Global Used Cooking Oil Market Size, Share, Growth Trends, Innovations, and Future Projections (2025–2032)

Used Cooking Oil Market Overview

The global used cooking oil market was valued at USD 8.0 billion in 2024 and is projected to reach USD 12.46 billion by 2032, expanding at a CAGR of 5% during the forecast period.Used cooking oil market, often derived from commercial kitchens, restaurants, and households, is increasingly repurposed into renewable fuels, oleochemicals, and industrial materials, making it a sustainable solution to reduce waste and environmental harm. The conversion of UCO into biodiesel and bio-based lubricants plays a crucial role in promoting circular economy practices while minimizing dependence on fossil fuels.

Used Cooking Oil Market Dynamics

Drivers

Governments worldwide are implementing regulations to support sustainable waste management and promote resource conservation. Policies such as India's Extended Producer Responsibility (EPR) mandate encourage cooking oil recycling by requiring bulk users to register and participate in proper disposal and recovery. These initiatives are propelling market expansion by ensuring a steady supply of UCO for biodiesel production and related industries.

Trends

The use of UCO for biodiesel production is emerging as a significant market trend. Bio-based fuel aligns with clean energy goals and helps reduce greenhouse gas emissions. According to industry data, global biofuel capacity increased by 7% in 2023, reaching 24 billion gallons annually in 2024. The growing demand for cleaner fuel alternatives and sustainable practices is pushing industries to adopt efficient UCO collection and recycling systems.

Opportunities

The expansion of UCO collection infrastructure represents a major opportunity. Improved systems for gathering oil from restaurants, food processing units, and residential kitchens are vital to ensuring the availability of raw material for renewable applications. These collection networks not only increase UCO availability but also enhance logistics and supply chain efficiency, ultimately supporting sustainable industrial growth.

Challenges

One of the key challenges in UCO processing is the presence of impurities, such as water and free fatty acids. These contaminants can reduce the quality of the final biodiesel product and restrict UCO use in applications like animal feed. Effective pre-treatment and filtration methods are essential to overcoming this barrier and maintaining product standards.

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Used Cooking Oil Market Segmentation

By Source

• Household Sector
• Commercial Sector

The commercial segment held the largest market share in 2024 due to its high volume of oil usage. Restaurants, hotels, and food processing facilities are the primary contributors, with many forming recycling partnerships to support sustainability goals.

By Application

• Biodiesel
• Oleo Chemicals
• Animal Feed
• Others

The biodiesel segment dominated the market with a 45.5% share in 2024. The use of UCO in biodiesel production aligns with international energy transition efforts and helps achieve emission reduction targets. Biodiesel derived from UCO is also a cost-effective, renewable alternative to traditional diesel fuels.

Used Cooking Oil Market Regional Analysis

Europe led the global used cooking oil market in 2024, accounting for over 44.3% of the share. The region benefits from supportive policies under the Renewable Energy Directive II (RED II), which mandates the use of renewable fuels in transportation. The sustainable and cost-effective nature of UCO makes it a preferred feedstock for biodiesel in Europe’s energy strategy.

Asia Pacific is experiencing rapid market growth due to increased urbanization, growing food service establishments, and rising awareness about environmental sustainability. Countries like China, India, and Indonesia are expanding UCO collection and recycling systems in response to biodiesel blending mandates and rising demand for renewable energy sources.

North America and South America are also contributing to market development through investment in advanced processing technologies and sustainable fuel initiatives. The Middle East and Africa region is expected to see gradual growth, driven by increasing awareness and emerging recycling infrastructure.

Used Cooking Oil Market Competitive Landscape
Key players in the global used cooking oil market are investing in technology, partnerships, and public awareness campaigns to enhance collection efficiency and sustainability. Major companies include:

ABP Food Group- Ireland, Europe | Arrow Oils Ltd - UK, Europe | Baker Commodities Inc. - California, USA, North America | Brocklesby Limited - UK, Europe | Grand Natural Inc. - Asia Pacific | Greasecycle LLC - USA, North America | MBP Solutions Ltd. - UK, Europe | Oz Oils Pty Ltd - Australia, Asia Pacific | Valley Proteins Inc. - USA, North America | Veolia Environment S.A. - France, Europe | Darling Ingredients Inc. - USA, North America | Renewi plc - UK, Europe | SARPI Veolia - France, Europe | Argent Energy - UK, Europe | Neste Corporation - Espoo, Finland | Renesco A/S - Copenhagen, Denmark | Olterra Holdings B.V. - Rotterdam, Netherlands | Proper Oils - London, UK | BioTrans AG - Germany | Sanimax - Montreal, Canada | Greenergy - United Kingdom | Crimson Renewable Energy - Bakersfield, California, USA | Biodiesel Amsterdam - Amsterdam, Netherlands | ADM (Archer Daniels Midland Company) - Chicago, Illinois, USA | Bunge Limited - St. Louis, Missouri, USA | Enva England Ltd. - United Kingdom | Verbio SE - Leipzig, Germany | Indian Oil Corporation Ltd. (IOCL) - Mumbai, India | My Eco Energy - Pune, India | Hindustan Petroleum Corporation Limited (HPCL) - Mumbai, India

These companies are leveraging innovation and collaboration with restaurants, municipalities, and industries to streamline UCO recovery and processing.

Key Questions Addressed in the Global Used Cooking Oil Market Report:

What is the current size of the global used cooking oil market, and what are its projected growth trends from 2025 to 2032?

Which factors are driving the demand for used cooking oil across different regions and applications?

How are government policies and environmental regulations influencing the used cooking oil market dynamics?

What are the major challenges hindering the processing and utilization of used cooking oil?

Which application segments (Biodiesel, Oleo Chemicals, Animal Feed, etc.) are expected to lead market growth and why?

How is the commercial sector contributing to the largest share of used cooking oil production and recycling?

Which technological innovations are improving the efficiency of used cooking oil collection and processing?

How is the market landscape changing due to the increasing adoption of circular economy practices?

What are the regional market trends, and which region is expected to dominate the market during the forecast period?

Who are the key players in the global used cooking oil market, and what strategies are they adopting for expansion?

How does used cooking oil contribute to the production of renewable energy and sustainable industrial products?

What are the key opportunities for stakeholders in the used cooking oil market over the coming years?

Conclusion
The global used cooking oil market is witnessing steady growth driven by environmental regulations, growing biodiesel demand, and sustainable practices. Enhanced collection infrastructure, innovations in processing technology, and increased public awareness are key to overcoming challenges and unlocking the full potential of this valuable resource. As countries strive to transition to greener energy systems, UCO will continue to play a pivotal role in shaping a circular and low-carbon economy.

Key Offerings:

• Past Market Size and Competitive Landscape (2019 to 2024)
• Past Pricing and price curve by region (2019 to 2024)
• Market Size, Share, Size & Forecast by Different Segment | 2025−2032
• Market Dynamics – Growth Drivers, Restraints, Opportunities, and Key Trends by Region
• Market Segmentation – A detailed analysis by segment with their sub-segments and Region
• Competitive Landscape – Profiles of selected key players by region from a strategic perspective
  • Competitive landscape – Market Leaders, Market Followers, Regional player
  • Competitive benchmarking of key players by region
• PESTLE Analysis
• PORTER’s analysis
• Value chain and supply chain analysis
• Legal Aspects of Business by Region
• Lucrative business opportunities with SWOT analysis
• Recommendations

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