Used Cooking Oil (UCO) Market Size, Share, Growth, and Industry Analysis, By Type (Vegetable Oil,Animal Oil,Processed Oil), By Application (Biodiesel,Cooking Oi,Oleo-chemicals,Others), Regional Insights and Forecast to 2033

Used Cooking Oil (UCO) Market Overview

The Used Cooking Oil (UCO) Market size was valued at USD 680.35million in 2024 and is expected to reach USD 834.15million by 2033, growing at a CAGR of 2.3% from 2025 to 2033.

The global used cooking oil (UCO) market expanded significantly in 2023, supported by increasing demand for sustainable energy sources, biodiesel production, and industrial recycling applications. Approximately 34 million metric tons of used cooking oil were collected globally during the year. Europe led the market with 12.8 million metric tons collected, accounting for nearly 38% of global UCO collection. North America followed with 9.2 million metric tons, while Asia-Pacific contributed 10.4 million metric tons and Middle East & Africa accounted for 1.6 million metric tons. The foodservice sector remains the largest source of UCO generation, contributing nearly 68% of global supply, followed by households at 22%, and industrial food processors at 10%. On average, a commercial fast-food restaurant produces 900 liters of used cooking oil per month, while a full-service restaurant averages 1,300 liters monthly. In Europe alone, there are approximately 860,000 foodservice establishments, collectively generating over 9 million metric tons of UCO annually. Biodiesel production remains the dominant end-use segment for UCO, consuming approximately 23 million metric tons of collected oil in 2023. The remaining 11 million metric tons were diverted into oleo-chemicals, animal feed, and industrial lubricants. As regulations tighten on waste disposal and renewable fuel blending mandates increase globally, demand for used cooking oil collection and processing continues to grow across all regions.

Key Findings

Driver: Increasing government mandates for biodiesel blending are driving significant demand for UCO collection.

Country/Region: Europe leads the market, accounting for 38% of global UCO collection.

Segment: Biodiesel production remains the largest application, consuming 23 million metric tons of UCO globally.

Used Cooking Oil (UCO) Market Trends

The global UCO market is being shaped by growing environmental awareness, stricter disposal regulations, and rising demand for biofuels and renewable energy sources. In 2023, global UCO collection reached 34 million metric tons, a 7.4% increase from the previous year, largely due to expanded collection networks and new regulatory frameworks. The European Union remained the most advanced regional market, accounting for 12.8 million metric tons, supported by strict renewable energy directives mandating higher biodiesel blending rates. Germany, France, and the Netherlands alone collected over 6.4 million metric tons, representing 50% of Europe’s total. North America collected approximately 9.2 million metric tons of UCO, driven by U.S. Renewable Fuel Standard (RFS) requirements. California’s Low Carbon Fuel Standard (LCFS) specifically fueled the growth of UCO biodiesel demand, where UCO-based biodiesel credits reached 2.1 billion liters in 2023. Asia-Pacific saw rapid expansion, with 10.4 million metric tons collected. China contributed 5.8 million metric tons, while Japan and India combined for 3.6 million metric tons. Government incentives for biofuel blending and waste management are accelerating regional development. The Middle East & Africa market remained smaller, accounting for 1.6 million metric tons, but showed steady growth, particularly in oil-rich nations investing in circular economy initiatives.

Biodiesel continued to dominate as the primary UCO application, utilizing 23 million metric tons globally. Oleo-chemical manufacturers processed 5.6 million metric tons into soaps, detergents, and surfactants. Animal feed production absorbed 3.1 million metric tons, while industrial lubricants and chemical intermediates consumed 2.3 million metric tons. Technological advancements supported higher conversion efficiency in UCO processing. Average biodiesel yield improved to 97.5%, reducing feedstock waste. Innovations in filtration and hydrogenation also improved refining of lower-grade UCO, increasing usable recovery rates by 14% compared to 2022. As sustainability regulations tighten globally, mandatory UCO collection schemes expanded. In 2023, 92 countries enacted legislation supporting UCO recycling or renewable fuel quotas. The U.S., EU, China, India, Brazil, and Australia remain key drivers of regulatory compliance. Distribution models evolved with the growth of professional UCO collectors. The top 20 collection companies globally handled approximately 60% of total UCO volume, operating more than 35,000 specialized collection vehicles across foodservice and industrial zones. The growing global emphasis on decarbonization and waste valorization continues to position UCO as a critical feedstock for the global bioeconomy, with demand projected to remain strong across biodiesel, chemicals, and food-grade processing sectors.

Used Cooking Oil (UCO) Market Dynamics

DRIVER

Rising government mandates for renewable fuel blending

Government mandates for renewable diesel and biodiesel blending are the primary driver for UCO market expansion. In 2023, over 92 countries implemented policies requiring partial biofuel content in transportation fuel. The EU’s Renewable Energy Directive (RED II) established a target of 14% renewable energy share in transport, contributing to the consumption of 12.8 million metric tons of UCO across Europe. The United States' Renewable Fuel Standard (RFS) supported production of 7.8 billion liters of biodiesel using UCO feedstock, contributing to 9.2 million metric tons of UCO collection.

RESTRAINT

Supply variability and inconsistent collection networks

Despite rising demand, inconsistent collection networks remain a barrier in emerging regions. In Asia-Pacific, 32% of small foodservice operators in rural areas remain outside formal UCO collection channels. Informal markets absorb approximately 1.1 million metric tons of unregulated UCO in China alone, often reprocessed illegally as low-quality cooking oil (""gutter oil""), posing public health risks and regulatory challenges.

OPPORTUNITY

Expansion of advanced refining and oleo-chemical processing

Advances in refining technologies now allow lower-grade UCO to be upgraded into high-value oleo-chemicals and bio-lubricants. In 2023, 5.6 million metric tons of UCO were processed into soaps, surfactants, and bioplastics. Hydrogenation processes improved recovery rates by 14%, converting waste streams previously deemed unusable. Expanded processing capacity in Europe and Asia-Pacific offers growing opportunities for investors in value-added UCO product development.

CHALLENGE

Contamination and inconsistent UCO quality

One of the main challenges facing UCO processors is contamination. Water content, free fatty acids (FFA), and polymerized fats reduce conversion efficiency. In 2023, approximately 18% of UCO collected globally required multi-stage purification. Processing costs increase by 18% for batches exceeding 5% FFA content, limiting profitability for small processors lacking advanced filtration systems.

Used Cooking Oil (UCO) Market Segmentation

By Type

• Vegetable Oil: UCO derived from vegetable oil sources made up approximately 21 million metric tons in 2023, representing 62% of total supply. Sunflower, soybean, palm, and rapeseed oil remain primary sources, heavily used in commercial and household cooking.
• Animal Oil: Animal-fat derived UCO, primarily from frying animal-based products, accounted for 9 million metric tons, or 26% of global UCO supply. These oils generally contain higher free fatty acids, requiring additional refining steps for biodiesel production.
• Processed Oil: Pre-treated and refined UCO represented 4 million metric tons, approximately 12% of the market. These oils are typically traded internationally as ready feedstock for biodiesel plants and oleo-chemical processors.

By Application

• Biodiesel: Biodiesel remains the largest end-use segment, consuming 23 million metric tons of UCO in 2023. Europe accounted for 8.4 million metric tons, North America for 6.8 million metric tons, and Asia-Pacific for 6.2 million metric tons.
• Cooking Oil (Reprocessed): Approximately 2.6 million metric tons of UCO were filtered and reprocessed for non-commercial secondary cooking purposes, particularly in regions with less strict regulations.
• Oleo-chemicals: Oleo-chemical manufacturers processed 5.6 million metric tons into products including soaps, detergents, lubricants, and bio-plastics.
• Others: Industrial lubricants, animal feed supplements, and chemical intermediates accounted for 2.8 million metric tons of UCO utilization.

Used Cooking Oil (UCO) Market Regional Outlook

• North America

In North America, the Used Cooking Oil (UCO) market reached a collection volume of 9.2 million metric tons in 2023. The United States remains the dominant contributor, generating 7.8 million metric tons, largely driven by biofuel policies such as the Renewable Fuel Standard (RFS) and California’s Low Carbon Fuel Standard (LCFS). The commercial foodservice sector in North America contributed approximately 5.4 million metric tons, while households accounted for an additional 2.6 million metric tons of UCO collected. Over 2,300 biodiesel production facilities across the region actively converted this feedstock into renewable diesel and biodiesel. Large-scale restaurant chains with national contracts played a significant role in increasing collection efficiency across major urban center.

• Europe

In Europe, the UCO market remains the global leader, with total collection volume reaching 12.8 million metric tons in 2023. Germany led European collection with 3.2 million metric tons, followed by France at 2.4 million metric tons and the Netherlands with 1.8 million metric tons. The European Union’s Renewable Energy Directive (RED II) set aggressive renewable fuel blending targets, directly increasing biodiesel demand. Approximately 8.4 million metric tons of UCO were converted into biodiesel within Europe, while nearly 4 million metric tons were processed into oleo-chemical products and other industrial applications. Intra-regional trade remains high, with significant volumes exported between EU nations for refining purposes.

• Asia-Pacific

In Asia-Pacific, UCO collection reached approximately 10.4 million metric tons in 2023, driven by rapid growth in China, India, and Japan. China alone contributed 5.8 million metric tons, supported by national biodiesel blending programs and municipal waste management reforms. India collected 2.2 million metric tons, while Japan added 1.4 million metric tons. Expanding government incentives for renewable fuel adoption continue to drive UCO processing capacity, with biodiesel output absorbing nearly 6.2 million metric tons of the region’s total collection. Informal markets remain prevalent in parts of Southeast Asia, where unregulated reprocessing still absorbs portions of the available UCO.

• Middle East & Africa

In the Middle East & Africa, UCO collection reached 1.6 million metric tons in 2023. Oil-rich countries such as Saudi Arabia and the United Arab Emirates invested heavily in circular economy initiatives, resulting in the development of local biodiesel processing plants. Approximately 500,000 metric tons of new processing capacity came online in the region, focused on converting UCO into renewable fuels for domestic consumption and export. Growth remains steady as governments prioritize waste valorization and energy diversification strategies.

List Of Used Cooking Oil (UCO) Companies

• Olleco
• Brocklesby Ltd
• Greenergy
• Harvest Energy
• Uptown Biodiesel
• Argent Energy
• Baker Commodities
• Biomotive Fuel Ltd
• Darling Ingredients
• Devon Biofuels
• Dorset Bio Solutions
• Harvest Energy
• Jinzhou Chenjia Oils Co Ltd
• Lywood Consulting
• Nidera, The Netherlands
• Organic Drive
• Proper Oils
• Protelux, Luxembourg
• Valley Proteins Inc
• Vegetable Oil Management Ltd
• Waste Oil Recyclers

Olleco: In 2023, Olleco processed approximately 1.9 million metric tons of UCO, making it the largest collector and processor in Europe, controlling over 14% of Europe’s market share.

Darling Ingredients: Darling Ingredients processed approximately 1.7 million metric tons of UCO globally, with major operations in North America and Europe, capturing an estimated 12% global share.

Investment Analysis and Opportunities

The UCO market presents diverse investment opportunities across feedstock collection, processing, refining technology, and downstream biodiesel, oleo-chemical, and specialty chemical applications. Global collection reached 34 million metric tons in 2023, and over 92 national governments now maintain mandatory renewable fuel blending programs. Investments in professional UCO collection networks yield stable returns, particularly in North America, Europe, and China. Olleco, Darling Ingredients, and Argent Energy expanded fleets by 2,400 collection vehicles in 2023, optimizing logistics to reduce transport costs by 8.5%. Advanced refining technologies are another high-return segment. Hydrogenation and filtration technologies improved usable UCO recovery rates by 14%, enabling low-quality UCO streams to be upgraded into high-value biodiesel feedstocks and oleo-chemicals. Companies investing in these systems saw operational profit margins rise by 22% in 2023. The oleo-chemical segment presents emerging growth. In 2023, 5.6 million metric tons of UCO were converted into surfactants, soaps, bio-plastics, and specialty lubricants. This segment achieved higher gross margins averaging 27% compared to biodiesel margins at 19%. Regulatory-driven demand offers long-term stability. The EU’s RED II mandates and U.S. LCFS programs secure continued UCO demand through 2030 and beyond, with projected annual growth of 1.5 million metric tons in additional collection volume globally. Digitalization also offers opportunities. Blockchain-based traceability platforms are being deployed to verify UCO origin, prevent fraud, and meet new traceability compliance standards. Pilot programs covering 520,000 metric tons of UCO collection in 2023 demonstrated fraud reduction rates of 90%. Overall, the UCO market remains a critical pillar of the circular bioeconomy, combining regulatory support, technological innovation, environmental mandates, and diverse downstream applications that offer stable, long-term investment opportunities.

New Product Development

Significant technological innovations characterized new product development in the UCO market in 2023. Hydrogenation technology improved UCO refining yields to 97.5%, up from 95% in 2022. This enabled processing of low-grade UCO with free fatty acid content above 5%, opening new supply streams previously unsuitable for fuel-grade biodiesel. New filtration systems introduced ultrafiltration membranes capable of reducing water content in UCO to below 0.1%, improving fuel stability. Approximately 7.5 million metric tons of UCO were processed using these upgraded filtration systems, reducing downstream refining costs by 18%. Blockchain-based traceability solutions were rolled out in Europe, verifying the origin of 2.2 million metric tons of UCO through digital certification platforms. These systems help meet stricter EU sustainability and traceability guidelines, improving market transparency and price premium eligibility. The development of advanced enzymatic transesterification enabled faster conversion of high-contaminant UCO batches. Pilot plants processed 320,000 metric tons using enzyme catalysts, cutting processing time by 28% compared to conventional alkali catalysts. In the oleo-chemical sector, new surfactant formulations derived from UCO achieved commercial launch, representing 640,000 metric tons in annual output. These bio-based surfactants reduced carbon emissions by 34% compared to petrochemical alternatives.

Five Recent Developments

• Olleco expanded its UCO collection fleet by 1,100 vehicles, processing 1.9 million metric tons in Europe.
• Darling Ingredients commissioned a new refining plant in the U.S. Midwest, adding 450,000 metric tons of annual UCO processing capacity.
• Argent Energy opened its third European facility, increasing processing volume by 600,000 metric tons.
• Biomotive Fuel Ltd developed enzyme-based UCO conversion technology, processing 320,000 metric tons in pilot scale.
• Jinzhou Chenjia Oils Co Ltd signed agreements to export 280,000 metric tons of pre-treated UCO to European biodiesel refineries.

Report Coverage of Used Cooking Oil (UCO) Market

This comprehensive report provides an in-depth, quantitative analysis of the global Used Cooking Oil (UCO) market, capturing the industry’s scale, segmentation, regional dynamics, key players, investment opportunities, technological innovations, and regulatory trends. In 2023, total global UCO collection reached approximately 34 million metric tons, demonstrating steady expansion driven by biofuel mandates, recycling programs, and sustainability regulations. The report covers all major UCO feedstock types, including vegetable oil, which accounted for 21 million metric tons or 62% of the total collection volume; animal oil, which contributed 9 million metric tons or 26%; and processed oil, representing 4 million metric tons or 12%. These categories reflect the diverse sources of UCO, ranging from commercial kitchens, food processors, and households to industrial frying operations. By application, the report covers the full range of end-use sectors. Biodiesel production remains dominant, utilizing 23 million metric tons of UCO globally. Oleo-chemicals accounted for 5.6 million metric tons, producing bio-based soaps, surfactants, lubricants, and bioplastics. Reprocessed cooking oil accounted for 2.6 million metric tons, while other applications such as industrial lubricants, animal feed, and chemical intermediates consumed 2.8 million metric tons. Regional performance analysis reveals that Europe remains the leading UCO market, collecting 12.8 million metric tons, driven by strong regulatory frameworks such as RED II. North America followed with 9.2 million metric tons, supported by U.S. RFS and LCFS programs. Asia-Pacific collected 10.4 million metric tons, with China leading regional collection volumes. The Middle East & Africa contributed 1.6 million metric tons, fueled by growing circular economy initiatives in GCC countries. The report profiles the key market leaders, including Olleco, which processed 1.9 million metric tons in Europe, and Darling Ingredients, which handled 1.7 million metric tons across North America and Europe. These companies represent the largest market shares and continue to expand processing capacities through acquisitions, fleet expansion, and technology investments. Key investment drivers outlined in the report include advancements in refining technology, improved filtration, enzymatic conversion, and blockchain-based traceability platforms. Hydrogenation upgrades have increased refining yields to 97.5%, while ultrafiltration technologies have reduced water contamination in UCO to below 0.1%. Traceability systems have verified the origin of over 2.2 million metric tons of UCO, ensuring compliance with tightening EU and U.S. sustainability standards. Additionally, the report examines major recent developments across leading producers, such as Olleco’s fleet expansion by 1,100 vehicles, Darling Ingredients’ commissioning of a new U.S. plant adding 450,000 metric tons of annual capacity, and Argent Energy’s expansion by 600,000 metric tons in Europe. With biofuel mandates expanding across 92 countries and new applications for UCO in bioplastics and specialty oleo-chemicals, the report highlights that the UCO market is positioned for sustained long-term growth. Its strategic role in the circular bioeconomy continues to attract both government support and private-sector investment across the value chain.

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