Hydrotreated Vegetable Oil Market

Hydrotreated Vegetable Oil Market Outlook 2024 to 2034

In the recently revised research report made by FMI, the hydrotreated vegetable oil market is expected to record USD 21.2 billion in 2024. Heightened demand for hydrotreated vegetable oil (HVO), alternatively called renewable diesel, particularly in developed countries is fuelinng the industry growth. It is estimated that the capacity for this fuel is expected to double up with supply unable to cope with the overwhelming demand.

The hydrotreated vegetable oil industry is forecast to expand at a CAGR of 12.7% in the ten-year time frame. Positive consumer perception and willingness to pay for hydrotreated vegetable oil, due to its effectiveness in helping users achieve their sustainability goals, is fueling industry growth.

According to revenue analysis of the hydrotreated vegetable oil industry by FMI analysts for the year 2034, the industry is expected to surpass USD 70.0 billion. The growth of HVO industry is going to be supported by continuous innovations over the coming period.

Attributes	Key Insights
Hydrotreated Vegetable Oil Industry Size (2024E)	USD 21.2 billion
Industry Valuation (2034F)	USD 70.0 billion
Value-based CAGR (2024 to 2034)	12.7%

Industry Trends and Drivers for Hydrotreated Vegetable Oil

• HVO fuel is being continuously integrated in the railway sector, due to its many environmental benefits.
• Rising use of HVO to help the transportation sector lower its carbon footprint. Regions as well as countries are shifting to cleaner energy sources.
• Surging use of HVO to generate power is raising the prospects for market players.
• Technological advancements in the hydrotreated vegetable oil industry is creating opportunities for industry players to stay relevant with changing industry requirements.

Overview of Markets Adjacent to the Hydrotreated Vegetable Oil Market

In the following section, hydrotreated vegetable oil market, partially hydrogenated oil industry, and edible oil and fat industry are analyzed based on growth rate, trends, and budding opportunities.

Core Industry:

Attributes	Hydrotreated Vegetable Oil Industry
CAGR (2024 to 2034)	12.7%
Growth Factor	Rising use of HVO in the transportation sector
Opportunity	Emerging opportunities for HVO manufacturers in the railway sector
Key Trends	Technological advancements in the hydrotreated vegetable oil industry are the running trends

Partially Hydrogenated Oil Industry:

Attributes	Partially Hydrogenated Oil Market
CAGR (2024 to 2034)	5.60%
Growth Factor	Rising encouragement for the growth of this sector, especially by governments of developed economies
Opportunity	Increasing use of cutting-edge technologies to fuel industry growth
Key Trends	Research and development to advance the partially hydrogenated oil industry

Edible Oil and Fat Industry:

Attributes	Edible Oil and Fat Industry
CAGR (2024 to 2034)	6.4%
Growth Factor	Rising demand for non-GMO and organic foods, such as fats and oils
Opportunity	Ongoing advancements in refining as well as oil extraction technologies
Key Trends	Growing demand for environment-friendly and sustainable food options.

Category-wise Hydrotreated Vegetable Oil Market Analysis

Pure HVO to Hold a Predominant Industry Share

Leading Type of Fuel	Pure HVO
Value Share (2023)	58%

The pure HVO segment registered a share of 58% in the historical period. Pure HVO is a popular and widely used type of fuel. Lesser environmental impact of pure HVO than conventional fuels is a key driver of this segment. Pure HVO is made up of renewable raw materials that do not emit any new carbon dioxide (CO2) into the atmosphere.

Transportation Sector Significantly Contributes to the Hydrotreated Vegetable Oil Industry

Leading Application	Transportation
Value Share (2023)	43.0%

HVO is extensively used in the transportation sector. This sector achieved a share of 43% in the year 2023. Wide application of HVO in the transportation sector is influenced by the rising adoption of emissions-free vehicles.

With more stringency being introduced in the emissions’ regulations, HVO is expected to become a torchbearer of a greener future for road transport firms.

Global Hydrotreated Vegetable Oil Industry Demand Analysis by Country

Countries	Forecast CAGR (2024 to 2034)
The United States	13.0%
The United Kingdom	14.0%
China	13.50%
Japan	14.50%
South Korea	15.0%

The United States to Gain a Leading Stance in the Hydrogenated Vegetable Oil Market

The demand for hydrotreated vegetable oil in the United States is rising at a 13% CAGR over the forecast period. By the end of the forecast period, the regional industry is expected to reach a valuation of USD 12.5 billion.

• Increasing concerns about reducing carbon emissions and the ongoing transition to renewable energy sources are enhancing the scope of the HVO industry. HVO fuel offers a simple and quick step to attain a net zero target with no need for CAPEX, thus reducing greenhouse gas emissions to over 10%. This makes the fuel a sustainable replacement for fossil diesel.
• Rising use of this oil as a sustainable fuel in aviation. Additionally, its adoption is emerging as a critical trend for market advancement.
• Surging demand for HVO from the automotive sector is promoting expansion of the HVO industry.

Emerging Sustainability Issues Promote the Use of HVO in the United Kingdom

The United Kingdom industry is expected to reach a valuation of USD 2.8 billion by the end of the forecast period. During the progressing growth period, the industry is expanding at a 14% CAGR.

• Increasing HVO fuel providers that deliver across the United Kingdom.
• Sustainability concerns are encouraging the use of HVO, which is a low-emission, fossil-free, low-carbon, and sustainable alternative to traditional fossil diesel.
• Significant potential for hydrogenated vegetable oil in various application segments like industrial power generators, transportation, etc.
• Pre-establishment of the automotive infrastructure to distribute vehicles as well as diesel fuel has been conducive to the growth of the HVO industry. The fuel is compatible and is easily accepted, thus making it a preferred choice for the automotive sector. Several engines that have been recently developed are already compatible with renewable diesel.

Growth in Export-oriented HVO Plants in China to Raise the Market Growth

China’s hydrogenated vegetable oil industry is forecast to generate remuneration of USD 11.0 billion by the year 2034. Over the next decade, the marketspace is expected to expand at a CAGR of 13.5%.

• The rising count of plants that produce hydrotreated vegetable oil (HVO) is increasing the production capacity of HVO.
• Widely commercially available HVOs are raising the accessibility of hydrogenated vegetable oil over the forecast period.
• Surging marketing of hydrogenated vegetable oil as a 'drop-in' substitute for fossil-diesel.
• Presence of many key players manufacturing renewable and green HVO by utilizing patented technology is also promoting the industry expansion over the forecast period.

Japan to Observe Heightened Demand for 'Drop-in' Fuel

HVO industry in Japan is expected to gain USD 7.8 billion by 2034. Throughout the forecast period, the industry is expanding at a CAGR of 14.5% over the next ten years.

• Rising demand for renewable diesel to offer superior performance in cold weather and low maintenance as opposed to petroleum diesel. Therefore, it is gaining significant traction in different applications like aviation, agriculture, and construction.
• Promising growth of HVO in the transportation industry to contribute to the reduction of GHG emissions. This renewable fuel is used in cargo trucks, buses, etc., as a so-called 'drop-in' fuel. This fuel allows the utilization of existing vehicles and refueling units without the need for any special modification.

Optimal Long-term Storage Advantage of Hydrotreated Vegetable Oil to Elevate Industry Growth in South Korea

The South Korea industry is projected to register USD 4.5 billion by the year-end 2034. In the coming decade, the industry is expanding at a 15% CAGR. Key factors impelling the growth of the HVO industry are as follows:

• Rising demand for HVO to reduce environmental burden and improve the working environments.
• Growing knowledge about the convenience of renewable diesel among manufacturers as it offers optimal long-term storage. Additionally, growing measures for business continuity plans are also promoting industry growth.

Competitive Analysis of the Hydrotreated Vegetable Oil Landscape

The industry is extremely competitive, with leading key players accounting for rising stakes at the domestic and global levels. Industry participants are increasing their production capacities by enhancing operations and gaining digital tools.

Many key players in the industry are offering pure HVO, which is a highly regarded fuel type. Additionally, the adoption of hydrotreated vegetable oil is rising due to co-processing technology being used to raise power output and efficiency to optimum levels.

Rising manufacturing capacity and research and development activities for renewable diesel are expected to benefit downstream customers of renewable diesel. These strategies help reduce costs, enhance reliability, and raise efficiency.

Strategies like partnerships, mergers, and acquisitions continue to impact the business landscape hydrotreated vegetable oil industry.

In developed markets like the United States, Neste and Valero Energy are the top companies. Neste’s apex position is credited to the strong sales performance of its flagship fuel offering, i.e., pure hydrotreated vegetable oil. Furthermore, growing emphasis on the adoption of HVO as an alternative to diesel fuel is promoting its wider adoption.

Events Shaping the Hydrotreated Vegetable Oil Industry

• In December 2022, Cepsa allocated about USD 3.15 billion of its funds to European green hydrogen projects. This initiative is projected to generate 3,00,000 tons of hydrogen every year, which is expected to be used to power the company’s refineries, local heavy shipping, and haulage.
• In November 2022, Neste obtained the aggregation business, associated assets, and collection of used cooking oil (UCO) from Renewable Energy Holdings, LLC, within the United States.
• Eni declared in November 2022 that it has decided to construct a third biorefinery at its Livorno site to develop renewable diesel. The refinery is expected to be made of three biofuel plants, i.e., a plant that produces hydrogen from methane gas, an eco-fining plant with a capacity of 5,00,000 tons per year, and a pre-treatment facility for the biogenic raw materials.
• World Energy made the launch of its engineering plans public in August 2022. At that time, the company had announced that it going to convert its assets and launch a new Sustainable Aviation Fuel (SAF) hub. This is expected to permit the company to develop 250 million gallons of SAF every year by 2025.
• Chevron Corporation completely acquired Renewable Energy Group, Inc. in June 2022, after the approval by REG stockholders. With this development, both companies have brought together complementary capabilities, customer relationships, and assets to make Chevron top renewable fuel firms in the United States.

Key Coverage in the Global Hydrotreated Vegetable Oil Market Research Report

• Supply Chain Challenges and Opportunities in Hydrotreated Vegetable Oil Industry
• Evaluation of the Economic Feasibility of Transitioning to Hydrotreated Vegetable Oil Products

Enlisted Below are Key players in the Hydrotreated Vegetable Oil Industry

• Neste
• Valero Energy
• Repsol
• UPM Biofuels
• Preem
• REG
• Total
• Cepsa
• Eni
• World Energy
• Others

Table of Content

• 1. Executive Summary
• 2. Market Overview
• 3. Market Background
• 4. Global Market Analysis 2019 to 2023 and Forecast, 2024 to 2034
• 5. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Type
  • 5.1. Pure HVO
  • 5.2. Co-processing
• 6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Application
  • 6.1. Transportation
  • 6.2. Industrial Power Generators
  • 6.3. Others
• 7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region
  • 7.1. North America
  • 7.2. Latin America
  • 7.3. Western Europe
  • 7.4. Eastern Europe
  • 7.5. South Asia and Pacific
  • 7.6. East Asia
  • 7.7. Middle East and Africa
• 8. North America Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
• 9. Latin America Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
• 10. Western Europe Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
• 11. Eastern Europe Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
• 12. South Asia and Pacific Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
• 13. East Asia Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
• 14. Middle East and Africa Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
• 15. Key Countries Market Analysis
• 16. Market Structure Analysis
• 17. Competition Analysis
  • 17.1. Neste
  • 17.2. TotalEnergies
  • 17.3. Eni S.p.A.
  • 17.4. Chevron
  • 17.5. Preem AB
  • 17.6. St1 Oy
  • 17.7. ConocoPhillips
  • 17.8. Diamond Green Diesel
  • 17.9. Repsol
  • 17.10. Green Biofuels Ltd
  • 17.11. Cepsa
• 18. Assumptions & Acronyms Used
• 19. Research Methodology