Used Cooking Oil Market Expected to Reach $10.7 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Used Cooking Oil Market," The used cooking oil market size was valued at $6.4 billion in 2022, and is estimated to reach $10.7 billion by 2032, growing at a CAGR of 5.4% from 2023 to 2032.

Used cooking oil or waste cooking oil are edible vegetable oils that are produced from the repetitive use of vegetable oil for the purpose of food preparation to a point where it is no longer fit for that purpose. There are two main sources from where used cooking oil can be collected. This includes Commercial sectors such as restaurants, hotels, and caterers (HORECA) and household sectors. The rise in the adoption of low-carbon fuels fosters the demand for used cooking oil as feedstock in markets throughout North America, Europe, Asia-Pacific, and LAMEA.

Used cooking oil has a wide application that includes the production of grease, polyurethane products, bio-lubricants, and hydrogen gas. Most of the lubricants available in the market are petroleum-based. In the case of bio-lubricants produced from these virgin oils, about 80 to 90% of production cost is high due to virgin oil being used as a raw material. Low cost, easy availability, and non-polluting nature has made used cooking oil popular for the production of bio-lubricants. Furthermore, grease has a wide application in the field of machines as it is used to minimize the friction between mechanical parts of the machines. However, grease is mostly produced from petroleum based raw materials and is non-biodegradable. The production of grease from used cooking oil is an eco-friendly and renewable option, which helps in mitigating the rise in environmental concerns. This fact is anticipated to propel the used cooking oil market growth in the upcoming years.

The global used cooking oil market forecast is segmented on the basis of source, application, and region. By source, it is classified into the household sector and the commercial sector. By application, it is divided into biodiesel, oleo chemicals, animal feed, and others. By region, it is analyzed across North America (U.S., Canada, and Mexico), Europe (Germany, France, UK, Italy, the Netherlands, and the rest of Europe), Asia-Pacific (China, India, Australia, Japan, and the rest of Asia-Pacific), and LAMEA (Latin America, Middle East, and Africa).

By Source, the commercial sector segment is expected to be the fastest-growing segment during the forecast year. The rise in the number of food & service industries and hotels results in huge production of used cooking oil globally, which is collected in bulk quantity by the suppliers. In addition, the efforts taken by the used cooking oil suppliers for making an organized collection of used cooking oil along with providing containers to the restaurants for collecting used cooking oil contribute toward the growth of the Used Cooking Oil Market Opportunites.

By application, the Oleo chemicals segment is expected to be the fastest-growing segment during the forecast year. This is due to the rise in demand for sustainable and renewable resources in the chemical industry. This trend has encouraged the Oleo chemical industry to focus on alternative and renewable raw materials such as used cooking oil to produce products including soap. Moreover, used cooking oil is waste material that does not compete with edible vegetable oil & fats and is available at a low cost in the market. This fact leads to the increase in applications of used cooking oil in oleo chemicals. This in turn is anticipated to fuel the growth of the used cooking oil market trends in the future.

The major players operating in the Used Cooking Oil Industry focus on key market strategies, such as mergers, product launches, acquisitions, collaborations, and partnerships. They have also been focusing on strengthening their market reach to maintain their goodwill in the ever-competitive market. Some of the key players in the used cooking oil market include Valley Proteins, Inc., Quatra, Baker Commodities Inc., Arrow Oils Ltd, Olleco, Waste Oil Recyclers, Grand Natural Inc., GREASECYCLE, Brocklesby Limited, and Oz Oils Pty Ltd.

Key Findings of the Study

• By source, the commercial sector segment accounted for the highest used cooking oil market share in 2022, growing at a significant CAGR from 2023 to 2032.
• By application, the biodiesel segment occupied the maximum share in the used cooking oil market analysis in 2022, growing at a significant CAGR from 2023 to 2032.
• By region, Europe accounted for a major share in 2022 of the used cooking oil market and is expected to grow at a significant CAGR from 2023 to 2032