Global Used Cooking Oil Market - 2023-2030

Global Used Cooking Oil Market - 2023-2030

Market Overview

Used Cooking Oil Market were valued at USD YY million in 2022. It is forecasted to reach USD YY million by 2030, growing at a CAGR of 7.4% during the forecast period (2023-2030).

Used cooking oil is used for frying or cooking in the food processing industry, restaurants, fast food centers and households. Home-made regular meals like pulses, and vegetables, including non-vegetarian preparations, are also cooked in oil. In most of the households cooking oil is reused. Hotels, restaurants, food stalls, and roadside eateries engage in reusing oil repeatedly to save on costs and build up profit. Leftover cooking oil is obtained from sunflower, corn, canola, olive, palm, rapeseed, soya oils and animal fats. Used cooking oil is mostly used for manufacturing soaps, composts, oleochemicals, hydrogenated vegetable oils (HVO), industrial greases, biodiesels and animal feed. The increasing adoption of bio-based fuel globally drives the market growth in the forecast period.

Market DynamicsAn increase in the industrial applications of used cooking oil drives the market growth

Used cooking oil has a wide range of applications in the industry, such as it is used as biofuel, animal feed, composting, soaps, lamp oil, paint remover, shampoo and moisturizer, car cleaning material, furniture and appliance material. As society becomes more eco-friendly and demand for an alternative to petroleum diesel increases, demand for used cooking oil increases. Used cooking oil is used in producing biofuels as a clean-burning alternative to petroleum that helps reduce carbon emissions by up to 85 percent per gallon. Used cooking oil is also used in animal feed. When used, cooking oil is stripped down and refined; it offers a lot of calories and nutrients to the animal feed. It is used in various industry levels, like poultry and other forms of livestock. Used cooking oil is mixed with pet food to add more taste. It helps to improve the taste of food and helps keep their coat of fur slick and shiny.Vegetable oil is mostly used in composting due to its organic nature. Used cooking oil is also used in soap making with caustic soda flakes and water; the used oil is a useful ingredient in hand soaps. Cooking oil removes paint from different surfaces by applying it to the afflicted area. Used cooking oil is a lubricant for various household products, such as smoothing lock-and-key mechanisms, creaky hinges and other things. It is used to help deter rust from accumulating. Used cooking oil is also used in hair soap products like conditioner and shampoo because it helps to soften the hair and moisturize the scalp. Used cooking oil removes dirt and other debris from the surface of cars and trucks. It is also used in coating leather furniture to protect it and preserve the material’s longevity. These applications of the used cooking oil drive market growth in the forecast period.

Market Segmentation: Biodiesel segment accounted for the highest share in global used cooking oil market

Technological advancement in waste recycling encouraged people to recycle product that is beneficial for the environment. Biodiesel, produced using used cooking oil, has low carbon emission and clear burning capacity. They also release fewer amounts of carbon monoxide and are cost-effective compared to petroleum diesel. According to Statista data, biodiesel production in India was forecast to stand at 185 million liters in 2022. Biodiesel is produced from vegetable oil, animal fats, and waste oils. China's biodiesel production is forecast to amount to roughly 2.4 billion liters in 2022. This increase in biodiesel production creates demand for the used cooking oil. Moreover, an increase in Government initiatives in biodiesel drives the market growth. For instance, in Aug 2019, the Government of India launched a new program for converting cooking oil into biodiesel in 100 cities. In India, 2,700 crore liters of cooking oil is used, out of which 140 crore UCO can be collected from the bulk consumer such as hotels, restaurants and canteens for conversion, which will give around 110 crore liters of biodiesel every year.

Geographical Penetration: North America is the dominating region during the forecast period.

North America is the dominating region in the used cooking oil market in the forecast period. The United States and Canada are the dominating countries in the region due to the high demand for used cooking oil for biodiesel production. The government of North America is taking initiatives to promote the collection and processing of waste cooking oil from cafes, restaurants, hotels and catering businesses. Also, increasing awareness about recycling waste cooking oil drives the market growth in the forecast period. Moreover, increase in consumer awareness about the use of sustainable energy resources. An increase in the number of major companies entering into the collection and processing of used cooking oil in the region will further boost the market growth.

Competitive Landscape

There are several established participants in the industry and local manufacturers; hence, the market is fragmented. Some major market players are Georgia-Pacific Chemicals LLC, Kraton Corporation, Eagle Imports, and Pag Kimya San. Tic. Ltd. Sti., Grantchem, Inc., Akay Tic San Koll Sti - Yuksel Akaylar, Fujian Qina Trading Co. Ltd., Ibrahim Wali Mohammad & Co, G.C. Rutteman & Co. B.V., And Malplast Industries Limited. Some major companies launched new products in the market to expand their business. For instance, on 18 March 2022, Kraton and Saudi Basic Industries SABIC Launched Renewable Butadiene, a Previously Launched Bio-PC Resin. SABIC Certified Renewable Butadiene is derived from second-generation renewable feedstocks free of animal and palm oil, such as tall oil by-products from the pulping of wood pulp in the paper industry, which does not directly compete with humans for food and animal feed. On May 2021, India started experimenting with doping diesel with a small portion of biodiesel extracted from leftover cooking oil in the kitchen to cut reliance on imports and reduce carbon emissions. Around 23 million tons of edible oil are consumed in India annually. There is potential to generate 222 crore liter of UCO annually, but no structure exists for collagen of waste cooking oil. To encourage these companies floaded an expression of interest seeking biodiesel made from Used Cooking Oil, offering a fixed price for five years and guaranteed offtake for ten years. Also, In January 2020, Biodiesel producer BioD Energy plans to set up two new bio-diesel plants. One of these will be set up locally with a doubling capacity of the Haryana plant, whereas the other is located in Dubai with the same capacity as the Haryana facility.

COVID-19 ImpactNegative impact on the global used cooking oil market

The supply chain of used cooking oil is completely disturbed during the pandemic due to the strict government regulations on the import and export of the product. Price fluctuation of the used cooking oil also negatively affected the market growth. Major key players of used cooking oil suspended their operations in different locations due to the lockdown and social distancing norms. The market is one of those that have lost investors due to a lack of transportation, labor, and other facilities. Consumption of used cooking oil decreased due to the closure of hotels and restaurants during the pandemic. In covid, which impacted their disruption in the distribution network, used cooking oil struggled to sell their finished goods. Shutting down the food service industry impacted the market negatively.

The global used cooking oil market report would provide an access to approximately 53 market data tables, 44 figures and 170 pages