- Global tallow prices remained firm to upward during Q1’26 due to tightening feedstock availability, elevated freight costs, and rising renewable fuel demand across major regions.
- Feedstock availability stayed constrained as higher rendering costs, livestock supply limitations, and logistics disruptions linked to the Strait of Hormuz increased market pressure.
- Downstream demand strengthened from biodiesel, renewable diesel, sustainable aviation fuel (SAF), oleochemicals, and animal feed sectors, while buyers remained cautious amid volatile freight conditions.
Asia
Asian tallow prices moved upward during Q1’26 due to tightening import availability and higher logistics expenses linked to disruptions around the Strait of Hormuz. Freight and insurance costs increased sharply for shipments moving from major exporting regions, tightening regional supply conditions. Demand from biodiesel and oleochemical producers remained firm, particularly as renewable fuel investments continued expanding across Asia. Market sentiment was further supported by stronger global renewable fuel demand and limited spot availability. However, cautious downstream procurement and uneven industrial activity restricted sharper price increases during the quarter.
Europe
European tallow markets remained firm throughout Q1’26, supported by tightening biodiesel feedstock demand and elevated import costs. The regional biodiesel industry received additional support after anti-dumping duties ranging from 10% to 35.6% were imposed on Chinese biodiesel imports, benefiting more than 60 EU biodiesel producers and strengthening local feedstock consumption. Rising freight rates and shipping delays linked to Middle East tensions increased landed costs for imported animal fats, while demand from renewable diesel, SAF, and oleochemical sectors remained stable. However, cautious industrial activity and weak macroeconomic conditions limited aggressive buying activity across the region.
North America
In North America, tallow prices followed a firm upward trend during Q1’26 due to strong renewable diesel demand and tightening feedstock supply. Biofuel blending mandates increased significantly during 2026, while Renewable Identification Number (RIN) credit prices surged by more than 80%, improving renewable diesel margins and increasing demand for animal-fat-based feedstocks. Stable slaughter activity supported supply availability, although higher transportation and rendering costs added upward pressure to the market. Demand from biodiesel, renewable diesel, and SAF producers remained the primary growth driver, while downstream buyers continued focusing on inventory management amid volatile energy markets.