Global Used Cooking Oil (UCO) Market Overview
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 7.11% during the forecast period (2025 - 2035).
Source Primary Research, Secondary Research, MRFR Database and Analyst Review
Key Used Cooking Oil (UCO) Market Trends Highlighted
The Used Cooking Oil (UCO) Market is witnessing significant trends that shape its dynamics. A key market driver is the increasing awareness of environmental sustainability and the importance of recycling waste materials. Governments globally are promoting the conversion of used cooking oil into biodiesel and other valuable products, thus encouraging the collection and processing of UCO. This initiative aligns with efforts to reduce waste and emissions while providing an alternative energy source. Furthermore, the growing demand for renewable energy has led to an increased interest in UCO as a sustainable feedstock, which strengthens its market presence.
The market is starting to offer prospects as companies try more creative ways to collect and process used cooking oil. It is becoming easier to process UCO into biodiesel with new technologies, which is good for the economy and the environment. Also, the increasing use of UCO in food and animal feed gives more opportunities to widen the market. Recently, there has been a noticeable trend toward more strict controls on waste and environmental impact, forcing some industries to adopt sustainable approaches. This regulation is driving both industries and consumers to rethink their waste management systems, and as a result, there is an increase in UCO collection projects.
The wellness trend among consumers has also prompted restaurants and food chains to seek eco-friendly disposal solutions for their used cooking oils, which further underscores the evolving landscape of the UCO market on a scale.
Used Cooking Oil (UCO) Market Drivers
Rise in Biodiesel Production
The Used Cooking Oil (UCO) Market Industry is experiencing significant growth driven largely by the rising demand for biodiesel production. Biodiesel, a renewable and sustainable alternative to fossil fuels, has gained traction due to stricter regulations regarding greenhouse gas emissions and the need for cleaner energy sources. According to the European Biodiesel Board, the production of biodiesel in Europe alone has increased by over 50% in the past five years, driven by the EU Renewable Energy Directive (RED) that mandates a minimum percentage of renewable energy in transport fuels.
This regulatory push is particularly relevant in regions like Europe and North America, where governments are investing in research and development to enhance the viability of biodiesel made from used cooking oil. Furthermore, major companies, such as Neste and Renewable Energy Group, are leading the charge in developing efficient processing methods for converting used cooking oil into biodiesel, contributing to the anticipated growth in the Used Cooking Oil (UCO) Market Industry.
Increasing Awareness of Sustainable Practices
A significant driver of growth in the Used Cooking Oil (UCO) Market Industry is the increasing awareness surrounding sustainable practices among consumers and businesses. Recent reports from the United Nations suggest that approximately 68% of consumers are willing to make environmentally friendly purchases, favoring brands that demonstrate sustainability. This trend is reflected in the food service industry, where restaurants and catering services are actively seeking ways to reduce their waste and promote sustainability.
Prominent organizations, such as the World Wildlife Fund, are educating the public about the importance of recycling used cooking oil as part of a circular economy. By promoting responsible disposal, these entities contribute to increased collection and recycling rates of used cooking oil, further driving market growth in the Used Cooking Oil (UCO) Market Industry.
Government Initiatives and Regulations
Government initiatives and favorable regulations are pivotal for the growth of the Used Cooking Oil (UCO) Market Industry. Many countries are enacting regulations that incentivize the collection and recycling of used cooking oil. For instance, in 2021, the U.S. passed comprehensive waste management strategies that include provisions for used cooking oil to be recycled rather than disposed of in landfills. This regulatory framework is expected to boost local economies by creating jobs in collection and processing facilities.
Moreover, regions with extensive government support, such as California, have implemented financial incentives for biodiesel producers who utilize used cooking oil. Such policies are essential for fostering interest and participation in the market, as reinforced by industry associations like the National Biodiesel Board, which advocates for sustainable fuel policies and practices.
Used Cooking Oil (UCO) Market Segment Insights
Used Cooking Oil (UCO) Market Application Insights
The Used Cooking Oil (UCO) Market focuses significantly on its various applications, marking an essential part of the industry landscape. In 2024, the overall market reflected a strong valuation, with anticipated applications in key areas such as Biodiesel Production, Animal Feed, Industrial Lubricants, and Soaps and Detergents driving substantial demand. Biodiesel Production held a notable value of 2.5 USD Billion in 2024 and is expected to grow to 5.5 USD Billion by 2035, highlighting its prominence in the renewable energy sector and providing a sustainable alternative to fossil fuels. With rising energy demands and increasing focus on sustainability, Biodiesel Production from used cooking oil presents a critical avenue for reducing greenhouse gas emissions.
Animal Feed is another pivotal application, with a valuation of 2.0 USD Billion in 2024, growing to 4.0 USD Billion by 2035. This segment has gained importance due to rising livestock feed costs and a growing emphasis on cost-effective, nutrient-rich feed options. The use of UCO in animal feed not only provides a cost-efficient solution but also supports the circular economy by utilizing waste products effectively.
The Industrial Lubricants segment, valued at 1.2 USD Billion in 2024, is anticipated to rise to 3.0 USD Billion by 2035. This growth is driven by the increasing demand for biodegradable and environmentally friendly lubricants across industries. Industrial sectors are progressively opting for UCO-based lubricants to minimize environmental impact and comply with stringent regulations.
Similarly, the Soaps and Detergents sector is poised for growth, with a valuation of 1.35 USD Billion in 2024, expected to increase to 2.5 USD Billion by 2035. The demand for natural and sustainable cleaning products is driving manufacturers to source UCO as a key ingredient, enhancing product functionality while addressing consumer preferences for eco-friendly options. Each of these applications not only illustrates the diverse usage of UCO but also emphasizes the growing trend toward sustainability and resource efficiency within the Used Cooking Oil (UCO) Market. In summary, the application segment of the Used Cooking Oil (UCO) Market remains dynamic and critical, with diverse avenues like Biodiesel Production, Animal Feed, Industrial Lubricants, and Soaps and Detergents that cater to both energy demands and environmental sustainability.
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 experiencing notable growth, particularly in its End Use segment. In 2024, the market was valued at 7.05 billion USD. Key areas within this segment include Transportation Fuels, the Food Industry, and Renewable Energy. The Transportation Fuels sector is significant as UCO can be processed into biodiesel, thereby offering a sustainable alternative to fossil fuels and reducing greenhouse gas emissions. In the Food Industry, UCO is crucial for recycling and reintroducing valuable ingredients, fostering a circular economy.
Moreover, Renewable Energy benefits significantly from UCO as it transforms waste into energy sources, aligning with sustainability goals. Overall, the Used Cooking Oil (UCO) Market data reflects a growing awareness of environmental impacts and the shift towards renewable alternatives, driving market growth and facilitating innovative solutions across various sectors. This upward trend illustrates the vital role of the UCO market industry in addressing waste management challenges while promoting sustainable practices.
Used Cooking Oil (UCO) Market Source Insights
The Used Cooking Oil (UCO) Market is set for significant growth, which held a valuation of USD 7.05 billion in 2024 and reaching USD 15.0 billion by 2035. This growth is driven by rising awareness regarding waste management and biofuel production. The Source segment of the market includes various contributors such as restaurants, food processing industries, and households, each playing a critical role in the overall dynamics of UCO. Restaurants are a major contributor, producing large quantities of used oil daily, thus helping mitigate environmental impacts through recycling.
Food processing industries also hold substantial importance as they generate considerable waste oil, leading to substantial opportunities for collection and recycling initiatives. Households contribute to the UCO generation volume with their cooking practices, although their share may be lesser compared to commercial operations. The interplay between these sources is essential for understanding the Used Cooking Oil (UCO) Market segmentation, enabling data-driven decisions for sustainability and innovative applications in renewable energy, thereby aligning with market growth and addressing environmental challenges effectively.
Used Cooking Oil (UCO) Market Processing Method Insights
The Used Cooking Oil (UCO) Market, valued at 7.05 USD Billion in 2024, features a dynamic segmentation based on the Processing Method, which plays a crucial role in ensuring the quality and usability of recycled oil. Among the various approaches, Physical Refining is gaining traction due to its efficiency in preserving the natural properties of oil, making it a preferred choice in many regions. Chemical Refining, known for its ability to remove impurities at a molecular level, also holds a significant position, catering to industries requiring higher purity levels.
Blending, on the other hand, has emerged as a flexible option, allowing producers to enhance the properties of UCO tailored to specific applications. Growing awareness about sustainability and stringent regulatory frameworks are vital growth drivers in the Used Cooking Oil (UCO) Market, pushing companies to adopt these processing methods that not only meet consumer demand but also align with environmental commitments. As the market evolves, leveraging these methodologies will facilitate improved market growth and foster innovation within the industry.
Used Cooking Oil (UCO) Market Regional Insights
The Used Cooking Oil (UCO) Market exhibits a strong regional presence where North America and Europe held a majority of positions. In 2024, North America was valued at 2.15 USD Billion, growing to 4.5 USD Billion by 2035, reflecting its significant role due to high consumption rates and a robust recycling infrastructure. Europe followed suit with a valuation of 2.5 USD Billion in 2024, projected to reach 5.3 USD Billion by 2035, driven by stringent regulations promoting sustainability and waste management. The APAC region was valued at 1.75 USD Billion in 2024 and is expected to grow to 3.6 USD Billion by 2035, indicating increasing awareness and adoption of UCO for biofuel production.
Meanwhile, South America and the Middle East and Africa (MEA) presented comparatively lower valuations, at 0.85 USD Billion and 0.8 USD Billion, respectively in 2024, with growth prospects to 1.8 USD Billion by 2035. Although these regions lag in market size, they offer new opportunities for expansion due to rising environmental concerns and potential government support for UCO utilization. The overall growth in the Used Cooking Oil (UCO) Market is propelled by a shift towards renewable energy resources and increased food processing activities across diverse regions.
Source Primary Research, Secondary Research, MRFR Database and Analyst Review
Used Cooking Oil (UCO) Market Key Players and Competitive Insights
The competitive landscape of the Used Cooking Oil (UCO) Market presents a dynamic environment driven by a growing awareness of sustainability and the importance of recycling waste for renewable energy production. The market is characterized by the presence of various companies that specialize in collecting, processing, and selling used cooking oil for applications such as biodiesel production and animal feed. Factors such as regulatory support for biofuel usage, rising energy demands, and advancements in processing technologies are key drivers that influence competition within this market. As the demand for renewable energy sources continues to escalate, companies are increasingly focused on optimizing their supply chains, enhancing product quality, and expanding their operational footprints to secure a competitive edge in this evolving landscape.
Collective Biofuels has established itself as a significant player in the Used Cooking Oil (UCO) Market through its robust supply chain management and commitment to providing high-quality recycled oils. The company emphasizes the importance of sourcing used cooking oil from diverse sectors, ensuring a consistent and reliable supply for biodiesel production. Collective Biofuels leverages strategic partnerships with restaurants and food service providers, allowing it to enhance its collection capabilities and expand its market reach. The company is recognized for its strong commitment to sustainability, which resonates well with eco-conscious consumers and businesses alike. By focusing on innovative processing techniques, Collective Biofuels maintains a solid position in the market, which is reflected in its increasing capacity for recycling and distribution of used cooking oil on a scale.
One Earth Energy is another notable entity in the Used Cooking Oil (UCO) Market, primarily known for its involvement in producing biofuels from UCO. The company has developed a range of key products and services, including high-quality biodiesel derived from used cooking oil, enabling it to cater to a diverse customer base that spans both residential and commercial sectors. One Earth Energy benefits from its robust operational capabilities and strategic international collaborations, which have allowed it to expand its presence significantly in the market. Over the years, the company has strategically pursued mergers and acquisitions to bolster its technological expertise and enhance its production efficiency, enabling it to remain competitive in this growing sector. With a focus on environmental responsibility and innovation, One Earth Energy continues to strengthen its market position by adapting to the ever-changing demands of the Used Cooking Oil (UCO) Market, underscoring its commitment to sustainable energy solutions.
Key Companies in the Used Cooking Oil (UCO) Market Include
- Collective Biofuels
- One Earth Energy
- Greasecycle
- Biodiesel Technologies
- Valley Proteins
- World Energy
- The Render Group
- Perdue AgriBusiness
- Resynergi
- EcoStream
- Rilco
- Bionet Recycling
- Duo Green
- Rerman
- Arrow Biofuels
Used Cooking Oil (UCO) Market Industry Developments
The Used Cooking Oil (UCO) Market has witnessed significant developments recently, reflecting the growing demand for sustainable biofuels and the recycling of waste products. In June 2023, World Energy expanded its renewable diesel production capacity, indicating strong growth in the sector driven by increasing environmental regulations and biofuel mandates. Additionally, Valley Proteins announced a strategic partnership with Perdue AgriBusiness in July 2023 aimed at enhancing the collection and processing of UCO for biofuel production. In terms of market growth, the valuation of companies involved in UCO recycling is rising, with reports of Collective Biofuels and Greasecycle gaining new contracts that bolster their market positions. Furthermore, in September 2022, Rilco acquired Biodiesel Technologies, strengthening its capabilities in processing used cooking oil into biodiesel. Over the past few years, the overall awareness of sustainability and reducing waste has elevated the status of used cooking oil as an essential resource for renewable energy, resulting in increased investments and partnerships among players such as EcoStream and Bionet Recycling, who are also working towards improving UCO collection infrastructure 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
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Report Attribute/Metric
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Details
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Market Size 2023
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6.58 (USD Billion)
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Market Size 2024
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7.05 (USD Billion)
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Market Size 2035
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15.0 (USD Billion)
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Compound Annual Growth Rate (CAGR)
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7.11% (2025 - 2035)
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Report Coverage
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Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
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Base Year
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2024
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Market Forecast Period
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2025 - 2035
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Historical Data
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2019 - 2024
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Market Forecast Units
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USD Billion
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Key Companies Profiled
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Collective Biofuels, One Earth Energy, Greasecycle, Biodiesel Technologies, Valley Proteins, World Energy, The Render Group, Perdue AgriBusiness, Resynergi, EcoStream, Rilco, Bionet Recycling, Duo Green, Rerman, Arrow Biofuels
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Segments Covered
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Application, End Use, Source, Processing Method, Regional
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Key Market Opportunities
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Sustainable biodiesel production, Waste-to-energy conversion, Animal feed formulation, Eco-friendly packaging solutions, Increased consumer awareness and demand
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Key Market Dynamics
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Sustainability trends, increasing biodiesel demand, waste management regulations, public health awareness, circular economy initiatives
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Countries Covered
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North America, Europe, APAC, South America, MEA
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Used Cooking Oil Market Highlights:
Frequently Asked Questions (FAQ) :
The Used Cooking Oil market was valued at USD 9.32 Bn in 2023 and is expected to grow at a CAGR of 6.3% during 2025-2034.
Europe Used Cooking Oil Market valued USD 5.07 Bn in 2023.
The growth rate of Used Cooking Oil Market is 6.3% during the forecast period 2025-2034.
Europe held the largest market share in the Used Cooking Oil Market in 2023.
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 2023.
The biodiesel segment held the largest market share in the Used Cooking Oil market in 2023.
Key players in the UCO Market include Collective Biofuels, One Earth Energy, and Greasecycle, among others.
The market value for industrial lubricants in the UCO Market is estimated at 1.2 USD billion in 2024.
The market for soaps and detergents in the UCO Market is projected to grow to 2.5 USD billion by 2035.
