Used Cooking Oil Market Opportunity, Growth Drivers, Industry Trend Analysis, and Forecast 2024 to 2032

Used Cooking Oil Market Opportunity, Growth Drivers, Industry Trend Analysis, and Forecast 2024 to 2032

The Global Used Cooking Oil Market was valued at USD 6.6 billion in 2023 and is anticipated to grow at a CAGR of 5.7% from 2024 to 2032. The market is expanding due to the rising demand for sustainable solutions, with biodiesel production being one of the key applications. As an eco-friendly energy source, biodiesel made from used cooking oil contributes to waste reduction and supports recycling efforts. Beyond biodiesel, used cooking oil is also finding increased use in animal feed, cosmetics, and various industrial applications. The food industry plays a significant role in driving the market, as used cooking oil from food production is repurposed, further contributing to the circular economy.

Additionally, its properties have caught the attention of the cosmetics and personal care sectors. Growing environmental awareness and regulatory measures promoting waste oil recycling are also fueling market growth. The household segment dominated the used cooking oil market, valued at USD 2.7 billion in 2023, with an anticipated CAGR of 5.9% through 2032. Extensive cooking oil consumption in residential kitchens contributes significantly to the availability of used oil for recycling. This increase in household-generated used cooking oil is fueling its repurposing into products like biodiesel, animal feed, and industrial goods.

Unrefined used cooking oil held a leading position in the market with a value of USD 3.7 billion in 2023 and is expected to grow at a CAGR of 5.9% from 2024 to 2032. Its cost-effectiveness and high lipid content make it a vital component in biodiesel production, serving as a sustainable alternative to conventional fuels. Unrefined used oil is also utilized in producing animal feed, soaps, and other oleochemicals. Its affordability and lower processing costs compared to refined oils make it an attractive option for industries aiming to adopt greener practices. China used cooking oil market was valued at USD 2.2 billion in 2023 and is expected to grow at a 5.7% CAGR through 2032. The country generates vast amounts of used cooking oil due to its large population and food service industry.

This surplus is increasingly being repurposed for biofuel production, driven by governmental support for renewable energy initiatives. As China continues to prioritize sustainability and renewable energy, its market for used cooking oil is expected to see steady growth over the coming years.