Used Cooking Oil Market Size - By Source, Type of Processing, Application Analysis, Share, Growth Forecast, 2024 - 2032

Used Cooking Oil Market Size

The global used cooking oil market size was valued at USD 6.6 billion in 2023 and is estimated to grow at a CAGR of over 5.7% from 2024 to 2032, driven by its increasing applications in biodiesel production, animal feed, cosmetics, and industrial uses. As the demand for sustainable and eco-friendly energy sources rises, biodiesel production from used cooking oil has emerged as a major application, promoting recycling and reducing waste.
 

Additionally, the food industry utilizes used cooking oil in animal feed, contributing to the circular economy. The cosmetics and personal care sectors also increasingly incorporate used cooking oil for its beneficial properties. Moreover, growing awareness of environmental sustainability and government regulations encouraging waste oil recycling further propels market growth.
 

For instance, used cooking oil serves as a cost-effective alternative to fresh vegetable oil, being 2 to 3 times cheaper. This significant price advantage not only lowers overall processing costs but also enhances the economic viability of biodiesel production. By utilizing it, biodiesel manufacturers can reduce feedstock expenses, making it an attractive option for sustainable fuel production. As a result, the growing trend towards renewable energy sources further boosts the demand for used cooking oil in the biodiesel market, supporting both environmental sustainability and cost efficiency.
 

Used Cooking Oil Market Trends

The used cooking oil (UCO) industry is experiencing significant growth driven by the increasing demand for sustainable biodiesel production, which utilizes UCO as a cost-effective feedstock. As the global focus on renewable energy intensifies, UCO is being recognized for its potential to reduce greenhouse gas emissions compared to traditional fossil fuels. Additionally, industries such as animal feed and cosmetics are expanding their use of UCO, further propelling market growth. However, challenges like quality variability and regulatory hurdles need to be addressed to optimize UCO utilization and enhance market stability in the coming years.
 

Used Cooking Oil Market Analysis

The used cooking oil (UCO) industry is experiencing significant growth, driven by increasing awareness of sustainability and the circular economy. As the demand for biodiesel rises, UCO is becoming a valuable feedstock for biofuel production, offering a cost-effective alternative to virgin oils. Government incentives and regulations promoting renewable energy sources further boost UCO utilization in various applications, including animal feed and oleochemicals.
 

Additionally, rising consumer preferences for eco-friendly products encourage businesses to adopt sustainable practices, contributing to market expansion. The foodservice industry's growing emphasis on waste reduction and recycling initiatives also plays a crucial role in enhancing UCO collection and processing, fostering a robust market landscape.
 

The household cooking oil segment was valued at USD 2.7 billion in 2023, and it is anticipated to expand 5.9% of CAGR during 2024-2032. Household cooking oil significantly dominates the used cooking oil market due to its extensive consumption in residential kitchens. As more households prepare meals using oils like vegetables, canola, and palm oil, the volume of used cooking oil generated is substantial. This prevalent usage leads to an increase in used cooking oil availability for recycling and repurposing into biodiesel and other valuable products.
 

Additionally, heightened consumer awareness about waste management and the environmental impact of used oils drives households to participate in recycling initiatives. Consequently, this growing trend enhances the supply of used cooking oil, solidifying its central role in the market and supporting sustainability efforts.
 

The unrefined used cooking oil market size dominated around USD 3.7 billion in 2023 and gained 5.9% CAGR from 2024 to 2032, due to its cost-effectiveness and versatile applications. It serves as a vital feedstock for biodiesel production, offering a sustainable alternative to traditional fossil fuels. The growing biodiesel sector capitalizes on unrefined used cooking oil’s high lipid content, enhancing its appeal among manufacturers seeking eco-friendly sources.
 

Additionally, this oil finds utility in the production of animal feed, soaps, and various oleochemicals, further driving its market presence. Its availability and lower processing costs compared to refined alternatives make unrefined used cooking oil a preferred choice for industries aiming to adopt sustainable practices.
 

The used cooking oil market from biodiesel production segment held over USD 3 billion in 2023 and gained 5.8% CAGR through 2032. The dominance of biodiesel production in the market is primarily attributed to its environmental benefits and economic feasibility. Used cooking oil serves as a sustainable feedstock for biodiesel, allowing for the conversion of waste into valuable fuel. This application not only helps reduce greenhouse gas emissions but also decreases dependence on fossil fuels.
 

Additionally, many governments worldwide support biodiesel initiatives through incentives and regulations, further enhancing its market presence. As the global push for renewable energy continues, the utilization of used cooking oil for biodiesel production is expected to grow, solidifying its position as a key application within the market.
 

China used cooking oil market accounted for USD 2.2 billion in 2023 and poised to expand at a 5.7% CAGR till 2023, due to its vast population, large-scale foodservice industry, and growing environmental awareness. With a high consumption of cooking oil across households and restaurants, China generates significant volumes of used cooking oil, which is increasingly being repurposed for biofuel production. The Chinese government's support for renewable energy and biofuel initiatives further strengthens the market.
 

Additionally, stringent regulations on waste oil disposal and recycling encourage the collection and processing of used cooking oil. China's robust infrastructure for oil collection and its commitment to reducing carbon emissions position the country as a leader in this market.
 

Used Cooking Oil Market Share

In the global used cooking oil industry, companies like Munzer, Uranus Oil, Darling Ingredients Inc., ABP Food Group, Arrow Oils Ltd, Baker Commodities Inc., and Brocklesby Limited are key players, each contributing to the industry’s growth and competition. Munzer and Uranus Oil focus on large-scale collection and recycling, particularly in Europe, capitalizing on strong regulatory frameworks and environmental initiatives. Darling Ingredients Inc., a major player in North America, leads in biofuel production using used cooking oil, supported by its vast network and diversified operations. ABP Food Group emphasizes sustainable practices in both food and oil waste management, providing an edge in the European market.
 

Arrow Oils Ltd and Baker Commodities Inc. specialize in regional collections, with Arrow Oils leading in the UK and Baker Commodities focusing on North American markets. Brocklesby Limited, a UK-based company, is known for its expertise in transforming used cooking oil into high-quality biofuels. Collectively, these companies leverage regional strengths, technological advancements, and environmental initiatives to maintain competitive positions in this evolving market.
 

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 2023, ABP Food Group announced the acquisition of the Bridge of Allan abattoir and Queenslie meat packing plant in Scotland from Scotbeef.
   
• In June 2023 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.
   

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 2032, for the following segments:

Click here to Buy Section of this Report

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