Used Cooking Oil Market Size Analysis, Growth Trends & Forecast to 2033

Used Cooking Oil Market Overview

The global used cooking oil market is experiencing strong growth, driven by rising demand for clean energy, supportive government policies, and increasing adoption of renewable fuels. Valued at USD 7.28 billion in 2025, the market is projected to reach USD 11.30 billion by 2033, growing at a CAGR of 5.8% during the forecast period.

The global used cooking oil (UCO) market, a vital component of the circular economy, has grown significantly due to environmental regulations, waste management strategies, and the growing demand for sustainable fuel substitutes. "Used cooking oil" refers to edible oil that has been used in food preparation and is no longer suitable for human consumption. Rather than being thrown away, UCO is gathered, recycled, and transformed into useful goods, including industrial lubricants, biodiesel, renewable diesel, oleochemicals, and additives for animal feed. The industry has grown significantly as a result of the increased focus on boosting renewable energy sources and lowering carbon emissions worldwide.

The biodiesel and renewable diesel sectors' explosive growth is one of the main factors propelling the used cooking oil industry. When compared to virgin vegetable oils, UCO is a cost-effective and environmentally friendly feedstock for the generation of biodiesel. Companies like Neste Corporation, for instance, use used cooking oil to create renewable fuel using their NEXBTL technology, which drastically lowers greenhouse gas emissions as compared to fossil diesel. In a similar vein, Darling Ingredients Inc. supports clean energy programs in North America and Europe by gathering and processing used cooking oil and turning it into renewable fuels through its joint venture Diamond Green Diesel.

Used cooking oil is mostly sourced from the commercial foodservice industry worldwide. The regular frying and cooking activities in restaurants, hotels, fast-food chains, catering services, and food processing facilities result in significant amounts of waste cooking oil. For example, international fast-food restaurants like KFC and McDonald's collaborate with oil collection and recycling businesses to guarantee that used cooking oil is disposed of properly and recycled into biofuels. Businesses like Restaurant Technologies Inc. offer automated collecting systems that help commercial kitchens manage waste cooking oil more effectively, safely, and sustainably.

Government initiatives that favor renewable fuels and environmental laws have also been key factors in the market's expansion. In order to encourage the use of renewable fuels made from waste feedstocks, several nations have put in place incentives and requirements for the blending of biodiesel. Increased collecting and processing activities are taking place in nations like Germany, France, and the Netherlands as a result of the Renewable Energy Directive (RED II) in the European Union, which promotes the use of waste-based biofuels like used cooking oil. Similarly, countries in the Asia-Pacific region, such as China and Malaysia, have put in place organized UCO collecting schemes to discourage illicit reuse and encourage the production of biodiesel.

The used cooking oil market is expanding rapidly in the Asia-Pacific region as a result of growing urbanization, growing foodservice sectors, and increased waste recycling awareness. For instance, because of its vast population and food consumption habits, China produces a considerable amount of used cooking oil. The government has implemented strict regulations to discourage the unlawful use of "gutter oil" and encourage its conversion into biodiesel and industrial uses. Through programs like the Food Safety and Standards Authority of India's (FSSAI) Repurpose Spent Cooking Oil (RUCO) program, which promotes recycling and safe disposal, India is also aggressively encouraging the collection of spent cooking oil.

Recycling used cooking oil is becoming even more efficient thanks to developments in technology and better collection systems. To increase conversion and recovery rates, businesses are spending money on modern processing technologies, automated collection systems, and logistical optimization. Oil collectors, biodiesel manufacturers, and foodservice operators are also forming alliances that are fortifying supply networks and guaranteeing a steady supply of feedstock.

Therefore, the used cooking oil market is expected to grow steadily over the next several years due to rising demand for renewable fuels, government backing, and sustainability programs. Used cooking oil will continue to be a vital feedstock for the creation of renewable energy and sustainable industrial applications as long as governments and businesses are committed to protecting the environment and conserving resources.

Used Cooking Oil Market Drivers and Opportunities

Increasing Demand for Biodiesel and Renewable Diesel Production

One of the main factors propelling the market for used cooking oil is the rising demand for biodiesel and renewable fuel. Used cooking oil reduces greenhouse gas emissions and dependency on fossil fuels by providing a sustainable and affordable feedstock for the generation of biofuel. In order to promote the use of waste-based feedstocks, governments in North America and Europe have enacted carbon reduction goals and biofuel blending mandates. For instance, businesses such as Neste Corporation and Darling Ingredients make renewable diesel from used cooking oil. Used cooking oil is very appealing to biofuel producers and supports worldwide market expansion since it has better sustainability credentials and lower production costs than virgin oils.

Expansion of the Global Foodservice Industry

The production of used cooking oil has expanded significantly due to the worldwide foodservice industry's fast expansion. Due to the regular frying and cooking processes, restaurants, fast-food chains, hotels, catering services, and food processing facilities generate significant amounts of waste oil. The generation of used cooking oil has increased significantly as quick-service restaurants and online meal delivery services have grown in popularity. To securely collect and reuse spent oil, for instance, large restaurant chains collaborate with recycling businesses. Increased food consumption is also being caused by dietary changes, urbanization, and higher disposable income. The rise of the recycling and renewable fuel sectors is supported by this consistent supply of used cooking oil, which guarantees feedstock availability for biodiesel and industrial uses.

Government Initiatives Supporting Used Cooking Oil Recycling

The used cooking oil market is expected to benefit greatly from government programs that support renewable energy and sustainable waste management. Many nations have put in place laws that encourage the collection and recycling of used cooking oil in an effort to stop illegal reuse and environmental degradation. The Repurpose Used Cooking Oil (RUCO) program in India, for example, encourages systematic collecting and biodiesel production. The production of biofuel from waste feedstocks is also encouraged under the Renewable Energy Directive of the European Union. These initiatives improve supply chain development and collection efficiency by fostering collaborations between eateries, recyclers, and biodiesel manufacturers. Expanding recycling infrastructure is anticipated as a result of growing environmental consciousness and regulatory compliance, which will also enhance the used cooking oil market globally and open up new growth prospects for market participants.

Used Cooking Oil Market Scope

Used Cooking Oil Market Report Segmentation Analysis

The global used cooking oil market analysis is segmented by Source, Application, and Region.

The Commercial Sector segment dominated the market in 2025 and is projected to grow at the highest CAGR during the forecast period.

By Source, the used cooking oil market is segmented into the commercial sector and the household sector. The commercial sector segment accounts for the largest share of the global used cooking oil market. This segment includes restaurants, quick-service chains, lodging facilities, food courts, catering services, and food processing plants that produce large amounts of spent oil as a result of ongoing frying and cooking activities. Large restaurant chains usually sign formal contracts with recycling businesses to guarantee secure pickup and appropriate disposal. Commercial businesses provide a continuous and dependable supply of feedstock due to their well-organized collection systems, storage containers, and scheduled pickups. Furthermore, many nations have regulations requiring the correct disposal of waste oil, which guards against contamination of the environment and unlawful reuse. Commercial kitchens provide a consistent supply that supports the manufacture of biodiesel, renewable diesel, and industrial applications, making this sector essential to the expansion of the market as a whole.

The Biodiesel Segment will probably dominate the market during the forecast period

In terms of Application, the used cooking oil market is segmented into biodiesel, oleochemicals, animal feed, and others. The biodiesel segment holds the largest share of the used cooking oil market. The cost-effectiveness, availability, and reduced carbon footprint of used cooking oil make it a perfect feedstock for the manufacturing of biodiesel. Utilizing used cooking oil to create biodiesel enhances energy security, lowers greenhouse gas emissions, and promotes environmentally friendly waste management techniques. The use of biodiesel has been promoted by governments in Europe, North America, and the Asia-Pacific through the implementation of renewable energy objectives and biodiesel blending regulations. Companies that turn used cooking oil into renewable fuels include Neste Corporation and Darling Ingredients. The rise of the biodiesel market is being driven by sustainability objectives, legislative support, and rising fuel demand worldwide.

The following segments are part of an in-depth analysis of the global Used Cooking Oil Market:

Used Cooking Oil Market Share Analysis by Region

The North America region is projected to hold the largest share of the global used cooking oil market over the forecast period.

The North America region is projected to hold the largest share of the global used cooking oil market over the forecast period and is also expected to be the fastest-growing region. High production of biodiesel and renewable fuel, robust legislative support, and established collection infrastructure are the main drivers of the region's growth. Government initiatives like the Renewable Fuel Standard (RFS), which encourages the development of waste-based biofuels, help the United States contribute the most. The presence of major companies like Restaurant Technologies and Darling Ingredients fortifies networks for recycling and collecting. Furthermore, the region's sizable foodservice sector produces a significant amount of used cooking oil. Further bolstering market expansion in the U.S. and Canada are rising investments in the production of renewable diesel and expanding sustainability programs.

Global Used Cooking Oil Market Recent Developments News:

●        In January 2024, Diamond Green Diesel continued the expansion of its renewable diesel production using used cooking oil and waste feedstocks, strengthening the low-carbon fuel supply in North America.

●        In December 2024, Galp Energia invested €400 million in a biofuel plant in Portugal to convert used cooking oil and waste materials into biodiesel and sustainable aviation fuel.

The Global Used Cooking Oil Market is dominated by a few large companies, such as

●        Darling Ingredients Inc.

●        Baker Commodities Inc.

●        Veolia Environnement SA

●        Olleco (ABP Food Group)

●        Restaurant Technologies Inc.

●        Arrow Oils Ltd.

●        Valley Proteins Inc.

●        Grand Natural Inc.

●        Brocklesby Limited

●        Greasecycle LLC

●        Oz Oils Pty Ltd.

●        Quatra

●        Mahoney Environmental

●        Proper Oils Company Ltd.

●        MBP Solutions

●        Bio-Oil Group

●        Targray

●        Neste Corporation

●        Waste Oil Recyclers

●        Renewable Energy Group Inc.