Welcome to a voyage of discovery in the used cooking oil marketplace, where waste becomes important, and waste becomes wealth. This marketplace has sparked a growing number of sustainable, socially and environmentally responsible and innovative ideas that transform used cooking oil to useful solutions for our society. Used cooking oil moves through our economy from restaurant fryers to biodiesel production facilities, and other downstream assets that power sustainable "green" solutions. Europe is the global leader of the used cooking oil marketplace, propelled by strict regulatory environments and sustainability initiatives; nevertheless, the rest of the world is also experiencing a phenomenal explosion in demand for utilized cooking oil. The industry is innovating through advanced recycling into various crude, biofuels and products that reinforce critical circular economy practices that make the waste, - into a - resource. You will experience trends and developments, regulatory environments, market demand drivers and challenges and opportunities that are shaping a vibrant future for used cooking oil in our quest for a clean, renewable energy landscape through 2033.
The used cooking oil (UCO) market depends on the collection and reuse of oil during the cooking process to get value out of waste creating biodiesel, animal feed, and oleochemicals. UCO is collected through multiple sources, such as restaurants, households, and food industry, and helps sustain positioning within a circular economy to keep it out of landfills. Europe is the strongest market as the recycling infrastructure is strongest, while Asia-Pacific is growing based on rising demand for biofuels. The leading companies in this sector have a robust collection and processing network are Olleco based in the UK, Neste, and Darling Ingredients. As the market grows, UCO performs incredibly well with environmental policies, and the emerging need for renewable energy and circular economy supporting the position of used cooking oil as a foundation for green innovation.
Global biodiesel production reached 48 billion liters in 2024, per IEA, with UCO contributing 15%. Commercial sources, like restaurants, supply 70% of UCO, per industry reports. Europe’s 2 million tons of annual UCO collection, per EFPRA, underscores its leadership. Biodiesel applications, used in 60% of UCO, drive demand, per Statista. Recycling programs, adopted by 40% of food businesses, reduce waste by 30%, per WRAP, highlighting UCO’s environmental and economic impact.
Global used cooking oil market size was valued at USD 7.0 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 11.6 Billion by 2033, exhibiting a CAGR of 5.7% during 2025-2033. Europe currently dominates the market, holding a significant market share of over 44.3% in 2024. Growth is propelled by biofuel demand, regulatory support, and sustainable practices.
Market expansion tracks a 20% rise in global biofuel consumption, per IEA, reaching 2024 levels. Europe’s 44.3% share reflects 1.5 million tons of UCO processed annually. Commercial sources, contributing 70% of supply, dominate, per industry data. North America’s 25% biodiesel growth aligns with EV infrastructure, per EIA. Asia-Pacific’s 1.2 billion urban consumers, per UN, drive household UCO collection, ensuring steady growth through 2033.
Biodiesel, utilizing 60% of UCO in 2024, drives market growth. Neste’s 2024 European refineries, processing 800,000 tons of UCO, produced 2 billion liters of biodiesel, per company data. Europe’s 44.3% share leads, while Asia-Pacific’s 20% biofuel policies boost adoption. UCO-based biodiesel, reducing emissions by 85% versus diesel, per EPA, gains traction. This trend supports market growth by meeting renewable energy demands, increasing commercial UCO use for biodiesel applications across regions.