Used Cooking Oil (UCO) Market Research Report By Application (Biodiesel Production, Animal Feed, Industrial Lubricants, Soaps and Detergents), By End Use (Transportation Fuels, Food Industry, Renewable Energy), By Source (Restaurants, Food Processing Industries, Households), By Processing Method (Physical Refining, Chemical Refining, Blending) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2035

Global Used Cooking Oil (UCO) Market Overview

As per MRFR analysis, the Used Cooking Oil (UCO) Market Size was estimated at 6.58 (USD Billion) in 2023. The Used Cooking Oil (UCO) Market Industry is expected to grow from 7.05(USD Billion) in 2024 to 15 (USD Billion) by 2035. The Used Cooking Oil (UCO) Market CAGR (growth rate) is expected to be around 7.1% during the forecast period (2025 - 2035)

Key Used Cooking Oil (UCO) Market Trends Highlighted

Several significant market trends are currently being observed in the Used Cooking Oil (UCO) Market, which are being driven by factors such as renewable energy initiatives and environmental sustainability. The growing demand for biodiesel is a significant market driver, as countries are actively seeking healthier energy sources. The appeal of UCO as a renewable feedstock is being further enhanced by the implementation of policies by governments worldwide to reduce carbon emissions. This transformation is consistent with global initiatives to address climate change, rendering UCO an appealing alternative for both consumers and manufacturers. Furthermore, the food and beverage industry is acknowledging the potential of UCO to develop value-added products, which has resulted in innovative applications in sectors such as detergents, cosmetics, and animal feed.

In recent years, there has been a notable increase in the circular economy, which prioritises the repurposing and recycling of materials. The practice of collecting used cooking oil from restaurants, households and food processing plants is gathering momentum, presenting opportunities to capture value from what was previously considered waste. This trend is fuelled by the global proliferation of food waste reduction programs, which underscores the significance of UCO recycling. Additionally, the growing consumer consciousness regarding sustainable products motivates organisations to implement responsible procurement strategies. There are numerous opportunities in the global market, particularly in developing regions where infrastructure and awareness regarding the collection and recycling of UCO are still in the process of developing.

The market can be further stimulated by investing in technology to enhance the efficacy of UCO collection and processing. Businesses have the opportunity to address energy requirements while engaging in sustainable practices, thanks to the supportive government policies and regulations in a variety of countries. A positive framework for the Global Used Cooking Oil Market is established by the overall trend, which reflects a convergence of economic opportunity and environmental responsibility.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Used Cooking Oil (UCO) Market Drivers

Rising Demand for Renewable Energy

The Used Cooking Oil (UCO) Market Industry is experiencing significant growth driven by the increasing demand for renewable energy sources, particularly biofuels. According to the International Renewable Energy Agency, global biofuel production is projected to increase by 11% from 2020 to 2025. This trend is fueled by government initiatives in various countries, including the European Union's Renewable Energy Directive, which aims to increase renewable energy use across member states.

As used cooking oil can be converted into biodiesel, the push for cleaner energy options is anticipated to drive the UCO market forward. Moreover, countries such as the United States and Brazil are actively promoting policies that support the use of waste oils in energy production, which contribute to reducing greenhouse gas emissions and dependency on fossil fuels, reinforcing the market's growth prospects.

Increasing Regulation on Waste Management

The Used Cooking Oil (UCO) Market Industry is also propelled by heightened regulations regarding waste management and environmental sustainability. Governments worldwide are implementing stricter waste disposal regulations to minimize environmental impact, particularly concerning the disposal of used cooking oil. The Environmental Protection Agency (EPA) in the United States has established guidelines encouraging the recycling of used oils to reduce landfill contributions.

This regulatory framework is aimed at diverting waste from traditional disposal methods and incentivizing recycling, leading to a surge in used cooking oil collection. Furthermore, initiatives like the French anti-waste law, which mandates the recycling of used cooking oils, also emphasize the importance of proper disposal and repurposing, strengthening the market's outlook.

Growth in Food Service Industry

A considerable driver of the Used Cooking Oil (UCO) Market Industry is the growth in the food service sector. The National Restaurant Association reported that the restaurant industry in the United States was projected to reach USD 899 billion in sales in 2020, reflecting a robust comeback after a significant dip during the COVID-19 pandemic. As restaurants and food processing industries use large quantities of cooking oils, the volume of used cooking oil generated is increasing, providing a larger feedstock supply for biodiesel production and other applications.

In turn, this escalation in used cooking oil presents significant opportunities for recycling and repurposing, enhancing the market’s outlook globally.

Technological Advancements in Recycling Processes

The Used Cooking Oil (UCO) Market Industry is benefitting from advancements in technology that improve the efficiency and cost-effectiveness of recycling processes. Innovations in extraction and refining technologies enable better conversion rates of used oils into valuable products such as biodiesel, which is increasingly in demand as alternative fuel sources gain traction. Research by various industry bodies has indicated that newer processes can increase recovery rates by up to 80%.

Additionally, the development of advanced catalysts and enzymes has made it easier and more economical to process used cooking oils, empowering recyclers to convert larger volumes of UCO into renewable energy. These technological evolutions are set to boost the UCO market further as they enhance operational efficiencies and open new avenues for product development.

Used Cooking Oil (UCO) Market Segment Insights

Used Cooking Oil (UCO) Market Application Insights  

The Used Cooking Oil (UCO) Market is notably influenced by its diverse Application segment, which includes key areas such as Biodiesel Production, Animal Feed, Industrial Lubricants, and Soaps and Detergents. The market is projected to reach a valuation of 7.05 USD Billion in 2024, with a significant share attributed to Biodiesel Production, valued at 2.1 USD Billion for the same year. This Application is pivotal as it not only contributes to renewable energy solutions but also aids in reducing greenhouse gas emissions, making it a preferred choice for sustainable energy initiatives.

Animal Feed follows closely, with a valuation of 1.75 USD Billion in 2024; this Application utilizes UCO to enhance the nutritional value of feed while addressing the issue of waste disposal, providing an economic and eco-friendly solution for the livestock industry. Industrial Lubricants, valued at 1.0 USD Billion in 2024, are significant as they offer a recycling opportunity that reduces reliance on virgin materials, thereby supporting circular economy practices. Similarly, Soaps and Detergents represent a critical Application, with a valuation of 2.2 USD Billion in 2024; the use of UCO in this segment helps manufacturers meet increasing consumer demands for sustainable and bio-based cleaning products.

Each of these Applications experiences steady growth, significantly contributing to the overall Used Cooking Oil (UCO) Market revenue, projected to attain a value of 15.0 USD Billion by 2035, driven by rising environmental awareness and the search for sustainable alternatives. This segment dynamics showcases the flexibility and wide-ranging benefits of Used Cooking Oil, reinforcing its role in promoting sustainability across multiple industries, thus capturing an important share of the Used Cooking Oil (UCO) Market industry. As companies enhance their production processes and align with sustainability goals, the Applications of UCO will remain significant, driving further innovation and expanding market opportunities.

As the market continues to evolve, understanding the unique contributions of each Application will be essential for stakeholders aiming to leverage the opportunities present in the Used Cooking Oil (UCO) Market data.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Used Cooking Oil (UCO) Market End Use Insights  

The Used Cooking Oil (UCO) Market is primarily segmented by End Use, showcasing its versatility in various applications. As of 2024, the market is projected to be valued at 7.05 USD Billion, reflecting a significant opportunity for utilizing used cooking oil as a sustainable resource. The Transportation Fuels sector is a prominent contributor, as converted UCO plays a critical role in biodiesel production, promoting eco-friendly energy solutions and reducing reliance on fossil fuels. The Food Industry utilizes used cooking oil for animal feed, contributing to waste reduction and resource efficiency, while simultaneously catering to the increasing demand for sustainable food production practices.

Renewable Energy applications are gaining traction as governments worldwide push for greener energy alternatives; used cooking oil is being converted into biofuels, enhancing the efficiency of energy consumption. The Used Cooking Oil (UCO) Market statistics highlight the growing need for recycling and waste management solutions, driven by rising environmental concerns and legislative support. Overall, the demand for used cooking oil is anticipated to grow steadily, fueled by increasing awareness of sustainability and renewable energy advancements.

Used Cooking Oil (UCO) Market Source Insights  

The Used Cooking Oil (UCO) Market is a rapidly expanding sector, with a projected market value reaching 7.05 USD Billion by 2024. This market is primarily segmented by Source into categories such as Restaurants, Food Processing Industries, and Households, each contributing uniquely to the overall market dynamics. Restaurants play a crucial role as they generate significant quantities of used cooking oil from daily operations, thereby serving as a primary source for recycling and recovery processes. The Food Processing Industries also represent a vital segment, producing large volumes of used cooking oil as a byproduct, which can be repurposed for biodiesel and other applications.

Households contribute to the market as well, although to a lesser extent, but represent a growing source of UCO due to increased consumer awareness regarding sustainability practices. The Used Cooking Oil (UCO) Market is expected to see considerable growth driven by rising demand for renewable energy and biodiesel production, alongside stringent waste management regulations. However, challenges such as the need for better collection infrastructure and contamination issues persist. The market offers numerous opportunities for innovations in processing technologies and partnerships across the food sector to enhance recovery rates and efficiency in the utilized cooking oil segment.

Used Cooking Oil (UCO) Market Processing Method Insights  

The Used Cooking Oil (UCO) Market is experiencing notable growth, with a projected market valuation of 7.05 USD Billion in 2024. This segment, categorized by Processing Method, plays a crucial role in the overall market dynamics. Processing methods encompass Physical Refining, Chemical Refining, and Blending, each contributing to the transformation of used cooking oils for various applications. Physical Refining is essential as it eliminates undesirable components without using hazardous chemicals, promoting sustainability. Chemical Refining, on the other hand, is significant in effectively removing impurities and improving oil quality, thus gaining traction in industries focused on high-quality fuel production.

Blending stands out as it combines various oils to enhance performance, making it a preferred choice for consumer products. The growth of the Used Cooking Oil (UCO) Market is fueled by increasing environmental awareness and a rising demand for biofuels. However, challenges persist, such as the need for efficient collection and processing infrastructure. The ongoing shift towards sustainable practices presents ample opportunities for growth in this sector, reinforcing its importance within the Used Cooking Oil (UCO) Market landscape.

Used Cooking Oil (UCO) Market Regional Insights  

The Used Cooking Oil (UCO) Market is poised for substantial growth with significant regional contributions, showcasing diverse market dynamics. In 2024, North America is valued at 1.45 USD Billion and is expected to grow to 3.25 USD Billion by 2035, accounted for by rising biodiesel production. Europe follows with a robust valuation of 2.1 USD Billion in 2024, surging to 4.75 USD Billion in 2035, driven by stringent environmental regulations promoting renewable energy sources. The Asia Pacific region, valued at 2.75 USD Billion in 2024, is anticipated to reach 5.75 USD Billion by 2035, supported by increasing urbanization and a growing focus on sustainability.

South America, while smaller at 0.55 USD Billion in 2024, is projected to grow to 1.25 USD Billion, driven by rising awareness of waste management and biofuel utilization. Meanwhile, the Middle East and Africa, with a valuation of 0.2 USD Billion in 2024, is expected to reach 0.5 USD Billion by 2035, showing potential for increased adoption of UCO in the renewable energy sector. The market's growth is fueled by sustainability trends, regulatory support, and increasing demand for eco-friendly energy sources across these regions, making the Used Cooking Oil (UCO) Market a focal point for sustainable development.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Used Cooking Oil (UCO) Market Key Players and Competitive Insights

The Used Cooking Oil (UCO) Market has gained significant traction in recent years, driven by increasing awareness regarding sustainability and the efficient use of resources. The demand for UCO has been primarily fueled by its applications in biodiesel production, animal feed, and various industrial uses. Competition in this market is characterized by a diverse range of players, each striving to capture a larger market share through strategic partnerships, technological advancements, and innovative recycling processes. Companies across the globe are increasingly focusing on enhancing their collection and processing capabilities, thereby ensuring a reliable supply chain for UCO. As environmental regulations become stricter and consumer preferences shift towards greener alternatives, the competitive landscape is expected to evolve, offering new opportunities for growth and development.

Imperial Oils has established itself as a notable player within the Used Cooking Oil (UCO) Market, indicating its strong market presence through effective collection and processing methods. The company is recognized for its strategic approach to sourcing UCO, often collaborating with various food establishments to secure high-quality used oils. Imperial Oils leverages advanced technology and possesses specialized facilities to ensure efficient processing of UCO into renewable energy sources. One of its strengths lies in its commitment to sustainability, which resonates with environmentally conscious consumers and partners. Additionally, the company continuously invests in research and development, allowing it to enhance its processing capabilities and improve the overall quality of its output, ultimately giving it a competitive edge in the market.

Regeneration Energy is another prominent player in the Used Cooking Oil (UCO) Market, known for its dedication to transforming used oils into valuable biofuels and other renewable energy products. The company focuses on providing comprehensive UCO recycling services, positioning itself as a key contributor in organic waste management. Regeneration Energy's strengths lie in its robust supply chain, which is built upon long-term partnerships with food manufacturers and restaurants, ensuring a steady inflow of used cooking oil. The company also prioritizes technological advancements, utilizing state-of-the-art processing facilities that adhere to stringent safety and quality standards. Moreover, Regeneration Energy has been involved in various mergers and acquisitions, amplifying its market reach and enhancing its service offerings in the global arena. Through its innovative approach, the company aims to lead the UCO market by providing high-quality products while contributing positively to environmental conservation efforts.

Key Companies in the Used Cooking Oil (UCO) Market Include

• Imperial Oils


• Regeneration Energy


• NexSteppe


• GEM Biofuels


• B100


• Cargill


• Greasecycle


• SeQuential


• AltAir Fuels


• Gulshan Polyols


• Goodman Fielder


• Vittoria Biofuels


• Biofuels International


• Marion K. Dreyfus

Used Cooking Oil (UCO) Market Industry Developments

Recent developments in the Used Cooking Oil (UCO) Market have shown increased activity, particularly among key players such as Cargill and NexSteppe, as they focus on sustainability initiatives and renewable energy solutions.

Suntory Group introduced the world's first commercial PET bottles manufactured with bio-paraxylene derived from used cooking oil (UCO) in June 2024. These will be employed for specific beverage products in Japan, with the assistance of a global partnership that includes ENEOS, Mitsubishi, Neste, and Indorama Ventures.

In January 2023, Neste finalised its acquisition of Crimson Renewable Energy's UCO collection and processing assets, which included SeQuential Environmental Services and Pure, as well as a UCO plant in Salem, Oregon. This acquisition strengthened Neste's feedstock supply chain on the U.S. West Coast.

Continuous growth in the market valuation of these companies, alongside increasing regulatory support for sustainable waste disposal and biofuel production, indicates a robust future for the Global Used Cooking Oil Market, with heightened interest from investors fueling advancements in technology and processing methods. This trend is expected to foster greater exploration and utilization of UCO in biodiesel production globally.

Used Cooking Oil (Uco) Market Segmentation Insights

Used Cooking Oil (UCO) Market Application Outlook

• Biodiesel Production


• Animal Feed


• Industrial Lubricants


• Soaps and Detergents

Used Cooking Oil (UCO) Market End Use Outlook

• Transportation Fuels


• Food Industry


• Renewable Energy

Used Cooking Oil (UCO) Market Source Outlook

• Restaurants


• Food Processing Industries


• Households

Used Cooking Oil (UCO) Market Processing Method Outlook

• Physical Refining


• Chemical Refining


• Blending

Used Cooking Oil (UCO) Market Regional Outlook

• North America


• Europe


• South America


• Asia Pacific


• Middle East and Africa

Report Attribute/Metric	Details
Market Size 2023	6.58(USD Billion)
Market Size 2024	7.05(USD Billion)
Market Size 2035	15.0(USD Billion)
Compound Annual Growth Rate (CAGR)	7.1% (2025 - 2035)
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Base Year	2024
Market Forecast Period	2025 - 2035
Historical Data	2019 - 2024
Market Forecast Units	USD Billion
Key Companies Profiled	Imperial Oils, Regeneration Energy, NexSteppe, GEM Biofuels, B100, Cargill, Greasecycle, SeQuential, AltAir Fuels, Gulshan Polyols, Goodman Fielder, Vittoria Biofuels, Biofuels International, Marion K. Dreyfus
Segments Covered	Application, End Use, Source, Processing Method, Regional
Key Market Opportunities	Growing biodiesel demand, Increasing waste-to-energy initiatives, Advancements in oil recycling technologies, Expanding biolubricants market, Rising awareness on sustainability
Key Market Dynamics	Increasing demand for biodiesel, Regulatory support for recycling, Rising awareness of sustainability, Fluctuating raw material prices, Growing food waste management initiatives
Countries Covered	North America, Europe, APAC, South America, MEA