Global Used Cooking Oil Market was valued at USD 6.96 Billion in 2021 and is expected to reach USD 9.65 Billion by the year 2028, at a CAGR of 4.8%.
Used cooking oil (UCO) is a term that refers to oils and fats that have been used for cooking or frying in the food processing sector, restaurants, fast food restaurants, and households. The market for UCO (used cooking oil) is growing as producers discover new applications for it, ranging from biofuels to cosmetics. It's also known as "liquid gold" or "yellow grease." It's a highly sought commodity, but some businesses aren't following proper standards while picking up and redistributing it. Used cooking oil is a major component in the production of biofuels, particularly biodiesel. It's a renewable fuel made from animal fats and vegetable oils (soybean, canola, corn, grapeseed, sunflower, and palm). Biofuels are in great demand due to the enhanced US Renewable Fuel Standard. This standard is a federal law that requires transportation fuels (diesel and gasoline) suppliers to include a minimal amount of biofuel in their products. Its goal is to cut greenhouse gas emissions and the US' reliance on non-renewable petroleum. It ensures that you don't fill your tank with pure diesel, but rather with a biodiesel blend of 2%, 5%, or 20%.
Municipal Wastes (domestic and related commercial, industrial, and institutional wastes), including separately collected fractions, are classified as Municipal Wastes (code 20 01 25) in the European Waste Catalogue (EWC) (edible oils and fats). UCO derived from waste water treatment plants is also classified as non-hazardous materials and is assigned the following code: 19 08 09 (grease and oil mixture from oil separation containing edible oil and fats). Around 90% of cooking oils and fats used in the EU are currently generated from vegetable oils, but animal fats are utilised in quite considerable quantities in countries like Belgium. According to EU estimates, the annual UCO collection potential is roughly 8L per capita. Extrapolated to a population of roughly 500 million in the EU.
Major Key Players for Used Cooking Oil Market:
- Waste Oil Recyclers Inc. (US)
- Brocklesby Limited (UK)
- Greasecycle (US)
- Baker Commodities Inc. (US)
- Veolia Environnment S.A. (France)
- Darling Ingredients Inc. (US)
- Arrows Oils Ltd (UK)
- Olleco Ltd. (UK)
- Argent Energy (UK)
- Grand Natural Inc. (US)
- Averda (Dubai)
Market Dynamics and Factors:
With the rise of the food processing business, the number of hotel and restaurant chains is increasing, implying that leftover cooking oil will be used for more purposes. Due to the increasing quantity of food products, hotels and restaurants are producing an excessive amount of used cooking oil, which is expected to boost the used cooking oil industry. Furthermore, government measures promoting renewable energy sources include the use of biofuel, which increases the usage of leftover cooking oil. The collection and refining of used cooking oil are an expensive arrangement for producers, which might affect used cooking oil output and retrain the used cooking oil market. Furthermore, excessive consumption of used cooking oil can result in hazardous health issues, which could stymie the market's expansion throughout the forecast period.
Used Cooking Oil Market Report Highlight:
- The food manufacturing segment is expected to lead the used cooking oil market over the forecast period, according to Source. The majority of spent cooking oil comes from restaurants and food businesses. Deep fryers use a lot of oil to prepare a lot of our favourite treats.
- Biodiesel is predicted to have a large market share over the forecast period.
- The EU is also making substantial efforts to increase biodiesel production in Europe. Biodiesel will replace a large share of diesel use in the EU27 by 2025, according to the European Commission.
Key Industry Development:
Uranus Oil Corp, a Chennai-based renewable energy and waste management solutions company, will collect used cooking oils (UCO) for a fee in November 2021 and use them to make biodiesel, a cleaner and greener type of diesel. Uranus just set a new record by collecting over 2.5 tonnes of UCO in a month from restaurants, hostels, canteens, and other similar establishments in and around Chennai.
Phillips 66 Humber Refinery, situated in the United Kingdom, announced the expansion of its production site in Immingham in August 2020.
Used Cooking Oil Market Segmentation:
For this report, Introspective Market Research has segmented the Used Cooking Oil Market based on region:
Regional Outlook (Revenue in USD Million; Volume in Units, 2022-2028)
- North America
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia-Pacific
- Middle East & Africa
- Saudi Arabia
- South Africa
- Rest of MEA
- Latin America
- Rest of LATAM