Hydrotreated Vegetable Oil Market

Global Hydrotreated Vegetable Oil Market Size (2024 to 2029)

The global hydrotreated vegetable oil market is estimated to be USD 19.35 billion in 2024 and is anticipated to reach USD 35.98 billion by 2029, with a CAGR of 13.21% during the forecast period.

Current Scenario Of The Global Hydrotreated Vegetable Oil Market

Hydrotreated vegetable oil (HVO) is a diesel-like fuel that can be produced without fossil resources by processing renewable waste lipids. Hydrotreated vegetable oil is known as green diesel, produced from vegetable oil, grease, or cooking oil, resulting in low-carbon fuel. The HVO ensures similar chemical and physical properties to diesel fuel, but its low carbon content and fossil-free consumption make it a sustainable option, eating the demand globally. The global hydrotreated vegetable oil market has grown considerably in the past years. Significant growth with a prominent growth rate is anticipated during the forecast period. Hydrotreated fuel is produced from a similar feedstock used for producing biodiesel, and the hydrotreated process enhances oxidation stability, accelerating its adoption across industries.

MARKET DRIVERS

The growing demand for renewable diesel options worldwide, owing to growing initiatives for reducing carbon emissions, is a significant factor contributing to the expansion of hydrotreated vegetable oil.

Hydrotreated vegetable oil is becoming a crucial alternative to diesel due to its several benefits that boost global market growth. Various benefits of hydrotreated vegetable oil, such as low carbon footprint, fossil-free consumption, and the presence of comprehensive sources of feedstock, are escalating its adoption among various industries such as transportation, aviation, and power generation, which augments the global market growth. Renewable diesel is expected to provide superior performance in different weather conditions with low maintenance compared to conventional diesel, gaining traction for various applications and accelerating the growth rate.

The growing awareness among the people is influencing industries to adopt sustainable options to limit carbon emissions, another primary factor driving the global market. The increasing utilization of hydrotreated vegetable oil in the automotive industry due to increasing demand for sustainable fuel options provides market growth opportunities. The increasing demand for hydrotreated vegetable oil in the power generation and aviation industries due to its low fuel output will increase growth opportunities. The increasing government support initiatives and stringent regulation regarding reducing carbon emissions propel market growth opportunities.

MARKET RESTRAINTS

The availability of the feedstock is the major obstacle to the growth of the global hydrotreated vegetable oil market.

The rising competition for feedstock will enhance the demand feedstock, leading to restricted market growth. Compared to conventional diesel, the high costs of sustainable, renewable diesel alternatives hamper the market growth rate. The increasing demand for hydrotreated vegetable oils from various industries such as food and beverages, transportation, and aviation is restricting the market growth opportunities by creating challenges for the manufacturers. The manufacturing process of hydrotreated vegetable oil is expected to be more expensive than conventional diesel refining, hindering global market growth. Various challenges in maintaining the quality of feedstock and high costs of hydrotreating impede the market growth opportunities. The availability of alternative biodiesel options will limit market revenue growth.

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Hydrotreated Vegetable Oil Market Analysis By Feedstock Type

The palm oil segment dominated the global market with a significant share in 2023. Due to its high yield worldwide, palm oil is gaining huge demand as the feedstock for the production of HVOs, which drives the segment growth. The more extensive cultivation of palm oil than other vegetable oils owing to infrastructure and processing facilities is fueling the segment revenue growth. The well-established supply chain and processing facilities are making it easier for industries to integrate palm oil into biofuel production, which augments the market growth.

The Animal fats segment is estimated to grow rapidly during the forecast period owing to the increased adoption of animal fats as feedstock for the production of hydrotreated vegetable oil. Animal fats such as lard, poultry fat, and tallow are becoming abundant, and increasing sources are boosting the market growth.

Global Hydrotreated Vegetable Oil Market Analysis By Technology

The hydrotreatment segment held the most significant share in the global hydrogenated vegetable oil market and is expected to maintain its dominance during the forecast period. Hydrotreatment is the process of refining crude products for the production of transportation fuels. This is the industry's most widely acceptable and well-established, which is majorly driving the segment growth. A high volume of hydrogen gas is used to remove undesired impurities, enhancing its adoption in industries.

Global Hydrotreated Vegetable Oil Market Analysis By End-User

The automotive and transportation segment dominated the global market with a prominent share. The increasing demand for low-carbon fuels such as hydrotreated vegetable oil instead of conventional diesel is boosting the segment growth. Most logistic companies are enhancing the implementation of hydrotreated vegetable oils to limit carbon emissions, accelerating the segment revenue growth. HVOs are widely utilized in diesel engines, which include automobiles, trucks, buses, trains, and ships, and they act as direct replacements for standard diesel fuel.

The power generation segment has gained traction in recent years and is estimated to grow significantly during the forecast period. Higher oxygen stability is a major factor driving the segment growth. HVOs act as a clear alternative to power diesel generators.

REGIONAL ANALYSIS

The North American region held a significant share and is expected to dominate during the forecast period. The increasing demand for renewable energy sources and rising concerns about the effect of carbon emissions on the environment are escalating the market growth opportunities in the region. Transportation is the primary industry creating revenue in the region. The United States dominated the regional market owing to the presence of many manufacturers and suppliers in the country, contributing to the market growth rate. The presence of major oil refineries and plants with significant market players in the region is augmenting the regional market growth.

The Asia Pacific region is estimated to have rapid growth during the forecast period due to increasing demand for renewable diesel alternatives. China dominated the regional market with a prominent share due to its transport sector, which fuels the regional market growth rate. The enhancing government-supportive regulations to reduce carbon emissions are boosting the market growth in the region.

KEY PLAYERS OF THE GLOBAL HYDROTREATED VEGETABLE OIL MARKET

The key players of the global hydrotreated vegetable oil market include Neste Oyi, Valero Energy Ltd, Eni SM, Total Energies, Watson Fuels, Green Biofuels Limited, Prema Energy Ltd, Renewable Energy Group, Inc., Petrobras, and Exxon Mobil Corporation

RECENT HAPPENINGS IN THE MARKET

• In June 2023, Eni Sustainable Mobility announced its official agreement with Azimut Benetti to support the yachting industry with decarbonization. And it also stated that Eni S.p.A aimed to supply hydrotreated vegetable oil-based renewable fuels to the Azimut Benetti.
• In 2023, Neste Oyi announced the successful expansion of its Singapore hydrotreated vegetable oil and sustainable aviation fuel refinery. This involves doubling production capacity to around 2.6 million tons per year and producing about 1 million tons per year of sustainable aviation fuel (SAF).
• In 2023, Eni Sustainable Mobility announced its collaboration with LG Chem to set up a joint Hydrotreated Vegetable Oil (HVO) plant at its production base in Seoul by 2026.
• In May 2023, Neste entered into a distribution partnership with PetroCard to strengthen the supply-chain network for Neste Renewable Diesel in the Pacific Northwest region of the United States.
• In February 2023, Renewable Energy Group, Inc. acquired Imperium Renewables, a leading producer of renewable diesel and other renewable products. This acquisition is expected to enhance Renewable Energy Group's market position.  

DETAILED SEGMENTATION OF THE GLOBAL HYDROTREATED VEGETABLE OIL MARKET INCLUDED IN THIS REPORT

This research report on the global hydrotreated vegetable oil market has been segmented and sub-segmented based on feedstock type, technology, end-user, and region.

By Feedstock Type

• Soyabean Oil
• Palm Oil
• Waste Cooking Oil
• Animal Fats
• Others

By Technology

• Hydrogenation
• Hydrocracking
• Hydrotreatment
• Isomerization
• Others

By End-User

• Automotive and Transportation
• Aviation
• Food and Beverages
• Power Generation
• Others

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa