South-East Asia Biodiesel Market Size (2024 - 2029)

The South-East Asia biodiesel market is poised for growth, driven by a shift towards low-carbon emission fuels and supportive government initiatives across the region. Despite challenges related to food security, land use, and deforestation, the market is recovering post-pandemic, with increased adoption in the transportation sector. The trade of biodiesel and bioethanol among countries like Malaysia, Indonesia, and Thailand presents significant opportunities, with Indonesia expected to lead due to its promotion of biodiesel and substantial palm oil production.

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Market Size of South-East Asia Biodiesel Industry

South-East Asia Biodiesel Market - Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR 3.50 %
Market Concentration Medium

Major Players

South-East Asia Biodiesel Market Major Players

*Disclaimer: Major Players sorted in no particular order

South-East Asia Biodiesel Market Analysis

The South-East Asia biodiesel market is expected to witness a CAGR of around 3.5% during the forecast period. The COVID-19 pandemic severely affected the market as the demand for biodiesel and transportation fuel was reduced due to nationwide lockdowns. Nevertheless, post the pandemic, the market recovered again with increased usage in the transportation sector.

  • Over the short term, the South-East Asia biodiesel market is expected to grow more due to the global drift towards low-carbon emission fuels and the initiatives on behalf of the governments of South-East Asian countries to promote the use of biofuels for various applications.
  • On the other hand, owing to the issues, such as food security, land use, and deforestation, the threat still subsides for the biodiesel market.
  • Nevertheless, the ongoing trade of biodiesel and bioethanol among South-East Asian countries like Malaysia, Indonesia, Thailand etc., creates lucrative opportunities for the market, as it promotes the use of biodiesel for various applications.
  • Indonesia is expected to dominate the market due to the country's efforts to promote the use of biodiesel, and high palm oil production (the main raw material for biodiesel production).

South-East Asia Biodiesel Industry Segmentation

Biodiesel is a renewable and biodegradable fuel manufactured from vegetable oils, animal fats, or recycled restaurant grease. The South-East Asia biodiesel market is segmented by Feedstock, Application, and Geography. By feedstock, the market is segmented into Animal Fat, Vegetable Oil, and Others. By application, the market is segmented into Transportation, Power Generation, and Other Applications. The report also covers the market size and forecasts for the South-East Asia biodiesel market across the major countries. For each segment, the market sizing and forecasts have been done based on revenue (in USD billion).

Feedstock
Animal Fat
Vegetable Oil
Other Feedstocks
Application
Transportation
Industrial & Commercial
Other Applications
Geography
Thailand
Malaysia
Indonesia
Rest of South-East Asia
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South-East Asia Biodiesel Market Size Summary

The South-East Asia biodiesel market is poised for growth, driven by a global shift towards low-carbon emission fuels and supportive government initiatives across the region. The market, which faced setbacks during the COVID-19 pandemic due to reduced demand for transportation fuels, has rebounded with increased adoption in the transportation sector. Despite challenges related to food security, land use, and deforestation, the trade of biodiesel and bioethanol among countries like Malaysia, Indonesia, and Thailand presents significant opportunities. Indonesia is expected to lead the market, bolstered by its substantial palm oil production, a key raw material for biodiesel, and government efforts to promote biodiesel use.

Biodiesel, a renewable and clean-burning diesel alternative, is increasingly being blended with fossil fuels in transportation, with countries in the region implementing blending mandates to reduce emissions. Malaysia has seen a rise in biodiesel consumption, supported by government policies such as blend mandates and subsidies. Similarly, Indonesia has introduced blending mandates and is testing higher blends, which are anticipated to drive market growth. The biodiesel sector in Indonesia is further supported by private investments and international collaborations, such as the development of a biodiesel plant by GS Caltex and POSCO International. The market remains moderately fragmented, with key players like Louis Drefus Company and KLK Bioenergy Sdn Bhd actively participating in the region's biodiesel landscape.

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South-East Asia Biodiesel Market Size - Table of Contents

  1. 1. MARKET OVERVIEW

    1. 1.1 Introduction

    2. 1.2 Market Size and Demand Forecast in USD billion, till 2027

    3. 1.3 Recent Trends and Developments

    4. 1.4 Government Policies and Regulations

    5. 1.5 Market Dynamics

      1. 1.5.1 Drivers

      2. 1.5.2 Restraints

    6. 1.6 Supply Chain Analysis

    7. 1.7 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.7.1 Bargaining Power of Suppliers

      2. 1.7.2 Bargaining Power of Consumers

      3. 1.7.3 Threat of New Entrants

      4. 1.7.4 Threat of Substitutes Products and Services

      5. 1.7.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 Feedstock

      1. 2.1.1 Animal Fat

      2. 2.1.2 Vegetable Oil

      3. 2.1.3 Other Feedstocks

    2. 2.2 Application

      1. 2.2.1 Transportation

      2. 2.2.2 Industrial & Commercial

      3. 2.2.3 Other Applications

    3. 2.3 Geography

      1. 2.3.1 Thailand

      2. 2.3.2 Malaysia

      3. 2.3.3 Indonesia

      4. 2.3.4 Rest of South-East Asia

South-East Asia Biodiesel Market Size FAQs

The South-East Asia Biodiesel Market is projected to register a CAGR of greater than 3.5% during the forecast period (2024-2029)

Louis Drefus Company, Vance Group Ltd., KLK Bioenergy Sdn Bhd, Tristar Global and BBGI Public Company Limited are the major companies operating in the South-East Asia Biodiesel Market.

South-East Asia Biodiesel Report Snapshots

South-East Asia Biodiesel Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)