Bio Naphtha Market Outlook

According to the report by Expert Market Research (EMR), the global bio naphtha market reached a volume of 645.41 thousand tons in 2024. Aided by the increasing global focus on sustainability, the rising adoption of renewable fuels, and the growing demand for bio-based feedstocks in the petrochemical industry, the market is projected to grow at a CAGR of 19.00% between 2025 and 2034, reaching a volume of approximately 3675.41 thousand tons by 2034.

Bio naphtha is a renewable, hydrocarbon-based liquid derived from organic materials such as vegetable oils, waste cooking oil, animal fats, and other bio-based feedstocks. It serves as a sustainable alternative to conventional fossil-based naphtha and plays a vital role in producing bio-based chemicals, plastics, and sustainable fuels. With increasing efforts to reduce greenhouse gas emissions and dependence on crude oil, bio naphtha is gaining traction as an environmentally friendly substitute in the energy and chemical industries.

The rising emphasis on decarbonisation, coupled with international policies aimed at promoting renewable fuels and circular economy principles, is significantly driving the adoption of bio naphtha across various industrial sectors. Additionally, as consumers and manufacturers seek greener alternatives to fossil-based products, the global bio naphtha market is poised for substantial growth over the forecast period.

Bio Naphtha Market Size and Share

The global bio naphtha market is currently at an early but rapidly expanding stage, with increasing investments and capacity expansions by key players contributing to market development. Europe holds a dominant share in the market, supported by stringent environmental regulations and strong initiatives such as the European Green Deal, which promotes renewable energy adoption across the industrial value chain. Countries such as Finland, Sweden, the Netherlands, and Germany are leading producers and consumers of bio naphtha, driven by their robust biofuel sectors and advanced biorefinery infrastructure.

North America also represents a significant share of the market, with the United States and Canada focusing on renewable feedstocks to reduce carbon emissions and meet biofuel blending targets. Meanwhile, the Asia Pacific region is emerging as a key growth area, propelled by increasing energy demand, government incentives for renewable energy, and expanding petrochemical industries in India, Japan, China, and South Korea.

Major players, including Neste Corporation, ENEOS Corporation, TotalEnergies, and Repsol S.A., are actively engaged in large-scale production and commercialization of bio naphtha. These companies are leveraging waste-derived raw materials and advanced processing technologies to enhance product sustainability and improve efficiency in production.

Get a Free Sample Report with Table of Contents@ https://www.expertmarketresearch.com/reports/bio-naphtha-market/requestsample

Bio Naphtha Market Trends

Several transformative trends are shaping the global bio naphtha market, indicating the transition toward a circular and low-carbon economy:

• Shift Toward Renewable and Circular Feedstocks: The growing emphasis on bio-based and circular feedstocks, including waste oils, animal fats, and agricultural residues, is boosting the production of bio naphtha as a sustainable alternative to petroleum-based chemicals.

• Rising Use in Bio-Plastics and Green Chemicals: Bio naphtha serves as a key feedstock in the production of bio-based plastics such as polyethylene and polypropylene. The increasing demand for sustainable packaging materials and biodegradable plastics is accelerating bio naphtha adoption in the petrochemical sector.

• Integration of Biorefineries: The emergence of integrated biorefineries capable of producing multiple renewable products—such as biofuels, bio-LPG, and bio naphtha—enhances production efficiency and reduces waste. This integration is improving profitability and scalability for producers.

• Corporate Commitments to Sustainability: Leading energy and chemical companies are committing to net-zero carbon goals, prompting investments in renewable production pathways. Several multinational firms are incorporating bio naphtha into their supply chains to reduce scope 3 emissions and enhance brand sustainability.

• Advancements in Catalytic and Thermochemical Processes: Innovations in hydrotreatment, gasification, and pyrolysis technologies are improving yield and purity of bio naphtha, making it a competitive alternative to conventional naphtha.

• Government Policy Support: Policy measures such as carbon pricing, biofuel blending mandates, and renewable energy incentives in major economies are supporting bio naphtha market growth globally.

Drivers of Growth

The global bio naphtha market growth is primarily driven by multiple environmental, economic, and industrial factors:

• Rising Environmental Concerns: The urgent need to mitigate climate change and reduce greenhouse gas emissions has spurred a shift toward renewable fuels. Bio naphtha, being a low-carbon substitute for fossil-based naphtha, is playing an essential role in decarbonising energy-intensive sectors.

• Expanding Demand for Sustainable Petrochemicals: The petrochemical industry’s growing need for sustainable and renewable feedstocks for plastics and chemicals is a major factor boosting the demand for bio naphtha.

• Regulatory Incentives and Carbon Reduction Policies: Governments worldwide are introducing carbon taxes, renewable fuel standards, and sustainability targets that encourage the production and consumption of bio-based alternatives like bio naphtha.

• Technological Advancements in Biofuel Production: Innovations in refining and catalytic conversion technologies have significantly improved bio naphtha yields and quality, making production more cost-competitive and scalable.

• Growing Electric Vehicle and Green Fuel Demand: As transport sectors shift toward cleaner fuels, bio naphtha is increasingly used in renewable gasoline and aviation fuel production, supporting global clean energy transitions.

• Corporate Sustainability Goals: Companies across the energy, chemical, and packaging sectors are investing in bio-based materials to meet environmental, social, and governance (ESG) objectives, creating long-term demand for bio naphtha.

Bio Naphtha Market Segmentation

The market can be divided based on source, end use, distribution channel and region.

Competitive Landscape

Some of the major players explored in the report by Expert Market Research are as follows:

• Neste Oil
• UPM Corporation
• Eni S.p.A.
• Total Energies SE
• Royal Dutch Shell Plc
• Sunshine Kaidi New Energy Group Co., Ltd.
• Preem AB
• OMV Group
• Repsol S.A.
• Phillips 66
• Others

Challenges and Opportunities

Challenges:

• High Production Costs:
  Compared to fossil-based naphtha, bio naphtha remains relatively expensive due to limited economies of scale and high feedstock prices.

• Feedstock Availability:
  The dependence on vegetable oils and waste fats can lead to supply chain constraints, especially with competing demand from biofuel and food sectors.

• Limited Infrastructure:
  The lack of widespread biorefining and renewable fuel distribution infrastructure in developing economies poses a challenge to large-scale market adoption.

• Market Volatility:
  Fluctuations in crude oil prices can impact the competitiveness of bio-based naphtha relative to its fossil-derived counterpart.

Opportunities:

• Growing Focus on Circular Economy:
  Rising investments in waste-to-energy and circular production systems provide significant growth potential for bio naphtha producers.

• Expansion in Green Chemicals and Plastics:
  The rapid growth of the bio-based plastics sector, coupled with increasing demand for eco-friendly materials, offers vast opportunities for bio naphtha applications.

• Strategic Partnerships and Joint Ventures:
  Collaborations between traditional oil refiners and renewable energy firms are expected to accelerate technology adoption and market penetration.

• Government Funding and Carbon Credits:
  Financial incentives, green bonds, and carbon credit schemes are making bio naphtha projects more economically viable.

Bio Naphtha Market Forecast

The global bio naphtha market is set for robust expansion through 2034, with increasing investments in renewable refineries, supportive government policies, and rising industrial demand for sustainable feedstocks. By 2034, the market volume is expected to reach 3675.41 thousand tons, growing at a CAGR of 19.00% during 2025–2034.

The future outlook for bio naphtha is highly promising as industries worldwide accelerate their transition toward net-zero emissions. Continuous advancements in refining technology, cost reduction through scaling, and the integration of circular economy principles are anticipated to reinforce the market’s growth trajectory.

Furthermore, as consumer preferences and regulatory frameworks increasingly favor sustainable materials, bio naphtha is positioned to become a cornerstone in the global shift toward renewable energy and green chemistry. With continued innovation and international collaboration, the bio naphtha industry is poised to transform the landscape of the petrochemical and fuel sectors, driving progress toward a more sustainable and low-carbon global economy.

Media Contact:

Company Name: Claight Corporation
Email: sales@expertmarketresearch.com
Toll Free Number: +1-415-325-5166 | +44-702-402-5790
Address: 30 North Gould Street, Sheridan, WY 82801, USA
Website: https://www.expertmarketresearch.com