Renewable Naphtha Market Research: the market was valued at US$ 756 million in 2024

The global renewable naphtha industry has entered a new growth phase in 2025, supported by investments in advanced bio-refineries, expanding certification frameworks, and a rapid rise in downstream demand from the plastics and fuels sectors. According to the latest report Renewable Naphtha - Global Market Share and Ranking, Overall Sales and Demand Forecast 2025-2031 from QYResearch, the market was valued at US$ 756 million in 2024 and is projected to reach US$ 1,907 million by 2031, growing at a CAGR of 14.3% from 2025 to 2031. Europe remains the leading regional market, followed by North America and Asia-Pacific, with the two largest regions together accounting for more than 60% of global revenue.

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Leading Companies

UPM Biofuels
Neste
Chevron Renewable Energy Group
Diamond Green Diesel
TotalEnergies
Eni
Imperial Oil / ExxonMobil
Idemitsu Kosan
Borealis
LyondellBasell
SABIC
Resonac

Applications

Biofuel
Green Plastic

Classification

Light
Heavy

Company Updates and Achievements 2024-2025

TotalEnergies advanced the transformation of its Grandpuits site into a zero-crude platform, introducing a renewable naphtha stream alongside sustainable aviation fuel, renewable diesel, and chemical recycling.

Neste strengthened its global footprint with its Neste RE renewable hydrocarbons, achieving greenhouse gas reductions of over 85% compared to fossil naphtha when used in petrochemical crackers.

UPM Biofuels expanded sales of its BioVerno Naphtha, produced from wood-based crude tall oil, which is already used in mass-balance production of renewable polymers and packaging.

Chevron Renewable Energy Group scaled renewable naphtha output as a secondary product of its renewable diesel production, increasingly integrated as a low-carbon gasoline blendstock in the United States.

Diamond Green Diesel, a joint venture between Valero and Darling, increased renewable diesel capacity to more than 1.2 billion gallons annually, with renewable naphtha serving as an important co-product for gasoline blending and chemical feedstock.

Product Snapshots

Neste - Neste RETM

· A renewable hydrocarbon feedstock replacing fossil naphtha in steam crackers.

· Provides over 85% greenhouse gas reduction versus fossil equivalents.

· Produced entirely from waste and residue oils with ISCC PLUS certification.

UPM Biofuels - BioVerno® Naphtha

· Derived from crude tall oil, a wood-based residue from pulp production.

· Boiling range approximately 40-190°C at atmospheric pressure.

· Low sulfur, paraffinic profile, compatible with petrochemical cracking.

TotalEnergies - Renewable Naphtha (Grandpuits)

· Produced from waste cooking oils and animal fats.

· Expected capacity of 50-70 kilotons per year as operations ramp up.

· Used for renewable olefins production in downstream plastics.

Chevron Renewable Energy Group - Renewable Naphtha

· A co-product of renewable diesel, primarily used in gasoline blending.

· Helps refiners meet low-carbon intensity standards in U.S. markets.

· Expanding role in California's LCFS and U.S. RFS programs.

Diamond Green Diesel - Renewable Naphtha

· Produced alongside renewable diesel from used cooking oil, corn oil, and animal fats.

· Dedicated renewable naphtha finishing facilities in operation.

· Marketed both for gasoline blending and petrochemical applications.

Downstream Customers

Dow
SABIC
Borealis
LyondellBasell
Resonac
Idemitsu Kosan
Mitsui Chemicals
Sumitomo Chemical
INEOS Olefins & Polymers Europe
LUMENE
Garofalo
IRPLAST
STABILO
Tratos Group
Suntory

Market Trend

Refiners Pivot to Renewable Feedstocks

Oil refiners are increasingly co-processing waste and residue oils to produce renewable diesel, sustainable aviation fuel, and associated co-products. Renewable naphtha volumes are rising as part of this shift, creating new opportunities in gasoline blending and petrochemical feedstocks. This trend has increased demand for hydrotreating catalysts capable of handling bio-based impurities.

Europe's Zero-Crude Platforms Lead Market Growth

European initiatives remain at the forefront, with France's Grandpuits project highlighting a complete pivot from crude refining to renewable products, including renewable naphtha. Nordic refiners are following similar paths, significantly raising production capacity.

Asia's Rising Import Demand

China's naphtha imports are expected to hit record levels in 2025, rising to around 16-17 million tons, compared to approximately 12 million tons in 2024. Although these figures cover both fossil and renewable naphtha, the surge in import demand underscores the growing importance of renewable alternatives for petrochemical feedstocks.

Certification and Traceability

Certification schemes such as ISCC PLUS have become essential for downstream adoption. Producers like Borealis and SABIC have expanded their ISCC-certified portfolios, ensuring traceability and credibility in renewable polymer chains. Mass-balance certification is now a standard requirement from major brand owners.

Life-Cycle Emission Reductions as a Competitive Edge

Producers are increasingly publishing third-party life-cycle assessments to demonstrate emission savings. Neste RE, for instance, reports reductions exceeding 85% compared with fossil feedstocks. Buyers in Europe, North America, and Asia are integrating these values into procurement frameworks to meet their sustainability goals.

Aviation and HVO Expansion Driving Supply

Large-scale SAF and HVO facilities generate renewable naphtha as a co-product, which stabilizes supply availability. Projects such as Diamond Green Diesel in the U.S. and OMV Petrom's Petrobrazi unit in Romania are central to expanding renewable naphtha volumes globally.

Commodity Dynamics Still Influence Renewable Streams

Renewable naphtha economics remain linked to conventional naphtha and gasoline markets. Periods of weak gasoline demand depress margins, but renewable streams retain an advantage through low-carbon fuel credit systems and brand-driven demand for low-carbon plastics.

Policy Frameworks Sustain Long-Term Growth

Regulations in Europe and the U.S. continue to support renewable fuel and chemical adoption. In 2025, ReFuelEU Aviation and FuelEU Maritime are driving demand for renewable feedstocks, while state-level programs like California's LCFS underpin U.S. adoption.

Strategic Takeaways

1. Scale meets certification: Regions with mature certification systems are driving the fastest adoption.

2. HVO and SAF projects secure co-product supply: Aviation-focused facilities underpin renewable naphtha availability.

3. Asia's import demand reshapes global flows: Record naphtha imports in China boost renewable adoption opportunities.

4. Life-cycle carbon transparency sets procurement standards: GHG reductions above 80% create clear value in tender processes.

5. Catalyst and pretreatment markets benefit: Renewable feedstocks require advanced pretreatment, adding opportunities for technology providers.

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