Used Cooking Oil Market Outlook: Recycling Trends and Growth Opportunities

Rising emphasis on sustainability, waste valorization, and renewable energy production is driving growth in the used cooking oil market. Increasing use as a feedstock for biodiesel and bio-based chemicals supports demand. Government mandates on waste management and clean fuels encourage collection and recycling. According to IMARC Group's latest research publication, The global used cooking oil market size was valued at USD 7.0 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 11.6 Billion by 2033, exhibiting a CAGR of 5.7% during 2025-2033.

How AI is Reshaping the Future of Used Cooking Oil Market

• Smart Collection Infrastructure with IoT Integration: AI-powered collection systems use Internet of Things sensors and mobile applications to optimize UCO recovery from households and restaurants. Companies like Noovoleum deployed UCOllect boxes equipped with built-in quality testing systems that instantly verify oil quality and provide immediate cash rewards to depositors through their app.
• Predictive Quality Assessment and Contamination Detection: Machine learning algorithms analyze UCO samples in real-time to detect contaminants, measure free fatty acid content, and determine optimal processing pathways. Advanced vision systems automatically inspect cooking oil batches, ensuring only premium-quality feedstock enters biodiesel refineries while rejecting degraded or adulterated materials.
• Biodiesel Production Process Optimization: Artificial neural networks and genetic algorithms optimize transesterification parameters including methanol-to-oil ratios, catalyst concentrations, reaction temperatures, and processing times. Studies demonstrate AI-driven optimization achieving biodiesel yields between 95-98%, compared to conventional methods yielding 84-90%, while reducing energy consumption by substantial margins.

Explore Updated 2026 Market Trends & Analysis

Used Cooking Oil Industry Overview:

Government recycling mandates and circular economy initiatives are transforming UCO collection networks across commercial food service and residential sectors. Indonesia halted UCO exports in January to secure domestic biodiesel feedstock, while India's Extended Producer Responsibility regulations require oil producers to establish comprehensive collection and recycling infrastructure. The UAE Ministry of Energy launched container-based UCO collection programs converting waste into biofuels supporting their Net-Zero 2050 Strategy. Noovoleum secured USD 3 million from Rigel Capital in February to expand their AI-driven UCOllect solution from 100 collection boxes to 1,000 units across Indonesia and three additional Asian markets.

Used Cooking Oil Market Trends & Drivers:

Rising biodiesel production and sustainable aviation fuel mandates are accelerating UCO demand across global energy markets. Biodiesel production capacity increased 7% in the United States during 2023, reaching 24 billion gallons per year by early 2024, with UCO representing a cost-effective and low-carbon feedstock. European Union's Renewable Energy Directive II prioritizes waste-based biofuels, positioning UCO as preferred feedstock over virgin oils for meeting transport sector renewable energy quotas. Thailand's Petchsrivichai Enterprise launched campaigns to expand UCO collection for SAF production, while Bangchak Corporation partnered with Noovoleum in December for pilot UCOllect Box installations at refineries. Major airlines and fuel producers are securing long-term UCO supply agreements to meet aviation decarbonization targets, creating premium pricing for quality feedstock.

Quick-service restaurant expansion and commercial food service growth generate substantial UCO volumes while creating organized collection opportunities. Global cooking oil consumption exceeded 200 million metric tons annually, with restaurants producing over 1 million cubic meters of waste vegetable oil requiring proper disposal. Indonesia's Alfamart invested USD 1 million in Noovoleum, installing UCOllect boxes at retail locations where customers deposit used oil for instant cash rewards via mobile app. McDonald's, KFC, and other multinational chains are implementing comprehensive grease recycling programs through partnerships with licensed collectors, diverting thousands of tons from sewage systems into biodiesel refineries. Commercial kitchens benefit from revenue-sharing models and simplified compliance with environmental regulations, while biodiesel producers secure predictable feedstock supplies. Technology platforms connecting waste generators with processors are streamlining logistics, improving collection efficiency, and expanding UCO recovery from previously untapped small-scale sources.

Technological innovations in processing and refining are improving UCO conversion efficiency while expanding end-use applications beyond biodiesel. Advanced filtration systems, enzymatic pre-treatment technologies, and supercritical transesterification methods enable higher-quality biofuel production from UCO with elevated free fatty acid content. Darling Ingredients developed DarLinQ tracking technology in November 2024 enhancing supply chain transparency and feedstock authentication throughout the collection and processing network. Animal feed manufacturers utilize UCO as energy-dense ingredient, with the global animal feed market valued at USD 533.4 Billion providing significant alternative demand. Industrial lubricant and oleochemical sectors increasingly incorporate recycled UCO as sustainable raw material, diversifying revenue streams for collectors and processors. Computational chemistry and machine learning optimize catalyst formulation and reaction conditions, reducing production costs while maintaining strict fuel quality standards for biodiesel and renewable diesel applications.

Leading Companies Operating in the Global Used Cooking Oil Industry:

• 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.

Used Cooking Oil Market Report Segmentation:

By Source:

• Household Sector
• Commercial Sector

Commercial sector represents the largest segment, holding around 78.6% of the market share, as restaurants, hotels, and food processing units generate consistent high-volume UCO requiring organized collection systems.

By Application:

• Biodiesel
• Oleo Chemicals
• Animal Feed
• Others

Biodiesel leads the market with around 45.5% share, driven by renewable energy mandates, carbon reduction targets, and UCO's lower cost compared to virgin vegetable oil feedstocks.

Regional Insights:

• 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 clear dominance in the used cooking oil market, accounting for over 44.3% share, supported by stringent environmental regulations, established biodiesel infrastructure, and RED II renewable fuel mandates.

Recent News and Developments in Used Cooking Oil Market

• March 2025: Petchsrivichai Enterprise Plc launched a campaign to collect more used cooking oil in Thailand, crucial for biodiesel and sustainable aviation fuel production, partnering with municipalities to expand collection networks across the country.
• March 2025: Cosmo Oil partnered with Suita City, JGC Holdings, REVO International, and SAFFAIRE SKY ENERGY to convert UCO into sustainable aviation fuel in Japan. Suita City will supply approximately 27,000 liters annually from 15 public facilities, representing Japan's largest municipal UCO collection effort.
• March 2025: Olleco opened two new used cooking oil processing plants in Dagenham and Liverpool utilizing advanced technology to maximize efficiency and minimize environmental impact. Both facilities convert waste into valuable biofuels supporting the UK's green economy.
• February 2025: RIGEL CAPITAL led a USD 3 million investment round in Noovoleum, accelerating the company's expansion of its AI-powered UCOllect Solution across Indonesia and into three additional Asian markets by deploying 1,000 collection boxes.
• February 2025: The UAE Ministry of Energy and Infrastructure partnered with Lootah Biofuels to launch a nationwide UCO collection initiative from individuals, families, and businesses in designated containers for conversion into clean biofuel supporting the UAE's Net-Zero 2050 Strategy.
• December 2024: Fastmarkets and ICE launched the ICE Used Cooking Oil Gulf Futures contract to address rising biofuel demand, providing risk management tools, pricing transparency, and supporting supply chain participants with accurate US Gulf-based UCO market dynamics.

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