Home Food & Beverages Used Cooking Oil Market Size, Share & Trends Report, 2031

Used Cooking Oil Market

Used Cooking Oil Market Size, Share & Trends Analysis Report By Source (Household Sector, Commercial Sector), By Applications (Bio Diesel, Oleo Chemicals, Animal Feed, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Report Code: SRFB55386DR
Study Period 2019-2031 CAGR 4.5%
Historical Period 2019-2021 Forecast Period 2023-2031
Base Year 2022 Base Year Market Size USD 7.20 Billion
Forecast Year 2031 Forecast Year Market Size USD 10.7 Billion
Largest Market North America Fastest Growing Market Europe

Market Overview

The global used cooking oil market size was valued at USD 7.20 billion in 2022. It is estimated to reach USD 10.7 billion by 2031, growing at a CAGR of 4.5% during the forecast period (2023–2031).

Used cooking oil refers to any vegetable or animal-based oil liquid at room temperature (68 degrees Fahrenheit) produced during cooking or frying. The increase in the use of UCO as a raw material in biodiesel and the wide application of used cooking oil promote market growth. Used cooking oil could include water and food crumbs. Brown grease does not contain used cooking oil. The frequent use of vegetable oils for meals in restaurants, hotels, the food industry, and domestic sectors results in used cooking oil, also known as waste cooking oil. The used cooking oil can be obtained from various vegetable oils, such as sunflower, palm, rapeseed, soya, and others, and is typically sold in large quantities with various ingredients. Used cooking oil makes biodiesel, oleochemicals, and animal feed instead of vegetable oil. Used cooking is regarded as trash and does not have any market competition. As a result, it is less expensive than vegetable oil and is conveniently offered in large amounts.

Used cooking oil can make grease, polyurethane goods, bio-lubricants, and hydrogen gas, among other things. Most lubricants on the market are petroleum-based. Because virgin oil is employed as a raw material in producing bio-lubricants derived from these virgin oils, approximately 80 to 90% of the production cost is high. Used cooking oil is popular for bio-lubricants due to its low cost, easy availability, and non-polluting nature. Furthermore, grease has a wide range of applications in the field of machines because it is used to reduce friction between machine mechanical elements. On the other hand, grease is largely made from petroleum-based basic materials and is non-biodegradable. Manufacturing grease from leftover cooking oil is an environmentally friendly and renewable option that reduces environmental concerns.

Market Dynamics

Global Used Cooking Oil Market Drivers

Increase in the Use of UCO as Raw Material in Biodiesel

Energy usage is currently increasing at an exponential rate. This is due to changes in lifestyle and a rise in the global population. The increased need for energy leads to the generation of renewable and alternative fuels such as biodiesel. Biodiesel is a clean, environmentally beneficial, and renewable energy derived from feedstocks such as vegetable oil, animal fat, and leftover cooking oil. Globally, a lot of used cooking oil (UCO) is produced. The organized collection of UCO in large quantities is a viable feedstock for biodiesel production because it saves 21% of fossil energy compared to crude oil and 96% compared to fossil diesel production.

Furthermore, it aids in the reduction of environmental contamination and solves the disposal problem. Thus, biodiesel manufacturing using waste oils is an appealing method for producing biodiesel at a low cost. This, in turn, has increased demand for spent cooking oil among biodiesel producers.

Wide Application of Used Cooking Oil

Used cooking oil is produced due to the repeated use of vegetable oil for frying or cooking in restaurants, food processing industries, and fast-food industries and is considered hazardous to human ingestion. Cooking oil is created from vegetable oils such as soybean, palm, and rapeseed. Thus, it is a potential waste that can be used as an energy source and raw material in chemical or biological processes. Utilized cooking oil can be collected, recycled, and utilized to generate energy for various uses, including hydrogen gas production, animal feed, and oleo chemistry.

Furthermore, chemical methods can convert wasted cooking oil into commercially valuable goods, such as bio-lubricants, resins, biodegradable polymers, and grease. Thus, the applications of spent cooking oil in producing various products and its environmental friendliness raise its market demand. As a result, the market for leftover cooking oil is expanding.

Global Used Cooking Oil Market Restraint

Increase in the Theft of Used Cooking Oil

In recent years, there has been a rise in demand for wasted cooking oil. This is due to its easy availability, low cost, eco-friendliness, and widespread application, particularly in biodiesel production. This has resulted in the theft of used cooking oil, becoming a major concern for used cooking oil collectors. Furthermore, it has been reported that thieves are impersonating genuine garbage collection organizations to take oil from catering establishments in some situations. According to Olleco, which collects waste cooking oil and converts it to biodiesel, roughly 216 UCO thefts happened in February 2013. This stolen used cooking oil is suspected of being utilized directly by the criminals in producing biodiesel, which is then unlawfully sold in the black market without paying any taxes.

Used cooking oil, often known as liquid gold and golden muck, is an enormously valuable resource for restaurateurs and refineries, and theft of used cooking oil looks to be on the rise, owing to rising demand for biodiesel. As a result, the growth of the used cooking oil market is likely to slow.

Global Used Cooking Oil Market Opportunities

The Government takes Various Initiatives

Due to global urbanization, population growth, and changes in consumer lifestyles, energy consumption has increased everywhere. Government emphasis on developing alternative and renewable energy has increased, including the sustainable production of second-generation biofuels like biodiesel. Advanced fuels, called second-generation biofuels, are made from non-food crops like rapeseed and linseed. An essential feedstock for second-generation biodiesel is used cooking oil. This has prompted governments in several nations to launch projects to collect leftover cooking oil from eateries, lodging facilities, caterers, and households to manufacture biodiesel in an environmentally beneficial manner efficiently.

For instance, the Repurpose Used Cooking Oil (RUCO) program was launched in India by the Food Safety and Standards Authority of India (FSSAI) and the Biodiesel Association of India (BDAI). The initiative aims to gather leftover cooking oil from residential and commercial sources and turn it into biodiesel. As a result, the market for used cooking oil is anticipated to experience tremendous growth throughout the projected period.

Regional Analysis

Based on region, the global used cooking oil market is bifurcated into North America, Europe, Asia-Pacific, Latin America, the Middle East and Africa.

North America Dominates the Global Market

North America is the most significant global used cooking oil market shareholder and is estimated to exhibit a CAGR of 4.1% over the forecast period.In North America, there will likely be a rise in the demand for vegetable oils. It might be attributed to the rising demand for alternative fuels in the transportation sector and the rising usage of premium edible oils for cooking regular meals. In North American nations like the U.S., there has been an increase in demand for environmentally benign and renewable fuels. It can be attributed to escalating environmental concerns, the fluctuating price of oil, and American energy regulations. As a result, the production of biodiesel in the United States has dramatically increased. Currently, soybean oil, rather than cooking oil, is utilized to make most of the biodiesel generated in the United States.

However, the United States produces more second-generation biofuels, such as biodiesel. Because spent cooking oil is less expensive than vegetable oil, increased biodiesel manufacture is anticipated to lower production costs. The used cooking industry in this area is anticipated to increase significantly due to this fact.

Europeis anticipated to exhibit a CAGR of 4% over the forecast period. The biggest producer of biodiesel in the world is in Europe. The most significant biofuel in Europe is biodiesel, which accounts for around 75% of the market for transport-related biofuels. In Europe, biodiesel is manufactured on a massive scale. Currently, about 120 facilities in Europe produce 11,000,000 tons of biodiesel annually. These plants can be found in Germany, Italy, Austria, France, and Sweden, among other nations. Europe is the primary region contributing to expanding the spent cooking oil market. This results from increased environmental awareness and government regulation supporting it.

Additionally, one of the major factors fueling the expansion of the used cooking oil market in this region is promoting the use and production of renewable energy sources through the Renewable Energy Directive and the Fuel Quality Directive in Europe. Additionally, over the past five years, the manufacture of biodiesel from spent cooking oil for transportation has increased dramatically in European nations like the U.K. Used cooking oil provides about 89% of the feedstock needed to make biodiesel for transportation. This, in turn, encourages the market for leftover cooking oil to expand.

Asia-Pacific has emerged as one of the fastest-growing regions in the global market. Due to its rapid industrialization and urbanization, which make up about 60% of the global population, Asia Pacific has the fastest-growing energy demand in the world. Most of the APAC region's nations are fossil fuel-dependent and are currently working to increase the production of renewable energy sources to satisfy the rising demand. Government attention is currently focused on generating renewable energy, particularly biodiesel, due to the Asia-Pacific energy consumption surge.

In LAMEA, biodiesel and bioethanol production has increased dramatically in Latin America in the last few decades. Brazil, Colombia, Paraguay, Argentina, and Costa Rica produce the most biofuel in this region. Brazil, a nation in Latin America, is the second-largest producer of soybeans in the world, the primary feedstock used to make biodiesel there. The demand for alternate feedstock has been sparked by the rise in demand for renewable energy sources, especially biodiesel, and the low yield of oil from soybeans. This will increase the need for used cooking oil as a feedstock to produce biodiesel, increasing the market's opportunities for used cooking oil in this area.

Additionally, South Africa's biodiesel manufacturing is encouraged by the rise in interest in generating alternative and renewable energy. However, the main issue facing the biodiesel manufacturers in this area is the severe lack of feedstock (virgin oil) for biodiesel production. Due to its low cost and ease of availability compared to other feedstock, spent cooking oil is predicted to present growth potential for usage as a feedstock in biodiesel in this region.

Report Scope

Report Metric Details
Segmentations
By Source
  1. Household Sector
  2. Commercial Sector
By Applications
  1. Bio Diesel
  2. Oleo Chemicals
  3. Animal Feed
  4. Others
Company Profiles Valley Proteins Inc. Proper Oils Company Ltd. Baker Commodities Inc. Arrow Oils Ltd. Olleco Waste Oil Recyclers Grand Natural Inc. GREASECYCLE Brocklesby Limited Oz Oils Pty Ltd
Geographies Covered
North America U.S. Canada
Europe U.K. Germany France Spain Italy Russia Nordic Benelux Rest of Europe
APAC China Korea Japan India Australia Singapore Taiwan South East Asia Rest of Asia-Pacific
Middle East and Africa UAE Turkey Saudi Arabia South Africa Egypt Nigeria Rest of MEA
LATAM Brazil Mexico Argentina Chile Colombia Rest of LATAM
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
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Segmental Analysis

The global used cooking oil market is bifurcated into product, form, application, and end-user.

Based on the source, the global cooking oil market is bifurcated into household and commercial sectors. 

The commercial sector segment dominates the global market and is projected to exhibit a CAGR of 4.2% over the forecast period. Restaurants, lodging facilities, caterers, and other commercial sectors are examples. This industry occupies the largest portion of the market. This is because these industries are typically major suppliers of spent cooking oil. Expanding the hospitality and food service sectors leads to a massive global production of spent cooking oil, which suppliers collect in large quantities.

Additionally, the efforts made by the providers of used cooking oil to ensure an organized collection of used cooking oil and the provision of containers to restaurants for used cooking oil collection aid in expanding the used cooking oil market. As an illustration, the restaurant aggregator and food delivery business Zomato has made steps to collect leftover cooking oil from different eateries in India and turn it into biodiesel. The used cooking oil business is growing because of Zomato's initiative.

Based on application, the global used cooking oil market is segmented into Bio Diesel, Oleo Chemicals, Animal Feed, and Others. 

The bio-diesel segment dominates the global market and is predicted to exhibit a CAGR of 4% during the forecast period. Due to an increase in population and changes in consumer lifestyles worldwide, there has been an increase in global energy consumption. As a result, the Government has been compelled to concentrate on developing sustainable, alternative, and renewable energy sources, such as biodiesel, a clean, environmentally friendly, and effective form of renewable energy. It is derived from feedstocks such as leftover cooking oil, animal fat, and vegetable oil. Compared to fuel made from fossil fuels, renewable fuel is more affordable, biodegradable, and abundant. It benefits from lower sulfate and hydrocarbon emissions and lower environmental pollution.

Soybean, rapeseed, leftover cooking, and other pure or waste vegetable oils can fuel biodiesel. Contrary to vegetable oil, manufacturing biodiesel from spent cooking oil is more affordable. This is because spent cooking oil is more readily available and less expensive than vegetable oil, encouraging biodiesel producers to use it as a main feedstock. This, in turn, encourages the market for leftover cooking oil to expand. Additionally, there is an increase in the manufacturing of biodiesel from leftover cooking oil because it uses 96% less energy than conventional diesel and saves 21% compared to crude oil. Cooking oil is now more often employed in manufacturing biodiesel due to the popularity of used cooking oil among biodiesel producers.

Market Size By Source

Recent Developments

  • December 2022- Over the last ten months, the Food Safety and Standards Authority of India (FSSAI) gathered around 60,000 liters of wasted cooking oil from hotels and restaurants in Ernakulam and submitted it for conversion into bio-diesel through the Repurpose wasted Cooking Oil (RUCO) initiative.
  • November 2022- A Delhi couple turns 3 million liters of waste cooking oil from restaurants into biodiesel: KNP Arises, a Delhi-based firm headed by Kirti and Sushil Vaishnav, collects spent cooking oils from restaurants and converts them into biodiesel, which emits 80% less carbon dioxide than fossil fuels.

Top Key Players

Used Cooking Oil Market Share of Key Players

Valley Proteins Inc. Proper Oils Company Ltd. Baker Commodities Inc. Arrow Oils Ltd. Olleco Waste Oil Recyclers Grand Natural Inc. GREASECYCLE Brocklesby Limited Oz Oils Pty Ltd

Frequently Asked Questions (FAQs)

How big is the used cooking oil market?
The global used cooking oil market was valued at USD 7.20 billion in 2022. It is estimated to reach USD 10.7 billion by 2031, growing at a CAGR of 4.5% during the forecast period (2023–2031).
The global used cooking oil market is bifurcated into product, form, application, and end-user.
The government takes various initiatives is opportunity in market.
The key players in the global used cooking oil market include Valley Proteins Inc., Proper Oils Company Ltd., Baker Commodities Inc., Arrow Oils Ltd., Olleco
North America region has the largest market share in the used cooking oil market.


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