Used Cooking Oil Market

Global Used Cooking Oil Market Size

The global used cooking oil market size was valued at USD 6.98 billion in 2025. The global market is anticipated to exhibit a CAGR of 4.9% from 2026 to 2034 and be worth USD 10.73 billion by 2034 from USD 7.32 billion in 2026.

Used cooking oil is oil that has been used in the food industry, restaurants, hotels, and homes in the past. Used cooking oil is collected and refined for later use for different purposes. It is obtained from wastewater treatment plants as a non-hazardous material. Used cooking oil is mainly used for different applications such as biofuels, animal feed, and others. Used cooking oils were once considered waste, but after the refining process, the finished product emerged as a useful product for fuels and other industries. The main use of cooking oil is as a biofuel for power generation and heating. Furthermore, in the animal feed industry, it is used as a high-energy feed additive to produce a variety of animal feed products. The great convenience of used cooking oil has influenced the fate of manufacturers who produce various types of products from the use of used cooking oil.

MARKET DRIVERS

The rapidly growing population worldwide, rapid urbanization, and increasing pollution around the world have created various problems related to climate change, greenhouse gas emissions, and other environmental problems. The governments of several countries, as well as some major energy and fuel companies, are adopting policies that support the green economy. Biodiesel made from UCO is an emerging category in the green energy space. In recent years, consumer preference has shifted from the use of petroleum diesel to biodiesel due to their environmental wellness counterparts.

Additionally, growing awareness of food waste among consumers and the strict safety regulations associated with the product are helping to increase the availability of this used cooking oil for fuel production. The world market for used cooking oil (UCO) or used cooking oil will grow dramatically due to the growing awareness of sustainable energy resources and environmental conservation. Recent advances in the technologies used to transform UCO into high-quality refined oil will emerge in favor of the growth of the overall market. The rapid evolution of the food and catering industry, which involves new preparations based on cooking oil, has had a direct impact on the global production of this UCO. Increasing government initiatives to promote the use of UCO for industrial purposes are expected to stimulate the growth of the used cooking oil market in the foreseeable years.

MARKET RESTRAINTS

However, initiatives taken by the governments of different countries, especially to convert used cooking oils into biodiesel, are expected to provide an immense opportunity for the growth of the used cooking oil market.

REPORT COVERAGE

SEGMENTAL ANALYSIS

By Source Insights

The food service segment had the major share of the global used cooking oil market in 2023. The emerging culture of restaurant catering is influencing the growth of the food service segment segment. The expansion of cafes and restaurants around the world has increased the demand for various cooking oils. Increasing consumer interest in trying exotic cuisines has prompted the use of exotic cooking oils in the restaurant industry.

By Application Insights

The industrial segment dominated the market in 2023. The widespread applications of used cooking oils for fuel production are driving growth in the industrial applications segment. Advances in the technologies used for the treatment of OCU have promoted its use in various industrial processes. Along with biodiesel, UCO can produce ozone-treated oil with a higher calorific value and a lower flash point. This oil is also used as a component of the fermentation medium, which also acts as a carbon source for microorganisms.

REGIONAL ANALYSIS

Europe represents the largest market share due to current legislative developments that further encourage the use of used cooking oil to produce sustainable fuels. According to the European Commission, a significant percentage of diesel consumption will be replaced by biodiesel in the EU27. The governments of different countries in this region are developing policies that encourage the collection and treatment of used cooking oil from cafes, restaurants, hotels, catering companies and hotels. Promotional campaigns in the region that raise awareness about UCO recycling are also driving market growth.

The used cooking oil market in Asia-Pacific is expected to show a significant CAGR due to increased awareness of environmental well-being and sustainable energy resources. The growing number of UCO collecting, refining, and processing companies in this region will promote growth. Companies operating in North America and Europe are investing in supplying UCO to Asian countries to meet their demand for raw materials for biodiesel production. The evolution of the food and restaurant industry in the region is also supporting the growth of the market.

Latin American countries offer many expansion opportunities to the main players. The formation of beneficial by-products of certain components can be harnessed, driving Latin America's growth.

The Middle East and Africa are two of the main emerging regions that will generate significant opportunities in the Used Cooking Oil Market during the anticipated period due to the increasing consumer interest in trying exotic cuisines, which has prompted the use of exotic cooking oils in the restaurant industry. The region is expected to experience moderate growth during the forecast period due to the above factors. Turkey is considered a crucial market in the Middle East and Africa.

KEY MARKET PLAYERS

Companies playing a major role in the global used cooking oil market include Valley Proteins Inc., MBP Solutions Ltd., Valley Proteins, Inc., GreaseCycle, Brocklesby Limited, OZ Oils Pty. Ltd., Grand Natural, Inc., Baker Commodities, Inc., Arrow Oils Ltd., ABP Food Group and Proper Oils Co.

RECENT HAPPENINGS IN THE MARKET

• In March 2020, Nestle announced that it would acquire Mahoney Environmental (Mahoney), one of the leading collectors and recyclers of used cooking oil in the United States, and its affiliates. The acquisition has been approved by the regulatory authorities and the transaction has been closed. Nestle's raw materials strategy focuses on cultivating waste and residues and developing new sources of raw materials. The company aims for a 100% share of waste and residues by 2026. Mahoney Environmental is an important partner for Nestle in achieving this goal, as they already have access to a significant volume of used cooking oil with room for growth in the Americas from the North.
• Mahoney Environmental, a leading cooking oil recycler for more than 60 years, announced that it has purchased Eco-Collections Services, a used cooking oil recycling company based in Wilmington, North Carolina. The integration of Mahoney's eco-collections and environmental services will better meet the needs of North and South Carolina customers.
• Mahoney Environmental, a leading recycler of used cooking oil for 65 years, announced that it had purchased Green Oil, LLC from Green Dining, a used oil recycling and grease collection Services Company based in Phoenix, Arizona. The integration of Green Dining into Mahoney Environmental will provide direct service to Mahoney Arizona customers. The acquisition in December 2017 of this recycling company is perfectly in line with Mahoney's environmental strategy aimed at expanding our reach in direct service to our customers for the collection of used cooking oils, maintenance of grease traps, plumbing, recycling and other substantive services needs of our clients.

MARKET SEGMENTATION

This research report on the global used cooking oil market is segmented and sub-segmented based on source, application, and region.   

By Source

• Food Services
• Households

By Application

• Industrial Usage
• Animal Feed

By Region

• North America 
• Europe 
• Asia-Pacific 
• Latin America 
• Middle East and Africa