Procurement Market Intelligence Report
Biodiesel
Sourcing Guide & Market Intelligence
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Biodiesel Global Overview
Definition
Summary
Biodiesel is an alternative diesel fuel produced by reacting vegetable oil or animal fats with short-chain alcohols in a process called transesterification. Biodiesel can be used as a pure diesel fuel or blended with other oil-based fuel products that can be sourced from manufacturers, wholesalers and retail outlets. The key buyers of biodiesel include government agencies, fuel wholesalers, fuel retail outlets, and diesel trucking service providers.
This Report Includes:
- Biofuel
- Organic Chemical Manufacturing
- Pure Biodiesel
Not in this Report:
- Diesel
- Gasoline
- Ethanol
- Solar Power
- Bioethanol/Biogas
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Global Biodiesel Procurement Trends
Discover the top international trends affecting procurement in the global Biodiesel market.
Warning Trends
Public sector demand slumps as the government enters shutdown
- On October 1, the US federal government entered a shutdown after negotiations for a new appropriations bill failed.
- During a government shutdown, essential federal government operations, such as law enforcement, air-traffic control, and social security, persist, while nonessential operations are paused and workers involved in these operations are furloughed. Thus, the current shutdown is expected to result in 750,000 federal workers being furloughed, representing a $400 million reduction in daily expenditure by the federal government.
- This significant reduction in federal spending and operations will affect the entire US economy, weakening aggregate demand and slowing economic growth. For example, the 35-day government shutdown in Q1, 2019, reduced aggregate demand in both the public and private sectors, resulting in a 0.2% reduction in GDP growth that quarter.
- The effects of the shutdown are likely to be most acute in markets where the public sector is a major buyer segment, weakening demand and increasing average vendor risk by destabilizing important revenue streams.
- As negotiations for a new appropriations bill to reopen the government remain ongoing, ProcurementIQ will continue to monitor the situation and update this story with the latest information.
Tariffs on fuel additives, lubricants, and anti-corrosive materials to increase costs in the sector
- On August 1, the Trump Administration finalized sweeping tariffs on most major US import partners, in addition to the already announced 25.0% and 35.0% tariffs on Mexico and Canada, and a 10.0% tariff on energy imports from Canada. According to the Energy Information Administration, Canada and Mexico account for 71.2% of US crude oil imports, 35.7% of US petroleum product imports, and 99.6% of US natural gas imports.
- These tariffs will increase both the cost of importing fuel additives, lubricants, and anti-corrosive materials and the cost of sourcing primary inputs necessary for making these products, affecting both international and domestic suppliers. However, reduced oil and gas demand tied to higher tariffs and a possible economic slowdown may counteract some of the tariff price increases in this market.
- Tariffs on steel and aluminum and falling oil prices are also increasing vendor risk for upstream suppliers in the sector; according to the New York Times, tariffs on steel have pushed up the cost of new oil and gas wells by 10.0% to 20.0%. According to S&P Global, oil country tubular goods, made from steel, are anticipated to rise 15.0% in price with the increase in tariffs, and because these expenses account for 8.0% to 10.0% of drilling and completion costs, the fuel additives, lubricants, and anti-corrosive materials supply chain will see increased risk of disruption.
Global Biodiesel Market - Suppliers by Region
| Country/Region | Number of Suppliers |
|---|---|
| #1 India | 2,340 |
| #2 Europe | 2,090 |
| #3 Africa & Middle East | 2,070 |
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Geography Drilldown - US
Average Cost of Biodiesel
United States
2026 Market Pricing$2.22 to $X.XX
per gallonAverage Price
Prices in the Biodiesel market range from $2.22 to $X.XX, depending on Blend of Biodiesel, Supplier Location, Supplier Type and Feedstock Base. For example, lower prices are associated with B5 or up to 5% biodiesel ($2.22 to $3.61 per gallon) and B20 or between 6% and 20% biodiesel ($3.52 to $4.22 per gallon), whereas higher prices are associated with B99/B100 or pure/neat biodiesel ($4.95 to $5.45 per gallon).
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Between our Europe and Canada collections, we provide price data for 350 markets so you can instantly compare prices across borders. Or, use our custom research services for intel on prices in any region across the globe.
Biodiesel Category Price Trends
Pricing trends are indicated by the compound annual growth rate (CAGR) during a set period of time. For the Biodiesel market, prices in the US have declined -7.1% from 2022 to 2025. Subscribers can access price trend forecasts, price driver projections and forward-looking cost structure data. Learn more
United States (2022-2025)
United States (2025-2028)
Compound Annual Growth Rate
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Price trend forecasts are available to subscribers, along with price driver projections and forward-looking cost structure data.
Cost Analysis - Total Cost of Ownership for Biodiesel
Total cost of ownership is Low in the Biodiesel market. The average cost of ownership differs depending on the contract but generally includes costs negotiated before the contract begins, costs billed during the contract period and unforeseen costs. For example, unforeseen costs in the form of Obsolescence may raise the total cost of ownership unexpectedly.
Negotiated Before
Transportation
Billed During
Storage
Maintenance
Unforeseen
Obsolescence
Emergencies
Duties & Taxes
Buyer Power in Procurement Negotiations
In 2026, buyer power amounts to -0.2 in the United States. Buyer power is most positively impacted by Recent Developments. It is most negatively impacted by Recent Price Trend. Subscribers can access details on eight other factors that impact buyer power. Learn more
United States
Buyer power forecasts: your glimpse into the future
Develop strategies for the upcoming year and identify unforeseen opportunities for buying now
- Actionable "Buy Now" and "Buy Later" insights
- Near-real-time updates to current and forecast Buyer Power Scores
- Methodology and weightings for Buyer Power Score Components
Supply Chain Risk
The average level of supply chain risk is assessed as High, which has a negative impact on buyer power. The level of supply chain risk is affected by industry volatility, barriers to entry, competition, import penetration, regulation and industry financial risk. Buyers in this market can mitigate procurement and supply chain management risks by monitoring risk levels for individual first and second tier suppliers:
1st
Tier Suppliers
- Corn, Wheat & Soybean Wholesalers
- Soybean Farmers
- Chemical Wholesalers
- Waste Collection Service Providers
2nd
Tier Suppliers
- Oilseed Farmers
- Farm Supplies Wholesalers
- Chemical Product Manufacturers
- Meat, Beef & Poultry Processers
Biggest Biodiesel Suppliers in the US by Revenue
The largest Biodiesel vendors by revenue in the US are Petrosun, Inc., Ag Processing Inc A Cooperative and Marathon Petroleum Corporation. Subscribers can sort and filter by market share concentration, profit level and other factors. Learn more
| Supplier | Operational Size | Headquarters | Number of Employees | Market Share (%) | Market Share Performance (3yr trend) | Total Revenue ($ million) | Profit Level (%) | Risk Level |
|---|---|---|---|---|---|---|---|---|
| Renewable Energy Group | International | AMES, IA | 1,001-10,000 | 10-15 | ||||
| Archer-Daniels-Midland Co | Global | CHICAGO, IL | >10,000 | 5-10 | ||||
| Bunge Limited | Global | CHESTERFIELD, MO | >10,000 | 5-10 | ||||
| HF Sinclair Corporation | Global | DALLAS, TX | 1,001-10,000 | 5-10 | ||||
| Louis Dreyfus Co B.V. | Global | Rotterdam, NTH | >10,001 | 5-10 | ||||
| RBF Management Company LLC | National | Houston, TX | 25-50 | 5-10 | ||||
| Marathon Petroleum Corporation | International | FINDLAY | >10,000 | < 5 | ||||
| Wilmar International Ltd | Global | Singapore, SG | >10,001 | < 5 | ||||
| Darling Ingredients Inc. | Global | IRVING, TX | >10,000 | < 5 | ||||
Looking for a list of suppliers by country?
Subscribers can access vendor information on Canadian and European suppliers, too. We also offer custom research services to help with vendor sourcing anywhere in the world.
Profit Analysis
The average profit margin across vendors in the Biodiesel market is 4.0% and steady. Profit levels shift depending on suppliers' spend on wages, purchases and overhead. The highest cost component for vendors is Purchases. The cost trend for this component is falling, when considering movement between 2025 and 2026. To understand cost forecasts for 2027 and uncover the implications on profit, start your subscription. Learn more
Vendor & Supply Chain Analysis
Despite a high level of supply chain risk, biodiesel producers are not as at-risk financially due to the majority of companies operating globally, vertically integrated, and partnered with established partners in other industries. These producers can pass rising input prices or other costs onto buyers.
The biodiesel market is characterized by moderate market share concentration, limiting price competition somewhat. Biodiesel’s low product specialization sustains moderate competition with some large, vertically integrated manufacturers accounting for the largest market shares.
The supply chain risk for biodiesel is high, which contributes to fluctuation and volatility in its price. Suppliers' reliance on inputs such as soybeans and chemicals dramatically increases risk.
Profit margins for biodiesel suppliers are moderate and have remained stable in the previous three years, primarily for companies that have a larger size, scope, and brand recognition. This has reduced bankruptcy risk for top suppliers.
The United States is a net importer of biodiesel, meaning it imports more in value than it exports. This benefits buyers by increasing availability and price competition in the domestic market; however, buyers will face higher costs with rising tariffs, longer lead times, and higher transportation costs when importing biodiesel from foreign sources.
Supplier Information
Renewable Energy Group
Renewable Energy Group is a public company operating internationally in the manufacturing sector. The company's offerings include biodiesel. Founded in 2006, the company is currently headquartered in AMES, Iowa, United States of America with an estimated 1196 employees. Subscribe to learn more
Archer-Daniels-Midland Co
Archer-Daniels-Midland Co is a public company operating globally in the manufacturing sector. The company's offerings include ethanol, biodiesel and farm products warehousing. Founded in 1923, the company is currently headquartered in Chicago, Illinois, United States of America with an estimated 42001 employees.... Subscribe to learn more
Bunge Limited
Bunge Limited is a public company operating globally in the manufacturing sector. The company's offerings include biodiesel and farm products warehousing. Founded in 1818, the company is currently headquartered in CHESTERFIELD, Missouri, United States of America with an estimated 23000 employees. Subscribe to learn more
HF Sinclair Corporation
HF Sinclair Corporation is a public company operating globally in the manufacturing sector. The company's offerings include paraffins, diesel fuel and biodiesel. Founded in 1947, the company is currently headquartered in DALLAS, Texas, United States of America with an estimated 3522 employees. Subscribe to learn more
Louis Dreyfus Co B.V.
Louis-Dreyfus Company B.V. is a private company operating in the manufacturing and manufacturing sectors. The company's offerings include biodiesel. Founded in 1851, the company is currently headquartered in Rotterdam, Netherlands, Netherlands with an estimated 10001 employees. Subscribe to learn more
RBF Management Company LLC
RBF Management Company LLC is a private company operating nationally in the manufacturing sector. The company's offerings include biodiesel. Founded in 2008, the company is currently headquartered in Houston, Texas, United States of America with an estimated 37 employees. Subscribe to learn more
Ag Processing Inc A Cooperative
Ag Processing Inc A Cooperative is a private company operating internationally in the manufacturing sector. The company's offerings include biodiesel. Founded in 1983, the company is currently headquartered in Omaha, Nebraska, United States of America with an estimated 175 employees. Subscribe to learn more
Cargill, Incorporated
Cargill, Incorporated is a private company operating globally in the manufacturing and professional, scientific & technical services sectors. The company's offerings include ethanol, biodiesel, ice & snow surface treatments, farm products warehousing and scientific research & development services. Founded... Subscribe to learn more
Darling Ingredients Inc.
Darling Ingredients Inc. is a public company operating globally in the manufacturing and administration, business support and waste management services sectors. The company's offerings include biodiesel and grease trap cleaning services. Founded in 1882, the company is currently headquartered in IRVING, Texas,... Subscribe to learn more
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Procurement Management KPIs for the Biodiesel Market
Managing vendor performance throughout the contract period is easier when tracking specific key performance indicators (KPIs). For example, buyers should monitor Current Ratio (Assets/Liabilities) and Customer Satisfaction (CSAT). Buyers may experience better performance throughout their contracts if they establish service level agreements (SLAs) based on Delivery and other factors.
| KPI | Level of Importance (1-5) | Measurements | Key Considerations |
|---|---|---|---|
| Current Ratio (Assets/Liabilities) |
|
Current assets Current liabilities |
The current ratio is a ratio to measure a company's liquidity. A company’s current ratio is a good measure to determine the short-term financial strength of a company. Biodiesel’s high risk supply chain necessitates a viable current ratio. |
| Customer Satisfaction (CSAT) |
|
Number of positive customer responses Number of customer responses |
Customer satisfaction represents customers’ overall satisfaction with a company. A strong reputation could indicate that a supplier is committed to strengthening their presence in the emerging biodiesel market. |
|
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Questions to Ask During Procurement Negotiations
How can I gain leverage during negotiations?
Inventory Control
What is your annual biodiesel production capacity?
On average, what are your year-end biodiesel inventories?
Cost Containment
What percentage of your revenue over the past three years was dedicated to labor? Does this fluctuate seasonally?
What other ongoing fees and expenses do you incur?
Regulation
How do you ensure that your biodiesel inventory adheres to regulatory requirements?
Are your operations ready to meet new requirements? Do you offer additional incentives to your clients to encourage biodiesel use?
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Biodiesel RFP Guidelines
What should my RFP include?
Organizational Overview
Buyers should describe their operations, such as the industry they operate in, company history, and how they intend to use biodiesel.
Buyers should provide the locations of all facilities that will be covered under the contract.
Statement Of Need
Buyers should describe what types of machines will be using biodiesel as a fuel source.
Buyers should state the volume of biodiesel they require.
Project Budget
Buyers should request a price per gallon of biofuel.
Buyers should request information on the supplier's methodology for adjusting prices over the duration of the contract.
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Our Reports include:
- Opportunity assessment
- Market dynamics
- Recent developments
- Positive and warning trends
- Buyer power levers
- Price environment and market pricing
- Geographic wage rates
- Global market updates
- Total cost of ownership
- Cost structure benchmarks and analysis
- Supply chain and vendors
- Global supplier breakdown
- Market share concentration
- Regulation and business requirements
- Vendor management and KPIs
- Sourcing strategy guidance
