In their constant quest to increase their consumer base, savvy companies operating in the global market for biodiesel are adopting various strategies to surge ahead of their competitors. One of them is the constant thrust on generating awareness about the eco-friendly products. Besides, they are also on the lookout for strategic partnerships to produce more effective products. Building a robust retail and distribution system has also enabled them to gain an edge over their competitors in the market.
Cargill, Archer Daniels Midland Company, TerraVia Holdings, Bunge Limited, Ineos Group, Wilmar International Limited, Louis Dreyfus, Solvay SA, Royal Dutch Shell plc., and Mitsui.
Companies are to name a few companies that have achieved noteworthy position in the market for biodiesel by primarily banking upon the aforementioned strategies.
A recent research study by Transparency Market Research projects the market for biodiesel to expand at a steady 6.9% CAGR over the course of the forecast period starting from 2017 and ending in 2026. At this pace, the market is expected to pull in a revenue of US$ 64,497.4 mn by 2026-end.
Soybean oil finds maximum application as a feedstock in biodiesel. Our report projects its volume to breach 30,500, 000 liters by the end of 2026. This is because it brings about better quality biodiesel. The U.S. is the biggest producer of soybean, which is mostly for the purpose of biodiesel manufacture. The affordability of soybean oil feedstock is one of the driving forces resulting in the use of soybean for biodiesel production. Among the various prominent regions in the global biodiesel market, Europe is a dominant one. The region is mainly powered by France and Germany which are the largest manufacturers in the region. Overall, in the Europe market, diesel and biodiesel are more widely used than petrol.
Carbon Neutrality the Biggest USP of Product Driving Sales
There are numerous unique perceived benefits of biodiesel which are resulting in its rapid uptake. Prominent among them is the comparatively lesser damage it causes to the environment than fossil fuels. This is because they are “carbon neutral.” It means that the fuel does not add up to the existing carbon dioxide in the atmosphere for when the oil crop grows, it takes in the same amount of carbon dioxide. Besides, biodiesel can swiftly biodegrade and is totally non-toxic (it causes much less damage to environment during spillage than fossil fuels). Another benefit – they have a greater flash point compared to fossil diesel and hence are safer in case of a crash.
Biodiesel is finding widespread application as a transportation fuel due to so many USPs. Further, biodiesel also increases lubricity in fuel and thus prevent parts from premature wearing.
Apart from them, energy security is another factor majorly boosting sales of biodiesel. It is treated as an alternative energy to supplant oil and fossil fuel.
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Fluctuating Raw Material Prices Negatively Impacting Market
One roadblock hampering the growth of the market, on the other hand, is the fluctuating raw material prices on account of their limited availability which is affecting the production of biodiesel.