Expanding Renewable Naphtha Market Propelled by a 11.5% Compound Annual Growth Rate, Forecasted Until 2034
The renewable naphtha market is witnessing a surge in growth, propelled by increasing demand from various sectors and advancements in renewable energy technology. By 2031, the market is projected to reach USD 3.2 billion, growing at a Compound Annual Growth Rate (CAGR) of 9.5% from 2025 [1].
Regional Highlights
The North American region, particularly the U.S. and Canada, is making a significant impact in the renewable naphtha market. The U.S., in particular, is seeing significant growth due to increased production and demand from sectors such as sustainable aviation fuel [1]. Europe, while data for individual countries like Germany is not specified, is a hub for renewable energy innovations, contributing to the growth of renewable naphtha through technological advancements and policy support. South Korea, part of the Asia-Pacific region, is another key player, with its petrochemical and fertilizer industries driving demand [5]. The Asia-Pacific region, led by countries like China and India, holds a substantial share of the global naphtha market, focusing on self-sufficiency in feedstocks and rising polymer demand [5].
Key Trends and Players
The U.S. renewable aviation sector is a significant consumer of renewable naphtha, underscoring its importance in the production of sustainable aviation fuels [1]. The downward trend in feedstock costs from waste biomass has improved profit margins for renewable naphtha producers [1]. The rise in imports of renewable naphtha intermediates from the Asia-Pacific region to the U.S. indicates shifting market segments and supply-side adjustments [1].
Eni, a leading player, is expanding its production of renewable naphtha as part of its decarbonization strategy, aiming for net-zero by 2050. The company has integrated renewable naphtha into its Venice biorefinery, co-processing bio-feedstocks to produce bio-naphtha for plastics and chemicals [2].
ExxonMobil, in partnership with Plastic Energy, is producing circular naphtha from plastic waste at its French refinery. Chevron REG is also scaling up renewable naphtha production using feedstocks like used cooking oil and animal fats [3]. Braskem is advancing its renewable naphtha initiatives as part of its bio-based chemicals strategy, using sugarcane-based ethanol to produce bio-naphtha [4].
The shift to renewable naphtha reduces reliance on fossil fuels, enhancing energy security and stabilizing economies against oil price volatility. Companies like Clean Planet Energy are focusing on converting non-recyclable plastics into ultra-clean fuels, including renewable naphtha [6]. World Energy is planning to expand its California facility's throughput from 2 million gallons annually to 6 million by 2026 and 17 million by 2030 [7].
In 2024, Fuel Blending captured a 59.1% share of the global renewable naphtha market by application. Europe stood as the dominant regional market for renewable naphtha, capturing a commanding 43.2% share, equivalent to USD 0.2 billion [8]. Clean Planet Energy recently announced new UK and EU plants to boost production of renewable naphtha [9].
The Global Renewable Naphtha Market is projected to grow from USD 0.6 billion in 2024 to USD 1.8 billion by 2034, achieving a CAGR of 11.5% during the 2025-2034 forecast period [10]. ExxonMobil is investing in renewable naphtha through advanced biofuels and pyrolysis oil processing [3].
[1] https://www.marketsandmarkets.com/Market-Reports/renewable-naphtha-market-268179264.html [2] https://www.eni.com/en_EN/media/press-releases/2022/02/eni-starts-up-the-first-commercial-scale-biorefinery-in-venice [3] https://www.exxonmobil.com/en/about-us/news-media/press-releases/exxonmobil-to-partner-with-plastic-energy-to-produce-circular-naphtha-at-its-french-refinery [4] https://www.braskem.com/en/newsroom/press-releases/2022/03/braskem-announces-investment-in-renewable-naphtha-to-advance-its-bio-based-chemicals-strategy [5] https://www.marketsandmarkets.com/Market-Reports/naphtha-market-1126.html [6] https://cleanplanetenergy.com/ [7] https://www.worldenergy.com/ [8] https://www.grandviewresearch.com/industry-analysis/renewable-naphtha-market [9] https://cleanplanetenergy.com/news/clean-planet-energy-announces-new-uk-and-eu-plants-to-boost-production-of-renewable-naphtha/ [10] https://www.grandviewresearch.com/industry-analysis/renewable-naphtha-market
- The growth in the renewable naphtha market is not limited to the energy sector; industries such as aerospace and environmental science are also showing interest due to advancements in renewable energy technology.
- As big players like Eni, ExxonMobil, Chevron REG, Braskem, and Clean Planet Energy invest in renewable naphtha, the finance sector is forecasted to grow alongside, with investments expected to reach USD 1.8 billion by 2034.
- With the rise of renewable naphtha production, businesses in various sectors, such as aviation and plastics, are moving toward greener solutions, reducing their reliance on fossil fuels and contributing to the global effort against climate-change.
- The potential of renewable naphtha extends beyond energy, with companies focusing on environmental science, finance, and business opportunities in areas like energy security, self-sufficiency in feedstocks, and the production of renewable fuels and ultra-clean fuels from waste materials, such as plastic waste and used cooking oil.
