Hydrotreated vegetable oil market is anticipated to grow at a significant CAGR of 12.4% during the forecast period (2024-2031). Hydrotreated vegetable oil, which comes from plant-based sources like vegetable oils or animal fats, is a sustainable and renewable substitute for conventional diesel fuel. It goes through a hydrotreatment procedure that takes out impurities and lowers the oxygen level, making it a high-grade, low-emission diesel replacement that works with current diesel engines.

Market Dynamics

Growing demand for cleaner fuels

These fuels are cleaner as when compared to conventional diesel fuels it emits substantially less carbon dioxide and particulate matter, which lowers greenhouse gas emissions. It is also a feasible and environmentally suitable substitute in the shift to more environmentally friendly transportation options because of its exceptional cold-weather performance and ability to run without the need for engine modifications. Therefore, the growing demand for cleaner fuels globally is a key factor driving the growth of the global market.

A rising popularity for sustainable and renewable fuels

Hydrotreated vegetable oil is becoming more and more popular as a result of industries' increased need for sustainable and renewable fuel to cut carbon emissions and achieve environmental sustainability. This is propelling the market's expansion. Hydrotreated vegetable oil (HVO) is a low-carbon fuel that produces a cleaner burning fuel with a considerable reduction in greenhouse gas emissions. It is an environmentally acceptable substitute for conventional diesel and fossil fuels.

Market Segmentation

Our in-depth analysis of the global hydrotreated vegetable oil market includes the following segments by type, and application:

• Based on type, the market is sub-segmented into pure HVO and co-processing.

• Based on application, the market is bifurcated into transportation, industrial power generators and others.

Pure HVO is Projected to Emerge as the Largest Segment

Pure HVO is highly used HVO form,the lower environmental effect of pure HVO compared to traditional fuels is driving the growth of this market segment. The raw materials used to make pure HVO are renewable and don't release any additional carbon dioxide (CO2) into the atmosphere.

Transportation Sub-segment to Hold a Considerable Market Share

HVO is widely utilized in the transportation industry. The increasing popularity of emissions-free automobiles has an impact on the widespread use of HVO in the transportation industry.With the introduction of stricter emissions rules, road transport companies expect HVO to lead the way toward a more environmentally friendly future.

Regional Outlook

The global hydrotreated vegetable oil market is further segmented based on geography including North America (the US, and Canada), Europe (UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia-Pacific), and the Rest of the World (the Middle East & Africa, and Latin America). 

Asia-Pacific countries have new plants to meet the rising demand

• The number of plants producing HVO is growing in the Asia-Pacific, which is expanding the HVO production capacity.

• Growing demand for renewable fuel in place of petroleum-based diesel, which offers better performance in cold climates and requires less maintenance results in greater market demand. 

Global Hydrotreated Vegetable Oil Market Growth by Region 2024-2031

North America Holds Major Market Share

In the US, there is an increasing need for vegetable oil that has been hydrotreated. The HVO sector is expanding due to growing concerns about lowering carbon emissions and the continuous switch to renewable energy sources. With HVO fuel, achieving a net zero goal without the requirement for CAPEX is easy and rapid, resulting in a 10.0% reduction in greenhouse gas emissions. Due of this, the fuel can sustainably replace fossil diesel. Growing use of this oil in aviation as a sustainable fuel. Its acceptance is also turning into a crucial trend for market expansion.The regional industry is growing as a result of the automobile sector's explosive demand for HVO.

Market Players Outlook

*Note: Major Players Sorted in No Particular Order.

The major companies serving the global hydrotreated vegetable oil market Neste, Valero Energy, Repsol, UPM Biofuels and Preem AB among others. The market players are increasingly focusing on business expansion and product development by applying strategies such as collaborations, mergers, and acquisitions to stay competitive in the market. For instance, in January 2023, Neste acquired the used cooking oil collection and aggregation business from Crimson Renewable Energy in the United States. The acquisition includes shares in SeQuential Environmental Services, LLC, and Pure, LLC, as well as a UCO processing plant in Salem, Oregon. Neste acquired a leading UCO collection and recycling business on the US West Coast, covering the collection, logistics and storage of UCO in California, Oregon and Washington.

The Report Covers

• Market value data analysis of 2023 and forecast to 2031.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global hydrotreated vegetable oil market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.