Global Biodiesel and Sustainable Aviation Fuel (SAF) Market Strategic Research Report

Scope of the Report

The global Biodiesel and Sustainable Aviation Fuel (SAF) market size is predicted to grow from US$ 85,678 million in 2025 to US$ 130,047 million in 2032; it is expected to grow at a CAGR of 6.5% from 2026 to 2032.

In 2025, global sales of biodiesel and sustainable aviation fuel (SAF) are projected to reach 65.45 million tons, with an average price of $1,338 per ton.

Biodiesel and sustainable aviation fuel (SAF) are renewable fuels derived from sources such as vegetable oils, animal fats, waste cooking oils, and agricultural residues. Biodiesel is primarily used in diesel engines, while SAF is designed for aviation use, both offering lower carbon emissions and serving as sustainable alternatives to fossil fuels.

The feedstock sources for biodiesel and SAF (Sustainable Aviation Fuel) overlap significantly, primarily comprising waste oils and fats (such as used cooking oil and animal fats), vegetable oils (including rapeseed, palm, and soybean oils), and agricultural and forestry residues. China possesses abundant waste oil and fat resources, with an annual supply of approximately 4 to 6 million tons; as the world's largest exporter of waste oils and fats, the country provides a robust feedstock foundation for the production of both biodiesel and SAF. Feedstock costs constitute the dominant component—accounting for roughly 70% to 85%—of the total production costs for both fuels. Consequently, fluctuations in the price of waste oils and fats directly impact product economics; for instance, under the HEFA production pathway, feedstock costs account for over 80% of the total SAF production cost.

Regarding cost structure, conventional biodiesel (FAME) is produced via a transesterification process, which entails relatively low capital investment in equipment; however, the resulting product contains oxygen and exhibits poor low-temperature flow properties, leading to limited profit margins. In contrast, second-generation biodiesel (HVO) and SAF (produced via the HEFA pathway) utilize a hydrodeoxygenation and isomerization process. While this method requires higher capital intensity, it yields products with superior performance characteristics and significantly higher added value. Currently, the production cost of SAF (HEFA) is approximately two to three times that of conventional jet fuel. Feedstock costs account for the largest share of this total, while hydrogen consumption and catalyst replacement represent other significant cost components. Notably, a single hydrogenation unit can be flexibly configured—by adjusting fractionation cut points—to produce either HVO or SAF, thereby enabling the optimization of the product portfolio. Furthermore, the high-value utilization of byproducts—such as glycerol (from the FAME pathway) or naphtha/diesel (from the HEFA pathway)—can further enhance overall economic viability. As mandatory blending policies (such as the EU's *ReFuelEU* initiative) are implemented and economies of scale begin to take effect, the cost competitiveness of both fuels is expected to improve gradually.

Key Questions Addressed in this Report

What is the 10-year outlook for the global Biodiesel and Sustainable Aviation Fuel (SAF) market?

What factors are driving Biodiesel and Sustainable Aviation Fuel (SAF) market growth, globally and by region?

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

How do Biodiesel and Sustainable Aviation Fuel (SAF) market opportunities vary by end market size?

How does Biodiesel and Sustainable Aviation Fuel (SAF) break out by Type, by Application?

This report presents a comprehensive overview of the global Biodiesel and Sustainable Aviation Fuel (SAF) 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

• Biodiesel
• Sustainable Aviation Fuel (SAF)

Segment by Raw Materials

• Edible Vegetable Oil
• Waste Oils/Fats
• Others

Segment by Chemical Composition

• Ester-based Fuels
• Alkane-based Fuels
• Synthetic Hydrocarbons

Segment by Application

• Vehicle Fuels
• Industrial Fuels
• Chemical Industry
• SAF

Who Can Use This Report?

This report is written for decision-makers who need a clear, data-backed view of the global Biodiesel and Sustainable Aviation Fuel (SAF) 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 Vehicle Fuels, Industrial 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