Used Cooking Oil Market, Opportunity, Growth Drivers, Industry Trend Analysis and Forecast, 2025-2034

The Global Used Cooking Oil (UCO) Market was valued at USD 7.3 billion in 2024 and is estimated to grow at a CAGR of 6% to reach USD 12.8 billion by 2034. This growth is fueled by the expanding biodiesel and renewable fuel sectors, increasing awareness of sustainable waste management, and the implementation of supportive government regulations promoting circular economy practices. Used cooking oil, a key feedstock for biofuel production, is gaining traction as industries and governments shift toward eco-friendly alternatives to fossil fuels.

UCO is primarily collected from commercial kitchens, food processors, and households and is repurposed for applications such as biodiesel production, animal feed, and oleochemicals. The rising environmental concerns around waste oil disposal and the carbon reduction benefits of UCO-derived biofuels are driving its adoption across sectors. Additionally, technological advancements in oil purification and conversion processes are enhancing the quality and usability of UCO in industrial applications, further supporting market growth.

By source, the Restaurants & Foodservice industry led the UCO market in 2024, generating USD 2.4 billion in revenue. Quick-service restaurants, large hotel chains, and catering services are the primary contributors to UCO supply due to the high volume of cooking oil usage. The sector is increasingly collaborating with certified recyclers and biodiesel producers to ensure responsible disposal and valorization of waste oils. Incentives and sustainability certifications are encouraging foodservice providers to implement structured UCO collection systems, aligning with broader corporate social responsibility and environmental goals.

In terms of collection method, Specialized UCO collection companies dominated the market, accounting for USD 3.5 billion in 2024. These companies offer regulated and efficient collection, storage, and transportation services tailored to meet compliance and sustainability standards. Their widespread network, traceability systems, and partnerships with fuel producers and government bodies are enabling them to play a pivotal role in streamlining the UCO supply chain. The professionalism and safety protocols followed by specialized collectors are also helping to curb illegal dumping and improve the overall quality of collected UCO.

By end-use industry, the Biodiesel & Renewable fuel industry held the largest share of the used cooking oil market in 2024, valued at USD 4.1 billion. The growing demand for low-carbon fuels in transportation and industrial sectors is propelling the use of UCO as a sustainable feedstock. Countries across North America and Europe are increasingly mandating blending of biofuels, further stimulating demand. Additionally, UCO-based biodiesel offers lower greenhouse gas emissions compared to conventional fuels, making it an attractive option for meeting climate goals and regulatory targets under frameworks like the Renewable Energy Directive (RED II) and the U.S. Renewable Fuel Standard (RFS).

Regionally, North America led the global used cooking oil market, capturing 27.8% market share in 2024. The region's leadership is driven by robust biodiesel production capacity, supportive government policies, and established UCO recycling infrastructure. Initiatives such as state-level Low Carbon Fuel Standards (LCFS), tax credits for biodiesel producers, and increased adoption of renewable diesel by logistics and municipal fleets are bolstering market growth. The presence of industry leaders and an increasing number of collection partnerships between foodservice providers and biofuel companies are further strengthening North America's role in the global UCO value chain.