The Used Cooking Oil (UCO) Market size was estimated at USD 5.5 billion in 2023 and is projected to reach USD 8.8 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 7.20% during the forecast period (2024-2030).

Used Cooking Oil (UCO) Market

Market Summary

The Used Cooking Oil (UCO) market represents a critical segment within the food and beverages industry's waste valorization and circular economy initiatives. UCO is a byproduct generated from commercial and industrial food preparation processes, including restaurants, food processing plants, and hospitality sectors. Historically treated as waste, it is now recognized as a valuable feedstock for numerous downstream applications. The market's dynamics are shaped by its role in producing sustainable alternatives to conventional products, primarily in the energy and chemical sectors. The collection, processing, and distribution of UCO involve a complex supply chain that spans from local gatherers to large-scale international traders and biorefineries. Market participants are increasingly focusing on establishing transparent and traceable supply systems to ensure quality and sustainability credentials, which are paramount for end-users. The evolution of this market is intrinsically linked to global sustainability goals and the push for reducing reliance on virgin fossil resources, making it a strategically important area for investment and development.

Key Highlights

The UCO market is characterized by its transformation from a waste management concern to a revenue-generating commodity stream. A key highlight is its pivotal role in the production of biodiesel, where it serves as a lower-carbon intensity feedstock compared to virgin vegetable oils, directly supporting decarbonization efforts in the transportation sector. Furthermore, advancements in purification technologies have expanded its application into oleochemicals, animal feed, and other industrial uses, enhancing its economic viability. The market is also witnessing a trend towards increased regulatory scrutiny and certification, with standards like ISCC (International Sustainability and Carbon Certification) becoming critical for international trade. Another significant aspect is the growing involvement of major energy and agribusiness corporations, such as Neste and Cargill, who are investing in securing supply chains and developing advanced bio-refineries. This corporate interest validates the market's long-term potential and drives innovation in collection logistics and processing efficiency, ensuring a more reliable and high-quality supply of UCO for global markets.

Drivers, Opportunities & Restraints

The primary driver for the Used Cooking Oil market is the robust global policy framework mandating the incorporation of biofuels into national energy mixes. Regulations like the Renewable Energy Directive in Europe and the Renewable Fuel Standard in the United States create mandatory demand for sustainable feedstocks like UCO. This regulatory push is complemented by corporate sustainability commitments from multinational companies seeking to reduce their carbon footprint across supply chains. A significant opportunity lies in technological innovation to improve collection rates from under-tapped sources, such as household collection programs, and to enhance the efficiency of conversion processes into higher-value products like renewable diesel and sustainable aviation fuel. However, the market faces considerable restraints. The supply of UCO is inherently fragmented and limited, leading to intense competition for reliable sources and potential issues with fraudulent blending or mislabeling of origins. Logistical challenges in collection from numerous small-scale generators and the costs associated with establishing efficient aggregation networks also act as barriers to market growth, potentially limiting the scalability of operations.

Concentration Insights

The competitive landscape of the UCO market features a mix of specialized waste management firms, large agribusiness conglomerates, and energy companies. The market concentration is evolving, with a trend towards consolidation as larger players acquire smaller collectors and processors to secure supply and achieve economies of scale. In North America and Europe, established companies like Darling Ingredients, Argent Energy, and Olleco have significant market shares, controlling extensive collection networks and processing facilities. The Asia-Pacific region, particularly China, is a major source of UCO but is characterized by a more fragmented collection system with numerous local operators. The competitive intensity is high, with companies competing on the basis of collection network reach, relationships with generators (e.g., restaurant chains), technological capabilities in purification, and the ability to provide certification for sustainability standards. This concentration dynamic ensures that while there are opportunities for niche players, market access and competitiveness are increasingly dependent on scale, operational efficiency, and the ability to meet stringent quality and sustainability requirements demanded by international buyers.

Type Insights

Used Cooking Oil is not a homogenous product; its characteristics vary based on its source and previous use. The primary types are often categorized by their origin, which significantly influences their quality and suitability for different applications. UCO sourced from commercial deep-frying operations, such as in fast-food restaurants, is typically a consistent stream of vegetable-based oils (like palm, soybean, or canola) and is highly valued for biodiesel production due to its predictable fatty acid profile. Conversely, UCO collected from mixed sources, including smaller restaurants and household aggregation programs, may have a more varied composition, including animal fats and a higher presence of food particles and water, requiring more intensive purification. Another distinction is between yellow grease, which has a lower free fatty acid (FFA) content, and brown grease, which is recovered from grease traps and has a very high FFA content and contamination level. Brown grease is more challenging and costly to process but still represents a valuable feedstock for advanced biodiesel and renewable diesel production technologies that can handle high-FFA inputs, thus expanding the total available volume of recoverable waste oil.

Application Insights

The application landscape for Used Cooking Oil is dominated by the biofuel sector, where it is a preferred feedstock for producing biodiesel (FAME) and, increasingly, hydrotreated vegetable oil (HVO), also known as renewable diesel. The conversion to biofuel represents the highest-value outlet for UCO, driven by policy incentives and its superior environmental attributes. Beyond energy, UCO is a fundamental raw material in the oleochemical industry, where it is processed into a variety of products including biolubricants, green solvents, surfactants, and ingredients for cosmetics and pharmaceuticals. This diversification adds stability to the market demand. A traditional, yet now more regulated, application is in the animal feed sector, where processed UCO can be used as a high-energy fat supplement. However, stringent regulations concerning contaminants and processing standards govern this use. The exploration of UCO for producing renewable chemicals and bioplastics is an emerging application area, offering potential for further market expansion and value creation as industries seek to replace petroleum-derived chemicals with sustainable alternatives.

Regional Insights

The global Used Cooking Oil market exhibits distinct regional dynamics shaped by regulatory frameworks, consumption patterns, and infrastructure development. Europe is a leading market and a major importer, driven by ambitious biofuel mandates and well-established waste management systems that ensure high collection rates. Countries like Germany, the UK, and the Netherlands are key hubs for processing and trading. North America, particularly the United States, is another significant market with a strong biofuel policy (RFS) and a mature network of renderers and biofuel producers actively sourcing UCO. The Asia-Pacific region is the largest source of UCO globally, with China, Indonesia, and Malaysia generating vast quantities due to high consumption of fried foods and palm oil. However, collection infrastructure and formalized systems are still developing in many parts of APAC, presenting a major opportunity for market growth. Latin America and the Middle East & Africa are emerging regions, with growing biofuel production capacities starting to drive local demand for UCO, though collection systems remain less formalized compared to Western markets.

Company Insights

The competitive environment includes companies specializing in collection, rendering, trading, and bio-refining. Darling Ingredients Inc. is a global leader with a massive network for collecting and recycling animal and vegetable by-products, including UCO, through its subsidiary Diamond Green Diesel. Neste Oyj, a Finnish refining company, is a world-leading producer of renewable diesel and a major purchaser of global UCO supplies for its refineries. Companies like Argent Energy in the UK and Olleco operate extensive collection infrastructures focused on the hospitality sector and are integrated into biofuel production. In the trading and processing space, firms such as Valley Proteins and Baker Commodities are significant players in the North American market. Greasecycle and Oz Oils are examples of companies that have developed specialized logistics and technology for efficient UCO collection. The involvement of agribusiness giants like Cargill and Archer Daniels Midland (ADM) underscores the market's strategic importance, as they leverage their existing agricultural supply chains to participate in the valorization of waste streams.

Recent Developments

The Used Cooking Oil market is experiencing rapid evolution, marked by strategic investments and regulatory advancements. A prominent trend is the vertical integration among biofuel producers, who are acquiring collection companies to secure their feedstock supply and mitigate volatility. For instance, several major renewable diesel producers have entered into long-term offtake agreements or made equity investments in aggregators. Technological developments are also critical, with research focused on enhancing the efficiency of converting UCO into drop-in biofuels like sustainable aviation fuel (SAF), opening a new, high-demand application. On the regulatory front, there is a continuous tightening of sustainability certification requirements to prevent fraud and ensure genuine carbon emission reductions, influencing trading patterns and traceability protocols. Furthermore, partnerships between waste management companies and municipal governments are expanding to include residential UCO collection programs, aiming to increase overall recoverable volumes. These developments collectively point towards a market that is maturing, becoming more structured, and aligning closely with the global energy transition.

Report Segmentation

This comprehensive market research report on the Global Used Cooking Oil (UCO) Market provides a detailed analysis structured across multiple segments to offer a granular understanding of the industry. The report is segmented based on source, which includes categories such as household collection, commercial restaurants, and food processing industries, analyzing the volume and quality variations from each stream. The application segment is thoroughly examined, covering biodiesel production, oleochemicals, animal feed, and other emerging uses, providing insights into demand drivers and growth prospects for each application. Furthermore, the report offers a detailed geographical segmentation, providing in-depth analysis and market forecasts for key regions including North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. This regional analysis covers local regulatory landscapes, key players, trade flows, and consumption patterns. Additional segmentation may include analysis by collection method and level of processing, offering stakeholders a multi-dimensional view of the market dynamics, opportunities, and competitive environment across the entire value chain.

FAQs

What is used cooking oil (UCO) primarily used for?

Used cooking oil is primarily used as a feedstock for producing biodiesel and renewable diesel. This application is driven by global biofuel mandates and the desire for lower-carbon fuel alternatives. It is also processed into oleochemicals for use in soaps, lubricants, and cosmetics, and has historically been used in animal feed, though this is subject to strict regulations.

How is used cooking oil collected?

Used cooking oil is collected through organized systems involving specialized rendering companies and waste management firms. They provide collection containers to commercial generators like restaurants, hotels, and food processors and perform scheduled pick-ups. Initiatives for household collection are also growing, often involving drop-off locations at recycling centers to aggregate smaller volumes.

Why is there a growing demand for used cooking oil?

The growing demand is directly linked to policies promoting renewable energy and circular economies. Biofuel regulations in regions like Europe and the US create a mandatory market for sustainable feedstocks. Furthermore, corporations across various sectors are seeking sustainable raw materials to reduce their environmental footprint, increasing demand for repurposed waste products like UCO.

Can used cooking oil be recycled?

Yes, used cooking oil is highly recyclable. It is not disposed of as waste but is instead collected and processed. The recycling process involves filtering and purifying the oil to remove food particles and water. This refined oil is then chemically treated through processes like transesterification to create biodiesel or through hydrogenation to make renewable diesel and other valuable products.

What are the challenges in the used cooking oil market?

Key challenges include supply fragmentation, as UCO is generated by countless small sources, making efficient collection logistically complex and costly. Ensuring the quality and authenticity of the oil to prevent fraud and meet sustainability certification standards is a persistent issue. Competition for limited supply is also intense, and fluctuating policy support in different regions can create market volatility.

Citius Research has developed a research report titled “Used Cooking Oil (UCO) Market Report - Global Industry Analysis, Size, Share, Growth Trends, Regional Outlook, Competitive Strategies and Segment Forecasts 2024 - 2030” delivering key insights regarding business intelligence and providing concrete business strategies to clients in the form of a detailed syndicated report. The report details out the factors such as business environment, industry trend, growth opportunities, competition, pricing, global and regional market analysis, and other market related factors.

Details included in the report for the years 2024 through 2030

• Used Cooking Oil (UCO) Market Potential
• Segment-wise breakup
• Compounded annual growth rate (CAGR) for the next 6 years
• Key customers and their preferences
• Market share of major players and their competitive strength
• Existing competition in the market
• Price trend analysis
• Key trend analysis
• Market entry strategies
• Market opportunity insights

The report focuses on the drivers, restraints, opportunities, and challenges in the market based on various factors geographically. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report. The Used Cooking Oil (UCO) Market report is segmented on the basis of various market segments and their analysis, both in terms of value and volume, for each region for the period under consideration.

Used Cooking Oil (UCO) Market Segmentation

Regions Covered

• North America
• Latin America
• Europe
• MENA
• Asia Pacific
• Sub-Saharan Africa and
• Australasia

Used Cooking Oil (UCO) Market Analysis

The report covers below mentioned analysis, but is not limited to:

• Overview of Used Cooking Oil (UCO) Market
• Research Methodology
• Executive Summary
• Market Dynamics of Used Cooking Oil (UCO) Market
  • Driving Factors
  • Restraints
  • Opportunities
• Global Market Status and Forecast by Segment A
• Global Market Status and Forecast by Segment B
• Global Market Status and Forecast by Segment C
• Global Market Status and Forecast by Regions
• Upstream and Downstream Market Analysis of Used Cooking Oil (UCO) Market
• Cost and Gross Margin Analysis of Used Cooking Oil (UCO) Market
• Used Cooking Oil (UCO) Market Report - Global Industry Analysis, Size, Share, Growth Trends, Regional Outlook, Competitive Strategies and Segment Forecasts 2024 - 2030
  • Competition Landscape
  • Market Share of Major Players
• Key Recommendations

The “Used Cooking Oil (UCO) Market Report - Global Industry Analysis, Size, Share, Growth Trends, Regional Outlook, Competitive Strategies and Segment Forecasts 2024 - 2030” report helps the clients to take business decisions and to understand strategies of major players in the industry. The report delivers the market driven results supported by a mix of primary and secondary research. The report provides the results triangulated through authentic sources and upon conducting thorough primary interviews with the industry experts. The report includes the results on the areas where the client can focus and create point of parity and develop a competitive edge, based on real-time data results.

Used Cooking Oil (UCO) Market Key Stakeholders

Below are the key stakeholders for the Used Cooking Oil (UCO) Market:

• Manufacturers
• Distributors/Traders/Wholesalers
• Material/Component Manufacturers
• Industry Associations
• Downstream vendors

Used Cooking Oil (UCO) Market Report Scope

COVID-19 Impact Analysis

Like most other markets, the outbreak of COVID-19 had an unfavorable impact on the Used Cooking Oil (UCO) Market worldwide. This report discusses in detail the disruptions experienced by the market, the impact on flow of raw materials, manufacturing operations, production trends, consumer demand and the projected future of this market post pandemic.

The report has helped our clients:

• To describe and forecast the Used Cooking Oil (UCO) Market size, on the basis of various segmentations and geography, in terms of value and volume
• To measure the changing needs of customers/industries
• To provide detailed information regarding the drivers, restraints, opportunities, and challenges influencing the growth of the market
• To gain competitive intelligence and uncover new opportunities
• To analyse opportunities in the market for stakeholders by identifying high-growth segments in Used Cooking Oil (UCO) Market
• To strategically profile key players and provide details of the current competitive landscape
• To analyse strategic approaches adopted by players in the market, such as product launches and developments, acquisitions, collaborations, contracts, expansions, and partnerships

Report Customization

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