Used Cooking Oil Market Opportunity, Growth Drivers, Industry Trend Analysis, and Forecast 2025-2034

The Global Used Cooking Oil Market was valued at USD 7 billion in 2024 and is projected to exhibit a CAGR of 5.7% from 2025 to 2034. This growth is largely driven by the increasing awareness of the environmental benefits of recycling used cooking oil, as well as the rising demand for biodiesel and other sustainable products. With industries and households recognizing the value of repurposing cooking oil, it has become an essential raw material for biofuels and eco-friendly consumer goods. The growing emphasis on circular economy practices is further accelerating market expansion as governments and businesses worldwide implement stricter regulations to encourage the proper collection and recycling of UCO.

The market is witnessing significant traction as the global demand for renewable energy sources surges. Biodiesel manufacturers are increasingly relying on used cooking oil due to its cost-effectiveness and high lipid content, which makes it a viable alternative to traditional feedstocks. Additionally, the shift toward sustainability in multiple industries, including cosmetics, animal feed, and soap manufacturing, is creating new opportunities for UCO repurposing. The food service industry, a major contributor to UCO supply, is actively engaging in structured collection systems to ensure efficient recycling. Moreover, waste management companies are forming strategic partnerships with food establishments and municipal authorities to streamline UCO collection and processing. Despite these advancements, a lack of widespread awareness among households regarding the environmental impact of improper disposal remains a challenge. However, ongoing initiatives to educate consumers and enhance collection networks are expected to boost participation in sustainable disposal practices.

In 2024, the household cooking oil segment was valued at USD 2.8 billion and is expected to grow at a 5.9% CAGR between 2025 and 2034. The large accumulation of palm oil waste, particularly in Asia and Latin America, is driving the need for proper disposal and recycling solutions. This oil waste is increasingly being repurposed for biodiesel production, providing a sustainable solution to both energy and environmental concerns. However, a significant challenge remains in consumer education, as many households are still unaware of the proper methods for recycling UCO. Encouraging sustainable disposal methods through community awareness programs and incentives could significantly reduce waste and enhance market participation.

The UCO segment itself accounted for USD 3.9 billion in 2024, representing a 55.4% market share, and is expected to grow at a rate of 5.9% annually between 2025 and 2034. This segment continues to benefit from the rising biodiesel industry, which relies heavily on used cooking oil for fuel production. UCO's high lipid content makes it a valuable resource for biodiesel production while also helping to reduce carbon emissions. Beyond biofuel, UCO is being utilized in various applications, including animal feed, soap manufacturing, and industrial lubricants. With the availability of low cost unrefined cooking oils, companies are leveraging this resource to enhance sustainability while meeting environmental regulations.

The U.S. used cooking oil market was valued at USD 2.2 billion in 2024 and is expected to grow at a rate of 5.6% between 2025 and 2034. This growth is being fueled by the increasing consumption of cooking oil and the rising production of biodiesel, driven by government policies such as the Renewable Fuel Standard (RFS). These policies incentivize the use of UCO for biofuel production, strengthening the market's position. As used cooking oil is increasingly converted into biodiesel, the market is set to benefit from the continued push toward sustainable energy and waste repurposing, further driving industry expansion.