The global used cooking oil market size was estimated at USD 8.00 billion in 2024 and is projected to reach USD 11.98 billion by 2030, growing at a CAGR of 7.0% from 2025 to 2030. This strong growth outlook is primarily driven by increasing awareness regarding the economic and environmental value of waste cooking oil, along with a significant rise in biofuel production worldwide. Governments and industries are increasingly recognizing used cooking oil as a viable feedstock for renewable energy, particularly biodiesel, which supports the global transition toward cleaner and more sustainable energy sources. Growing concerns associated with petroleum diesel, including greenhouse gas emissions and environmental degradation, have intensified the focus on reducing the environmental impact of energy solutions, thereby boosting demand for used cooking oil in biodiesel production.

The expanding food service sector is another major contributor to market growth, as the increasing number of restaurants, cafés, and food outlets generates higher volumes of waste cooking oil suitable for recycling. Rising consumer inclination toward dining out, increasing food tourism across multiple countries, and the growing penetration of food delivery applications have significantly increased cooking oil consumption, particularly in urban areas. As a result, the volume of used cooking oil waste has increased, creating a larger and more consistent supply base. In response, many food service establishments are adopting sustainable practices by partnering with specialized waste management and recycling companies to ensure responsible disposal and reuse of used cooking oil. These partnerships are helping create a steady and reliable supply of feedstock for biodiesel producers.

In addition, technological advancements in waste oil collection, purification, and recycling processes have played a crucial role in strengthening market growth. Improved processing technologies have enhanced the efficiency, quality, and scalability of used cooking oil recycling, making it more commercially viable for large-scale biodiesel production and other industrial applications. These technological improvements have reduced contamination risks, improved conversion rates, and lowered overall operational costs, further supporting market expansion.

Key Market Trends & Insights:

• North America dominated the global used cooking oil industry in 2024, accounting for a revenue share of 41.7%. The region’s leadership is supported by strong regulatory frameworks promoting biofuel adoption, well-established recycling infrastructure, and high awareness regarding sustainable waste management practices. The U.S. held the largest revenue share within the regional market in 2024, driven by robust biodiesel demand and widespread participation from the food service industry.
• The Asia Pacific used cooking oil market is expected to experience the fastest CAGR over the forecast period. The presence of highly populated countries such as China and India, combined with the rapid expansion of the food service and food delivery industries, is expected to significantly drive market growth. Additionally, traditional cooking practices in the region, which involve extensive use of cooking oils across diverse cuisines, contribute to higher volumes of waste cooking oil generation.
• Based on application, the biodiesel production segment dominated the market with the largest revenue share of 50.0% in 2024. One of the primary drivers of this dominance is the increasing demand for renewable and low-emission energy sources, along with supportive government policies promoting biodiesel blending and usage.
• Based on source, the food service segment held the largest revenue share of the used cooking oil market in 2024. This dominance is mainly driven by the substantial amounts of waste cooking oil generated by food service businesses, including quick-service restaurants, local food vendors, dine-in theme-based restaurants, luxury hotels, and cloud kitchens, all of which rely heavily on cooking oils for daily operations.

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Market Size & Forecast:

• 2024 Market Size: USD 8.00 Billion
• 2030 Projected Market Size: USD 11.98 Billion
• CAGR (2025-2030): 7.0%
• North America: Largest market in 2024
• Asia Pacific: Fastest growing market

Key Companies & Market Share Insights:

Some of the key companies operating in the used cooking oil industry include Baker Commodities Inc., Arrow Oils Ltd., Mahoney Environmental, Darling Ingredients Inc., Olleco, and others. Major market players are adopting strategies such as innovation, technological advancements, strategic collaborations, and service expansion to strengthen their market positions and meet growing demand.

• Mahoney Environmental specializes in converting used cooking oil and other food-related waste into valuable materials and products. The company manages the entire recycling process, including equipment installation, waste collection, processing, and final product delivery. Its service offerings include used cooking oil recycling, restaurant grease trap cleaning, and comprehensive waste management solutions tailored for food service operators.
• Darling Ingredients Inc. focuses on repurposing and recycling a wide variety of materials sourced from the animal agriculture and food industries, transforming them into valuable ingredients and sustainable solutions. The company operates across multiple segments, including feed, food, and fuel, and provides ingredients for animal nutrition, human health products, and low-emission energy solutions, reinforcing its role as a key player in circular economy initiatives.

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Conclusion:

In conclusion, the global used cooking oil market is poised for strong growth, driven by rising awareness of waste valorization and increasing demand for biodiesel as a renewable energy source. Expansion of the food service and food delivery sectors is generating higher volumes of used cooking oil, ensuring a steady supply for recycling and reuse. North America continues to lead the market due to supportive biofuel regulations and well-developed recycling infrastructure, while Asia Pacific is expected to grow at the fastest pace. Technological advancements in recycling and waste management processes are improving efficiency and scalability across the value chain. Overall, growing environmental concerns and the global shift toward sustainable energy solutions are expected to sustain market expansion through the forecast period.