The United States is positioned to become the single largest biodiesel market with 19% of consumption by 2012. The industry grew 50% from 2002-2007, the highest growth in the chemical industry, and is now positioned to grow at 30% between 2007 and 2012, according to SRI Consulting (SRIC) recently released global 2008 Biodiesel report. The U.S. will be followed by Germany and France. New and large markets for biodiesel are expected to emerge in China and India, since the governments of both countries have announced major biodiesel initiatives.
A slower pace of growth is projected for the global biodiesel industry due to market uncertainties: ongoing fuels versus food debate, rising raw material costs, changing regulatory environment, a slowing global economy and the current financial crisis. Overall, the success of the biodiesel industry relies on political support and incentives, without which the global industry is not competitive. Lead Author Milen Blagoev commented, "Demand for biodiesel is set by regulation within each individual country. Most countries have set a general target of substituting a certain amount - usually a percentage - of overall fuel or energy consumption with renewable sources by a certain year."