Year | Value |
---|---|
2024 | USD 7.05 Billion |
2035 | USD 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.
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.
“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
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.
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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