Global Waste-based Biodiesel Market Strategic Research Report

Scope of the Report

The global Waste-based Biodiesel market size is predicted to grow from US$ 22,650 million in 2025 to US$ 38,193 million in 2032; it is expected to grow at a CAGR of 8.2% from 2026 to 2032.

In 2025, global sales volume of waste-based biodiesel reached 18.47 million tonnes, with an average price of $1,253 per tonne.

Waste-based biodiesel refers to biodiesel produced from inedible biomass waste—such as waste oils and fats, animal fats, used cooking oil (UCO), and "gutter oil"—via transesterification (first generation, FAME) or hydrodeoxygenation (second generation, HVO/HEFA). Unlike conventional biodiesel derived from edible vegetable oils (palm, soybean, or rapeseed oil), waste-based biodiesel utilizes waste generated during production and consumption. It offers the distinct advantage of not competing with food supplies or arable land and delivers superior lifecycle carbon reduction (70%–90% lower emissions than fossil fuels); consequently, it benefits from "double counting" policy incentives under regulations such as the EU Renewable Energy Directive (RED III).

Key feedstocks for waste-based biodiesel include used cooking oil (UCO/gutter oil/swill oil), animal fats (beef tallow, lard, mutton fat), palm oil mill effluent (POME) oil, fats/oils/grease (FOG) from food service operations, and industrial waste oils. Regarding feedstock supply, China is the world's largest producer and exporter of UCO; while its theoretical annual production capacity exceeds 8 million tonnes and actual collection/processing volume was approximately 5.4 million tonnes in 2024, collection volumes declined by about 20% year-on-year in 2025 due to poor business conditions in the food service sector. Feedstock supply faces several core challenges: UCO prices surged from approximately $540/tonne in March 2023 to $1,300/tonne in November 2023 (a 240% increase). By November 2025, average prices in China stood at roughly 6,456 RMB/tonne for "gutter oil" (recycled cooking oil from drains/sewers), 6,881 RMB/tonne for swill oil, and 7,920–7,950 RMB/tonne for high-quality UCO at ports. Global competition for feedstock is fierce, with Europe and the Netherlands set to implement UCO import quota restrictions starting in 2026. China eliminated the 13% export tax rebate for UCO in December 2024; based on the 2024 export price of $897/tonne, exporters lost approximately $117/tonne in rebate-related profit, meaning more UCO will remain in the domestic market. Furthermore, the feedstock collection system is highly fragmented; upstream suppliers in China are predominantly individual operators (accounting for about 84.5%), resulting in inconsistent feedstock quality and high pretreatment costs.

The cost structure of waste-based biodiesel is characterized by the absolute dominance of raw material costs, followed by processing costs. Direct materials account for as much as 84.3% of biodiesel production costs, with the production of one tonne of biodiesel consuming approximately 0.97 tonnes of UCO; manufacturing overhead and freight account for about 12.5%. For the second-generation HVO process, costs are roughly double those of FAME, reaching approximately $1,350/tonne. Feedstock costs make up over 80% of this total, while hydrogen consumption accounts for 5–8% (hydrogen usage rate of 3–4%), precious metal catalysts (Pt, Pd, or Ni-Mo, Co-Mo) and chemicals account for 3–5%, energy and utilities for 3–5%, and depreciation and labor for 3–5%. Feedstock pretreatment represents a major hidden cost; "gutter oil" contains numerous impurities and requires complex pretreatment steps—such as dehydration, deacidification, desalting, and degumming—and this labor-intensive work significantly drives up actual production costs. Enterprises primarily reduce costs through upstream integration (acquiring food waste treatment plants, signing long-term supply agreements), optimizing catalyst efficiency (reducing hydrogen consumption), adopting ebullated-bed processes (simplifying pretreatment), and bulk procurement; however, raw material price volatility and supply stability remain the core challenges facing the industry.

Key Questions Addressed in this Report

What is the 10-year outlook for the global Waste-based Biodiesel market?

What factors are driving Waste-based Biodiesel market growth, globally and by region?

Which technologies are poised for the fastest growth by market and region?

How do Waste-based Biodiesel market opportunities vary by end market size?

How does Waste-based Biodiesel break out by Type, by Application?

This report presents a comprehensive overview of the global Waste-based Biodiesel market, covering market size and forecast, segmentation by product type and application, competitive landscape, leading players and regional and country-level outlook.

Segment by Type

• FAME
• HVO
• SAF

Segment by Feedstock Source

• Used Cooking Oil (UCO)
• Animal Fat (Tallow)
• Palm Oil Mill Effluent (POME) Oil
• Other

Segment by Process Type

• Transesterification
• Hydrodeoxygenation
• Hydroisomerization
• Ebullated-bed Hydroprocessing

Segment by Application

• Industrial Fuels
• Transportation Fuels
• Chemical Industry

Who Can Use This Report?

This report is written for decision-makers who need a clear, data-backed view of the global Waste-based Biodiesel market:

• Manufacturers, suppliers and solution providers benchmarking their position and planning product, capacity and go-to-market strategy
• Distributors, channel partners and end users in Industrial Fuels, Transportation Fuels, Chemical Industry evaluating demand and sourcing options
• Investors, financial analysts and consultants assessing growth opportunities, competitive dynamics and M&A potential
• Government agencies, industry associations and research institutions tracking industry developments and policy impact