Global Used Cooking Oil Market Overview
Global Used Cooking Oil Market Size was valued at USD 8.25 billion in 2022. The Used Cooking Oil market industry is projected to grow from USD 8.73 Billion in 2024 to USD 15.12 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 6.30% during the forecast period (2024 - 2032). The wide usage of used cooking oil in various applications such as biodiesel, oleochemical products, animal feed, and many more is expected to fuel its market growth during the forecast period.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Used cooking oil is also termed as waste vegetable oil that is produced after repetitive application for cooking purposes in commercial as well as household sectors. As the used cooking oil is considered as waste, the continuous innovations made by the manufacturers and multinational corporations have surged its application in various other sectors that mainly includes, biofuels, and animal feed. These days, consumers have become more aware and are looking for eco-friendly products for their regular applications. The increasing environmental concern, rising prices for petroleum products, and surging health concerns associated with the negative impact of burning petrol and diesel in vehicles have tended the consumers towards the adoption of biofuels. Cooking oil is being used for the production of biofuels, and also is a cleaner-burning substitute for petroleum products with zero or negligible impacts.
The usage of used cooking oil-based biofuels decreases the emission of carbon by approximately 85% per gallon, that in turn boosts the demand to produce biofuels. In addition, the used cooking oil is also being used to produce animal feed products, as it is enriched with calories and other health-beneficial nutrients. The used cooking oil is used to produce various livestock feed products for poultry, dog food, cat food, and other products, which is further burgeoning the demand. Apart from that, the used cooking oil has also found applications in cosmetics, and the personal care industry to produce soaps, and other personal care, cosmetics, and toiletries. Used cooking oil is used as base and is blended with caustic soda flakes, and water to formulate soaps. Apart from that, used cooking oil is also as to make shampoos, perfumes, and other skin care products. Additionally, the used cooking oils are also used to make lamp oil, paints, and other associated products that in turn bolster the growth and are likely to grow over forthcoming years.
The Used Cooking Oil Market segmentation, based on source, includes food manufacturers, HoReCa, households, and others. The HoReCa segment held the majority share in 2022 contributing to around 61.27% in respect to the Used Cooking Oil Market revenue. HoReCa segment comprises the cooking oil used in the manufacturing of freshly cooked products that are sold in hotels, restaurants, and cafeterias & caterers. Palm oil, olive oil, canola oil, sunflower oil, and corn oil are some of the most used oils in the HoReCa players across the globe. Though, the service providers in the HoReCa segment tend to flush down the oil into the sink or other areas which leads to blockages in the sewer systems. The other commonly followed practice by the owners of hotels, cafes, and restaurants is reselling the used cooking oil to other small-scale food eateries and roadside food shops at a reduced price.
The Used Cooking Oil Market data has been bifurcated by application into biodiesel, oleochemical products, animal feed, and others. The biodiesel segment dominated the market in 2022 and is projected to be the fastest-growing segment during the forecast period, 2022-2030. Biodiesel is a sustainable and eco-friendly alternative to diesel that is conventionally derived from fossil fuel-based petroleum. Used cooking oil is one of the cost-effective sources that is being widely used in biodiesel production in place of other sources like animal fat. According to the UN estimates the global population is expected to record a value of around 9.7 billion in 2050 which translates to an increased demand for fossil resources based on energy fuel including diesel. Diesel fuel contributes to a significant amount of carbon emissions, as a result, governments across countries have initiated several steps and methods to reduce the total carbon emission.
Figure 2: Used Cooking Oil Market, by Application, 2022 & 2030 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
By Region, the market is segmented into North America, Europe, Asia-Pacific and Rest of the World. Europe Used Cooking Oil market accounted for USD 5.07 billion in 2022 and is expected to exhibit a 6.33 % CAGR during the study period. Europe region comprises Germany, France, Italy, Spain, the UK, and the rest of the European countries. To achieve a circular economy and as an initiative to halt climate change, the European Union has launched the EU Green Deal in 2020 which will play a key role in multiple avenues including agriculture, transport, industry, energy, environment and oceans, climate, finance and regional development, and research and innovation. In line with the agenda, Germany’s Federal Climate Protection Act has set targets to reduce greenhouse gas emissions by 2030 to a CO2 equivalent of 95 million tons.
Further, the major countries studied are The U.S., Canada, Mexico, UK, Germany, France, Italy, Spain, China, Japan, India, Australia & New Zealand, and Brazil.
Figure 3: USED COOKING OIL MARKET SHARE BY REGION 2022 (%)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
North America Used Cooking Oil market accounts for the second-largest market share in 2022. The region has been focusing on various climate mitigation strategies to sustain global warming at 1.5 degree Celsius and below. The transportation sector alone accounts for a share of 33% of the total carbon emissions in the US and subduing the emissions from the sector would result in more than half of the total pollution by 2030. One such initiative is the clean fuel standards (CFS) which has regulated the manufacturers of oil and gas fuel used in road vehicles to reduce greenhouse gas by purchasing credits from alternative clean and sustainable fuel producers including low carbon emitting biofuels and electric vehicle chargers. Further, the U.S. Used Cooking Oil market held the largest market share, and Mexico Used Cooking Oil market was the fastest-growing market in the North America region.
The Asia-Pacific Used Cooking Oil Market is expected to grow at a CAGR of 7.49% from 2023 to 2030. The Asia-Pacific region comprises China, India, Japan, Australia and New Zealand, and the rest of the Asian countries. China is one of the leading producers of used cooking oil in the generation and produces enormous quantities of biodiesel that are manufactured using the used cooking oil. The country is witnessing strong demand for biodiesel from the European Union countries especially for UCO-based biodiesel from January to June 2022. The certificate of double counting in EU countries for waste-based biodiesel is energizing the use of used cooking oil as a feedstock in the production by domestic manufacturers. Moreover, China Used Cooking Oil market held a significant market share, and India Used Cooking Oil market was anticipated to hold the second largest share in the Asia-Pacific region.
Major market participants are spending a lot of money on R&D to increase the range of their products, which will drive the Used Cooking Oil market's future expansion. To increase their global reach, market participants are also launching fresh goods, concluding contracts, buying companies, raising money, and collaborating with other groups. Competitors in the Used Cooking Oil industry must offer reasonable prices for their goods to expand and thrive in today's fiercely competitive market environment. One of the primary business strategies adopted by manufacturers in the global used cooking oil industry to benefit clients and expand the used cooking oil market sector is to manufacture locally to reduce operating costs. In recent years, used cooking oil has provided enormous benefits to its consumers.
Used Cooking Oil Industry Developments
February 2023: Olleco announced the construction of a state-of-the-art used cooking oil processing plant in East London at the Stolthaven Terminals facility in Dagenham. The new plant will not only strengthen its ability to serve the customers in the southeast of England but also create opportunities for collaboration with our new partnership, Olleco Bunge, throughout the EU.
October 2020: Veolia acquires 29.9% of Suez’s capital from Engie and confirms its intention to acquire control.
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 8.25 billion |
| Market Size 2024 | USD 8.73 billion |
| Market Size 2032 | USD 15.12 billion |
| Compound Annual Growth Rate (CAGR) | 6.30% (2024-2032) |
| Base Year | 2022 |
| Forecast Period | 2024-2032 |
| Historical Data | 2019-2021 |
| Forecast Units | Value (USD Billion) & Volume (KT) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Source, Application, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and Rest of the World |
| Countries Covered | The U.S, Canada, Mexico, Germany, France, Italy, Spain, the UK, the Rest of Europe, China, Japan, India, Australia & New Zealand, the Rest of Asia Pacific, South America, the Middle East, and Africa. |
| Key Companies Profiled | Darling Ingredients Inc., Veolia, Olleco, Baker Commodities Inc., Arrow Oils Ltd, Argent Energy, Waste Oil Recyclers, Inc., Grand Natural Inc., and Greasecycle. |
| Key Market Opportunities | · Surging R&D Along with the Government Initiatives Flourishing the Growth Prospects for Used Cooking Oil |
| Key Market Dynamics | · Surging Industrial Application of Used Cooking Oil Skyrocketing the Demand· The “Best from the Waste” Trend Along with the Focus on Renewable Sources Spurring the Growth |
Frequently Asked Questions (FAQ) :
The Used Cooking Oil market was valued at USD 8.25 Bn in 2022 and is expected to grow at a CAGR of 6.30% during 2024-2032.
Europe Used Cooking Oil Market valued USD 5.07 Bn in 2022.
The growth rate of Used Cooking Oil Market is 6.30% during the forecast period 2023-2032.
Europe held the largest market share in the Used Cooking Oil Market in 2022.
The key players in the Used Cooking Oil Market are Darling Ingredients Inc., Veolia, Olleco, Baker Commodities Inc., Arrow Oils Ltd, Argent Energy, Waste Oil Recyclers, Inc., Grand Natural Inc., and Greasecycle.
The HoReCa segment held the highest market share in the Used Cooking Oil Market in 2022.
The biodiesel segment held the largest market share in the Used Cooking Oil market in 2022.
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