Used Cooking Oil Market by Source (Food Services & Households), by Application (Industrial Usage, Animal Feed & Others), By Geography - Global Opportunity Analysis & Industry Forecast, 2023-2028

Report Code: FBR 63549 Report Format: PDF + Excel

Used Cooking Oil Market Overview

The Used Cooking Oil Market is estimated to reach $11.7 billion by 2030, growing at a CAGR of 5.2% over the forecast period 2023-2030. Cooking oils and fats that have been used for cooking or frying are referred to as used cooking oils. Used cooking oils are typically found in the food processing industry, such as in food services and households. Cooking oils can be vegetable oils such as corn oil, canola oil, olive oil, palm oil and so on or animal fats. Impurities in used cooking oil, such as free fatty acids (FFA) and water, must be removed before the transesterification process can begin. In fact, just before free fatty acids react with the alkaline catalyst, soap is formed, which inhibits the reaction and results in a low biodiesel yield. The acid and saponification values of used cooking oil determine both the quality and the price. The initiatives taken to reduce oil waste would yield positive results and support market expansion.

Used Cooking Oil Market Report Coverage

The report: “Used Cooking Oil Market – Forecast (2023-2030)” by IndustryARC, covers an in-depth analysis of the following segments in the Used Cooking Oil Market.

By Source: Food Services and Households.
By Application: Industrial Usage, Animal Feed and Others.
By Geography: North America (the U.S., Canada and Mexico), Europe (the UK, Germany, France, Italy, Spain, Russia and the Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Australia and New Zealand and the Rest of Asia-Pacific), South America (Brazil, Argentina, Chile, Colombia and the Rest of South America) and the Rest of the World (the Middle East and Africa).

Key Takeaways

  • Geographically, Europe held the largest market share in 2022, as governments are developing regulations to promote the processing of used cooking oil from eateries, restaurants, hotels, catering services and other food outlets in the region. Asia-Pacific is the fastest growing market during the forecast period of 2023–2030, owing to the region's increased emphasis on environmental preservation and sources of renewable energy.
  • The key factor driving the growth of the Used Cooking Oil market is the increasing use of bio-based fuels around the world.
  • The usage of cooking oils in the preparation of fast food and other fried items is driving the Used Cooking Oil market. The growing number of businesses involved in the collection, processing and refinement of waste cooking oil would also aid growth.
  •  A detailed analysis of strengths, weaknesses, opportunities and threats would be provided in the Used Cooking Oil Market Report.

Used Cooking Oil: Market Share (%) by region, 2022

Used Cooking Oil Market

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Used Cooking Oil Market Segment Analysis – by Source

Based on source, the Used Cooking Oil market is further segmented into food services and households. The food services segment held the largest revenue market share in 2022, as the number of diners, hotel chains and other food services is growing around the world and providers accumulate a significant amount of used cooking oil. According to the National Restaurant Association, food and beverage sales in the American food service industry reached $789 billion in 2021, representing a 19.7% increase over the previous year.

However, the household segment is estimated to grow at the fastest CAGR of 5.6% over the forecast period of 2023–2030, as cooking oil is used in a wide range of dishes and is essential in household kitchens. It is an excellent choice for grilling, stir-frying and baking.

Used Cooking Oil Market Segment Analysis – by Application

Based on application, the Used Cooking Oil market is further segmented into industrial usage, animal feed and others. The industrial usage segment held the largest revenue market share in 2022 since used cooking oil is quite easily accessible and much more affordable than vegetable oil. The industrial usage of used cooking oil also empowers biodiesel producers to use it as a primary feedstock. According to the International Energy Agency (IEA), vegetable oil prices have risen across the board, with prices increased by 65-164% as of April 2022, fueling higher prices for biodiesel and renewable diesel. However, the animal feed segment is anticipated to grow at the fastest CAGR of 6.5% over the forecast period of 2023–2030, as cooking oil is recycled and supplemented in animal feed. The use of cooking oil increases the efficiency of animal feeds as it is a good source of essential fatty acids and energy.

Used Cooking Oil Market Segment Analysis – by Geography

Based on geography, the European Used Cooking Oil Market accounted for 30% of revenue share in 2022, owing to the frequent use of waste to produce energy products. The main reason is the increased use of biofuel to meet the region's energy needs. According to the International Energy Agency (IEA), Europe's biofuel demand has increased by 6% (1600 million liters) in 2022 compared to 2021. However, the Asia-Pacific region is estimated to grow at the fastest CAGR during the forecast period of 2023–2030, due to the growth in population awareness about the use of used cooking oil. According to the International Energy Agency (IEA), biofuel demand in the Asia-Pacific region has grown by 9% in 2022 and 12% in 2023. This is due to strong growth in gasoline and diesel that strengthened government policies in India and higher biodiesel blending requirements in Indonesia.

Used Cooking Oil Market Drivers

Adoption of Sustainable and Renewable Energy Sources and Rising Consumer Awareness of Environmental Issues:

There are a number of challenges related to environmental greenhouse gases and climate change as a result of the growing population, rapid urbanization and mounting pollution throughout the world. The green economy is being supported by policies that are being adopted by governments in developing countries and a few notable energy and fuel organizations. According to the International Energy Agency, biofuel demand reached 155,400 million liters in 2021. Given its advantages for the environment, biodiesel has recently become more popular among consumers instead of petroleum-based fuel. Additionally, the rising availability of used edible oil for fuel production is influenced by consumer awareness of food waste and strict safety standards related to the product.

Application of Used Cooking Oil in Animal Feed:

The diets of domestic animals are frequently supplemented with oils. Oils are a source of essential fatty acids and energy. Domestic animals' dietary fatty acid requirements would then be met by animal feed ingredients. As a result, the primary nutritional function of oils is to provide energy. Fats and oils are concentrated energy sources, with one unit providing approximately 2.25 times the digestible energy of carbohydrates or proteins. Furthermore, fats and oils are digestible and may improve the overall digestibility of the ration. The addition to the ration also improves feed processing efficiency. Fats and oils used in animal feed come from a variety of sources. Animal feed fats and oils are derived from discarded animal fats from processing and rendering plants. Animal fats and oils used in the preparation of food products are recycled and used as animal feed. In general, the use of the original vegetable oils is extremely expensive.

Used Cooking Oil Market Challenges

Unhealthy and Harmful Properties of Used Cooking Oil:

Oils are extracted chemically rather than naturally. The oil is then deodorized and modified before it reaches the shelves of the local grocery store or supermarket. To extract maximum oil, the grains are combined with a chemical called hexane. It is then boiled to remove the solid wax, causing the oil to oxidize. Even if the oil appears and smells fine, oxidized oils are known to cause inflammation and pain in the body. Used cooking oils are high in polyunsaturated fats, which human bodies are not designed to digest. They cause cell mutations and artery clogging. Unhealthy fats present in used cooking oils can also contribute to skin cancer if they enter the skin. Vegetable oils are high in omega 6, which enhances cancer cell growth, blood clotting and inflammation in the body. An imbalance of omega-3 and omega-6 fatty acids causes heart disease, autoimmune disease, neurodegenerative disease and even cancer. According to the Economic Times, the latest study published in 2022 found that nearly 60% of used cooking oil increases the risk of noncommunicable diseases such as cancer, heart disease and organ damage.

Key Market Players:

Product launches, mergers and acquisitions, joint ventures and geographical expansions are key strategies adopted by players in the Used Cooking Oil Market. The top 10 companies in the Used Cooking Oil Market include:

  1. ABP Food Group
  2. Arrow Oils Ltd
  3. Brocklesby
  4. Grand Natural Inc.
  5. MBP Solutions Ltd.
  6. Valley Proteins Inc.
  7. Darling Ingredients Inc.
  8. Veolia Environment S.A.
  9. Olleco Ltd.
  10. Argent Energy

Recent Developments

  • In October 2022, Bunge and Olleco established a 50/50 joint venture to create a business that manages the complete lifetime of edible oils. In addition to supplying oils, the joint venture would work with food service and food manufacturing clients in Europe (aside from the UK and Ireland) to ensure that Used Cooking Oil (UCO) is properly collected and used as a feedstock for the production of renewable fuels.
  • In May 2021, ABP revealed that it had signed an agreement in principle with Fane Valley Co-op to acquire the remaining 50% of its holdings in its red meat business, subject to the approval of the applicable regulatory and competition authorities. The deal covers the companies of Slaney Foods and Irish Country Meats in the Republic of Ireland as well as Linden Foods in Northern Ireland.
  • In October 2020, Veolia Environment S.A. (Veolia) acquired a 29.9% stake in Suez S.A. (Suez). Veolia offers energy, waste and water management systems. Services for resource recovery, waste management and water management are all offered by Suez in Australia.

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1. Used Cooking Oil Market - Overview
    1.1 Definitions and Scope
2. Used Cooking Oil Market - Executive Summary
3. Used Cooking Oil Market – Market Landscape
    3.1 Company Benchmarking - Key Companies
    3.2 Financial Analysis – Key Companies
    3.3 Market Share Analysis – Key Companies
    3.4 Patent Analysis - Global
    3.5 Pricing Analysis (Comparison of General Price Offerings in the Market)
4. Used Cooking Oil Market – Startup Company Scenario (Premium)
    4.1 Investment
    4.2 Revenue
    4.3 Venture Capital and Funding Scenario
5. Used Cooking Oil Market – Market Entry Scenario Premium (Premium)
    5.1 Regulatory Scenario
    5.2 New Business and Ease of Doing business index
    5.3 Case Studies of Successful Ventures
    5.4 Customer Analysis
6. Used Cooking Oil Market - Forces
    6.1 Market Drivers
    6.2 Market Constraints
    6.3 Porter's five force model
        6.3.1 Bargaining power of suppliers
        6.3.2 Bargaining powers of customers
        6.3.3 Threat of new entrants
        6.3.4 Rivalry among existing players
        6.3.5 Threat of substitutes
7. Used Cooking Oil Market – Strategic Analysis
    7.1 Value Chain Analysis
    7.2 Opportunities Analysis
    7.3 Market Life Cycle Analysis
8. Used Cooking Oil Market – by Source
    8.1 Food Services
    8.2 Households
9. Used Cooking Oil Market – by Application
    9.1 Industrial Usage
    9.2 Animal Feed
    9.3 Others
10. Used Cooking Oil Market - by Geography
    10.1 North America
        10.1.1 The US
        10.1.2 Canada
        10.1.3 Mexico
    10.2 South America
        10.2.1 Brazil
        10.2.2 Argentina
        10.2.3 Colombia
        10.2.4 Chile
        10.2.5 The Rest of South America
    10.3 Europe
        10.3.1 The UK
        10.3.2 Germany
        10.3.3 France
        10.3.4 Italy
        10.3.5 Spain
        10.3.6 Russia
        10.3.7 The Rest of Europe
    10.4 Asia-Pacific
        10.4.1 China
        10.4.2 Japan
        10.4.3 India
        10.4.4 South Korea
        10.4.5 Australia and New Zealand
        10.4.6 The Rest of APAC
    10.5. The Rest of the World
        10.5.1 The Middle East
        10.5.2 Africa
11. Used Cooking Oil Market - Market Entropy
    11.1 New service launches
    11.2 M&As, collaborations, JVs and partnerships
12. Used Cooking Oil Market – Industry Competition Landscape (Premium)
    12.1 Market Share Analysis
        12.1.1 Market Share by Region – Key Companies
        12.1.2 Market Share by Country – Key Companies
    12.2 Competition Matrix
    12.3 Best Practices for Companies
13. Used Cooking Oil Market – Key Company List by Country Premium (Premium)
14. Used Cooking Oil Market Company Analysis
    14.1 Company 1
    14.2 Company 2
    14.3 Company 3
    14.4 Company 4
    14.5 Company 5
    14.6 Company 6
    14.7 Company 7
    14.8 Company 8
    14.9 Company 9
    14.10 Company 10
* "Financials would be provided to private companies on best-efforts basis."
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