Used Cooking Oil Market 2030: Greasing the Wheels of Sustainability

Global Used Cooking Oil Market Overview

The global used cooking oil market was valued at USD 8.00 billion in 2024 and is expected to grow to USD 11.98 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 7.0% between 2025 and 2030. This growth is mainly driven by rising awareness about the value of waste cooking oil, a significant surge in biofuel production, and a growing preference for renewable energy sources.

Concerns about petroleum diesel—such as its emissions and environmental impact—are increasing the demand for used cooking oil (UCO) as a feedstock for biodiesel production, which is anticipated to fuel substantial market expansion. Used cooking oil is recognized as a low-cost raw material for biofuel, making it an attractive option for manufacturers. The Net Energy Ratio (NER) for biodiesel derived from UCO is approximately 5.49, meaning that for every unit of fossil energy consumed during production, UCO biodiesel generates 5.49 units of energy. This efficiency is notably higher compared to palm oil-based biodiesel and traditional diesel, positioning UCO as a more sustainable and energy-efficient alternative.

UCO is collected from a variety of sources, including restaurants, food processing plants, households, and large manufacturing facilities, by numerous companies and organizations specializing in recycling. Increased investments in this sector are expected to create lucrative opportunities. For example, in February 2025, RIGEL CAPITAL, a business management consultant and key investor in emerging Eastern markets, invested USD 3.0 million in noovoleum, which offers the AI-powered UCOllect Solution, a technology-driven platform for used cooking oil collection.

Collaborations between large corporations to simplify UCO collection from restaurants and homes are anticipated to support market growth. Additionally, industry innovation, particularly in UCO collection technology, is expected to drive further opportunities. For instance, in November 2024, Darling Ingredients Inc. introduced DarLinQ, a technology utilizing sonar and Bluetooth to continuously monitor oil levels in UCO storage containers through automated equipment, improving operational efficiency and security.

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Key Market Trends & Insights

• Regional Dominance: North America led the global used cooking oil market in 2024, capturing a revenue share of 41.7%. The region’s growth is fueled by numerous companies active in UCO recycling, increasing awareness about the benefits of used oil recycling, growing collaborations among food service providers and ingredient companies, and advanced biofuel production technologies.
• Country Insights: The U.S. accounted for the largest revenue share in the region in 2024, driven by high volumes of UCO generated from food service businesses, food processing industries, and manufacturing factories. Enhanced technology and awareness have significantly increased the collection of used cooking oil.
• By Application: The biodiesel production segment dominated with a 50.0% revenue share in 2024. This is primarily due to rising demand for renewable energy sources, coupled with a global push to reduce greenhouse gas emissions and combat climate change.
• By Source: The food service segment held the largest revenue share in 2024, driven by the substantial quantities of waste cooking oil generated by quick-service restaurants, local food vendors, theme-based restaurants, luxury hotels, and cloud kitchens.

Market Size & Forecast

• 2024 Market Size: USD 8.00 Billion
• 2030 Projected Market Size: USD 11.98 Billion
• CAGR (2025-2030): 7.0%
• Largest Market (2024): North America
• Fastest Growing Market: Asia Pacific

Key Company Insights

Leading companies in the used cooking oil industry include Baker Commodities Inc., Arrow Oils Ltd., Mahoney Environmental, Darling Ingredients Inc., and Olleco. These major players focus on innovation, technology advancement, and strategic collaborations.

• Mahoney Environmental specializes in converting used cooking oil and other waste materials into valuable products. It manages the entire recycling process—from collection and equipment to final product. Their services include used cooking oil recycling and restaurant grease trap cleaning.
• Darling Ingredients Inc. recycles and repurposes materials sourced from animal agriculture and the food industry, producing ingredients used in feed, food, and low-emission energy solutions.

Leading Used Cooking Oil Companies:

• Baker Commodities Inc.
• Arrow Oils Ltd.
• Olleco
• Waste Oil Recyclers
• GRAND NATURAL INC.
• GREASECYCLE
• Brocklesby
• Oz Oils Pty. Ltd.
• Darling Ingredients Inc.
• Argent Energy
• Greenergy
• Mahoney Environmental
• noovoleum

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Conclusion

The global used cooking oil market is forecasted to grow steadily through 2030, driven by increasing recognition of waste cooking oil as a valuable resource for biodiesel production and renewable energy. Rising environmental concerns about traditional petroleum diesel are fueling demand for cleaner alternatives like UCO-based biodiesel, which offers higher energy efficiency and sustainability. Strong investments, technological innovations in collection and processing, and expanding collaborations within the industry further support this positive outlook. North America remains the largest market due to its advanced infrastructure and high awareness levels, while the Asia Pacific region is expected to experience the fastest growth. Overall, the market’s expansion aligns closely with global efforts to promote sustainability and reduce carbon emissions.