Used Cooking Oil (UCO) Market Outlook
The global used cooking oil (UCO) market size was valued at USD 6,653.2 Million in 2020 and is projected to reach USD 11,675.7 Million by 2028, expanding at a CAGR of 7.7% during the forecast period. Cooking oil is an essential ingredient used in both household and commercial kitchens, as it is used in a variety of cooking.
The major use of cooking oil is in frying. In both household and commercial kitchens, the cook is faced with the problem of recycling or disposing of used cooking oil. Used cooking oil (UCO) are fats and oils that have been used for frying or cooking.
Used cooking oil is used in the food processing industry such as fast foods and restaurants, and at a consumer level, in households. UCO is in the form of both animal fats and vegetable oil such as palm oil, corn oil, canola oil, and olive oil. The used cooking oil is used once or twice.
The leftover cooking oil should not be used too many times. Used cooking oil is used as lamp oil, household lubricant, leather preservative, car cleaner, animal feed, biodiesel fuel, composting, soap making, non-stick gardening tools, key lock lubricant, furniture polish and conditioner, pot and pan protector, and hair moisturizer.
Used cooking oil increases free radicals in the body and cause inflammation, which causes various diseases such as diabetes, obesity, and heart disease. High inflammation lowers immunity and causes various infections in the body. Food cooked in black and smoked oil increases the level of LDL or bad cholesterol in the body. UCO causes acidity and results in weight gain.
Used Cooking Oil (UCO) Market Dynamics
Increasing Usage of Used Cooking Oil in Biodiesel Production
Biodiesel is an alternative fuel derived from animal fats or vegetable oils. Used cooking oil has always been an environmental problem in food factories. Converting waste vegetable oil to biodiesel is expected to resolve this issue. Biodiesel from used cooking oil reduces the assembly cost, as 70-95% of the overall cost of producing biodiesel is the cost of raw materials.
In May 2021, Indian Oil Corporation Limited launched biodiesel made from used cooking oil (UCO). Used cooking oil is widely used in producing biodiesel, which is expected to drive the market during the forecast period.
The increasing number of hotels and restaurant chains in the food processing industry
With the growth of the food industry, the number of restaurants and hotels chains continues to grow, implying high use of used cooking oil for various applications. Restaurants and hotels are producing used vegetable oil in large quantities, owing to the growing number of food products, which is expected to drive the used cooking oil market during the forecast period.
Various Applications of Used Cooking Oil
Various applications of used cooking oil include animal feed, soap making, cosmetics, house lubricant, paint removal from hands, hair moisturizer, car cleaner, key lock lubricant, and non-stick gardening tool. Increasing consumer awareness regarding the utilization of used cooking oil is expected to drive the market during the forecast period. Increasing usage of used cooking oil (UCO) for industrial purposes is anticipated to propel the market during the forecast period.
Utilization of Sustainable and Green Energy to Tackle Environmental Issues
Increasing pollution, growing population, and rapid urbanization across the world raised various concerns related to greenhouse emissions, climate change, and other environmental concerns. Biodiesel produced from used cooking oil is an emerging category in green energy space. Growing demand for sustainable energy solutions and increasing environmental awareness are expected to propel the market during the forecast period.
Used Cooking Oil (UCO) Market Segment Insights
The global Used Cooking Oil market is segmented on the basis of sources, applications, and regions.
Based on sources, the global used cooking oil (UCO) market is segmented into household sector and commercial sector. The commercial sector holds a significant market share during the forecast period, owing to the large production of used cooking oil in commercial settings as compared to home kitchens. Various initiatives have been taken to collect used vegetable oil from various restaurants, which is expected to propel the used cooking oil market during the forecast period.
Based on applications, the global used cooking oil (UCO) market is segmented into biodiesel, oleochemical, animal feed, and others. The others segment is further divided into soap making, cosmetics, house lubricant, paint removal from hands, and non-stick gardening tool. The biodiesel segment is expected to hold a significant market share during the forecast period, owing to the wide application of used cooking oil in the production of biofuel, specifically biodiesel.
For both environmental and economical reasons, the usage of used cooking oil for the production of biodiesel gained considerable attention in terms of fuel production. attributed owing to the rising preference for fresh-Used Cooking Oil within hotels and restaurants.
Used Cooking Oil (UCO) Market Regional Analysis
Based on regions, the global used cooking oil (UCO) market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The global used cooking oil (UCO) market is dominated by the market in Europe, owing to the development of various rules and regulations on the utilization of used cooking oil for sustainable fuel generation.
The used cooking oil (UCO) market in Asia Pacific is expected to hold a considerable market share during the forecast period, owing to rising awareness regarding environmental welfare and sustainable energy resources. Increasing number of companies involved in the collection, refinement, and processing of used cooking oil is expected to drive the market in the region during the forecast period.
The used cooking oil (UCO) market in Middle East & Africa constituted a substantial market share in 2020, owing to increasing demand from developing countries such as Iran and Saudi Arabia.
Key Benefits for Industry Participants & Stakeholders
- In-depth Analysis of the global Used Cooking Oil market
- Historical, Current and Projected Market Size in terms of Value and Volume
- Potential & Niche Segments and Regions Exhibiting Promising Growth Covered
- Industry Drivers, Restraints and Opportunities Covered in the Study
- Recent Industry Trends and Developments
- Competitive Landscape & Strategies of Key Players
- Neutral Perspective on Global Used Cooking Oil Market Performance
- Household Sector
- Commercial Sector
- Animal Feed
- North America
- Asia Pacific
- Latin America
- Middle East & Africa
Key Market Players Profiled in the Report
- Valley Proteins, Inc.
- Arrow Oils Ltd
- Baker Commodities, inc.
- MBP Solutions
- Greenergy International Ltd
- GRAND NATURAL INC.
- OZ OILS PTY LTD.
- Gemini Corporation N.V
- Brocklesby Limited
Top players in the market include Olleco, Baker Commodities, inc., Valley Proteins, Inc., Greenergy International Ltd, and Quatra.These companies are considered as key manufacturers of used cooking oil based on their revenue, product offerings, regional presence, and supply chain management system.
The players are adopting key strategies such as acquisition, collaborations, and geographical expansion where potential opportunity for the used cooking oil market.