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Used Cooking Oil Market Size

ID: MRFR//3099-CR | 200 Pages | Author: Snehal Singh| July 2025

Used Cooking Oil Market Size Snapshot

YearValue
2024USD 7.05 Billion
2035USD 15.0 Billion
CAGR (2025-2035)7.1 %

Note – Market size depicts the revenue generated over the financial year

The used cooking oil (UCO) market is expected to grow to $ 7.05 billion in 2024, and is projected to reach $ 15.0 billion by 2035. This growth translates into a CAGR of 7.1% from 2025 to 2035. The increasing demand for sustainable and renewable energy, along with stricter regulations on waste disposal, is driving the growth of the used cooking oil market. Used cooking oil is being reclaimed for biodiesel and other valuable products. In addition, the development of used cooking oil processing and refining technology has accelerated the market growth. Used cooking oil is an important source of biodiesel, and new extraction and conversion processes have made it a more attractive source of biodiesel. The leading companies in the market, such as Neste, Baker Commodities, and Veolia, are actively pursuing strategic initiatives, such as establishing a partnership and investing in R & D, in order to capture this market opportunity. These efforts not only strengthen the company's market position, but also contribute to the industry's sustainable development goals.

home-ubuntu-www-mrf_ne_design-batch-2-cp-used-cooking-oil-market size
Regional Market Size

Regional Deep Dive

Used cooking oil (UCO) market is experiencing significant growth in several regions, driven by increasing awareness of sustainable practices and growing demand for biofuels. The market is influenced by a number of factors, such as regulatory frameworks, technological advancements, and cultural attitudes toward waste management. The level of maturity of the market and the acceptance of consumers vary in each region, which also affects the extent to which UCO is used in the production of biodiesel and other products.

North America

  • UCO is a by-product of the manufacture of biodiesel, which is in turn a by-product of the manufacture of tallow.
  • It is hoped that the more efficient the conversion of UCO to biodiesel the better the economy of the supply chain. Darling Ingredients and Bio Energy Development Co. are investing in the most advanced methods of processing to increase the conversion efficiency of UCO to biodiesel.
  • A growing public concern for the environment and the reduction of waste is leading foodservice operators to adopt UCO-recycling programmes, which are supported by local authorities and by environmental organisations.

Europe

  • The second supplementary directive of the European Community on the use of vegetable oil in the production of biofuels has encouraged the use of UCO, which has led to an increase in the collection and processing of UCO in the member states.
  • The use of UCO in the production of high-quality biodiesel is an innovation of companies like Neste and TotalEnergies, which are laying the foundations for a sustainable energy sector.
  • Food manufacturers are responding to the growing demand for sustainable products by launching UCO-recycling schemes, in line with the EU’s circular economy objectives.

Asia-Pacific

  • The government of China and India is encouraging the use of used cooking oil as a source of fuel to reduce dependence on fossil fuels.
  • A number of new companies in the region, such as Green Biofuels and Biofuels International, are developing cost-effective ways to collect and process UCO, thereby improving market access.
  • Culture is changing. With the growing awareness of the environment, participation in the UCO's recycling programs is increasing.

MEA

  • The Middle East is experiencing a boom in the use of UCO in biodiesel production, driven by government initiatives to diversify energy sources and reduce carbon emissions.
  • The Al Ain Vegetable Oil Company is investing in the collection and processing of UCCO, which will help to grow the biofuel industry in the region.
  • A new code of conduct is being adopted to encourage sustainable practices. The UAE has set itself ambitious goals for the use of clean energy.

Latin America

  • Brazil is the leading country in the use of UCO for the production of biodiesel.
  • Granbio and Biodiesel do Brasil are developing new techniques for converting UCO into biodiesel, thus contributing to the region’s energy security.
  • Culture has a great influence on the acceptance of products derived from UCO. The strong emphasis on the environment and on sustainable development has a great influence on the acceptance of these products.

Did You Know?

“On the other hand, the use of used cooking oil as a source of fuel for the motor car, which has the advantage of reducing the exhaustion of the atmosphere by up to 86 per cent, in comparison with the use of ordinary petroleum, is an alternative to the use of petrol.” — U.S. Department of Energy

Segmental Market Size

Used cooking oil plays a crucial role in the market for renewable energy, especially in the production of biodiesel. This area is currently growing, in response to the growing demand for sustainable energy and the need to reduce waste. The key factors driving this growth are the tightening of legislation to reduce carbon emissions and the rising demand from consumers for sustainable products. In addition, the development of new technology to increase the efficiency of the conversion of used cooking oil into biodiesel is boosting interest in the market.

UCO is now in a stage of commercialization. In particular, companies like Neste and Renewable Energy Group are investing in UCO production. UCO is used mainly for the production of biodiesel, animal feed, and industrial lubricants. The main market for UCO is in Europe and North America. In addition, government support for the use of renewable energy sources and the implementation of sustainable development goals are driving the market. Moreover, the development of new production methods, such as enzymatic transesterification and advanced filtration, will shape the future of the industry.

Future Outlook

From 2024 to 2035, the used cooking oil market is expected to grow at a CAGR of 7.1% from $7.05 billion to $15.0 billion. This growth is based on the growing demand for sustainable and alternative energy sources, especially biodiesel, which is increasingly recognized as a viable alternative to fossil fuels. Used cooking oil is expected to grow further as governments worldwide are expected to implement stricter regulations on carbon emissions and promote the use of biofuels. The penetration of used cooking oil is expected to increase to 20.0% of the total biodiesel feedstock by 2035 from about 10.0% in 2024.

A crucial role is also expected to be played by technological developments in the processing and refining of UCO. Enzymatic and chemical conversion processes are expected to increase the yield and efficiency of the biodiesel production process, making it a more attractive option for producers. In addition, the growing trend towards a circular economy, in which waste materials are used to produce energy, will also contribute to the expansion of the UCO market. Also, as consumers become more aware of the environment, food service operators will become more responsible in their disposal of UCO, increasing the supply of UCO that can be converted into biodiesel and other valuable products.

The trend of integrating UCO into the broader context of the green economy, such as its use in the production of biogas and as a raw material for green chemicals, will also shape the future of the market. A strengthening of the supply chain between food manufacturers, waste disposal companies and biofuel producers is expected to increase the efficiency of the UCO market. The future development of the UCO market is largely determined by the prevailing quality and regulatory issues. Nevertheless, the overall market outlook remains positive, and UCO will play an important role in the transition to a more sustainable energy future.

Covered Aspects:
Report Attribute/Metric Details
Market Size Value In 2022 USD 8.25 Billion
Market Size Value In 2023 USD 8.73 Billion
Growth Rate 6.30% (2023-2032)
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