Used Cooking Oil Market

Market Overview:

The global used cooking oil market size reached US$ 6.6 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 11.2 Billion by 2032, exhibiting a growth rate (CAGR) of 6% during 2024-2032. The increasing product use in producing industrial greases, the heavy investments in research to enhance UCO recycling methods, the rising need for food security, and the development of recycling facilities and collection systems are some of the factors propelling the market.

Used cooking oil (UCO) emerges from the repeated utilization of cooking oils in diverse settings, including hotels, restaurants, household kitchens, and food processing units. This residue originates from various sources, such as sunflower, corn, canola, olive, palm, rapeseed, soya oils, and animal fats. Its composition can also be a mix of these sources. Recycled and refined UCOs find versatile applications, playing a significant role in creating soaps, composts, oleochemicals, hydrogenated vegetable oils (HVO), industrial greases, biodiesels, and animal feed. Compared to conventional raw materials, the adoption of UCO offers remarkable advantages. Its utilization is notably cost-effective, making it an economical choice for numerous industries. Furthermore, embracing UCO contributes to environmental sustainability by repurposing waste and minimizing disposal concerns. Its availability in substantial quantities furthers its appeal, catering to the needs of mass production across various sectors.

The global market is majorly driven by the increasing shift towards sustainable practices. In line with this, UCO recycling fits the circular economy model by converting waste into valuable resources for various industries, significantly contributing to its demand. Furthermore, the biodiesel sector relies on UCO as a feedstock, driving market growth due to rising biofuel adoption. Apart from this, the environmental regulations encourage proper disposal of UCO, prompting industries to seek recycling and reuse solutions. Moreover, the UCO is a renewable source for bio-based products, meeting consumer demand for eco-friendly alternatives. The expansion of hotels, restaurants, and food establishments generates higher UCO volumes, boosting recycling demand. Besides, governments and organizations promote waste reduction, elevating the importance of UCO recycling. As culinary preferences grow, the amount of UCO generated rises, increasing the need for recycling. Additionally, the ongoing research explores new uses and applications for UCO, expanding its market potential. Urban growth amplifies cooking oil usage, leading to more UCO generation and recycling opportunities. Informed consumers seek products made from recycled UCO, driving manufacturers to incorporate it.

Used Cooking Oil Market Trends/Drivers:

Increasing adoption of bio-based fuels

The increasing adoption of bio-based fuels, notably biodiesel, significantly drives the market. As societies prioritize sustainability and seek alternatives to fossil fuels, UCO emerges as a valuable feedstock for producing biodiesel. The conversion of UCO into biodiesel offers a dual advantage: it repurposes waste while contributing to renewable energy sources. Industries increasingly recognize the economic and environmental benefits of biodiesel derived from UCO, leading to expanded collection and recycling efforts. The demand for bio-based fuels aligns with the global shift towards cleaner energy solutions, reducing greenhouse gas emissions and promoting a greener future. Governments, industries, and consumers support this transition, resulting in policies and incentives that further boost the utilization of UCO for biodiesel production. This trend not only ensures more responsible waste management but also strengthens the position of UCO as a versatile resource with a pivotal role in the renewable energy sector.

Rising product uptake in the manufacturing of animal feed

The increasing adoption of used cooking oil (UCO) in animal feed manufacturing is stimulating market growth. As industries and consumers seek sustainable alternatives, UCO presents an attractive option for enhancing animal feed composition. Its incorporation offers nutritional value, serving as a rich energy source and essential fatty acids for livestock. Additionally, UCO's use in feed reduces the demand for virgin vegetable oils, promoting resource conservation and reducing waste. The rising awareness of responsible waste management and the circular economy further supports the utilization of UCO in animal feed. By repurposing UCO, industries contribute to reduced waste generation while providing balanced animal nutrition. Regulatory initiatives that promote sustainable practices and discourage food waste also propel the adoption of UCO in animal feed manufacturing.

Significant growth in the food and beverage industry

The significant growth in the food and beverage industry offers numerous market opportunities. As consumer preferences and lifestyles change, the demand for diverse and innovative food and beverage products rises. This growth is attributed to shifting dietary preferences, increased focus on convenience, and a growing interest in health-conscious and sustainable options. The expansion of the food and beverage industry also has a cascading effect on related sectors, including packaging, distribution, and marketing. Technological advancements play a crucial role, with online platforms, delivery services, and digital marketing strategies reshaping the industry landscape. The industry's growth is not limited to local markets; globalization and cross-cultural influences contribute to the introduction of new cuisines and flavors, fostering a diverse culinary environment. Moreover, the food and beverage industry contributes to economies, generating employment and supporting local agricultural sectors. Its influence extends to trends like farm-to-table practices, clean labeling, and reduced food waste, reflecting a growing consciousness about ethical and sustainable consumption.

Used Cooking Oil Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global used cooking oil market report, along with forecasts at the global, regional and country levels from 2024-2032. Our report has categorized the market based on source and application.

Breakup by Source:

• Household Sector
• Commercial Sector
   

Commercial Sector dominates the market

The report has provided a detailed breakup and analysis of the market based on the source. This includes the household sector and commercial sector. According to the report, commercial sector represented the largest segment.

The commercial sector, including restaurants, hotels, and food processing units, is a substantial source of UCO. Businesses recognize the importance of sustainable practices, including UCO recycling. Partnerships between UCO companies and commercial establishments are forged to ensure proper collection and recycling processes. By offering efficient collection systems, educational resources, and sometimes even financial incentives, the commercial sector is incentivized to recycle UCO responsibly. The implementation of such initiatives aligns with corporate social responsibility goals and supports the circular economy model.

Furthermore, the household sector contributes significantly to UCO market growth. As more consumers become environmentally conscious, they are inclined to dispose of cooking oil responsibly. The household segment encourages proper collection and recycling of UCO through awareness campaigns and collection points. Companies and organizations partner with households to establish easy drop-off locations, incentivizing responsible disposal. This approach reduces UCO waste and educates the public about the broader benefits of recycling.

Breakup by Application:

• Biodiesel
• Oleo Chemicals
• Animal feed
• Others
   

Biodiesel dominates the market

The report has provided a detailed breakup and analysis of the market based on the application. This includes biodiesel, oleo chemicals, animal feed, and others. According to the report, biodiesel represented the largest segment.

The biodiesel sector is a major driver of UCO market growth. The use of UCO as a feedstock for biodiesel production not only reduces waste but also contributes to cleaner energy sources. Biodiesel manufacturers partner with UCO companies to secure a reliable supply of raw materials, minimizing dependence on traditional fossil fuels. This synergy supports sustainable practices and aligns with global efforts to reduce greenhouse gas emissions. Biodiesel derived from UCO provides an alternative to conventional diesel and helps meet regulatory requirements for biofuel usage.

On the other hand, the oleochemical sector is another significant contributor to UCO market growth. UCO is a valuable source of fatty acids and other components required for producing oleochemicals. These chemicals find application in various industries, including cosmetics, detergents, and industrial products. By repurposing UCO into oleochemicals, companies promote a circular economy and reduce the demand for virgin raw materials. This approach aligns with the growing demand for sustainable and eco-friendly products, fostering innovation and expansion in the oleochemical sector.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

Europe exhibits a clear dominance, accounting for the largest market share

The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Europe accounted for the largest market share.

The Europe region is a significant driver of UCO market growth due to various factors. Environmental consciousness and stringent regulations related to waste disposal and sustainability drive the demand for UCO recycling. The region's robust industrial and commercial sectors, including restaurants and food processing units, contribute to substantial UCO generation. Collaborations between UCO companies, biodiesel manufacturers, and oleochemical producers are fostering the repurposing of UCO into biofuels and eco-friendly products.

Moreover, consumer awareness campaigns and governmental initiatives encourage responsible UCO disposal in households. The availability of advanced technologies and collection systems further streamline the recycling process. The European market's emphasis on renewable energy and eco-friendly practices positions UCO as a valuable resource for reducing carbon emissions and promoting circular economy principles.

Competitive Landscape:

Top companies are strengthening the market through their strategic initiatives and innovative practices. These industry leaders are actively promoting the recycling and repurposing of UCO to mitigate environmental impact and tap into its diverse applications. By establishing efficient collection networks, these companies facilitate the proper disposal of UCO from restaurants, food processing units, and households. They collaborate with biodiesel manufacturers to channel UCO into producing sustainable biofuels, reducing dependency on fossil fuels and contributing to cleaner energy sources. Furthermore, leading UCO companies invest in research and development, exploring novel applications like animal feed, oleochemicals, and industrial products. Their emphasis on quality control and adherence to regulatory standards ensures UCO-derived products' safe and effective utilization. Through robust marketing and educational campaigns, these companies raise awareness about the benefits of UCO recycling, encouraging businesses and consumers to participate. By championing responsible waste management and promoting circular economy principles, top UCO companies are driving their success and advancing a greener, more sustainable future.

The report has provided a comprehensive analysis of the competitive landscape in the used cooking oil market. Detailed profiles of all major companies have also been provided.

• ABP Food Group
• Arrow Oils Ltd
• Baker Commodities Inc.
• Brocklesby Limited
• Grand Natural Inc.
• Greasecycle LLC
• MBP Solutions Ltd.
• Oz Oils Pty Ltd
• Valley Proteins Inc.
• Veolia Environment S.A.

Recent Developments:

• In June 2023, ABP Food Group announced the acquisition of the Bridge of Allan abattoir and Queenslie meat packing plant in Scotland from Scotbeef.
• In January 2022, Brocklesby Limited was acquired by Energy company St1 Nordic Oy.
• In March 2022, MBP Solutions Ltd announced that it would invest in Fayrefield Foods A/S as part of its strategic expansion into related companies that add synergies and partnerships to their businesses and staff and overlap with customers and industries.

Used Cooking Oil Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the used cooking oil market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global used cooking oil market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the used cooking oil industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.