According to Syndicate Market Research, the global Hydrotreated Vegetable Oil (HVO) market hit about USD 12.8 billion in 2024. The Hydrotreated Vegetable Oil (HVO) industry is expected to reach around USD 14.2 billion in 2025 and a whopping USD 45.8 billion by 2034, growing at a steady compound annual growth rate (CAGR) of roughly 13.9% from 2026 to 2034. The report analyzes the Hydrotreated Vegetable Oil (HVO) market's drivers, restraints, and the impact it has on demand during the forecast period. Furthermore, it will assist in navigating and exploring emerging market prospects.
The Hydrotreated Vegetable Oil (HVO) market involves the production and distribution of a premium-grade renewable diesel fuel produced by hydrotreating vegetable oils, animal fats, and other lipid-based feedstocks under high pressure and temperature to remove oxygen and create a drop-in hydrocarbon fuel that is chemically similar to conventional fossil diesel. HVO is widely recognized as a sustainable, low-carbon alternative fuel used in transportation, industrial applications, aviation, and marine sectors due to its excellent cold-weather performance, high cetane number, and compatibility with existing diesel engines without requiring modifications.
The market is propelled by stringent government mandates for carbon reduction, rising demand for advanced biofuels, and corporate net-zero commitments, while restraints include high feedstock costs and limited availability of sustainable raw materials. Key trends include the increasing use of waste-based feedstocks (used cooking oil and animal fat), expansion of HVO into sustainable aviation fuel (SAF), and technological advancements in co-processing within existing refineries.
Growth Drivers
Governments worldwide are implementing aggressive carbon reduction policies (such as RED II in Europe and LCFS in California), compelling refiners and transport companies to blend or switch to low-carbon fuels like HVO. This regulatory push is one of the strongest demand drivers for the market.
Furthermore, major corporations have committed to science-based targets and Scope 3 emission reductions, increasing the offtake of HVO through long-term supply agreements.
Restraints
The reliance on vegetable oils, used cooking oil, and animal fats leads to price volatility and competition with food and animal feed industries, making feedstock sourcing expensive and limited.
Additionally, the limited availability of certified sustainable feedstocks restricts rapid capacity expansion.
Opportunities
HVO is a key building block for producing Sustainable Aviation Fuel (SAF) through the HEFA pathway, creating massive new demand as airlines commit to decarbonization targets.
Moreover, co-processing HVO in existing oil refineries offers a cost-effective route for rapid capacity addition.
Challenges
Increasing competition from biodiesel, renewable natural gas, and electro-fuels, along with growing scrutiny over feedstock sustainability (ILUC concerns), pose long-term challenges.
In addition, public and NGO pressure on indirect land-use change can impact feedstock approval and market reputation.
| Report Attributes | Report Details |
|---|---|
| Report Name | Hydrotreated Vegetable Oil (HVO) Market |
| Market Size in 2024 | USD 12.8 Billion |
| Market Size in 2025 | USD 14.2 Billion |
| Market Forecast in 2034 | USD 45.8 Billion |
| Growth Rate (2026-2034) | CAGR of 13.9% |
| Base Year | 2025 |
| Historical Year | 2020 - 2024 |
| Forecast Year | 2026 - 2034 |
| Number of Pages | 232 |
| Report Coverage | Revenue Forecast, Market Dynamics, Company Profile, Competitive Landscape, Recent Developments, Growth Factors, and Recent Trends |
| Key Companies Covered | Neste Corporation, Diamond Green Diesel, REG, Eni S.p.A., TotalEnergies, Preem AB, UPM Biofuels, SkyNRG, Repsol, Valero Energy Corporation, and Others. |
| Segments Covered | By Feedstock, By Application, and By Region |
| Regions Covered | North America, Europe, Asia Pacific (APAC), Latin America, and The Middle East and Africa (MEA) |
| Customization Scope | Customization for Segments, Region, Country-level will be provided. Avail customized purchase options to meet your exact research needs. Request For Customization |
The Hydrotreated Vegetable Oil (HVO) market is segmented by feedstock, application, and region.
Based on Feedstock Segment, the Hydrotreated Vegetable Oil (HVO) market is divided into vegetable oil, animal fat, used cooking oil, tall oil, others. Vegetable oil dominates as the most prominent category, while used cooking oil ranks second due to sustainability credentials. Vegetable oil leads due to its large-scale availability and mature processing technology, driving the market by enabling high-volume production; used cooking oil contributes significantly by offering superior GHG savings, supporting premium pricing and regulatory compliance.
Based on Application Segment, the Hydrotreated Vegetable Oil (HVO) market is divided into transportation, industrial, aviation, marine, others. Transportation emerges as the dominant application, while aviation is the fastest-growing segment. Transportation dominates owing to the massive diesel consumption in road freight and public fleets, propelling market growth through blending mandates; aviation supports long-term expansion as airlines seek drop-in SAF solutions.
Europe leads the HVO market, driven by the EU’s Renewable Energy Directive (RED II/III) and strong national blending mandates. Finland, Sweden, and the Netherlands dominate production, with Neste (Finland) and Preem (Sweden) as global leaders. Germany and France show very high consumption due to road transport decarbonization targets.
North America is the second-largest market, led by the United States. California’s Low Carbon Fuel Standard (LCFS) and the federal Renewable Fuel Standard (RFS) drive strong demand. Major players include Diamond Green Diesel and REG Geismar.
Asia Pacific is emerging rapidly, led by Singapore, China, and Thailand. Singapore has become a major HVO trading and blending hub.
Latin America shows promising growth, particularly in Brazil and Argentina, leveraging their vast vegetable oil production.
The Middle East is in early stages, with Saudi Arabia and UAE exploring HVO as part of their energy transition strategies.
Some of the significant players in the global Hydrotreated Vegetable Oil (HVO) market include;
By Feedstock
By Application
By Region
What is Hydrotreated Vegetable Oil (HVO)?
Hydrotreated Vegetable Oil (HVO), also known as renewable diesel, is a high-quality, drop-in biofuel produced by hydrotreating vegetable oils or animal fats to create a hydrocarbon fuel chemically similar to fossil diesel.
What are the principal factors expected to drive expansion in the Hydrotreated Vegetable Oil (HVO) market between 2026 and 2034?
Principal factors include stringent carbon reduction mandates, corporate net-zero commitments, growth of sustainable aviation fuel, and policy support for advanced biofuels.
What is the projected market size of the Hydrotreated Vegetable Oil (HVO) market from 2026 to 2034?
The market is projected to grow from approximately USD 14.2 billion in 2025 to USD 45.8 billion by 2034.
What overall growth rate (CAGR) is the Hydrotreated Vegetable Oil (HVO) market predicted to achieve between 2026 and 2034?
The market is anticipated to achieve a CAGR of 13.9% during the forecast period from 2026 to 2034.
Which geographic region is forecasted to be a leading contributor to the overall Hydrotreated Vegetable Oil (HVO) market valuation?
Europe is forecasted to lead, contributing over 42% due to strong policy support and early adoption.
Who are the top companies dominating and driving the Hydrotreated Vegetable Oil (HVO) market forward?
Top companies include Neste Corporation, Diamond Green Diesel, REG, Eni S.p.A., TotalEnergies, Preem AB, UPM Biofuels, SkyNRG, Repsol, and Valero Energy Corporation.
What key information or findings can typically be expected from the global Hydrotreated Vegetable Oil (HVO) market report?
Typical findings include market sizing, feedstock and application segmentation, regional analysis, policy impact, competitive landscape, and technology trends.
What are the various stages in the value chain of the global Hydrotreated Vegetable Oil (HVO) industry?
The value chain includes feedstock sourcing, pretreatment, hydrotreating, fractionation, blending, and distribution.
How are current market trends and evolving consumer preferences influencing the Hydrotreated Vegetable Oil (HVO) market?
Trends such as waste-based feedstocks, sustainable aviation fuel, and corporate Scope 3 reduction targets are strongly shaping demand.
What regulatory changes or environmental factors are impacting the growth of the Hydrotreated Vegetable Oil (HVO) market?
Policies like RED III, LCFS, CORSIA, and national blending mandates are the primary regulatory drivers.
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