Used cooking oil market seen reaching $15B by 2033

By AI, Created 6:05 AM UTC, May 26, 2026, /AGP/ – The global used cooking oil market is expanding as biodiesel demand, recycling programs, and renewable fuel rules increase demand for waste oil feedstocks. The market is projected to grow from $8.6 billion in 2026 to $15.0 billion by 2033, with North America leading and Asia Pacific growing fastest.

Why it matters: - Used cooking oil is moving from waste stream to industrial input, supporting biodiesel, chemicals, animal feed and personal care supply chains. - The shift helps reduce landfill waste and supports lower-carbon fuel production in transportation and industrial energy. - Governments and fuel producers are using waste-based feedstocks to meet renewable energy and emissions goals.

What happened: - The global used cooking oil market is projected to reach US$8.6 billion in 2026 and US$15.0 billion by 2033. - The market is expected to grow at a compound annual growth rate of 8.3% during the forecast period. - North America is expected to account for nearly 40% of global revenue in 2026. - Asia Pacific is projected to be the fastest-growing region through 2033.

The details: - Rising biodiesel demand is the main growth driver. - Renewable fuel mandates and low-carbon fuel policies in North America, Europe and Asia Pacific are increasing demand for used cooking oil feedstock. - Biodiesel made from used cooking oil produces lower greenhouse gas emissions than conventional fossil fuels. - Commercial foodservice businesses generate large volumes of used cooking oil, which supports collection networks. - Used cooking oil is also used in oleochemicals, animal feed applications and personal care products. - Expanding collection systems from restaurants, hotels, catering chains and households are improving feedstock availability. - Technological improvements in filtration, refining and quality monitoring are raising production efficiency and reducing contamination risks. - Energy companies are increasing investment in renewable diesel and sustainable aviation fuel projects that use used cooking oil. - Circular economy policies are pushing households and foodservice operators to recycle cooking oil instead of disposing of it improperly. - App-based collection systems, doorstep pickup services and smart storage technologies are making participation easier for consumers and businesses. - These systems improve traceability, reduce contamination and increase collection volumes. - The market is moderately fragmented, with multinational recyclers and regional firms competing in collection, refining and distribution. - Leading participants include Darling Ingredients Inc., Baker Commodities Inc., Olleco, Arrow Oils Ltd. and Valley Proteins Inc. - Industry players are investing in sustainable aviation fuel, advanced collection technologies and bio-based chemical applications. - The report includes segmentation by source type: food manufacturers, restaurants and caterers, hotels and households. - The report includes segmentation by application: biodiesel production, animal feed, oleochemicals and personal care and cosmetics. - The report includes regional coverage of North America, Europe, East Asia, South Asia & Oceania, Latin America, and the Middle East & Africa. - The source offers a free sample, custom insights and the complete market report.

Between the lines: - The market story is less about waste disposal and more about securing a reliable feedstock for renewable fuels and specialty products. - Collection quality remains a bottleneck because used cooking oil often contains food particles, water and chemical residues. - Additional pretreatment and refining are often needed before the oil can be used in biodiesel or industrial applications. - Collection and transportation remain difficult in suburban and rural areas where supply is dispersed. - Informal collection systems in some countries can weaken supply visibility and reduce volumes available to organized recyclers. - Rising operating costs and stricter regulations are pushing companies toward monitoring and certification systems. - Asia Pacific’s growth reflects rising cooking oil use, urbanization and expanding foodservice networks in countries including India, China and Malaysia.

What’s next: - More governments are expected to expand renewable fuel mandates and household recycling campaigns. - Recyclers and fuel producers are likely to keep building organized collection networks and traceability tools. - Investment should continue shifting toward renewable diesel and sustainable aviation fuel projects that can absorb more used cooking oil. - North America is expected to remain the largest market while Asia Pacific closes the gap on growth rates. - Industry competition is likely to intensify as firms scale collection infrastructure and pursue higher-value chemical and fuel applications.