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

Global Biodiesel Procurement Trends

Discover the top international trends affecting procurement in the global Biodiesel market.

Warning Trends

Tariffs to negatively impact the fuel additives, lubricants, and anti-corrosive materials sector

  • The United States imposed a blanket 10.0% tariff on all US imports, a 25.0% tariff on goods imported from 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.
  • With the increase in tariff rates, as well as retaliatory tariffs imposed by affected countries, oil, gasoline, diesel, and natural gas prices have been falling due to concerns about slowing global economic growth and energy demand. Falling oil and gas prices could put downward pressure on prices for fuel additives, lubricants, and anti-corrosive materials, as these products are derived from petroleum.
  • Tariffs on steel and aluminum and falling oil prices have increased vendor risk for upstream suppliers in the sector; according to the New York Times, tariffs on steel have pushed up the cost of new 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% with the increase in tariffs, and since 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.
  • US tariffs are expected to reduce imports and increase domestic prices for fuel additives, lubricants, and anti-corrosive materials such as biodiesel, ethanol, propane, and butane as Canada and Mexico are key suppliers of these products. According to Butane-Propane News, Canada supplies one of every seven barrels of propane used in the United States, and Canada accounts for 71.8% of US antifreeze imports.
  • The tariffs on Canada and Mexico negatively impact US refiners as Canada accounts for 27.0% of total US refinery demand and some refineries are dependent on heavier or sour grades of crude oil from Canada. As refiners’ margins are squeezed with higher costs for imports and falling demand, prices for refined fuel additives, lubricants, and anti-corrosive materials will likely rise as refiners look to maintain profitability.

United States announces additional tariffs on China

  • In February 2025, the United States announced 10.0% tariffs on imports from China, which took effect on February 4, 2025. In late February 2025, the United States announced an additional 10.0% tariff on imports from China, which took effect on March 4, 2025.
  • The tariff plan applies to all merchandise imported for consumption and applies in addition to other duties and fees that are in place, with limited exceptions. In response, China announced a 15.0% tariff on products such as coal and natural gas, as well as a 10.0% tariff on crude oil, agricultural machinery, pickup trucks, and large cars.
  • In April 2025, a new 34.0% tariff on Chinese imports was implemented, increasing the base tariff rate to 54.0%. An additional tariff of 50.0% was implemented, raising the combined rate to 104.0% due to retaliatory tariffs from China.
  • In April 2025, an executive order suspended the Section 321 de minimis shipment exemption (often applied to e-commerce packages), subjecting all shipments under $800 to relevant tariffs. This suspension will be effective May 2, 2025.
  • This market sources goods from China. As such, ProcurementIQ will continue to monitor developments in this space and update analysis accordingly.
Neutral

Crude oil prices dip, but natural gas and fuel prices remain volatile in 2025

  • Oil prices have been falling with the introduction of higher tariffs and the predicted decline in global demand. The OPEC+ group of countries also announced they would be unwinding production cuts and increasing their collective output target for May by 411,000 barrels per day.
  • Trade wars, ongoing conflict between Hamas and Israel, and general unrest in the Middle East is causing uncertainty surrounding oil prices has been leading to volatility in prices. In the first week of April 2025, crude oil prices hit $62.22 per barrel, but volatility remains as geopolitical concerns remain.
  • Natural gas prices rallied early in 2025 with colder-than-usual temperatures in the United States and high demand, topping out at $4.68/MMBtu in March. Prices have since fallen with the onset of trade wars and fears of a global recession to $3.90/MMBtu in the first week of April 2025.
  • The national average of gasoline prices has been rising slightly due to refinery maintenance/outages and blending issues, hitting a national average of $3.26 per gallon in the first week of April 2025. However, gasoline futures have been declining due to fears of noversupply and deepening concerns about weakening demand with tariffs.

Global Biodiesel Market - Suppliers by Region

Country/RegionNumber of Suppliers
#1India2,340
#2Europe2,090
#3Africa & Middle East2,070

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  • Canada
  • United States
  • Mexico
  • Latin America
  • South America
  • India
  • China
  • Europe
  • Africa & Middle East
  • Australi & New Zealand
  • Oceania & Southeast Asia

Geography Drilldown - US

Average Cost of Biodiesel

United States
2025 Market Pricing
$2.22 to $X.XX
per gallon

Average 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).

Need the scoop on international price trends?

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)

-7.1%

Compound Annual Growth Rate
United States (2025-2028)
Compound Annual Growth Rate
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Wondering where prices are heading?

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

As with most fuels, biodiesel transportation costs are delivered as fees negotiated beforehand. These transportation fees are one of the more substantial costs of ownership for biodiesel.

Billed During

Storage

Proper storage of biodiesel requires a climate-controlled, pressurized, and decontaminated environment. Cold temperatures and microbial contamination can lead to spoilage.

Maintenance

Biodiesel can and is likely to cause engine filters to clog more frequently than petroleum-based diesel due to biodiesel’s lubricity. It is essential to check engine filters often to protect against unnecessary costs.

Unforeseen

Obsolescence

Electric vehicles (EVs) pose a threat to biodiesel and other biofuels in the future. If biodiesel becomes unpopular, the costs of sticking with biodiesel or switching to EVs may increase.

Emergencies

Pure biodiesel (B99/B100 biodiesel) can be incompatible with specific engines or engine brands. Buyers may need to upgrade or replace their engines should they be incompatible, thus increasing the total cost of ownership.

Duties & Taxes

Tax credits or subsidies can significantly reduce the TCO of biodiesel for buyers.

Buyer Power in Procurement Negotiations

In 2025, buyer power amounts to -0.9 in the United States. Buyer power is most positively impacted by Recent Price Volatility. 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
-0.9

Buyer power forecasts: your glimpse into the future

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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

SupplierOperational SizeHeadquartersNumber of EmployeesMarket Share (%)Market Share Performance (3yr trend)Total Revenue ($ million)Profit Level (%)Risk Level
Renewable Energy GroupInternationalAMES, IA1,001-10,00010-15
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Archer-Daniels-Midland CoGlobalCHICAGO, IL>10,0005-10
Bunge LimitedGlobalCHESTERFIELD, MO>10,0005-10
HF Sinclair CorporationGlobalDALLAS, TX1,001-10,0005-10
Louis Dreyfus Co B.V.GlobalRotterdam, NTH>10,0015-10
RBF Management Company LLCNationalHouston, TX25-505-10
Marathon Petroleum CorporationInternationalFINDLAY, OH>10,000< 5
Wilmar International LtdGlobalSingapore, SG>10,001< 5
Darling Ingredients Inc.GlobalIRVING, 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 4.1% and steady. Profit levels shift depending on suppliers' spend on wages, purchases and overhead. The highest cost component for vendors is Wages. The cost trend for this component is stagnating, when considering movement between 2024 and 2025. To understand cost forecasts for 2026 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 buyers by increasing availability and price competition in the domestic market, however, buyers will face 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

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

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

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

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

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

World Energy, LLC

World Energy, LLC is a private company operating internationally in the manufacturing sector. The company's offerings include biodiesel. Founded in 1998, the company is currently headquartered in Boston, Massachusetts, United States of America with an estimated 375 employees. Subscribe to learn more

Petrosun, Inc.

Petrosun, Inc. is a public company operating internationally in the manufacturing sector. The company's offerings include biodiesel. Founded in 2001,. 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

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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.

KPILevel of Importance (1-5)MeasurementsKey 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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