Used Cooking Oil Market

Used Cooking Oil Market Research, 2032

The global used cooking oil market size was valued at $6.4 billion in 2022, and is projected to reach $10.7 billion by 2032, growing at a CAGR of 5.4% from 2023 to 2032.
Used cooking oil also known as waste cooking oil is obtained owing to the repeated usage of vegetable oils for food in restaurants, hotels, and food industries as well as household sectors. The used cooking oil can be obtained from a range of vegetable oils including sunflower, palm, rape, soya, and others, and is usually available in huge volume in mixed composition. Used cooking oil is a substitute for vegetable oil in the production of biodiesel, oleo chemicals, and animal feed. It is considered as a waste material and does not compete in the market. Thus, it has low cost as compared to vegetable oil and is easily available in bulk quantities. This drives the growth of the used cooking oil market.

The COVID-19 pandemic had a significant impact on the used cooking oil market. The generation of used cooking oil decreased with widespread lockdowns and restaurant closures. The reduced demand for biodiesel due to slowed economic activities further affected the market growth. In addition, disruptions in supply chains and logistics also contributed to market challenges. However, the market witnessed some recovery as restrictions eased, and the demand for biofuels increased. Overall, COVID-19 led to fluctuations in the used cooking oil market, highlighting its vulnerability to external shocks and the importance of diversification in end-use applications.

The used cooking oil industry has experienced robust growth due to several industry trends and growth drivers. Firstly, the increase in awareness of environmental sustainability and the need to reduce carbon emissions has fueled the demand for renewable energy sources. Biodiesel, which can be produced from used cooking oil, has emerged as an eco-friendly alternative to traditional fossil fuels, driving Used Cooking Oil Market Demand. Secondly, various governments worldwide have implemented regulations and provided incentives to encourage the recycling of used cooking oil. These policy measures have not only boosted environmental conservation efforts but have also stimulated market expansion.

However, one significant challenge is the theft of used cooking oil. The rise in value of waste cooking oil, driven by its demand in biodiesel production, has attracted illegal activities where thieves steal the oil from restaurants and food establishments. This poses security and economic concerns for legitimate suppliers. Moreover, supply chain disruptions, such as transportation issues and border closures, have affected the smooth flow of used cooking oil from collection points to processing facilities. Fluctuating commodity prices, including vegetable oils, have also introduced market uncertainties for stakeholders.

Despite challenges, the used cooking oil market presents attractive business opportunities. Advancements in waste-to-energy technologies provide innovative solutions for converting used cooking oil into valuable products like biodiesel, reducing waste and carbon footprints. Expanding biodiesel production capacities offer growth prospects for players in the market, fostering sustainable energy development. In addition, there is potential for companies to develop and implement efficient collection and recycling systems, ensuring a steady supply of used cooking oil and reducing theft incidents.

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 market is segmented into the household sector and the commercial sector. The commercial sector segment accounted for a major used cooking oil market share of the used cooking oil market in 2022 and is expected to grow at a significant CAGR during the forecast period. 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 initiating 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.

By application, the market is segmented into biodiesel, oleo chemicals, animal feed, and others. The biodiesel segment accounted for a major share of the used cooking oil market in 2022 and is expected to grow at a significant CAGR during the forecast period. Biodiesel is a fuel that can be made from pure or waste vegetable oils such as soybean oil, rapeseed oil used cooking oil, and others. However, the production of Biodiesel from used cooking oil is economical as compared to vegetable oil. This is due to the easy availability and low cost of used cooking oil over vegetable oil, which encourages biodiesel manufacturers to use used cooking oil as a major feedstock in Biodiesel production. This in turn fuels the growth of the used cooking oil market.

By region, the market is divided into 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). The Europe region accounted for a major share of the used cooking oil market in 2022 and is expected to grow at a significant CAGR during the forecast period. Europe is the key region that contributes toward the growth of the used cooking oil market. This is attributable to the rise in environmental concern and government supportive regulation in the region. The Renewable Energy Directive and the Fuel Quality Directive in Europe are promoting the use and production of renewable sources of energy, which is one of the key factors driving the Used Cooking Oil Market Growth in this region.

The major players operating in the market 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 Benefits For Stakeholders

• This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the used cooking oil market analysis from 2022 to 2032 to identify the prevailing used cooking oil market opportunities.
• The market research is offered along with information related to key drivers, restraints, and opportunities.
• Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
• In-depth analysis of the used cooking oil market segmentation assists to determine the prevailing market opportunities.
• Major countries in each region are mapped according to their revenue contribution to the global market.
• Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
• The report includes the analysis of the regional as well as global used cooking oil market trends, key players, market segments, application areas, and market growth strategies.

 Used Cooking Oil Market Report Highlights