The global Used Cooking Oil (UCO) Market is witnessing dynamic growth as environmental regulations, energy diversification, and sustainability goals converge to redefine waste management and renewable fuel strategies. Valued at USD 6.5 billion in 2024, the UCO market is projected to grow at a CAGR of 7.8%, reaching nearly USD 11.2 billion by 2030.
As a key player in the circular economy, used cooking oil is being transformed from waste into valuable sustainable feedstock—notably for biodiesel production, animal feed additives, industrial lubricants, and bio-based products. A confluence of environmental consciousness, strict disposal laws, and rising adoption of waste-to-energy initiatives is driving this expansion globally.
Market Overview
Used Cooking Oil (UCO) refers to vegetable-based or animal fat-based oils that have been utilized for food preparation and are no longer suitable for consumption. Traditionally discarded as waste, UCO is now recognized as a resource for renewable fuel production, especially in the form of biodiesel and hydrotreated vegetable oil (HVO).
One of the key drivers behind the UCO market’s growth is its rising utilization as a low-carbon alternative feedstock in the biofuel sector. The biodiesel production industry, spurred by regulatory mandates like the Renewable Energy Directive (RED II) in Europe and the Renewable Fuel Standard (RFS) in the U.S., is increasingly reliant on UCO due to its lower greenhouse gas emissions compared to virgin oils.
Moreover, UCO plays a significant role in achieving sustainability goals, aligning perfectly with the ethos of the circular economy—reclaiming waste for further use, minimizing environmental impact, and creating value from discarded resources.
Market Segmentation
The global Used Cooking Oil market can be segmented by source, application, and end-use industry.
By Source:
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Household
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Food Service (Restaurants, Hotels, Catering)
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Industrial Food Processing
The food service sector dominates the market, contributing the highest volume of recoverable UCO due to frequent high-volume frying and oil turnover. However, with rising urbanization and environmental awareness, household collection is emerging as a significant contributor in Europe and North America.
By Application:
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Biodiesel Production
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Animal Feed
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Oleochemicals
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Industrial Lubricants
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Soap and Detergents
Biodiesel production remains the largest and fastest-growing application, driven by renewable energy mandates and carbon-reduction goals globally. Other applications like oleochemicals and lubricants are growing steadily due to the push for sustainable industrial inputs.
By End-use Industry:
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Renewable Energy
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Animal Husbandry
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Agriculture
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Chemical Manufacturing
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Cosmetics and Personal Care
The renewable energy sector leads the demand curve, particularly in Europe and North America, where government incentives and carbon credits boost biodiesel and HVO production.
Regional Analysis
North America:
North America holds a significant share in the global UCO market, led by the United States. Strict environmental policies under the Renewable Fuel Standard (RFS) and tax incentives for biofuels encourage the collection and use of UCO for waste-to-energy applications.
Major biodiesel producers in the U.S. prefer UCO due to its lower cost and emissions profile, while municipal authorities actively support household UCO collection programs.
Europe:
Europe is the largest regional market for UCO, with countries like Germany, France, Italy, and the Netherlands leading the charge. The European Union’s RED II directive mandates member states to increase their renewable energy share in transport, accelerating biodiesel production from UCO.
In addition, Europe's push toward a circular economy has led to widespread adoption of UCO collection schemes across households, restaurants, and food manufacturing units. The region also boasts some of the most advanced UCO recycling infrastructures globally.
Asia-Pacific:
Asia-Pacific is emerging as a high-potential region, driven by growing industrialization, energy demand, and environmental concerns. Countries like China, India, Indonesia, and Malaysia are beginning to embrace UCO-to-biodiesel conversion, although regulatory frameworks are still evolving.
China and India, in particular, face challenges with informal collection systems and food safety concerns related to reused oil. However, government campaigns are working to formalize the UCO value chain.
Latin America:
Latin America’s UCO market is expanding steadily, with countries like Brazil, Argentina, and Chile incorporating biofuel mandates into their energy policies. Public-private partnerships are playing a critical role in developing UCO collection systems in urban centers.
Middle East & Africa (MEA):
The MEA region is gradually exploring the UCO market as part of broader waste management and sustainable feedstock initiatives. In the UAE and South Africa, UCO is gaining recognition in pilot biofuel projects for aviation and transport.
Key Companies
Several players operate across the UCO value chain—from collection and aggregation to processing and conversion. Leading companies include:
Baker Commodities Inc. (USA)
A key player in the North American market, Baker Commodities collects UCO from food service establishments and processes it into tallow and feedstock for biodiesel producers.
Neste Corporation (Finland)
Neste is a global leader in renewable diesel production. The company uses UCO and other waste oils as core raw materials in its facilities across Europe and Asia, contributing significantly to global low-emission fuel production.
ABP Food Group (Ireland/UK)
Through its renewable division, ABP operates one of Europe’s most advanced UCO processing units. The company is deeply invested in bioenergy and waste-to-energy initiatives.
Valicor Environmental Services (USA)
Focused on sustainable waste recovery, Valicor processes UCO into clean fuel feedstock and industrial inputs. Its growing footprint includes over 20 facilities in the U.S.
Arrow Oils Ltd. (UK)
Specialized in UCO collection, Arrow Oils services thousands of restaurants and commercial kitchens across the UK. It partners with biodiesel producers and actively promotes sustainable feedstock use in the UK energy market.
Greenergy International Ltd. (UK)
A major fuel supplier in Europe, Greenergy uses UCO-derived feedstock to manufacture low-carbon fuels in line with government and EU energy directives.
Industry Challenges & Opportunities
Despite the market’s positive outlook, challenges such as informal collection practices, lack of infrastructure in developing countries, and cross-contamination risks persist. The rise of illegal oil reuse, particularly in parts of Asia, underscores the need for robust regulatory frameworks.
However, the increasing focus on ESG (Environmental, Social, and Governance) compliance, corporate sustainability commitments, and biofuel blending mandates presents a compelling growth opportunity. Technological advancements in UCO purification and conversion efficiency are also expected to boost market competitiveness.
Explore More:
https://www.polarismarketresearch.com/industry-analysis/used-cooking-oil-uco-market
Future Outlook
As the world transitions toward a net-zero future, the role of Used Cooking Oil as a key enabler in renewable fuels and sustainable manufacturing is set to expand dramatically. With robust public-private partnerships, stricter regulations, and growing awareness, UCO is moving from back-of-the-kitchen waste to front-line climate solution.
From powering trucks with biodiesel to producing bio-based soaps, lubricants, and cosmetics, the UCO market is set to redefine the value of waste and energize a future built on circular principles.
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