Hydrotreated Vegetable Oil Market Size & Share, By Source of Feedstock (Food and Feed Crops, Animal Fats, Used Cooking Oils, Palm Oil Mill Effluent), Grade, Technology Type, Application - Growth Trends, Regional Insights (U.S., Japan, South Korea, UK, Germany), Competitive Positioning, Global Forecast Report 2025-2034

Market Outlook:

Hydrotreated Vegetable Oil Market size is set to grow from USD 27.1 Billion in 2024 to USD 249.06 Million by 2034, reflecting a CAGR of more than 13.4% between 2025 and 2034. In 2025, the industry is estimated to generate USD 30.34 billion in revenue.

• Base Year Value (2024): USD 27.1 Billion
• CAGR (2025-2034): 13.4%
• Forecast Year Value (2034): USD 249.06 Million
• Historical Data Period: 2021-2024
• Largest Region: Europe
• Forecast Period: 2025-2034

Market Dynamics:

Growth Drivers & Opportunities:

The Hydrotreated Vegetable Oil (HVO) market is experiencing significant growth driven by various factors, including the increasing demand for renewable and sustainable fuels. As environmental concerns mount, consumers and industries alike are prioritizing eco-friendly energy solutions. HVO, derived from organic feedstocks, presents an attractive alternative to conventional fossil fuels, thus fostering its adoption. Governments worldwide are implementing stricter regulations on greenhouse gas emissions, promoting the utilization of biofuels like HVO to meet sustainability targets. This regulatory support creates a favorable environment for market expansion as companies seek compliance and consumers lean toward greener choices.

Another notable driver for the HVO market is the technological advancements in production processes. Innovations in hydrogenation techniques have improved the efficiency of HVO production, allowing for a higher yield and better-quality fuel. This technological progress not only enhances the viability of HVO as a substitute for diesel but also lowers production costs over time, creating opportunities for wider market penetration. Additionally, the growing collaboration between various stakeholders, including agricultural producers and energy companies, facilitates increased supply chain efficiency, boosting HVO availability and fostering a competitive market landscape.

The rise in awareness regarding energy security is also propelling the HVO market. Many countries are looking to reduce their dependence on imported fossil fuels, thus encouraging the development of domestically produced renewable energy alternatives. HVO contributes to energy independence by utilizing local feedstocks, such as vegetable oils and waste fats, thereby supporting local economies and creating jobs within agricultural sectors.

Report Scope

Report Coverage	Details
Segments Covered	Source Of Feedstock, Grade, Technology Type, Application
Regions Covered	• North America (United States, Canada, Mexico) • Europe (Germany, United Kingdom, France, Italy, Spain, Rest of Europe) • Asia Pacific (China, Japan, South Korea, Singapore, India, Australia, Rest of APAC) • Latin America (Argentina, Brazil, Rest of South America) • Middle East & Africa (GCC, South Africa, Rest of MEA)
Company Profiled	ALFA LAVAL, Cepsa, Desmet, DIAMOND GREEN DIESEL, Neste, Preem, Repsol, Shell, TotalEnergies, UPM Biofuels, Valero Energy, World Energy,

Industry Restraints::

Despite the positive trends, the HVO market faces several industry restraints that could hinder its growth. One significant challenge is the competition from other renewable fuels, such as biodiesel and ethanol. These alternatives often present similar benefits but may be more established in certain regions, making it difficult for HVO to gain a significant foothold. Consumers may also exhibit brand loyalty or preference for other biofuels, which can further complicate HVO's market entry and acceptance.

Moreover, the feedstock availability and pricing volatility remain pressing concerns for HVO producers. The raw materials used in HVO production, such as vegetable oils, are subject to fluctuating market prices and could be affected by various factors including agricultural yield, weather conditions, and global commodity markets. Such volatility can impact the overall economics of HVO production, potentially discouraging investment in this growing sector.

Additionally, the initial capital investment required for establishing HVO production facilities can be substantial, which may deter potential new entrants into the market. Existing players might also face challenges in scaling operations and adapting to changing regulations, thereby limiting their growth potential. Lastly, the market's relatively nascent stage means that consumer awareness and understanding of HVO's benefits are still developing, requiring significant marketing efforts to educate stakeholders and drive adoption rates.

Regional Forecast:

North America

The Hydrotreated Vegetable Oil (HVO) market in North America shows significant potential, particularly in the United States and Canada. The U.S. leads the region, driven by stringent fuel regulations and a growing emphasis on sustainable energy solutions. With the rise of renewable diesel production, several refiners are investing in HVO technology, positioning themselves to meet both environmental standards and consumer demand for cleaner fuels. Canada is also making strides, with government initiatives aimed at reducing greenhouse gas emissions, further driving the adoption of HVO among Canadian fuel producers. The combination of supportive policies and increasing awareness about sustainable fuels is expected to bolster market growth across North America.

Asia Pacific

The Asia Pacific region, particularly countries like China, Japan, and South Korea, is witnessing a robust expansion in the HVO market. China is emerging as a key player due to its rapid industrialization and urbanization, leading to heightened energy consumption and environmental concerns. The Chinese government's ambitious initiatives for renewable energy usage and biofuel production are expected to spike HVO demand significantly in the coming years. Japan, on the other hand, is focusing on technological advancements to enhance biofuel efficiency, while South Korea is keenly investing in HVO as a strategy to diversify its energy sources and lower emissions. The combination of government support and industry innovation is propelling strong growth across these Asian markets.

Europe

Europe is at the forefront of the Hydrotreated Vegetable Oil market, with countries like the UK, Germany, and France leading the charge. The European Union's aggressive climate policies and commitment to carbon neutrality by 2050 are catalyzing the adoption of HVO as a sustainable fuel alternative. Germany stands out as a mature market, driven by its advanced technological landscape and a strong emphasis on renewable energy sources. The UK is also making substantial investments in HVO production, supported by government incentives and a push for cleaner transportation solutions. France, with its substantial agricultural sector, is strategically positioned to utilize domestic feedstocks for HVO production, further ensuring growth in this market. The strong regulatory framework and commitment to sustainability are expected to drive significant progress in the European HVO landscape.

Segmentation Analysis:

In terms of segmentation, the global Hydrotreated Vegetable Oil market is analyzed on the basis of Source Of Feedstock, Grade, Technology Type, Application.

Source of Feedstock

The Hydrotreated Vegetable Oil (HVO) market is primarily segmented based on the source of feedstock, which plays a crucial role in determining the sustainability and performance characteristics of the end product. The primary feedstock sources include edible oils, non-edible oils, and waste fats. Among these, waste fats such as used cooking oils and animal fats are anticipated to exhibit the largest market size due to their cost-effectiveness and lower environmental impact. Non-edible oils, derived from sources like jatropha and algae, are expected to witness the fastest growth, supported by advances in agricultural practices and growing emphasis on sustainable energy sources.

Grade

The grade of Hydrotreated Vegetable Oil is another significant segment, typically categorized into different quality grades such as renewable diesel and biojet fuel. Renewable diesel is projected to dominate the market size due to its widespread acceptance and compatibility with existing diesel engines, making it a more attractive option for consumers. On the other hand, biojet fuel is expected to experience the fastest growth segment as aviation regulations become more stringent and airlines seek sustainable alternatives to reduce carbon emissions, prompting innovations and investments in biojet fuel production.

Technology Type

The technology type segment encompasses various processes used in the production of Hydrotreated Vegetable Oil, with the predominant technologies being hydroprocessing, catalyst technology, and others. Hydroprocessing is expected to have the largest market size as it is the most commonly adopted technology, ensuring high-quality HVO output suitable for various applications. Meanwhile, the catalyst technology segment is projected to see the fastest growth, driven by ongoing research and development efforts aimed at improving catalyst efficiency and reducing production costs, thus enhancing the overall feasibility of HVO production.

Application

Applications of Hydrotreated Vegetable Oil are diverse, ranging from transportation fuels to industrial applications and power generation. In the transportation sector, HVO is increasingly utilized for automotive fuels, with a significant market share attributed to the push for greener alternatives in both commercial and personal vehicles. The industrial application segment is expected to show the fastest growth, spurred by the rising adoption of sustainable practices in manufacturing processes and the demand for cleaner burning fuels for machinery and equipment, ultimately facilitating a shift toward more environmentally friendly energy solutions.

Competitive Landscape:

The competitive landscape in the Hydrotreated Vegetable Oil (HVO) market is characterized by a dynamic environment with several key players striving for market share through advancements in technology, strategic partnerships, and expanding production capacities. Companies are focusing on sustainable practices, as the demand for renewable fuels grows amid rising environmental concerns and regulatory pressures for lower carbon emissions. The market is witnessing significant investment in developing infrastructure for HVO production, as well as collaborations with agricultural sectors to secure feedstock supply chains. The presence of established oil refineries transitioning to biofuels is also intensifying competition, while emerging companies are leveraging innovations to capture niche markets.

Top Market Players

1. Neste Corporation

2. TotalEnergies SE

3. Renewable Energy Group Inc.

4. Phillips 66 Company

5. Green Fuel Nordic AB

6. biocrude GmbH

7. EnviTec Biogas AG

8. Cargill Inc.

9. UPM-Kymmene Corporation

10. World Energy LLC