The global used cooking oil market has experienced growth primarily due to increase in demand for sustainable biodiesel production and advancements in recycling technologies. In addition, increased awareness of environmental issues and strict regulations supporting waste-to-energy solutions foster the expansion of this market.
WILMINGTON, Del., Nov. 3, 2025 /PRNewswire/ -- Allied Market Research published a report, titled, "Used Cooking Oil Market by Application (Biodiesel, Oleo Chemicals, Animal Feed, and Others) and Source (Household Sector and Commercial Sector): Global Opportunity Analysis and Industry Forecast, 2024-2035". According to the report, the "used cooking oil market" was valued at $6.7 billion in 2023, and is estimated to reach $12.2 billion by 2035, growing at a CAGR of 5.2% from 2024 to 2035.

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Prime Determinants of Growth
The prime determinants of growth for the used cooking oil market include rise in demand for sustainable biodiesel and advancements in recycling technologies. The shift toward renewable energy sources and stricter environmental regulations are driving the need for recycled oils as a viable alternative to fossil fuels. Increased awareness of environmental issues has led to more efficient collection and processing methods, enhancing the market's appeal. Technological innovations in filtration and purification processes have improved the quality of recycled used cooking oil, making it more suitable for various applications. In addition, supportive policies and incentives for waste-to-energy initiatives are helping market expansion. These factors collectively contribute to the growing adoption and utilization of used cooking oil, fueling market growth and promoting sustainability in energy production.
Report coverage & details:
Report Coverage | Details |
Forecast Period | 2024-2035 |
Base Year | 2023 |
Market Size in 2023 | $6.7 Billion |
Market Size in 2035 | $12.2 Billion |
CAGR | 5.2 % |
No. of Pages in Report | 227 |
Segments Covered | Application, Source, and Region. |
Drivers | • Increase in Biodiesel Production • Rising Energy Costs • Government Regulations Promoting Renewable Fuels |
Opportunities | • Emerging markets in developing countries • Partnerships with food service industries |
Restraints | • Limited awareness in some regions • Collection and logistics challenges |
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The biodiesel segment held the highest market share in 2023.
By application, the biodiesel segment held the major share of the market share in 2023, accounting for more than two-fifths of the global used cooking oil market, and is estimated to maintain its leadership status throughout the forecast period. Used cooking oil, when converted into biodiesel, helps reduce greenhouse gas emissions and dependence on non-renewable resources, aligning with global efforts to combat climate change and promote renewable energy. The increasing adoption of biodiesel is driven by government policies and incentives that support renewable energy and sustainability.
However, the oleo chemicals segment is projected to manifest the highest CAGR of 5.5% from 2024 to 2035. The rise in environmental concern and increase in focus on the use of sustainable and renewable raw materials in the chemical industry has encouraged the oleo chemicals industry for the utilization of used cooking oil in producing products such as soap, candles, plastic materials, and others.
The commercial sector held the highest market share in 2023.
By source, the commercial sector segment held the major share of the market in 2023, accounting for more than half of the global used cooking oil market, and is estimated to maintain its leadership status throughout the forecast period. Restaurants, hotels, and food processing industries produce large quantities of used cooking oil, making them key contributors to the market. This segment is driven by the need for efficient waste management and sustainability practices, as businesses seek to reduce their environmental impact and comply with regulations.
However, the household sector segment is projected to manifest the highest CAGR of 5.4% from 2024 to 2035. Production of biodiesel from used cooking oil is one of the most economical ways as used cooking oil is easily available at a low cost in the market. There is an increase in the population and urbanization resulting in the consumption of more vegetable oil that is available everywhere. Most households dispose of used cooking oil as a waste product. This inappropriate disposal of used cooking oil in huge quantities, produced domestically, causes significant harmful effects on the environment.
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Europe held the highest market share in 2023.
By region, the Europe segment held the highest market share in terms of revenue in 2023, accounting for nearly one-third of the global used cooking oil market. Europe is the key region that contributes toward the growth of the used cooking oil market. Europe burns through 130,000 barrels of used cooking oil a day - 8 times more than it collects. In addition, European countries consumed 8 times more UCO than they collected and 4 times more than their maximum potential in 2023. This is attributable to the rise in environmental concern and government-supportive regulation in this region. The Renewable Energy Directive and the Fuel Quality Directive in Europe promote the use and production of renewable sources of energy, which is one of the key factors in driving the growth of the used cooking oil market in this region.
Leading Market Players
- Valley Proteins, Inc.
- Quatra
- Baker Commodities Inc.
- Arrow Oils Ltd
- Olleco
- Waste Oil Recyclers
- Grand Natural Inc.
- GREASECYCLE
- Brocklesby Limited
- Oz Oils Pty Ltd
The report analyzes the key players in the global used cooking oil market. These players have adopted various strategies such as expansion, new product launches, and partnerships to increase their market penetration and strengthen their position in the industry. The report is helpful in determining the business performance, operating segments, developments, and product portfolios of every market player.
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