The United States biodiesel market is on a growth trajectory, with a forecasted expansion to US$ 20.29 billion by 2033 from US$ 12.23 billion in 2024, driven by factors such as the increasing demand for renewable energy and government incentives for biofuels. Government policies like the Renewable Fuel Standard (RFS) require refiners to blend renewable fuels like biodiesel, which, coupled with tax credits and grants, promote biodiesel use. The push for sustainable fuel options due to environmental concerns and technological advancements in biodiesel production, including improved processing technologies and alternative feedstocks, are further propelling market growth. The rising demand for low-carbon and sustainable fuels is leading industries and consumers in the U.S. towards biodiesel, given its emissions reduction advantage over petroleum diesel. Initiatives by states like California and Washington to promote biodiesel consumption are also contributing to its popularity. Technological advancements are enhancing efficiency and reducing costs in biodiesel production, making it more competitive and appealing as a sustainable energy option. However, challenges like feedstock price volatility and competition from other renewable fuels like renewable diesel and electric vehicles pose obstacles that the biodiesel sector must address through continuous innovation and strategic solutions to maintain its market position.