Global Hydrotreated Vegetable Oil (HVO) Market Size, Share, Growth Analysis Report - Forecast 2034

Global Hydrotreated Vegetable Oil (HVO) Market: Industry Perspective

The global hydrotreated vegetable oil (HVO) market size was worth around USD 3.19 Billion in 2024 and is predicted to grow to around USD 37.37 Billion by 2034 with a compound annual growth rate (CAGR) of roughly 25.2% between 2025 and 2034. The report analyzes the global hydrotreated vegetable oil (HVO) market's drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the hydrotreated vegetable oil (HVO) industry.

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Global Hydrotreated Vegetable Oil (HVO) Market: Overview

A renewable form of diesel known as hydrogenated vegetable oil (HVO) may be created from a variety of vegetable oils and fats that include triglycerides and fatty acids. The term "HVO" refers to renewable diesel fuels produced via hydrocracking and hydrogenation of various feedstocks, including tall oil, rapeseed oil, spent cooking oil, and animal fats. HVO is also known as HEFA, or Hydro-processed Esters and Fatty Acids. Its chemical composition is generally comparable to that of fossil diesel. It differs from fossil diesel in a few ways, including having less energy and a lower density. With a high cetane number, HVO is devoid of oxygen, sulfur, and aromatic hydrocarbons. It is included in fossil diesel that is sold as blends at fueling stations and is currently the second-largest renewable diesel alternative globally.

Global Hydrotreated Vegetable Oil (HVO) Market: Growth Drivers

Growing government initiatives drive market growth

The rise in government measures to cut carbon emissions is one factor driving the expansion of the hydrotreated vegetable oil (HVO) industry. The demand for renewable energy sources and alternative fuels is rising as a result of many nations establishing aggressive goals to minimize their carbon footprint. The government is creating regulations and incentives to encourage the use of renewable diesel substitutes and biofuels in the transportation industry, which consumes a lot of HVO. The demand for HVO, which offers a sustainable and ecologically friendly substitute for conventional diesel, is expanding as a result of the need to address environmental issues and lessen reliance on fossil fuels.

Hydrotreated Vegetable Oil (HVO) Market: Restraints

Feedstock availability and competition limit the market growth

Production of HVO may be impacted by the availability and competition for feedstock sources like vegetable oils and animal fats. Prices and availability are subject to change, and rivalry with other sectors of the economy, such as the food and chemical industries, may increase prices and reduce the supply of acceptable feedstocks. Thus, the feedstock availability and competition are expected to limit the hydrotreated vegetable oil market growth during the forecast period.

Hydrotreated Vegetable Oil (HVO) Market: Opportunities

Green energy transition offers a lucrative opportunity for market growth

HVO offers a practical way to reduce the transportation sector's carbon footprint as nations and regions strive to switch to cleaner, more sustainable energy sources. HVO, a renewable and low-emission fuel, has a significant opportunity as a result of this transformation. For instance, according to the data published by the International Energy Agency, biofuel output has increased by 15% to 165 billion liters by the end of the predicted period. Despite strong growth in electric mobility, biofuels continue to account for about 90% of total renewable energy consumption in the transportation sector in 2023. Fuel ethanol accounts for two-thirds of biofuel production increases, with the remaining coming from biodiesel and hydrotreated vegetable oil (HVO). Therefore, the green energy transition is expected to offer a lucrative opportunity for hydrotreated vegetable oil market growth during the forecast period.

Hydrotreated Vegetable Oil (HVO) Market: Challenges

High production cost poses a challenge to market growth

HVO manufacturing can still be more expensive than conventional diesel refining, despite technical developments. In some areas, it might be difficult to compete with fossil fuel on price due to the high cost of hydrotreating and maintaining feedstock quality. Thus, this is expected to pose a major challenge to the HVO market growth over the forecast period.

Key Insights

• As per the analysis shared by our research analyst, the global hydrotreated vegetable oil (HVO) market is estimated to grow annually at a CAGR of around 25.2% over the forecast period (2025-2034).
• Regarding revenue, the global hydrotreated vegetable oil (HVO) market size was valued at around USD 3.19 Billion in 2024 and is projected to reach USD 37.37 Billion by 2034.
• The hydrotreated vegetable oil (HVO) market is projected to grow at a significant rate due to Rising demand for low-carbon, renewable diesel alternatives fuels market growth. Government mandates for cleaner fuels and sustainability targets support adoption.
• Based on Feedstock, the Vegetable Oils segment is expected to lead the global market.
• On the basis of Application, the Transportation (Cars segment is growing at a high rate and will continue to dominate the global market.
• Based on the End-user, the Automotive segment is projected to swipe the largest market share.
• By Distribution Channel, the Direct segment is expected to dominate the global market.
• Based on region, Europe is predicted to dominate the global market during the forecast period.

Global Hydrotreated Vegetable Oil (HVO) Market: Report Scope

Global Hydrotreated Vegetable Oil (HVO) Market: Segmentation Analysis

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The global hydrotreated vegetable oil (HVO) market is segmented based on Feedstock, Application, End-user, Distribution Channel, and region. All the segments have been analyzed based on present and future trends and the market is estimated from 2025 to 2034.

Based on Feedstock, the global hydrotreated vegetable oil (HVO) market is divided into Vegetable Oils, Animal Fats, Waste Cooking Oil, Others.

On the basis of Application, the global hydrotreated vegetable oil (HVO) market is bifurcated into Transportation (Cars, Trucks, Aviation), Power Generation, Industrial, Others.

By End-user, the global hydrotreated vegetable oil (HVO) market is split into Automotive, Marine, Aerospace, Energy & Utilities.

In terms of Distribution Channel, the global hydrotreated vegetable oil (HVO) market is categorized into Direct, Indirect.

The Regional, this segment includes the current and forecast demand for North America, Europe, Asia Pacific, Latin America,and the Middle East and Africa.

Global Hydrotreated Vegetable Oil (HVO) Market: Regional Analysis

The Hydrotreated Vegetable Oil (HVO) market is expected to grow significantly between 2025 and 2034 across all regions, with Europe continuing to lead—holding more than 50% of installed capacity in 2024 and witnessing a CAGR of approximately 12.6% fueled by strong policy support like RED II and extensive production infrastructure. North America follows with accelerated expansion (around 13% CAGR), driven by incentives such as California’s LCFS, RIN credits, and the U.S. Renewable Fuel Standard. In Asia‑Pacific, especially in China, Japan, South Korea, and parts of Southeast Asia, the market is growing even faster—at CAGRs between 13.5% and 15%—with major new biorefineries targeting both domestic use and exports . Other regions, including Latin America, the Middle East, and Africa, are emerging markets, with rising interest due to abundant feedstock and evolving renewable fuel policies, though their overall share remains smaller.

Global Hydrotreated Vegetable Oil (HVO) Market: Competitive Analysis

The report provides a company market share analysis to give a broader overview of the key market players. In addition, the report also covers key strategic developments of the market, including acquisitions & mergers, new product launches, agreements, partnerships, collaborations & joint ventures, research & development, and regional expansion of major participants involved in the hydrotreated vegetable oil (HVO) market on a global and regional basis.

The global hydrotreated vegetable oil (HVO) market is dominated by players like:

• UPM Biofuels
• World Energy
• Valero Energy
• Preem
• Cepsa
• Total
• REG
• Eni
• Neste
• Repsol
• ALFA LAVAL
• Crown Oil Ltd
• Desmet
• Shell
• Hyster-Yale Group Inc.
• Interion Pte Ltd
• Singapore
• Targray
• Advanced BioFuels USA
• Watson Fuels
• Rapid Energy Ltd
• Clonminam Industrial
• ADM
• Certas Energy
• Others.

Global Hydrotreated Vegetable Oil (HVO) Market: Segmentation Analysis

The global hydrotreated vegetable oil (HVO) market is segmented as follows;

By Feedstock

• Vegetable Oils
• Animal Fats
• Waste Cooking Oil
• Others

By Application

• Transportation (Cars
• Trucks
• Aviation)
• Power Generation
• Industrial
• Others

By End-user

• Automotive
• Marine
• Aerospace
• Energy & Utilities

By Distribution Channel

• Direct
• Indirect

Global Hydrotreated Vegetable Oil (HVO) Market: Regional Segment Analysis

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America