In 2024, world production of biodiesel will reach a record 76.3 million tons

According to IGC experts, in 2023 the global production of biodiesel, including hydrotreated vegetable oil (HVO), increased by 11% compared to 2022 to 71.5 million tons. This was facilitated by the increase in production in North and South America and in Asia. It is expected that in 2024, world production will grow by another 7% and reach a record 76.3 million tons.

In recent years, the USA, Brazil and Indonesia have significantly increased biodiesel production. If 10 years ago their share in the total global production of these products was 35%, now it reaches 60%.

Soybean oil played an important role in increasing production. Stronger demand for soybean meal led to an increase in soybean acreage, while demand for soybean oil from the food industry remained largely unchanged.

The projected increase in the soybean harvest in the United States and Argentina will boost exports of soybean processing products. While soybean production in Brazil covers the domestic needs of the biodiesel industry.

It will be recalled that the USA recently opened the market for spent vegetable oil (UCO), which is also used in the production of biofuel. Experts believe that this could reduce the profits of American producers and processors of soybeans, as competition with importers of ingredients for the production of biodiesel will increase.