Hydrotreated Vegetable Oil Market Size, Share, Analysis, Trends, Growth, 2032

Hydrotreated Vegetable Oil Industry Prospective:

The global hydrotreated vegetable oil market size was evaluated at $13.26 billion in 2023 and is slated to hit $34.17 billion by the end of 2032 with a CAGR of nearly 11.09% between 2024 and 2032.

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Hydrotreated Vegetable Oil Market: Overview

Hydrotreated vegetable oil is an esterification process used for producing bio-based diesel fuels. For the record, hydrotreated vegetable oil is also referred to as renewable. Reportedly, hydrotreated vegetable oil operates by subjecting the raw materials often termed vegetable oils to a hydrogenation process under high pressure and high temperature. Additionally, the process removes unwanted compounds including sulfur and oxygen leading to cleaner-burning and more energy-dense fuel which can be continuously integrated into traditional diesel engine tools.

Key Insights

• As per the analysis shared by our research analyst, the global hydrotreated vegetable oil market is projected to expand annually at the annual growth rate of around 11.09% over the forecast timespan (2024-2032)
• In terms of revenue, the global hydrotreated vegetable oil market size was evaluated at nearly $13.26 billion in 2023 and is expected to reach $34.17 billion by 2032.
• The global hydrotreated vegetable oil market is anticipated to grow rapidly over the forecast timeline owing to the growing need for reducing GHG emissions and demand for outstanding cold-weather performance.
• In terms of source, the pure hydrotreated vegetable oil segment is slated to register the highest CAGR over the forecast period.
• Based on application, the transport segment is predicted to contribute majorly towards the global industry share in the upcoming years.
• Region-wise, the Asia-Pacific hydrotreated vegetable oil industry is projected to register the fastest CAGR during the projected timespan.

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Hydrotreated Vegetable Oil Market: Growth Factors

Escalating demand for curbing greenhouse effect is anticipated to spearhead the growth of the global market

Growing need for reducing GHG emissions and demand for outstanding cold-weather performance is predicted to prop up the scope of the global hydrotreated vegetable oil market in the years ahead. Humungous demand for sustainable fuel is likely to translate into massive growth in the global market.

Escalating penetration of the product in the aviation sector is anticipated to spur the expansion of the market across the globe.  Favorable government laws supporting the use of renewable diesel alternatives & biofuels will elevate the growth of the global market.

Hydrotreated Vegetable Oil Market: Restraints

Burgeoning prices of raw materials to impede the global industry expansion by 2032

Rise in the costs of raw components used for manufacturing the product can restrict the expansion of the global hydrotreated vegetable oil industry. East availability of alternate products can severely impact the expansion of the global industry.

Hydrotreated Vegetable Oil Market: Opportunities

Rise in product use in the automotive sector to open new growth avenues for the global market

Transition of diesel manufacturers towards green energy is anticipated to open new growth opportunities for the global hydrotreated vegetable oil market. Massive product usage as fuel in the automotive sector will pave the way for massive growth of the market across the globe.

Hydrotreated Vegetable Oil Market: Challenges

Massive utilization of biodiesel can challenge the expansion of the industry globally over 2024-2032

Escalating the use of biodiesel and strict government laws related to the use of the product can challenge the expansion of the global hydrotreated vegetable oil industry.

Hydrotreated Vegetable Oil Market: Segmentation

The global hydrotreated vegetable oil market is divided into type, application, and region.                                         

In type terms, the hydrotreated vegetable oil market across the globe is bifurcated into pure hydrotreated vegetable oil and co-processing segments. Additionally, the pure hydrotreated vegetable oil milk segment, which acquired nearly 75% of the global market earnings in 2023, is expected to record the fastest annual rate of growth in the forecast timeline. The expansion of the segment in the next eight years can be due to its reduced environmental impact in comparison to conventional fuel. Apart from this, the product is manufactured from renewable feedstock that does not release carbon into the atmosphere.

Based on the application, the global hydrotreated vegetable oil industry is divided into transport and industrial power generator segments. Moreover, the transport segment, which accumulated about 62% of the global industry size in 2023, is anticipated to make sizable contributions towards the global industry share over the analysis timeframe. The growth of the segment in the upcoming years can be attributed to rise in the use of hydrotreated vegetable oil in the transport segment.

Hydrotreated Vegetable Oil Market: Report Scope

Hydrotreated Vegetable Oil Market: Regional Insights

North America is expected to maintain the leadership status in the global market in the next couple of years

North America, which contributed approximately 65% of the global hydrotreated vegetable oil market earnings in 2023, is predicted to maintain the number one position in the global market in the years ahead. In addition to this, the regional market expansion in the forecasting years can be owing to the enforcement of strict government laws pertaining to the acceptance of renewable energy sources. A surge in the production of hydrotreated vegetable oil in the U.S. and supportive government policies will steer the expansion of the regional market.

Asia-Pacific hydrotreated vegetable oil industry is anticipated to register the fastest growth rate in the forecast timeline. The swift growth of the industry in the sub-continent over 2024-2032 can be credited to the rise in the demand for products in countries such as Malaysia, China, Indonesia, and India. The presence of giant manufacturers in the sub-continent will steer the growth of the industry in the APAC zone.

Key Developments

• In the last quarter of 2022, Cepsa, a key oil & gas player based in Spain, made investments worth US$ 3.15 billion in green hydrogen ventures in Europe. Reportedly, the ventures are likely to produce nearly 3, 00,000 tons of hydrogen each year.  
• In the second half of 2023, Mitsui & Co., Ltd., one of the largest sogo shosha firms based in Japan, invested in renewable diesel and SAF production business based in Portugal.
• In March 2024, Certa and Skoda jointly launched a campaign urging diesel commuters to switch to low-emission hydrotreated vegetable oil biofuel.

Hydrotreated Vegetable Oil Market: Competitive Space

The global hydrotreated vegetable oil market profiles key players such as

• Nestle S.A.
• UPM Biofuels
• World Energy
• Valero Energy
• Cepsa, Eni
• REG
• Total S.A.
• Repso
• And Others

The global hydrotreated vegetable oil market is segmented as follows:

By Type

• Pure Hydrotreated Vegetable Oil
• Co-Processing

By Application

• Transport
•  Industrial Power Generators

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa