Global Used Cooking Oil Market to Reach $11.6 Billion by 2033: Key Trends and Growth Forecast

Market Size & Growth

Market Size (2024): USD 7.0 Billion

Projected Market Size (2033): USD 11.6 Billion

Compound Annual Growth Rate (CAGR) (2025-2033): 5.7%

Key Market Drivers:

• Boom in Biodiesel and Renewable Fuel Demand
• Government Mandates and Recycling Policies
• Expansion of UCO Collection Infrastructure

Emerging Trends:

• Blockchain for Traceability and Compliance
• Rising Interest from the Aviation Sector
• Integration with Smart Waste Management Systems

Segmentation Highlights:

• Analysis by Source
• Analysis by Application
• Regional Insights

Market Overview:

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

This detailed analysis primarily encompasses industry size, business trends, market share, key growth factors, and regional forecasts. The report offers a comprehensive overview and integrates research findings, market assessments, and data from different sources. It also includes pivotal market dynamics like drivers and challenges, while also highlighting growth opportunities, financial insights, technological improvements, emerging trends, and innovations. Besides this, the report provides regional market evaluation, along with a competitive landscape analysis.

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Our report includes:

• Market Dynamics
• Market Trends and Market Outlook
• Competitive Analysis
• Industry Segmentation
• Strategic Recommendations

Growth Factors in the Used Cooking Oil Industry:

• Boom in Biodiesel and Renewable Fuel Demand

The rapid growth of the biodiesel industry is a key force behind the rising demand for used cooking oil (UCO). Biodiesel producers are increasingly turning to UCO as a sustainable, cost-effective feedstock that meets renewable energy targets without competing with food crops. For instance, a single gallon of UCO can be converted into roughly 0.85 gallons of biodiesel, and large-scale refiners like Neste and Eni are expanding their UCO supply chains to meet rising fuel production quotas. The global push for decarbonization in transport sectors—especially aviation and freight—is leading to wider adoption of renewable fuels made from waste oil. Countries with renewable fuel mandates are seeing exponential growth in UCO collection and trade. As more energy companies invest in waste-based fuels, demand for UCO from restaurants, food manufacturers, and caterers is surging, transforming it from a waste byproduct into a valuable fuel resource.

• Government Mandates and Recycling Policies

National and regional policies promoting circular economy practices are significantly fueling the growth of the used cooking oil industry. Several governments now require food businesses to dispose of used cooking oil through certified recyclers to prevent illegal dumping and sewer blockages. In India, the Food Safety and Standards Authority (FSSAI) launched the RUCO (Repurpose Used Cooking Oil) initiative, mandating that oils not be reused beyond a certain Total Polar Compound (TPC) limit and encouraging safe collection for biodiesel production. In Europe, the Renewable Energy Directive requires a minimum share of biofuels made from waste and residues, pushing demand for UCO. Local councils in cities like London and San Francisco also provide incentives and grants to commercial kitchens for partnering with UCO collectors. These measures are not just reducing environmental hazards but also creating a steady supply pipeline that supports industrial demand for repurposed cooking oil.

• Expansion of UCO Collection Infrastructure

The used cooking oil market is gaining momentum due to improved collection and aggregation systems, making it easier for businesses and households to recycle waste oil. Specialized companies like Baker Commodities, Arrow Oils, and Mahoney Environmental have scaled up their logistics and digital tracking to ensure consistent, sanitary, and traceable UCO collection. Many fast-food chains, including McDonald’s and KFC, now partner with licensed collectors to convert waste oil into biofuels and cleaning agents. Additionally, smart container solutions equipped with sensors are being deployed to notify collectors when tanks are full, improving efficiency. In urban centers, food courts and restaurants are being integrated into centralized UCO hubs, further optimizing supply chains. With these streamlined systems, even small eateries and canteens can easily participate in the UCO ecosystem. The growth of this infrastructure is reducing operational friction, boosting collection volumes, and supporting the expansion of UCO applications across multiple industries.

Key Trends in the Used Cooking Oil Market:

• Blockchain for Traceability and Compliance

As regulations around food waste and biofuel sourcing tighten, traceability is becoming critical in the used cooking oil market. Blockchain is now being adopted by several UCO collectors and biodiesel producers to ensure transparent, tamper-proof tracking of oil from point of origin to end-use. For example, BioLedger and ReFlow are developing digital platforms that certify UCO transactions and help companies meet renewable fuel compliance standards. By logging each batch with a unique digital fingerprint, stakeholders can confirm that oil was ethically sourced, safely handled, and meets regulatory thresholds. This traceability also reassures regulators and end users in Europe and North America, where strict sustainability and quality benchmarks are enforced. For exporters, blockchain-backed documentation simplifies cross-border logistics and customs approvals. As more players invest in digitalization, blockchain is quickly becoming the backbone for quality assurance and ethical sourcing in the global UCO trade.

• Rising Interest from the Aviation Sector

Aviation is emerging as a major growth area for used cooking oil, thanks to its suitability in producing Sustainable Aviation Fuel (SAF). Airlines are under increasing pressure to reduce their carbon footprint, and UCO-based SAF is being adopted as a viable alternative to fossil jet fuel. One liter of UCO can yield approximately 0.8 liters of SAF, and major carriers like United Airlines and British Airways are already conducting commercial flights powered by this fuel. Refineries in Singapore, the Netherlands, and the U.S. are expanding capacity to process higher volumes of UCO into aviation-grade biofuels. The International Air Transport Association has set ambitious targets to increase SAF usage, which is triggering more partnerships between airlines and UCO collectors. As the cost of carbon emissions continues to rise, UCO-derived SAF is no longer just an experimental idea—it’s becoming a strategic requirement for global airlines looking to stay competitive and compliant.

• Integration with Smart Waste Management Systems

Smart cities and waste management programs are integrating used cooking oil collection into their broader sustainability initiatives. Municipalities are now deploying IoT-enabled bins and waste sensors to track cooking oil disposal in real time. This allows for more efficient routing, timely pickups, and reduction in illegal dumping incidents. For instance, in cities like Barcelona and Tokyo, smart waste infrastructure includes UCO collection points in residential areas, with sensors alerting waste operators when containers are near capacity. These systems not only streamline logistics but also generate data that can be used to forecast supply patterns, detect contamination, and report recycling performance. Restaurants and food service providers using these systems receive real-time feedback, helping them maintain compliance while also contributing to city-wide environmental goals. As urban sustainability frameworks evolve, smart UCO collection is becoming a standard feature in the waste-tech ecosystem.

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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:

• Analysis by Source:
• Household Sector
• Commercial Sector

Commercial Sector represents the largest segment as the commercial sector, including restaurants and food processing companies, generates substantial volumes of used cooking oil due to high-frequency frying and cooking.

Analysis by Application:

• Biodiesel
• Oleo Chemicals
• Animal Feed
• Others

Biodiesel accounts for the majority of the market share because it provides a sustainable and cost-effective alternative to fossil fuels, driving significant demand for UCO as a feedstock.

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 enjoys the leading position in the used cooking oil market owing to stringent regulations promoting renewable energy, a strong biodiesel industry, and widespread consumer awareness of sustainability practices.

Research Methodology:

The report employs a comprehensive research methodology, combining primary and secondary data sources to validate findings. It includes market assessments, surveys, expert opinions, and data triangulation techniques to ensure accuracy and reliability.

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