Used Cooking Oil Market Size, Share, Growth, and Industry Analysis, By Type (Vegetable Oil, Animal Oil, Processed Oil), By Application (Biodiesel, Cooking Oil, Oleo-chemicals, Others), and Regional Insights and Forecast To 2033

USED COOKING OIL MARKET OVERVIEW

The global used cooking oil market size is predicted to reach USD XX billion by 2033 from USD XX billion in 2025, registering a CAGR of XX% during the forecast period.

Regardless of their product or factor-related characteristics, such products or factors are anticipated to be needed worldwide. According to reports, worldwide demand for UCO will remain higher than current, even under commercial uses influenced by sociocultural changes. The continuous increase in biodiesel consumption and production among the countries has increased the global demand for UCO and its end-of-life applications. National governments and environmental agencies have been persuading the gathering and subsequent recycling of oils for cleaner transitions towards reducing the negative environmental impacts. This repurposed waste into resources and was used in fuel, animal feed, cosmetics, and oleochemicals. The market is thus propelled by the growing public awareness of environmental sustainability, stringent environmental regulations, and policies advocating circular economies. Therefore, efficient collection systems, high filtration technologies, and infrastructure have been commissioned in both developed and emerging economies for the safe and scalable conversion of UCO into value-added products.

Regionally, Europe retains its numero uno position in UCO, followed by North America, which strengthens its market through biodiesel mandates and other supportive governmental people who are enlightened about biodiesel and other related government programs. However, Asia-Pacific is likely to be the fastest-growing region due to rapid urbanization, increasing activities in food service, and rising energy requirements. However, the market faces a few challenges, like variations in oil quality, unorganized collection in certain regions, and some risk factors like illegal or counterfeit trading. Despite these difficulties, the market is expected to move ahead, given advances in oil purification, increased investment in biofuel technology, and growing collaborations between private collectors and public agencies in the near future.

COVID-19 IMPACT

"Used Cooking Oil Industry Had a Negative Effect Due to Halted Biofuel Productionduring the COVID-19 Pandemic"

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

In several cases, biodiesel plants were shut down temporarily, or their operations were idled due to supply shortages, a decrease in fuel demand, or the absence of labor conditions. Such scenarios hindered the emptying of UCOs from the processing pipeline. Although the UCO collection was limited due to lockdowns and restrictions to movement, in regions where manual or small-scale collection efforts primarily collected the UCO, this has resulted in either a backlog or improper disposal and rejection of UCO. As attention has prioritized health infrastructure and the economy's recovery gained priority in government funding, scant attention, and funding were directed in the short term toward alternative energy and UCO recycling projects.

The pandemic forced governments and industries to rethink their dependence on energy in favor of greener alternatives such as biodiesel from UCO. This long-lasting concentration could have empowered the UCO market towards sustainable principles. With disruptions in supply chains, businesses put in place more localized waste management systems that cut UCO collection costs and reduce dependency on foreign waste handlers.

LATEST TREND

"Expansion of UCO Applications Beyond Biofuels to Drive Market Growth"

Expansion of UCO Applications Beyond Biofuels are vital benefits of used cooking oil market share. Diversification is steadily becoming an essential factor in the used cooking oil market. Traditionally considered an intermediate product mainly for biodiesel production, UCO is now seeing a shift towards its use in other industries. This trend includes using UCO in animal feed formulations to provide a low-cost and highly energy-dense ingredient for livestock diets. The oleochemical industry also uses UCO to produce soaps, detergents, and lubricants. This diversification of UCO applications beyond biofuels is crucial since it increases its overall value and reduces the market's dependency upon a solitary sector. Therefore, greater diversification leads to more excellent stability in UCO demand. This stability, in turn, helps to absorb shocks from fluctuations in demand from a particular industry, say biofuel policy changes or demand.

USED COOKING OIL MARKET SEGMENTATION

By Type

Based on Type, the global market can be categorized into Vegetable Oil, Animal Oil, Processed Oil.

• Vegetable Oil: This particular oil is the most utilized cooking oil collected for recycling and biodiesel production, extracted from biological sources such as soybean, palm, and canola.

• Animal Oil: Usually collected from commercial kitchens, this type of UCO, which is collected by extracting fats from animals during cooking, is rich in saturated fats.

• Processed Oil: It is the all-encompassing term used in the oil world to refer to oil that had undergone industrial treatment or refining early enough in its life history well before being thrown out as waste; it might have gone through several cycles of reuse.

By Application

Based on application, the global market can be categorized into Biodiesel, Cooking Oil, Oleo-chemicals, Others.

• Biodiesel: Biodiesel follows that used cooking oils are primary feedstocks in biodiesel production for sustainable alternatives to fossil fuels.

• Cooking Oil: Amounts of processed UCO can, in principle, be refined and used as low-grade cooking oil for applications that do not involve human consumption.

• Oleo-chemicals: UCO production feeds into oleo-chemicals used for soaps, detergents, lubricants, and cosmetics.

• Others: Niche applications of UCO also include animal feed, industrial greases, and some rural energy generation systems.

MARKET DYNAMICS

Driving Factors

"Growing Demand to Boost the Market"

A factor in the used cooking oil market growth is growing demand. One of the biodiesel boosters is the greener oxygen molecule. Biodiesel is gaining weight as a more sustainable fuel. UCO's actual prominence is its cost and source of renewability in regions of the world that are government and environmental agency advocates of biofuels, making it highly prized. In areas like Europe and North America, UCO is blended into diesel. The effect of UCO earmarks a noteworthy reduction in carbon emissions attributable to fossil fuels: the growing biodiesel industry further increases the demand for reliable and steady UCO supply. Many countries have established mandates and tax incentives to use renewable fuels. Various legal frameworks are in place to promote waste-to-energy projects, and UCO is considered one of the most ideal feedstocks. Such are the Renewable Energy Directives of the EU favoring policies for UCO biodiesel use.

"Technological Advancements in Recycling to Expand the Market"

Modern filtration, refining, and conversion technologies have improved UCO processing efficiency. New means of contamination reduction improve the yield quality. These improvements reduce recycling costs and catalyze new application areas beyond biodiesel. Additionally, automated IoT-enabled collection systems streamline logistics and monitoring. All these advancements are making the UCO sector more scalable and profitable. Used cooking oil today serves more and more people in manufacturing oleochemical products such as detergent, soap, and personal care products. Greenery alternatives are tempted to turn toward bio-based ingredients to make them more realistic in costs. UCO-derived oleochemicals provide a cost-effective solution for a sustainable end. The diversification of applying overall demand while cushioning market disruptions from fuel prices makes such an application robust.

Restraining Factor

"Contamination Issues and High Initial Investment to Potentially Impede Market Growth"

UCO is subject to contamination with food particles, water, and other oils, adversely affecting its processing quality. Contaminated oil may warrant extra treatment, which could increase operational costs. Irregularity in quality can work against its use in biodiesel and other applications. Quality control becomes a nightmare when the collection is unregulated or widely spread among small vendors. Setting up a UCO refining and processing unit requires a considerable capital investment. Infrastructure, including storage tanks, transportation systems, and treatment technology, could represent a financial burden. In this case, these costs may outweigh the expected profits for startups and small businesses. This limits entry into the market and inhibits growth, especially in backward areas. The informal sector handles a sizable share of UCO in many countries. Their operators are mostly unlicensed and often mishandle these oils, selling them back into the food chain. This poses health hazards and further derails the formal recycling industry. The informal sector plays havoc with price determination and traceability.

Opportunity

"Partnerships with Foodservice Giants To Create Opportunity for the Product in the ""Market"

By joining hands with fast food chains, hotels, and caterers, one can ensure a continuous and ample supply of UCO. Long-term supply contracts will enhance reliability and provide scaling opportunities in operations. Such partnerships will also contribute to the green branding for food service firms, where they also position themselves with ESG objectives. UCO also has a future in other industries, alongside fuel, such as cosmetics, lubricants, and plastics, which adopt bio-based input alternatives. This opens new possibilities in revenue generation for recyclers. Manufacturers tend to rely on sustainable raw materials such as UCO because consumer preference is directed toward clean-label products. Some countries, particularly in Southeast Asia and Africa, can strategically position themselves as UCO export hubs. Efficient logistics and quality control enable them to tap the U.S. and EU markets. International trade routes will induce market stability and profitability. Emerging R&D examines the safe incorporation of treated UCO in animal feeds or bioplastics. If regulatory hurdles were cleared, these applications would be huge UCO consumers. Further, these applications may use lower-grade UCO that is otherwise discarded.

Challenge

"Fighting Illegal Reuse in Food Industry Could Be a Potential Challenge for Consumers"

Unfortunately, in many developing countries, people are exceedingly using waste oils that have been classified as used and dangerous for cooking, endangering health seriously. Stopping the black market is a considerable challenge. It has damaged the credibility of the UCO industry and depleted trust in supply chains. Many people, particularly those in rural and semi-urban areas, are ignorant that improper disposal of UCO harms the environment. Also, they do not know that UCO is a recyclable material. Without active awareness campaigns, household-level collection remains weak. On the other hand, the market lacks the desire and need for UCO at the global level, coupled with strict import/export rules, taxes, and barriers from customs that make trade an enormous burden. Conflicting points of view regarding whether UCO is waste or raw material give rise to more confusion. Trade bans with port restrictions during the pandemic only served to highlight these issues further. At times, the price of fresh vegetable oil becomes lower in the market than that of processed UCO. This makes biodiesels from UCO less attractive to producers. Without pricing support or mandates, UCO sustainability may decline against virgin oils.

USED COOKING OIL MARKET REGIONAL INSIGHTS

North America

North America is the fastest-growing region in this market. TheUnited States used cooking oil market has been growing exponentially for multiple reasons. The Used Cooking Oil market is witnessing substantial growth across North America due to increasing preferences for renewable diesel and sustainable fuels. In particular, the U.S. now stands as the largest consumer of UCO due to the present push toward reducing carbon footprints and the country's fossil fuel worth. The government offers such incentives through the Renewable Fuel Standard (RFS) and the Inflation Reduction Act for collecting and processing waste oils to biodiesel. Also, the region's well-developed food service sector provides a steady and large-scale UCO supply. The market faces emerging pressure because of a heightened import of UCO, mainly from China, which now accounts for more than 60% of U.S. UCO importation. The current entry raised the alarm regarding the authenticity and traceability of the oil penetrating the domestic environment, which may undermine domestic producers.

Europe

Europe now leads among all other regions in the global Used Cooking Oil market in an active regulatory climate that fiercely endorses sustainability. Increased UCO demand for second-generation biodiesel feedstock has arisen mainly in response to the European Union's Renewable Energy Directive (RED II), which prefers waste-derived biofuels rather than their counterpart from crops. Collection systems to recover waste cooking oil from restaurants, households, and food manufacturers have been built up in Germany, the Netherlands, and the U.K., further reinforcing the circular economy model. The presence of advanced recycling technologies and favorable government subsidies accelerates the growth of the Used Cooking Oil Market. Nevertheless, origin tracing and authentication of imported UCO—especially from Asia—has posed challenges for the region amid simulacra concerns of virgin oil being passed off as recycled.

Asia

Asia's Used Cooking Oil market is a vibrant and rapidly changing sector driven by rapid industrialization, increasing energy demands, and rising environmental awareness. Countries such as China, India, and Japan are accelerating their efforts to exploit the potential of UCO as a feedstock for biodiesel and sustainable aviation fuel (SAF). With massive populations and a booming food industry, the region generates a staggering amount of used cooking oil, creating ample supply-side opportunities. China, in particular, has become a leading exporter of UCO, with a large portion exported to the U.S. and Europe for renewable fuel production. Local governments are putting in place stricter regulations for the disposal of waste oil and investing in awareness-raising activities to formalize collection practices.

KEY INDUSTRY PLAYERS

"Key Industry Players Shaping the Market Through Innovation and Market Expansion"

The key players in the industry are now actively shaping the Used Cooking Oil (UCO) market through designed innovations and modern-day market expansion. These organizations have been enacting advanced processing technologies and efficient collection systems to improve UCO's overall quality and usability for several applications, especially biodiesel and other sustainable fuels. They diversify their offerings to encompass special solutions intended to meet regional regulations and sustainability policies, such as UCO products that are traceable, certified, and low-emission. Such organizations are also utilizing online platforms to enhance the supply chain with greater transparency, stronger coordination, and real-time monitoring from the collection points to processing units to ensure smoother operations and greater efficiency. These companies thus boost their competitiveness while fostering the advancement of the circular economy and greener energy through investments in research and development, strengthening logistics infrastructure, and canvassing emerging markets, most notably in Asia and Latin America.

List Of Top Used Cooking Oil Companies

• Olleco (U.K.)
• Brocklesby Ltd (U.K.)
• Greenergy (U.K.)
• Harvest Energy (U.K.)
• Uptown Biodiesel (U.S.)
• Argent Energy (U.K.)
• Baker Commodities (U.S.)

KEY INDUSTRY DEVELOPMENT

February 2025: Neste, one of the leading producers of renewable diesel and jet fuel, has announced that a project to expand its SAF production capacity, using UCO as one of the key feedstocks, has reached a significant milestone. The company confirms that a new production unit at one of its refineries, in all likelihood, in Europe or North America, successfully concluded its initial tests and will start commercial production of SAF from UCO by mid-2025. This increase represents a considerable ramp-up to support the conversion of UCO into SAF amid rising demand from the aviation sector.

REPORT COVERAGE

The study offers a detailed SWOT analysis and provides valuable insights into future developments within the market. It explores various factors driving market growth, examining a broad range of market segments and potential applications that may shape its trajectory in the coming years. The analysis considers both current trends and historical milestones to provide a comprehensive understanding of the market dynamics, highlighting potential growth areas.

The used cooking oil market is poised for significant growth, driven by evolving consumer preferences, rising demand across various applications, and ongoing innovation in product offerings. Although challenges such as limited raw material availability and higher costs may arise, the market's expansion is supported by increasing interest in specialized solutions and quality improvements. Key industry players are advancing through technological advancements and strategic expansions, enhancing both supply and market reach. As market dynamics shift and demand for diverse options increases, the used cooking oil market is expected to thrive, with continuous innovation and broader adoption fueling its future trajectory.