Bio LPG Market Size, Share, Opportunities, And Trends By Feedstock (Residual/Waste, Sugar, Oil), By End user (Residential, Commercial), And By Geography - Forecasts From 2023 To 2028

The Bio LPG market is projected to grow at a CAGR of 15.44% over the forecast period, increasing from US$2,146.575 million in 2025 to US$4,401.570 million by 2030.

Bio LPG is a renewable and sustainable gas formed from a blend of residues, wastes, the environment, and sustainably sourced materials. Bio LPG comes from gaseous fuels which have production processes that use organic and renewed feedstocks. The major companies are investing in developing novel and advanced solutions and infrastructure and producing bio-LPG. For instance, in November 2023, SHV Energy had a strategic partnership with Japanese partners Furukawa Electric Co., Ltd. and Astomos Energy Corporation to work on solutions for bioLPG production routes. This collaboration aimed to convert carbon dioxide and methane from livestock manure into millions of tonnes of renewable bio-LPG. 

The demand for renewable fuels is rising worldwide, contributing to the bio LPG market growth. Bio LPG from renewable sources is a much cleaner and sustainable alternative to conventional LPG. Further, the increasing global population is also adding to the increased demand in the market as it provides energy for cooking, heating, and transportation.  According to UN estimates, there will be a two billion population increase worldwide in the next three decades, from 8 billion in 2022 to 9.7 billion by 2050. At the same time, India's population is forecast to rise to 1,425,775,850 by April 2023, which is nearly the same and even more than that of mainland China. Besides, urbanization and industrialization create energy demand that works efficiently and reliably. Bio LPG works for both residential and industrial applications and will witness significant market growth in the coming years.

In addition, using strategic partnerships is a means through which companies are enhancing their market potential. For instance, in March 2022, the finalization by Neste Corporation of a 50/50 joint venture with Marathon Petroleum in the United States as a strategy to bring hold on a certain bigas sector. The joint venture was signed to develop biodegradable substances at Marathon refinery in California.

 What are the drivers of the Bio LPG market?

• The increasing transition towards clean fuel is predicted to promote the bio LPG market expansion. 

Bio LPG demand will increase in the coming years owing to the global progress toward clean fuel. The World Health Organization stated that it recognizes LPG and bio LPG as clean fuels to fight household air pollution. The International Energy Agency highly recommends LPG as the best option for combating household air pollution concerned with energy use. Several reports say bio LPG fuels lower climate-carbon emissions to a very great extent. Moreover, countries are moving towards bio-LPG solutions, and all major nations have adopted benefits from bio-LPG solutions to cut carbon emissions.

Additionally, Natural gas encompasses a plethora of gases and liquids that lead to LPG and bio LPG production, and its increasing demand and consumption are boosting LPG in the market. Bio LPG is a renewable form of LPG produced from water and remains from plants, hence termed renewable, and will witness an increase in demand. According to the Petroleum Planning Analysis Cell, as of October 2024, the total consumption of natural gas is 6,014 million standard cubic meters of gas (MMSCM). It has increased to this value from 5,630 MMSCM. The forecasted figure for this period is expected to follow an upward trend, while from April 2024 to October 2024, total natural gas consumption accounted for a value of 42,805 MMSCM. This can also be used for cooking, increasing the demand for bio LPG.

• The rising production of waste and residual is anticipated to boost the bio LPG market expansion. 

The rising production of waste, coupled with the growing concerns regarding environmental pollution and climate change, is prompting the rise in the usage of organic waste as a source for generating bio LPG, as it emits significantly lower levels of carbon.  

Additionally, most of the municipal solid waste that is regularly dumped in landfills typically includes food waste. According to the Shell TechXplorer 2021, Petroleum Development Oman's (PDO) expanding workforce is boosting trash production and straining already-strapped landfill infrastructure. Most of this trash, however, consists of biodegradable food waste that can be converted into biogas.

According to FDA estimates, between 30 and 40 percent of the food supply in the US is wasted. The sustainable development goals of the UN aim to halve food waste by 2030 by utilizing it in bio LPG and increasing awareness among the population. According to the UN Food Index Report 2021, the household contributed 61% of food waste, as compared to 26% from food service, and 13% from retail. Thus, the growing world population is further indicating the increase in food waste. For instance, the world population is estimated to exceed 8.5 billion by 2030 from 8 billion in 2022, as per the World UN World Population Prospects Report 2022.

Moreover, food waste made up about 11 percent of the overall waste produced in Singapore in 2023. Food waste generated in 2023 was at 755,000 tonnes, down from 2022. The food waste recycling rate was 18 percent.

Apart from such effective options that are driving the growth in safety applications, various advancements are being made worldwide in the generation of bio LPG from organic wastes, prompting the rise in organic waste conversion to bio LPG. In line with this, the Swachh Bharat Abhiyan, a clean India mission initiated by the government, has given the waste management sector a boost, and this has resulted in a significant increase in demand for waste management solutions. The Indian market for solid waste management is growing at a CAGR of 7.5% during the forecast period (2021-2026), with the key drivers being increased urbanization, rising awareness about waste management, and increased investments in waste management infrastructure.

What are the key geographical trends shaping the bio LPG market?

Based on geography, the bio LPG market is segmented into the Americas, Europe Middle East and Africa, and the Asia Pacific. The Asia Pacific region is experiencing significant growth in the Bio LPG market, driven by various factors contributing to its expanding demand. This surge is primarily attributed to the increasing adoption of renewable energy sources, with Bio LPG emerging as a sustainable alternative to conventional fossil fuels. The region's commitment to reducing carbon emissions and transitioning towards cleaner energy solutions has positioned Bio LPG as a key player in the energy landscape.

One of the critical growth factors for the Bio LPG market in the Asia Pacific is the substantial increase in renewable energy capacity, particularly in countries like China. According to estimates from the International Energy Agency and the National Energy Administration (NEA), renewable energy constituted 47.3% of China's total generation capacity in 2022, reflecting a robust shift towards sustainable energy production. This trend not only indicates a favorable environment for expanding production facilities for sustainable fuels like Bio LPG but also aligns with global efforts to combat climate change. As governments across the region implement supportive policies and incentives, including subsidies for biofuels, the Bio LPG market is set to benefit significantly from these initiatives.

Furthermore, urbanization and rising disposable incomes are driving demand for cleaner cooking and heating solutions among households and industries. The growing middle class in countries such as India and Indonesia is increasingly turning to Bio LPG due to its affordability and environmental benefits compared to traditional fuels. Additionally, technological advancements in production processes and logistics are enhancing the efficiency and safety of Bio LPG supply chains, further supporting market growth. Overall, the combination of government support, technological innovation, and changing consumer preferences positions the Asia Pacific region as a dominant force in the global Bio LPG market.

Recent developments in the Bio LPG market:

• September 2024- Attero, Nordsol, and Titan partnered to build a decentralized bio-LNG plant for sustainable maritime transport,

Bio LPG Market Scope:

Report Metric	Details
Bio LPG Market Size in 2025	US$2,146.575 million
Bio LPG Market Size in 2030	US$4,401.570 million
Growth Rate	CAGR of 15.44%
Study Period	2020 to 2030
Historical Data	2020 to 2023
Base Year	2024
Forecast Period	2025 – 2030
Forecast Unit (Value)	USD Million
Segmentation	Feedstock End-User Geography
Geographical Segmentation	Americas, Europe Middle East and Africa, Asia Pacific
List of Major Companies in Bio LPG Market	SHV Energy ENI Neste Avanti Gas Renewable Energy Group UGI International Liquid Gas UK
Customization Scope	Free report customization with purchase

 

The Bio LPG market is analyzed into the following segments:

• By Feedstock
  • Residual/ Wastes
  • Sugar
  • Oil
• By End-User 
  • Residential
  • Commercial
• By Geography
  • Americas
  • Europe Middle East and Africa
  • Asia Pacific

---

1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base and Forecast Years Timeline

1.8. Key benefits for the stakeholders

2. RESEARCH METHODOLOGY

2.1. Research Design

2.2. Research Process

3. EXECUTIVE SUMMARY

3.1. Key Findings

3.2. Analyst View

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Porter’s Five Forces Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

5. BIO LPG MARKET BY FEEDSTOCK

5.1. Introduction

5.2. Residual/ Wastes

5.3. Sugar

5.4. Oil

6. BIO LPG MARKET BY END-USER

6.1. Introduction

6.2. Residential

6.3. Commercial

7. BIO LPG MARKET BY GEOGRAPHY

7.1. Introduction

7.2. Americas

7.2.1. By Feedstock

7.2.2. By End-User

7.3. Europe Middle East and Africa

7.3.1. By Feedstock

7.3.2. By End-User

7.4. Asia Pacific

7.4.1. By Feedstock

7.4.2. By End-User

8. COMPETITIVE ENVIRONMENT AND ANALYSIS

8.1. Major Players and Strategy Analysis

8.2. Market Share Analysis

8.3. Mergers, Acquisitions, Agreements, and Collaborations

8.4. Competitive Dashboard

9. COMPANY PROFILES

9.1. SHV Energy

9.2. ENI

9.3. Neste

9.4. Avanti Gas

9.5. Renewable Energy Group

9.6. UGI International

9.7. Liquid Gas UK

SHV Energy

ENI

Neste

Avanti Gas

Renewable Energy Group

UGI International

Liquid Gas UK