Used Cooking Oil Market to Record CAGR of 8.13% Over 2025-2032; Government Initiatives to Minimize Oil Wastage to Spur Market Growth

The global used cooking oil market size was valued at USD 6.90 billion in 2024 and is predicted to reach USD 7.43 billion in 2025. The market is anticipated to touch USD 12.85 billion by 2032, recording a CAGR of 8.13% over 2025-2032.

Fortune Business Insights™ presents this information in its latest report titled “Used Cooking Oil Market Size, Growth, Share & Industry Analysis By Source (Food Services and Households), By Application (Industrial Usage [Biofuels, Cosmetics, and Others] and Animal Feed), and Regional Forecast, 2025-2032”.

The Used Cooking Oil (UCO) industry is a sector focused on the collection, processing, and repurposing of UCO, which results from the repeated use of vegetable oils in culinary processes. The market is marked by substantial growth fueled by an increasing emphasis on sustainable practices, supportive government regulations promoting recycling, and innovations in processing technologies.

The COVID-19 pandemic significantly disrupted the global market by causing restaurant closures and reduced meal preparation, leading to a sharp decline in UCO generation. Additionally, supply chain interruptions and labor shortages hindered collection, creating further instability in the market.

Significant Growth in Used Cooking Oil Collection in Kerala through RUCO Initiative

The initiative launched by the Food Safety and Standards Authority of India (FSSAI), known as RUCO (Repurpose Used Cooking Oil), has markedly improved the collection of UCO in Kerala. In the fiscal year 2022-2023, the state gathered 419,561 liters, which surged to 960,605 liters in 2023-2024. The primary objective of this program is to prevent the reintroduction of used cooking oil into the food supply by channeling it for biodiesel and soap production, addressing public health issues, and fostering renewable energy initiatives.

Government Initiatives to Minimize Oil Wastage to Spur Market Growth

Government initiatives aimed at minimizing oil wastage are having a positive effect on the growth of the Used Cooking Oil (UCO) market. These efforts are designed to enhance sustainability, improve resource efficiency, and promote the recycling of waste materials. Various countries are establishing regulations to mandate the collection and recycling of used cooking oil. For instance, in May 2023, in India, the Ministry of Environment proposed a draft notification concerning Extended Producer Responsibility (EPR) for waste oil. This proposal aims to create a structured approach for collecting and recycling oil. Under this initiative, producers and large generators will be required to register and achieve specific recycling targets, ultimately boosting the supply of UCO for biodiesel production.

However, stricter regulations may impose compliance costs that could deter the participation of businesses and impede used cooking oil market growth.

Prominent Players Focus On UCO Processing to Maintain Their Market Shares

Prominent players in this market include Valley Proteins, Inc., Baker Commodities Inc., ABP Food Group, Arrow Oils Ltd., and others. These players hold major market shares and are actively involved in a range of activities, including the collection, processing, and refining of UCO for biodiesel production and other uses.

Notable Industry Development:

• August 2024: M11 Industries Private Limited officially launched operations at its new biodiesel facility situated in Udupi district, Karnataka, India. This plant is distinguished by its ability to transform used cooking and other waste oils into biodiesel, achieving a production capacity of 450 tonnes per day.

To get a detailed report summary and research scope of this market, click here:

https://www.fortunebusinessinsights.com/used-cooking-oil-market-103665

List of the Companies Profiled in the Report:

• Valley Proteins, Inc. (U.S.)
• Proper Oils Co. Ltd. (U.K.)
• ABP Food Group (Ireland)
• Arrow Oils Ltd. (U.K.)
• Baker Commodities, Inc. (U.S.)
• Grand Natural, Inc. (U.S.)
• Oz Oils Pty. Ltd. (Australia)
• Brocklesby Limited (U.K.)
• GreaseCycle (U.S.)
• MBP Solutions Ltd. (Switzerland)

Further Report Findings

• North America secured a major share of 43.57% in the global market in 2024, largely due to usage of used cooking oil in the utilization in biodiesel production. The growing focus on environmentally sustainable and renewable energy sources in the U.S. is significantly driving the demand for UCO.
• Europe is expected to witness considerable growth supported by established initiatives such as the Renewable Energy Directive (RED) and the Fuel Quality Directive. These regulations promote the use of UCO in biodiesel production, positioning it as a crucial element of the EU's strategy to lower greenhouse gas emissions and achieve renewable energy objectives.
• Based on source, the food services segment captures a significant used cooking oil market share, with the increasing trend of dining out contributing to its growth. The growth of cafes and restaurants worldwide has further driven up the product demand.

Table of Segmentation