According to a new report published by Allied Market Research, titled, "Used Cooking Oil Market by Source and Application: Global Opportunity Analysis and Industry Forecast, 2019–2026," The global used cooking oil market size was valued at $6,041.2 million in 2018, and is projected to reach $8,886.7 million by 2026, registering a CAGR of 5.0% from 2019 to 2026. 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 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 lubricant produced from these virgin oils, about 80 to 90% of production cost is high due to virgin oil 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 concern. This fact is anticipated propel the used cooking oil market growth in the upcoming years.
By application, the Oleo chemicals segment in 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 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 vegetables oil & fats and is available at 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 in future.
The global used cooking oil market is segmented on the basis of source, application, and region. By source, it is classified into household sector and commercial sector. By application, it is divided into bio diesel, oleo chemicals, animal feed, and others. By region, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Key Findings of the Study:
- By source, the commercial sector segment accounted for the highest used cooking oil market share in 2018, growing at a CAGR of 4.7% from 2019 to 2026.
- By application, the bio diesel segment occupied the maximum share in used cooking oil market analysis in 2018 and is expected to dominate the used cooking oil market forecast.
- By region, Europe accounted for about 30% in 2018 of the used cooking oil market by share and is expected to grow at a CAGR of 4.4%.
The key players operating in the used cooking oil industry includes Valley Proteins, Inc., Baker Commodities Inc., Proper Oils Company Ltd, Arrow Oils Ltd, Olleco, Waste Oil Recyclers, Grand Natural Inc., GREASECYCLE, Brockelsby Limited, and Oz Oils Pty Ltd.