Used Cooking Oil Market To Witness Substantial Growth, 2025-2032 | Coherent Market Insights

The Global Used Cooking Oil Market is estimated to be valued at USD 7.89 Bn in 2025 and is expected to reach USD 12.75 Bn by 2032.

BURLINGAME, CA, UNITED STATES, November 18, 2025 /EINPresswire.com/ -- The Global Used Cooking Oil Market is estimated to be valued at USD 7.89 Bn in 2025 and is expected to reach USD 12.75 Bn by 2032, exhibiting a compound annual growth rate (CAGR) of 7.1% from 2025 to 2032. A major trend driving the used cooking oil market is the growing focus on environmental sustainability and waste minimization. Governments and industries are increasingly embracing circular economy practices, encouraging the recycling and repurposing of used cooking oil to help lower carbon emissions.

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Global Used Cooking Oil Market Key Takeaways

According to Coherent Market Insights (CMI), the global used cooking oil market size is expected to grow at a CAGR of 7.1% during the forecast period, reaching USD 7.89 Bn in 2025 and USD 12.75 Bn by 2032.

Biodiesel production is projected to remain the most lucrative application for used cooking oil, accounting for nearly half of the global market revenue by 2025

Based on source, food service segment is set to account for 45.2% of the global used cooking oil market share in 2025.

North America is expected to remain at the epicenter of used cooking oil market growth, capturing a prominent share of 45.8% in 2025.

Asia Pacific, with an estimated share of 45.8% in 2025, is poised to emerge as a hotbed for used cooking oil companies.

Rising Biofuel Demand Fueling Market Growth

Coherent Market Insights’ latest used cooking oil market analysis offers insights into major factors driving the industry’s growth. Increasing demand for biofuels, especially biodiesel, is one such prominent growth driver.

Global demand for cleaner, renewable alternatives like biofuels is rising rapidly. According to the International Energy Agency (IEA), global biofuel demand is projected to increase by 23% to reach 200 billion litres by 2028. This, in turn, is expected to boost sales of used cooking oil during the assessment period.

Used cooking oil is being increasingly used as a feedstock for biodiesel production because it is a low-carbon, waste-based alternative to virgin vegetable oils. This change supports the global goal of using cleaner energy sources.

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Inefficient Collection Systems and Alternative Feedstocks Limiting Market Growth

The global used cooking oil market outlook appears optimistic, owing to rising adoption in biodiesel production. However, limited collection infrastructure and the use of alternative feedstocks might limit market growth to some extent.

Many households and small businesses lack sufficient methods for collecting used cooking oil (UCO). This reduces the amount of UCO available for recycling and reuse, thereby hindering used cooking oil market growth.

In addition, some biodiesel producers use feedstocks like palm oil to meet rising demand for biofuels. This could reduce overall used cooking oil market demand during the forthcoming period.

Government Regulations and Incentives Creating Growth Opportunities

Governments across the world are implementing regulations and policies to encourage recycling of used cooking oil, especially for making biodiesel. These efforts are promoting sustainable practices as well as creating growth opportunities in the used cooking oil market.

Similarly, many governments in the EU, the U.S., and Asia promote biodiesel blending mandates and circular economy practices. For instance, United States’ Renewable Fuel Standards (RFS) mandate the inclusion of biofuels in the transportation fuel mix. This is expected to create a conducive environment for the expansion of the used cooking oil industry during the forecast period.

Emerging Used Cooking Oil Market Trends

Growing awareness of sustainability is a key growth-shaping trend in the used cooking oil market. Consumers and industries are People and industries are becoming more aware of how their actions affect the environment. This has increased the demand for eco-friendly practices, like recycling used cooking oil. As a result, businesses are looking for ways to cut waste and lower their carbon footprint.

Rapid growth of food service industry is providing a big market push. Rise in restaurants, hotels, and fast-food chains directly increases the volume of UCO generated. This provides a growing and stable source of raw material for the market.

Advancements in recycling technologies are expected to support market expansion. Innovations in processing used cooking oil are enhancing its viability as a biodiesel feedstock. Likewise, improvements in filtration systems and waste-to-energy solutions have increased the efficiency as well as quality of recycled oil, making it a more attractive option for biofuel production.

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Competitor Insights

Key companies in used cooking oil market report include:

Cargill, Inc.
Oleo-Fats, Inc.
Bunge Limited
Neste Corporation
Veolia Environnement S.A.
Biodiesel Industries
Green Fuel Oils
Sustainable Oils, LLC
Renewable Energy Group, Inc.
Ecovation
Bioenergy Devco
Gulf Coast Biodiesel
Catania Spagna Corporation
HollyFrontier Corporation
Agri-Green Biofuels

Key Developments

In December 2024, Neste introduced co-processed renewable Neste RE feedstock for the chemicals and polymers sector. Neste RE is produced by co-processing renewable raw materials like used cooking oil together with fossil crude oil in the company’s conventional oil refinery in Porvoo, Finland.

In August 2024, M11 Industries started turning used cooking and other waste oil into biodiesel at its Karnataka plant. The biodiesel will be supplied to oil marketing companies.

In January 2023, Neste completed the acquisition of used cooking oil (UCO) and aggregation business from Crimson Renewable Energy Holdings, LLC. This deal helps Neste expand its renewable and circular solutions.

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