Overview
The Used Cooking Oil Market (https://market.us/report/used-cooking-oil-market/) was valued at USD 8.5 billion in 2025 and is projected to reach USD 18.1 billion by 2035, growing at a CAGR of 7.9% during 2026–2035. North America led the market in 2025 with a 43.69% share and USD 3.7 billion in revenue. UCO is used in renewable diesel, biodiesel, sustainable aviation fuel (SAF), animal feed, and industrial oleochemicals. The International Energy Agency (IEA) projects global biofuel demand to increase by 38 billion liters between 2023 and 2028, representing nearly 30% growth.
The International Air Transport Association (IATA) reported that global SAF production reached 1 million tonnes in 2024, double the 2023 volume. Supportive policies, including the U.S. EPA’s Renewable Fuel Standard (RFS) and the EU Renewable Energy Directive (RED III), continue to drive growth. The European Commission reported renewable energy accounted for 24.5% of the EU’s gross final energy consumption in 2023, while the U.S. Department of Energy (DOE) estimates SAF can reduce lifecycle greenhouse gas emissions by up to 100%, supporting continued UCO market expansion.
Key Takeaways
The global used cooking oil market was valued at USD 8.5 billion in 2025.
The market is projected to grow at a CAGR of 7.9% and is estimated to reach USD 18.1 billion by 2035.
Crude UCO is the dominant segment by form, accounting for 45.6% of the market in 2025, driven by its role as the primary collection-grade material entering the value chain before further refining or filtration.
Biodiesel is the dominant application, accounting for 55.4% of the market in 2025, driven by sustained demand for waste-derived feedstocks in renewable fuel and low-carbon fuel blending programs.
North America holds the largest regional share at 43.69%, driven by established used cooking oil collection and rendering infrastructure alongside growing biodiesel and renewable diesel production capacity.
Used Cooking Oil Market Segmentation
Form Analysis
Crude UCO dominates the market due to strong biodiesel feedstock demand.
In 2025, Crude UCO held over 45.6% of the market, driven by its extensive use in biodiesel and renewable diesel production, wide availability, and lower cost. The U.S. Energy Information Administration (EIA) reported that U.S. renewable diesel production capacity exceeded 4.3 billion gallons per year in 2024, supporting demand for crude UCO. Filtered/Refined UCO is expected to be the fastest-growing segment in 2026, owing to rising demand for high-quality feedstocks, investments in purification technologies, and stricter sustainability and fuel quality standards.
Application Analysis
Biodiesel leads the market with over 55.4% share driven by renewable fuel demand.
In 2025, Biodiesel accounted for more than 55.4% of the market due to increasing renewable fuel demand, expanding blending mandates, and established UCO collection networks. The International Energy Agency (IEA) projects global biofuel demand to rise by nearly 38 billion liters between 2023 and 2028, further boosting feedstock demand. Oleochemicals is anticipated to be the fastest-growing segment in 2026, driven by the increasing use of UCO in producing fatty acids, glycerin, surfactants, lubricants, and other sustainable bio-based chemicals.
Key Market Segments
By Form
Crude UCO
Filtered/Refined UCO
Unrefined Used Cooking Oil
By Application
Biodiesel
Oleochemicals
Animal Feed
Soap & Detergent Manufacturing
Others (Cosmetics, Lubricants, Energy)
Driver Analysis
SAF policies widening UCO demand pool
The growing adoption of sustainable aviation fuel (SAF) is expanding the demand pool for used cooking oil (UCO), creating a second high-value outlet alongside biodiesel and renewable diesel. Under ReFuelEU Aviation, biofuels produced from Annex IX feedstocks count toward mandatory SAF targets, while the European Commission has confirmed that fuels derived from Annex IX Part B feedstocks qualify without a cap, further supporting UCO demand.
Restraint Analysis
RFS policy volatility
Policy uncertainty under the Renewable Fuel Standard (RFS) remains a key restraint in North America. The U.S. Environmental Protection Agency (EPA) set advanced biofuel obligations at 7.33 billion RINs and biomass-based diesel volumes at 3.35 billion gallons for 2025. However, continued approvals of full and partial Small Refinery Exemptions (SREs) for 2021–2024 compliance years have created uncertainty for waste-based biofuel demand and investment.
Opportunity Analysis
Informal-to-formal collection roll-up
Formalizing unorganized UCO collection, particularly in India through FSSAI’s RUCO initiative, presents a major growth opportunity. India consumes around 2,700 crore litres of cooking oil annually and has the potential to collect nearly 140 crore litres of UCO. FSSAI targets food businesses using more than 50 litres of frying oil per day and has also enabled non-food production units to collect UCO from FBOs. As collection remains uneven outside major cities, increasing formal capture by 15%–20% could significantly expand feedstock supply, lower procurement costs through denser collection networks, improve asset utilization at biodiesel pretreatment facilities, and strengthen negotiating power with downstream offtakers.
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