Used Cooking Oil Market Size - By Source, Type of Processing, Application Analysis, Share, Forecast, 2025 - 2034

Used Cooking Oil Market Size

The global used cooking oil market was estimated to be around USD 7 billion in 2024. The market is expected to grow from USD 7.4 billion in 2025 to USD 12.2 billion by 2034, growing at a CAGR of 5.7%.
 

Considering reduced transactions concerning their application in developing biodiesel, cosmetics and industrial works, the Use cooking oil market is considerably elaborate. UCO is processed to biodiesel which fulfils the need for green energy sources. The recycling of UCO also contributes to waste reduction.
 

Furthermore, the food processing sector, which can also be considered as a part of the economic recycling of UCO. UCO can be processed into animal feed, typically by refining and blending it with other ingredients like grains, protein sources to enhance its nutritional value. When turning used cooking oil into animal feed, it serves as a source of fat, providing essential fatty acids and energy for livestock. Thus, taking the economic cycle to a deeper level. The personal care and cosmetics industry are also benefiting from UCO because it has key attributes that strengthen their products.
 

In addition, the greater market willingness towards environmental sustainability, coupled with government policies aimed at waste oil recycling, have also strengthened the market. In conclusion, the UCO market is subject to significant growth in the forthcoming years.
 

As an example, in December 2023, the government of India started a campaign to promote UCO for the purposes of biodiesel production. The government has also set up the repurpose used cooking oil (RUCO) portal which helped to collect, and track UCO. State owned oil companies have pledged to buy biodiesel made from UCO over the next three years. The goals were aimed to mitigate health hazards, environmental destruction, and reducing the cost of oil imports whilst aiding in cleaner air.
 

UCO is substantially lesser expensive - two to three times cheaper - than buying new oil. This price difference contributes to the reduction in the aggregate processing costs which makes the production of biodiesel more economically efficient.
 

In the case of UCO, these appealing factors lower the feedstock expenses that the producers of biodiesel pay. Hence, it becomes feasible to use it as a feedstock for renewable fuel production. So, an increase in the contribution of UCO in the biodiesel production not only helps reduce waste but also plays a significant role in environmental protection by decreasing the amount of used oil and ultimately the protection of the environment.
 

Used Cooking Oil Market Trends

Growing demand for biodiesel: To cater to the growing biodiesel demand, collection of UCO has become extremely important, since it is an inexpensive renewable energy source.
 

Moreover, public policies and government incentives such as biofuel subsidies have accelerated the UCO movement towards increasing usage in biodiesel production. This shift not only contributes to reducing reliance on fossil fuels but also supports environmental sustainability by promoting the use of renewable resources.
 

Increasing interest in waste reduction and sustainability: Adequate and sustainable collection and recycling systems for UCO need to be in place to convert UCO into biofuel. These processes are made easier through sustainable plans for waste management.
 

Environmental factors are increasingly encouraging both individuals and companies to adopt smarter, more efficient waste disposal techniques, which are easy to implement. These efforts highlight the growing support for UCO collection initiatives.
 

As a result of the growing interest in sustainably efficient biodiesel production, the used cooking oil (UCO) market is expanding rapidly, enabling the reuse of UCO to be converted into biofuel.
 

Used Cooking Oil Market Analysis

The use of UCO has a greater potential to reduce greenhouse gas emissions.
 

when compared with traditional fossil fuels. Furthermore, UCO is also being widely used for cosmetics and animal feed, which presents new opportunities for market growth. Nevertheless, to achieve stability in the market, UCO legal and quality issues are the main challenges that need to be solved urgently.
 

The used cooking oil market is gaining momentum as huge number of people becoming concerned about sustainability and the circular economy. At the same time, the biodiesel is in high demand too, which means that UCO is now the most sought-after feedstock for biofuel production because of its low prices when compared to virgin oils.
 

The usage expansion of UCO is also fostered by government incentives and regulations which promote renewable energy. Such measures encourage the use of UCO in animal feed and other oleochemical industries. In addition, the growth of consumer demand for sustainable products forces businesses to undertake sustainable practices, thereby expanding the market.
 

Moreover, the increasing focus of the foodservice industry on waste minimization and recycling initiatives also contributes positively towards the UCO collection and processing, thereby developing a market further.
 

The used cooking oil market from household cooking oil segment was valued at USD 2.8 billion in 2024, and it is anticipated to expand by 5.9% of CAGR during 2025-2034.
 

The accumulation of palm oil waste has become a significant issue, as it can be collected and used as raw material for biodiesel production and other biodegradable products. However, the lack of adequate consumer education regarding the proper disposal of UCO and its environmental impact further emphasizes the need for households to engage in recycling efforts. Raising awareness on the benefits of recycling UCO can help reduce waste and promote sustainable practices in both the food and energy sectors.
 

Start-up enterprises in the UCO market can benefit significantly from adopting the approach of utilizing palm oil waste. By sourcing this waste as a raw material, they can produce cost-effective biodiesel and other derivatives, contributing to a more sustainable energy production model.
 

However, it's important to note that used palm oil itself does not directly contribute to the production of new palm oil, which supports the broader aim of setting and achieving sustainable development goals. By recycling UCO, especially palm oil waste, these companies not only promote environmental sustainability but also create economic value through the creation of renewable energy sources. For example, the European Biomass Industry Association (EUBIA) highlights the potential of UCO in the biodiesel production process. UCO is readily available in large quantities as it is categorized as municipal waste, making it a valuable resource for the renewable energy sector.
 

By collecting and processing UCO, biodiesel producers can reduce reliance on fossil fuels while also addressing waste management issues. The widespread availability of UCO offers a sustainable solution to energy production, and its use in biodiesel aligns with environmental goals, contributing to a cleaner, more circular economy.
 

It is estimated that the European Union (EU) has the potential to collect approximately 4 million tons of waste oil annually. Various collection strategies have been identified, including both decentralized and centralized systems.
 

The passage further expounds on other methods of UCO processing, notably the ones that remove contaminants such as free fatty acids that negatively impact biodiesel yield. Moreover, it highlights the absence of the pertinent infrastructure along with the goal that needs to be set to enhance the collection rates.
 

The UCO segment was valued at USD 3.9 billion in 2024 and gained 5.9% CAGR from 2025 to 2034 with a used cooking oil market share of 55.4%.
 

Despite this, the new biodiesel industry takes advantage of the large amounts of UCO that can be converted into biodiesel. The presence of lipids in UCO significantly strengthens the argument for reducing pollution associated with manufacturing activities.
 

In addition, inexpensive unrefined cooking oils can also be converted into animal feed, soap, and glucose esters, thus increasing the value of UCO. As such, companies are striving to meet environmental targets, and sourced oil provides an affordable and productive solution for reducing waste and promoting sustainability. By application, the market is segmented into biodiesel production, animal feed, cosmetics and personal care, and industrial use. The segment of biodiesel production was valued at USD 3.2 billion by the end of 2024 and earned a CAGR of 5.8% from 2025 to 2034.
 

The unique properties of crude biodiesel in providing cost efficient and environmentally sustainable solutions enables UCO to occupy a significant portion of biodiesel market. It is a waste product which can be conveniently turned into fuel; therefore, it is more accessible and cheaper than another feedstock.
 

The production of biodiesel from UCO is linked to a decrease in greenhouse gas emissions (GHGs) and a reduction in the use of non-renewable energy sources. Countries like the U.S. have also introduced subsidies for biodiesel, promoting its wider adoption. As global sustainability efforts increase, UCO-based biodiesel will gain further importance in the market, due to expanding its presence in several applications worldwide.
 

U.S. used cooking oil market was valued at USD 2.2 billion in 2024 and expected to grow at a 5.6% CAGR from 2025-2034. This expansion can be explained by the growing consumption of cooking oil along with a rise in petroleum biodiesel usage in the United States. Therefore, there is sustainable use for the leftover oil in the production of biodiesel. The renewable fuel standard (RFS) policies also are inclined towards UCO feedstock grade biofuels which cultivate further growth.
 

The Environmental Protection Agency, also known as the EPA, is involved in UCO collection and processing by offering guidance in waste management. Collecting schemes for UCO are set up whose primary aim is lessening the footprint United States fossil fuels in the environment, because of growing efforts to address environmental concerns such as waste UCO.
 

Sustainability is predicted to continue as support from the food industry increases collection and utilization of UCO as a renewable energy source. This is an aspect of the ongoing efforts to improve the balance of carbon emissions ratio and the carbon offset “And Understanding Key Terms.
 

• For instance, In the United States, emission reduction initiatives have resulted in a growth in the production of biomass biodiesel and renewable diesel. In 2023, the percentage of UCO and other waste animal fats used as feedstock skyrocketed from 17% to 37%.
   
• The effort made towards recovering waste cooking oil in the United States is said to have increased from 0.9 billion pounds in 2022 to over 3 billion pounds in 2023. This increase further proves the importance of waste fats for renewable diesel production.
   

Used Cooking Oil Market Share

The used cooking oil industry is fuelled by global participants including Munzer, Abra Food Group, Brocklesby Limited, Uranus Oil, Darling Ingredients Inc, Arrow Oils Limited, and Baker Commodities Incorporated. Each firm contributes their part towards the growth of the regional cooking oil business.
 

Top 5 companies of the used cooking oil are Munzer, Abra Food Group, Brocklesby Limited, Uranus Oil, Darling Ingredients Inc, Arrow Oils Limited, Uranus Oil and Munzer focus on collection and recycling on a larger scale and that gives them the operational advantage in Europe due to the supportive regulatory and environmental system.
 

The verticals of the industry in Northern America consist of Darling Ingredients but Inc that leads due to its network and business diversification in darling ingredients incorporated. In England, ABP Food Group cut up England dinner plates in France and Oil based biofuel is leading in England.
 

Both firms rest in the regional collection and concentration of Arrow Oils Limited and Baker Commodities Incorporated. Brocklesby Limited from the UK transforms the used cooking oil from the UK into biofuel. These companies blend regional strengths with new technologies and environmental changes to capture the market in the ever-changing world.

• For instance, the purchase of the Bridge of Allan abattoir and Queenslie meat packing plant from Scotbeef enabled ABP Food Group to significantly expand its operations. At the same time, ORLEN Unipetrol collaborated with Czech universities on the recycling of waste cooking oil to produce biofuels. Suntory Group aims to achieve the use of sustainable packaging by 2030. The company has already produced the first commercially available PET bottles made from cooking oil bio-paraxylene, which are made from recycled materials.
   

Used Cooking Oil Market Companies

Major players operating in the used cooking oil industry are:

• ABP Food Group
• Arrow Oils
• Baker Commodities
• Brocklesby
• Darling Ingredients
• Grand Natural
• Greasecycle
• MBP Solutions
• Munzer
• Oz Oils Pty
• Uranus Oil
   

Used Cooking Oil Industry News

• In June 2024, ABP Food Group announced the acquisition of the Bridge of Allan abattoir and Queenslie meat packing plant in Scotland from Scotbeef.
   
• In June 2024 ORLEN Unipetrol partnered with Czech Technical University in Prague and the Czech University of Life Sciences to launch a pilot project for cooking oil collection. The initiative aims to examine the recycling options of the product and its effective conversion into biofuel and petrochemicals.
   
• In November 2024, Suntory Group introduced the world’s first commercial PET bottles made from bio-paraxylene derived from used cooking oil in Japan, starting in November 2024. This initiative, aimed at reducing CO2 emissions, involved collaboration with partners such as ENEOS and Mitsubishi Corporation. The company has committed to using only recycled or bio-based materials for all its PET bottles globally by 2030.
   
• In January 2025, Neste and Bayer signed a memorandum of understanding to develop a winter canola ecosystem in the U.S., focusing on scaling winter canola production for renewable products. The collaboration aimed to identify partners and enhance the value chain, promoting regenerative farming practices. The initiative is intended to produce lower carbon intensity raw materials for renewable fuels, such as sustainable aviation fuel and renewable diesel.
   

This used cooking oil market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) & volume (Kilo Tons) from 2021 to 2034, for the following segments:

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Market, By Source

• Household cooking oil
• Commercial cooking oil
• Industrial cooking oil

Market, By Type of Processing

• Unrefined used cooking oil
• Refined used cooking oil

Market, By Application

• Biodiesel production
• Animal feed
• Cosmetics and personal care products
• Industrial applications
• Other

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia 
• Latin America
  • Brazil
  • Mexico
• MEA
  • UAE
  • Saudi Arabia
  • South Africa