As per MRFR analysis, the Japan Used Cooking Oil Market Size was estimated at 279.68 (USD Million) in 2023.The Japan Used Cooking Oil Market Industry is expected to grow from 297.3 (USD Million) in 2024 to 592.5 (USD Million) by 2035. The Japan Used Cooking Oil Market CAGR (growth rate) is expected to be around 6.47% during the forecast period (2025 - 2035).
Key Japan Used Cooking Oil Market Trends Highlighted
In Japan, the Used Cooking Oil Market is experiencing significant trends driven by environmental awareness and sustainability initiatives. The increasing focus on waste reduction and recycling has encouraged both consumers and businesses to adopt practices that promote the reuse of cooking oil. The Japanese government has been proactive in implementing policies aimed at improving waste management and promoting biofuel production, which boosts the demand for recycled cooking oil. This growing regulatory support represents an important market driver, encouraging the collection and processing of used oil into biodiesel and other valuable products.
Moreover, the increase in biofuel consumption indicates a turn towards sustainable energy solutions bringing new prospects in the Japan Used Cooking Oil Market. Japan has set impressive initiatives to develop renewable energy, and this increases investment in plants that process used cooking oil into biodiesel, making it very attractive for new competitors in the biofuel market.
In addition, there is a shift in consumer behavior, which is making more people eco-friendly, thus trying to improve their brand image and responsibly shield the environment by making green resources for their products using used cooking oil. A number of recent studies note that an increasing number of people working in the Japanese food service industry are concerned with what to do with waste cooking oil.
This has led to the establishment of partnerships between restaurants and recycling companies, ensuring a steady supply of used cooking oil for processing. Additionally, the popularity of environmentally friendly products is expanding, and consumers are inclined to purchase items made from recycled materials. Overall, these trends are shaping a more robust landscape for the Japan Used Cooking Oil Market, highlighting the importance of sustainability and innovation in driving market growth.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Japan Used Cooking Oil Market Drivers
Growing Awareness of Biodiesel Usage
The Japan Used Cooking Oil Market Industry is experiencing significant growth driven by the increasing awareness and adoption of biodiesel as a renewable energy source. According to the Ministry of the Environment in Japan, biodiesel production has been a cornerstone of national sustainability efforts, with a target of reducing greenhouse gas emissions by 26% by 2030 compared to 2013 levels. This initiative encourages the recycling of used cooking oil into biodiesel, which not only helps in energy generation but also in reducing waste.
Sustainable Energy for All, a global campaign, has emphasized that utilizing waste to create energy can reduce carbon emissions significantly. As businesses and consumers become more conscious of their environmental footprint, the demand for used cooking oil as a biodiesel feedstock is anticipated to rise, contributing positively to market growth. Furthermore, the Japanese government has been supportive of this transition, incentivizing companies to invest in biogas and biofuel infrastructure, thus further propelling the Japan Used Cooking Oil Market.
Increase in Food Service Industry
The Japan Used Cooking Oil Market Industry is also benefitting from the rapid expansion of the food service sector. As reported by the Japan Food Service Association, the food service industry has shown a steady growth rate, with an increase in the number of restaurants and cafes across urban areas. The proliferation of dining establishments translates to a higher volume of used cooking oil generated, which can be processed and repurposed.
This increase in capacity not only contributes to the supply of used cooking oils for recycling but also encourages more businesses to engage in sustainable practices, thereby enhancing the viability of the used cooking oil market.Japanese regulatory frameworks are also pushing food businesses to adhere to waste management protocols, leading to increased collection and recycling of used cooking oil.
Government Policies Promoting Waste Recycling
The Japan Used Cooking Oil Market Industry is significantly influenced by strong government policies aimed at promoting waste recycling. The Government of Japan has implemented several initiatives under the Basic Act for Establishing a Sustainable Society, which sets forth commitments to recycle waste and use resources effectively. For instance, the Waste Management Act encourages the proper management and recycling of waste oils, including used cooking oil, mandating food businesses to adopt environmentally friendly disposal practices.
This regulatory environment not only aims to decrease landfill rates but also fosters a culture of environmental responsibility across industries, promoting the recycling of used cooking oil for various applications, including biofuels. Such policies create a conducive atmosphere for investment in the Japan Used Cooking Oil Market, driving growth through improved collection and processing of used oils.
Technological Advances in Oil Processing
Technological advancements in the processing of used cooking oil have paved the way for improved refining methods, thereby enhancing the quality and marketability of the end product. Companies in Japan, such as AOCS (American Oil Chemists' Society) Japan chapter, have been working towards incorporating cutting-edge technologies for the efficient processing of used cooking oils into high-grade biodiesel or other value-added products. Studies indicate that modern refining techniques can increase the yield and purity of biofuels derived from used oils by over 20%.
These innovations not only facilitate compliance with stringent quality standards but also make the Japan Used Cooking Oil Market more attractive to potential investors and stakeholders, driving growth as Japan continues to seek alternative energy sources amid global energy transitions.
Japan Used Cooking Oil Market Segment Insights
Used Cooking Oil Market Source Insights
The Japan Used Cooking Oil Market has shown a notable inclination towards the Source segment, which is critical for understanding the dynamics of this industry. The key areas within this segment, including Food Manufacturers, HoReCa (Hotels, Restaurants, and Cafés), Households, and Others, each play an essential role in the overall market landscape. Food Manufacturers stand out due to their capacity to produce large volumes of used cooking oil, which is fundamental for creating biodiesel and other sustainable products.
This segment's significance lies in its vast scale of operations and the efficiency with which it can recycle and repurpose oil, addressing both economic and environmental concerns prevalent in Japan.
In the HoReCa sector, there’s a rising emphasis on sustainability, which positions this segment as a vital player in the Japan Used Cooking Oil Market. This industry has been increasingly adopting practices that involve collecting and recycling used cooking oil, not only to reduce waste but also to align with governmental policies aimed at promoting environmental sustainability.
As restaurants and cafes look to boost their eco-friendly credentials, this segment becomes crucial as they contribute significantly to the volume of used oil that can be converted into valuable resources.
Household usage of cooking oil also significantly impacts the Source segment. As awareness of sustainability and waste reduction rises, many households are recognizing the importance of properly disposing of used cooking oil. This segment represents an opportunity for local collection initiatives, where residents are encouraged to contribute their used oil for recycling, thus creating a community-based effort to minimize waste. This grassroots-level participation can significantly drive the overall growth of Japan Used Cooking Oil Market as households realize their role in contributing to a more sustainable ecosystem.
Lastly, the Others category, encompassing various smaller contributors such as food trucks and catering services, presents another dimension to the Source segment. While these entities may operate on a smaller scale compared to large manufacturers or chains in the HoReCa sector, they collectively add a significant amount of used cooking oil into the circular economy. Each of these various segments showcases unique opportunities and challenges, ultimately collaborating to shape the revenue-generating framework of the Japan Used Cooking Oil Market. Overall, the Source segment is integral to the market’s progression and sustainability efforts in Japan, as it dovetails with both industrial practices and societal values on waste management and resource recycling.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Used Cooking Oil Market Application Insights
The Japan Used Cooking Oil Market, particularly in the Application segment, showcases a diverse landscape influenced by various factors. Biodiesel stands out as a key area, driven by Japan’s commitment to reduce greenhouse gas emissions and enhance energy security, giving it significant importance in the market. Oleochemical products are also notable, as they find applications in the cosmetic and food industries, catering to the growing demand for sustainable and biodegradable materials. The Animal Feed segment leverages used cooking oil for nutrition, enhancing livestock growth and reducing feed costs, further contributing to its relevance amid an expanding agricultural sector.
Additionally, the Others category encompasses various applications that utilize used cooking oil, highlighting the versatility and potential for innovation within this market. As Japan escalates efforts towards sustainability and resource utilization, the market witnesses increased opportunities for growth and development across these applications while facing challenges such as regulatory frameworks and competition from alternative feedstocks. Overall, the Application segment remains a cornerstone of the Japan Used Cooking Oil Market, with evolving trends affecting its dynamics and future outlook.
Japan Used Cooking Oil Market Key Players and Competitive Insights
The Japan Used Cooking Oil Market is experiencing notable competitive dynamics, driven by growing awareness of sustainability, the rise of biofuels, and demand for environmentally friendly waste management solutions. Companies within this market are increasingly focused on sourcing used cooking oil from various channels, including food processing plants and restaurants, to convert waste into valuable resources such as biodiesel and animal feed.
The market is characterized by the presence of both established players and new entrants who are looking to capitalize on the rising need for renewable energy sources and sustainable practices. Innovation in processing techniques and the development of strategic partnerships are becoming essential strategies for companies looking to enhance their market share in this burgeoning sector.
Marubeni Corporation stands out in the Japan Used Cooking Oil Market with a solid reputation built on its extensive supply chain and logistics capabilities. The company has developed a comprehensive network that allows it to efficiently collect and process used cooking oil across various regions in Japan. One of the strengths of Marubeni Corporation lies in its adeptness at forming strategic alliances with local food businesses, enabling a consistent and reliable supply of raw materials for conversion.
By investing in advanced technologies for purification and processing, Marubeni Corporation not only increases the quality of its products but also ensures compliance with stringent environmental regulations. Additionally, the company’s commitment to sustainability and eco-friendly practices resonates well with stakeholders, and drives continued demand for its services in the used cooking oil market.
Kawasaki Heavy Industries has made significant inroads in the Japan Used Cooking Oil Market, leveraging its technological prowess and engineering solutions to develop innovative applications that utilize used cooking oil. The company is known for its robust product line that includes biodiesel processing systems and various waste-to-energy technologies. Kawasaki Heavy Industries has established a strong market presence due to its emphasis on research and development, resulting in highly efficient processing solutions that cater to the unique needs of the Japanese market.
A notable strength of the company lies in its ability to integrate waste management systems with its existing operational frameworks, thereby optimizing resource utilization. The company has pursued strategic mergers and acquisitions to enhance its capabilities in this sector, allowing for a more comprehensive service offering and positioning itself as a key player in promoting renewable energy initiatives within Japan.
Key Companies in the Japan Used Cooking Oil Market Include
Japan Used Cooking Oil Market Industry Developments
Recent developments in the Japan Used Cooking Oil Market have seen increased awareness and activity due to a growing demand for sustainable energy sources. In October 2023, Marubeni Corporation announced an initiative aimed at expanding their operations related to the recycling of used cooking oil into biodiesel, reflecting the ongoing shift towards renewable energy solutions in Japan.
Furthermore, in September 2023, Kawasaki Heavy Industries collaborated with several companies, including Showa Shell Sekiyu K.K., to enhance the technology involved in processing used cooking oil, aiming to significantly reduce carbon emissions and promote eco-friendly practices. On the corporate side, there have been reports of Sumitomo Corporation contemplating an acquisition of a startup focused on the sustainable production of biodiesel from waste oils.
The increasing focus on sustainability has led to notable growth in market valuation for firms like Aioi Unyu Holdings and Nippon Oil Corporation, showcasing the economic benefits of catering to this evolving market. In the past two years, Japan has emphasized the transition from fossil fuels, prompting innovations and attracting investments to harness the potential of used cooking oil as a valuable resource in energy production.
Used Cooking Oil Market Segmentation Insights
Used Cooking Oil Market Application Outlook
Biodiesel
Oleochemical Products
Animal Feed
Others
| Report Attribute/Metric | Details |
| Market Size 2023 | 279.68 (USD Million) |
| Market Size 2024 | 297.3 (USD Million) |
| Market Size 2035 | 592.5 (USD Million) |
| Compound Annual Growth Rate (CAGR) | 6.47% (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 Million |
| Key Companies Profiled | Marubeni Corporation, Kawasaki Heavy Industries, Showa Shell Sekiyu K.K., Aioi Unyu Holdings, Nippon Oil Corporation, Toyota Tsusho Corporation, Mitsui and Co, Fujimoto Corporation, Idemitsu Kosan Co, Toyo Seikan Group Holdings, Daido Sangyo Co, Sumitomo Corporation, Suntory Holdings Limited, Sojitz Corporation |
| Segments Covered | Source, Application |
| Key Market Opportunities | Increasing biodiesel production demand, Expanding recycling infrastructure initiatives, Growing food waste reduction awareness, Rising demand for sustainable products, Government support for eco-friendly initiatives |
| Key Market Dynamics | Regulatory support for recycling, increasing biodiesel production demand, rising awareness of sustainability, fluctuating oil prices, advancements in waste-to-energy technology |
| Countries Covered | Japan |
Frequently Asked Questions (FAQ) :
The Japan Used Cooking Oil Market is expected to be valued at 297.3 USD million in 2024.
By 2035, the Japan Used Cooking Oil Market is projected to reach a value of 592.5 USD million.
The expected CAGR for the Japan Used Cooking Oil Market from 2025 to 2035 is 6.47%.
The Food Manufacturers segment is expected to have the largest share, valued at 120.0 USD million in 2024.
The HoReCa segment is forecasted to be valued at 150.0 USD million by 2035.
Key players in the market include Marubeni Corporation, Kawasaki Heavy Industries, and Showa Shell Sekiyu K.K.
The Household segment is expected to be valued at 50.0 USD million in 2024.
The market faces challenges, including regulatory changes and fluctuations in supply and demand.
There are opportunities for growth in biofuel applications and sustainable practices in the market.
The 'Others' segment is expected to be valued at 99.5 USD million by 2035.
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Senior Research Analyst I have a bachelor's degree in mechanical engineering and an mba. i have more than two years of expertise in the retail, food, and beverage, chemical, and material industries, and hence have developed a sound cross-domain expertise. a firm believer in lifelong learning and sharing of knowledge. having a proclivity for hatching ideas and trying to absorb as much information as possible in a short amount of time. introducing corporates to the data and insight, which enables them to move from probability to possibility, has been my key areas of interest.Â
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