Used Cooking Oil Market Report Scope & Overview:

The Used Cooking Oil Market was valued at USD 8.08 billion in 2025 and is expected to reach USD 17.70 billion by 2035, growing at a CAGR of 8.24% from 2026–2035.

The used cooking oil market is experiencing consistent growth across the globe owing to growing biodiesel and renewable diesel demands around the world. The emphasis on energy transition and adopting circular economies is promoting the growth of Used Cooking Oil recovery and processing. Growing production of renewable jet fuels, oleochemicals, and biobased products is further propelling the growth of the market. Growing foodservice industries, HoReCa markets, and waste oil recovery operations are contributing to better logistics efficiency.

Recently, Waste Management Inc. (WM) has expanded its capabilities in collecting organic waste materials, handling more than 14 million tons of organic waste per year that includes waste grease and used cooking oils (UCOs). Currently, WM manages around 20+ renewable natural gas facilities and recycling facilities, becoming a key player in circular economy systems. Recently, WM has strengthened collaborations with biodiesel manufacturers with supply volumes exceeding hundreds of thousands of tons of UCO equivalent materials each year, while investing in infrastructure worth USD 1+ billion each year.

Market Size and Forecast

• Market Size 2026E: USD 8.68 Billion

• Market Size 2035: USD 17.70 Billion

• CAGR (2026 - 2035): 8.24%

• Fastest Growing Region: Asia Pacific

• Largest Region: North America 

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Used Cooking Oil Market Trends

• Market impetus comes from high demand for alternative fuel sources such as biodiesel, renewable diesel, and sustainable aviation fuel around the world.

• Increased implementation of circular economy strategies is seen, involving the conversion of waste vegetable oil to useful bio-based raw material.

• Higher demands in the oleochemical and industrial sectors are being witnessed with regards to surfactants, lubricants, soaps, and cosmetics.

• Growth of fast-food chains, cloud kitchens, and food delivery services is resulting in higher amounts of waste vegetable oil generated.

• Advancements in pretreatment and purification technologies have led to improvements in UCO quality.

The US Used Cooking Oil Market Size Outlook

The U.S. used cooking oil market was valued at USD 2.71 billion in 2025 and is expected to reach around USD 5.79 billion by 2035, growing at a CAGR of 8.80% from 2026–2035.

The US used cooking oil market is fueled by increasing requirements in renewable diesel and biodiesel production across the country.Government initiatives to reduce the amount of carbon emissions have been responsible for increased demand for collecting used cooking oil.The expansion of the foodservice sector, hospitality industry, HoReCa, and industrial kitchens is creating additional supply sources for used cooking oil.Recycling methods and traceability systems have become increasingly efficient and transparent.Biofuel producers including Darling Ingredients, Neste, and Chevron Renewable Energy Group have been investing heavily in increased production capacity.

Government intervention via the United States Renewable Fuel Standard (RFS) program plays a vital role in increasing the use of UCOs and the adoption of biofuels production throughout the country. Government incentives at the national and state levels to produce renewable diesel and sustainable aviation fuels are motivating substantial investment in UCO processing technologies throughout the U.S. EPA’s laws on waste disposal and carbon emissions are fostering the development of organized systems for collecting UCOs from the foodservice industry.

Used Cooking Oil Market Segment Analysis

• By Source, food service restaurants dominated the used cooking oil market with a 32.68% share in 2025, while the food processing industry is the fastest-growing segment.

• By Application, biodiesel production dominated the market with a 45.82% share in 2025, while renewable diesel is the fastest-growing segment.

• By Type, vegetable oil-based UCO dominated the market with a 54.23% share in 2025 and also represents the fastest-growing segment.

• By Collection Method, direct commercial collection dominated with a 39.56% share in 2025, while third-party waste aggregators are the fastest-growing segment.

By Source, food service restaurants dominate the used cooking oil market, while food processing industries are the fastest-growing segment.

The food service restaurants emerged as the leading contributor to the UCO market owing to the huge consumption of oils in quick service restaurants, hotels, and commercial kitchens. The increasing trend towards eating out along with the emergence of cloud kitchens and highly organized HoReCa networks is contributing to substantial amounts of UCO generated all over the world.

Food processing industries is estimated to experience the highest CAGR from 2026 to 2035 due to growing use of edible oils in manufacturing operations and improved ability to recycle waste oils. Growing demand for renewable diesel raw materials, along with advanced processing centers for centralizing the process of collecting waste oils, has boosted UCO generation by the food processing sector.

By Application, biodiesel production dominates the used cooking oil market, while renewable diesel is the fastest-growing segment.

Biodiesel was the dominant product type during 2025 due to higher acceptance worldwide of FAME biofuels and governmental blending policies. The existence of biodiesel production facilities along with the feedstock supply chain, which involves used cooking oil, is helping drive the consistent demand in various regions. Renewable energy-related favorable policies are aiding in the dominance of biodiesel production.

The renewable diesel segment is anticipated to witness the highest CAGR in the forecast period 2026–2035 owing to the increasing use of biofuels that can be readily dropped into conventional diesel systems. Increasing HVO production capabilities, as well as the increased need for carbon reduction in the aviation and transportation sectors, are fueling adoption.

By Type, vegetable oil-based uco dominates the used cooking oil market, while it is also the fastest-growing segment.

Vegetable oil-based uco held the dominant share in the industry in 2025 owing to extensive usage of soybean, palm, and sunflower oil in the food service industry on a worldwide basis. The high availability of the material from the restaurant and cooking process in the house holds makes it more available to convert into biofuels. This high-quality feedstock, along with high conversion rates, helped achieve a dominant position.

Vegetable oil-based uco is also projected to witness the highest CAGR during 2026–2035 owing to increasing demand for vegetable oils in the food industry. Increasing production capacity of biodiesel and renewable diesel production is also fueling the demand for this feedstock category.

By Collection Method, direct commercial collection dominates the used cooking oil market, while third-party waste aggregators are the fastest-growing segment.

Direct commercial collection was more prominent in 2025 because of the existing partnership that exists between restaurants, HoReCa, and biofuel makers. It involves organized collection, which ensures that there is consistency in the supply and better quality of feedstock available for processing. Regulatory compliance needs are also aiding the dominance of direct collection.

The third-party waste aggregator is anticipated to hold the highest CAGR rate between 2026 and 2035 owing to the increased decentralization in the waste collection process. The development in digital platforms, local aggregators, and logistic service providers is enhancing the efficiency of the collection process for smaller and mid-size producers of UCO.

Regional Analysis

North America Used Cooking Oil Market Insights

North America emerged as the leader in the used cooking oil market with the highest market share of around 40.58% in 2025 due to high capacity for producing renewable diesel and biodiesel. Growing investments in biofuel refining capacities, circular economy policies, and advanced waste oil collection networks through foodservice businesses contributed towards the regional leadership position. Growing demand from the transportation sector, aviation, and industrial fuels drove the Used Cooking Oil consumption.

The U.S. Renewable Fuel Standard (RFS) policy and Canada’s Clean Fuel Regulations are promoting the widespread use of used cooking oil as an important biofuel feedstock. Incentives from governments at federal and state levels for producing renewable diesel and sustainable aviation fuel are resulting in greater investments in used cooking oil. Waste management companies are partnering with restaurants and biofuel producers for the efficient collection of Used Cooking Oil in North America.

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Europe Used Cooking Oil Market Insights

Europe is viewed as one of the most vital regions within the used cooking oil market due to the high demand for the production of renewable diesel, biodiesel, and sustainable aviation fuels. Countries such as Germany, the United Kingdom, France, Italy, and the Netherlands have been responsible for the expansion of the regional market by having advanced refining facilities for biofuels and a proper waste cooking oil collecting system.

With respect to the positive factors that support the market development, it is possible to note that the European Union's Green Deal and the Renewables Energy Directive (RED II/III) foster the use of used cooking oil as a feedstock for producing green biofuels.

Asia Pacific Used Cooking Oil Market Insights

The Asia Pacific segment is likely to witness the highest CAGR of around 9.76% during the forecast period from 2026 to 2035, driven by fast-paced growth of biodiesel, renewable diesel, and sustainable aviation fuel production in the region. High production of used cooking oils by the booming foodservice industry, HoReCa establishments, and residential units in nations such as China, India, Japan, and Southeast Asia is augmenting market growth. Growing investments in biofuel production plants and infrastructure for the circular economy are supporting market growth in the region.

In addition, national policies including the bioenergy initiatives in China and the National Bio-Energy Mission in India are propelling the market growth through increasing the use of structured used cooking oil.

Middle East & Africa and Latin America Used Cooking Oil Market Insights

The Middle East & Africa region and Latin America are expected to record consistent growth in the used cooking oil market, driven by the growing demand for the production of biodiesel, renewable diesel, and sustainable fuels. The rising investments in waste cooking oil collection systems, foodservice growth, and circular economy activities will help drive the market's growth in the regions.

In the MEA region, nations like UAE, Saudi Arabia, and South Africa are at the forefront of adopting used cooking oil to support their renewable energy policies and waste-to-fuel programs. In Latin America, Brazil and Mexico are contributing to the growth of used cooking oil by implementing biodiesel blending regulations and sourcing feedstocks from the foodservice and industrial sectors.

Market Dynamics

Growth Drivers: Rising demand for renewable fuels and circular economy solutions is accelerating adoption of used cooking oil as a key biofuel feedstock globally.

The emphasis on low carbon transition and decarbonization has increased the demand for biodiesel and renewable diesel considerably. The government mandate and blending policies have been encouraging the use of waste cooking oil on a large scale. Increasing amounts of used cooking oil are being made available due to an increase in the number of food service and HoReCa industries and food processing. Urbanization and cloud kitchen growth are making even more waste cooking oils available.

Restraints: Availability of low-cost virgin edible oils and alternative waste feedstocks is limiting exclusive dependence on used cooking oil globally.

The presence of other sources of biofuels such as animal fats, waste from palm oil production, and technical grade oils is likely to create price competition for UCOs. This is because other sources may be easier to obtain in specific locations, thereby minimizing the dependence on UCOs. The unorganized collection processes and dumping practices of waste oils in developing nations limit efficient procurement and uniform supply of UCOs.

Opportunities: Rising demand for renewable fuels and sustainable aviation fuel is creating significant growth opportunities for the Used Cooking Oil market globally.

Development in biofuel technology like HVO, renewable diesel, and improved pretreatment technologies has enhanced the use of UCO. Technological developments have increased efficiencies and have made it possible to produce high-quality fuels using waste cooking oil as feedstock. The use of the circular economy approach and decarbonization plans by governments has led to significant investment in waste-to-fuel facilities, thus encouraging large-scale use of used cooking oil for fuel production.

Recent Developments

• 2026: Darling Ingredients extended their network of used cooking oil collection and rendering, thereby enhancing the feedstock supply capabilities to produce renewable diesel and sustainable aviation fuel in North America and Europe.

• 2025: Neste improved their facilities to increase their production capacities of renewable fuels and enhanced their relationships to obtain used cooking oils, which would improve their worldwide production facilities for renewable diesel and SAF, and secured long-term contracts for UCO feedstock from various parts of the world.

• 2025: Chevron Renewable Energy Group improved their production facilities for renewable diesel and enhanced their networks to acquire used cooking oils to supply low-carbon fuels to the company.

• 2026: Valero Energy completed the expansion of their renewable diesel production facilities and used cooking oils as their feedstock, which improved their low carbon fuel production capacities.

Used Cooking Oil Market Key Players are:

• Darling Ingredients

• Neste

• Chevron Renewable Energy Group

• Valero Energy

• Archer Daniels Midland (ADM)

• Cargill

• Bunge Global

• Greenergy

• SARIA Group

• Munzer Bioindustrie

• Olleco

• Baker Commodities

• MBP Solutions

• Argent Energy

• DAR PRO Solutions

• Restaurant Technologies Inc.

• Cleanaway Waste Management

• Veolia

• Waste Management Inc. (WM)

• EcoOils

Used Cooking Oil Market Report Scope: