesel Porter's Five Forces
• India Biodiesel Industry Life Cycle
• Historical Data and Forecast of India Biodiesel Market Revenues & Volume By Feedstock for the Period 2021-2031
• Historical Data and Forecast of India Biodiesel Market Revenues & Volume By Vegetable Oils for the Period 2021-2031
• Historical Data and Forecast of India Biodiesel Market Revenues & Volume By Animal Fats for the Period 2021-2031
• Historical Data and Forecast of India Biodiesel Market Revenues & Volume By Applications for the Period 2021-2031
• Historical Data and Forecast of India Biodiesel Market Revenues & Volume By Power Generation for the Period 2021-2031
• Historical Data and Forecast of India Biodiesel Market Revenues & Volume By Fuel for the Period 2021-2031
• Historical Data and Forecast of India Biodiesel Market Revenues & Volume By Others for the Period 2021-2031
• India Biodiesel Import Export Trade Statistics
• Market Opportunity Assessment By Feedstock
• Market Opportunity Assessment By Applications
• India Biodiesel Top Companies Market Share
• India Biodiesel Competitive Benchmarking By Technical and Operational Parameters
• India Biodiesel Company Profiles
• India Biodiesel Key Strategic Recommendations

Market Segmentation Analysis

The report subsequently covers the market by the following segments and subsegments.

By Feedstock

• Vegetable Oils
• Animal Fats
• Others (Used Cooking Oil, Waste Grease, Algae Oil)

By Applications

• Fuel (Blending for transportation)
• Power Generation
• Others (Heating, Industrial use)