India Used Cooking Oil (UCO) Market- Trend Analysis & Forecasts

India Used Cooking Oil Market Overview:
India’s Used Cooking Oil (UCO) market has expanded quickly as annual edible oil consumption crossed 23–24 million tonnes in 2024, generating nearly ** million tonnes of UCO, compared with 2.6 million tonnes in 2020. Formal collection remains low at **%, yet the RUCO ecosystem has grown from 64 aggregators in 2019 to over 220 in 2024, reflecting stronger regulatory enforcement. Rising food service demand—now a US$ ** billion industry—drives UCO output, with commercial kitchens contributing **% of supply. Meanwhile, biodiesel refiners with a combined ** million-tonne capacity increasingly rely on UCO as demand climbs alongside India’s diesel use, which reached ** million tonnes in FY 2023.

Primary Areas/ Elements of Research & Analysis
The report provides comprehensive and valuable insights into the supply and demand dynamics of the India’s Used Cooking Oil (UCO) market. Below are the variables considered and analyzed in the report:
• Supply-demand trends, market growth, and trade
• Market structure, conduct, and performance analysis
• Historical and forecasted market size (volume & value)
• Trade analysis (export & import), including key partners, quantities, values, and price trends
• Supply chain mapping, pricing, and regulatory framework
• Competitive landscape profiling of key players
• Factors influencing market performance, including sustainability trends

Market Growth Factors
The strongest growth boost comes from rising biodiesel production, which doubled from ** thousand tonnes in 2020 to ** thousand tonnes in 2024, driven by India’s goal to reduce US$ ** billion in crude oil imports. Stable UCO prices at INR 48–55 per kg make it more economical than soybean oil, which averages INR 108–120 per kg, improving refinery margins. The food service sector, expanding at 10–12% CAGR, increases UCO supply significantly. Global demand also rises as the EU imported 2.2 million tonnes of UCO in 2023, opening export opportunities that lifted India’s shipments from ** thousand tonnes in 2020 to ** thousand tonnes in 2023. Digital traceability solutions improving logistics by 15–20% further accelerate market maturation.

Market Restraints & Challenges
Formal collection remains hampered by heavy dependence on small vendors, where **% of eateries generate only 1–3 kg of UCO per day, raising collection costs of INR 4–7 per kg. Informal markets still divert over INR ** crore worth of UCO into unsafe food recycling, restricting supply for biodiesel refiners that operate on thin margins of INR 6–12 per kg. Quality inconsistencies remain common, with FFA levels above 5% increasing treatment costs by INR 2–4 per kg. Regulatory inspection gaps of **% in some states hinder enforcement, while global UCO price volatility—swinging between US$ 830 and US$ 1,070 per tonne—adds financial uncertainty for exporters targeting long-term contracts.

Market Segmentation
Commercial food establishments generate ** million tonnes of UCO annually and dominate the supply with **% share, while households contribute **% yet deliver less than **% to formal channels. Biodiesel remains the primary end-use, absorbing **% of India’s collected UCO in 2024, followed by oleochemicals at **% and the pet food industry at **%, supported by a US$ ** billion pet nutrition market. Regionally, South India leads with **% of total supply thanks to edible oil consumption surpassing ** million tonnes, while West India contributes **% driven by Maharashtra and Gujarat. Tier-1 cities collect ** thousand tonnes monthly, whereas Tier-2/3 regions rely on informal channels handling **% of the flow.

Competitive Landscape
The competitive environment is fragmented, with 220+ certified aggregators and more than 30 biodiesel plants collectively producing ** thousand tonnes of biodiesel annually. Leading firms such as Emami Agrotech and Universal Biofuels expanded capacity, including Emami’s 150,000-tonne upgrade in 2023, strengthening supply security. Private investment reached US$ ** million between 2020 and 2023, targeting logistics and integrated sourcing where margins can hit 12–18% per tonne. Large restaurant partnerships are increasing, such as BioD Energy securing 10,000 tonnes per year, while urban markets like Mumbai and Bengaluru generate over 25,000 tonnes monthly, making them hotspots for competitive sourcing and digital traceability adoption.

Outlook
The India UCO market, valued at US$ ** million in 2024, is projected to reach US$ ** billion by 2032, growing at **% CAGR as edible oil consumption rises toward 30 million tonnes. UCO availability is expected to increase to ** million tonnes, while formal collection rates could climb from **% to nearly **%, enabling structured supply of ** million tonnes. Biodiesel demand is forecast to hit ** million tonnes by 2032, with UCO supplying **% of feedstock. Exports may expand seven-fold to ** thousand tonnes, generating US$ ** million in foreign earnings. Strengthened FSSAI enforcement and investment in logistics will position India as a key global supplier in the waste-based biofuel value chain.

Scope of the Report:
• Historical Years: 2018-2023
• Base Year: 2024
• Forecast Period: 2025-2032
• Units: Value (US$ Million) and Volume (Thousand Tonnes)
• Segments Covered:
By Source (Households & Commercial Segment (HoReca and Food Processing)
By Collection Model (Organized Networks and Informal Collectors)
By Region (South, North, East, and West India)
By Sales (Domestic Use (Biodiesel, Oleochemicals, and Animal Feed) and Exports)
• Companies Profiled: The market players include, Emami Agrotech, Universal Biofuels Pvt. Ltd., Biod Energy India Southern, Online Bio Technologies, Biomax Fuels Ltd., AVS Biofuel, G-Biofuels, KNP Arises Green Energy, Green Fuels India, Indo Biofuels, GreenTech Bioenergy, Vertex Bioenergy India, Energies India, Rahul Biofuels, Praj Industries, Aris BioEnergy Pvt Ltd., Muenzer Bharat Private Limited, Pan Oleo Energy Limited, Uranus Oil, and Others.

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