Used cooking oil market seen reaching $12.2B by 2035

By AI, Created 12:06 PM UTC, June 01, 2026, /AGP/ – The used cooking oil market is projected to nearly double by 2035 as biodiesel demand, circular economy policies and wider industrial use expand demand for recycled feedstock. Europe led the market in 2023, while household collection and oleo chemicals are expected to be the fastest-growing segments.

Why it matters: - Used cooking oil is becoming a bigger input for biodiesel and other renewable products, linking waste collection to energy and industrial supply chains. - The market’s growth could reduce dependence on imported fossil fuels and open new revenue streams for collectors, recyclers and processors.

What happened: - Allied Market Research valued the global used cooking oil market at $6.7 billion in 2023. - The firm estimates the market will reach $12.2 billion by 2035. - The forecast implies a 5.2% compound annual growth rate from 2024 to 2035. - The report was published June 1, 2026.

The details: - Used cooking oil comes mainly from commercial food service businesses, including restaurants, hotels and caterers, and from households. - Biodiesel production has increased demand for used cooking oil, which is a primary feedstock for renewable fuel. - The report says biodiesel production rose by about 4% to 14% over the past decade. - The market is also expanding into animal feed and cosmetics, where used cooking oil is used as a low-cost raw material. - Europe’s Waste Framework Directive supports the use of waste oils in multiple sectors. - The market is segmented by source, application and region. - By source, the market includes household and commercial supply. - By application, the market includes biodiesel, oleo chemicals, animal feed and other uses. - By region, the report covers North America, Europe, Asia-Pacific and LAMEA. - The report says the household sector is expected to be the fastest-growing source segment. - The report says growth in household collection is being supported by recycling awareness, local government initiatives, curbside pickup, drop-off points and home collection tools. - The report says the oleo chemicals segment is expected to be the fastest-growing application segment. - The report says used cooking oil is attractive to chemical manufacturers because it is renewable, low cost and does not compete with edible oils and fats. - Europe held the largest market share in 2023 and is expected to grow at a significant pace through the forecast period. - The Renewable Energy Directive and Fuel Quality Directive are supporting renewable fuel use in Europe. - Key companies named in the market include Valley Proteins, Quatra, Baker Commodities, Arrow Oils, Olleco, Waste Oil Recyclers, Grand Natural, GREASECYCLE, Brocklesby and Oz Oils. - The report’s key findings say biodiesel was the highest-revenue application in 2023. - The report’s key findings say Europe was the highest-revenue region in 2023.

Between the lines: - The market’s growth is not just about fuel demand; it reflects a broader push to turn waste into inputs for chemicals, feed and consumer products. - Theft is a major drag on the industry because higher used cooking oil prices have made stolen oil more valuable on the black market. - The National Renderers Association estimates up to $75 million worth of used cooking oil is stolen each year. - The report says theft raises insurance and security costs, disrupts licensed recycling operations and can weaken biodiesel quality and safety when oil bypasses regulatory standards. - Circular economy programs could strengthen the market by improving recovery rates, lowering disposal costs and increasing demand for recycled materials.

What’s next: - The report expects household collection to keep expanding as recycling programs become easier to use. - The report expects oleo chemicals to gain share as manufacturers look for renewable feedstocks. - The report points to continued investment in collection, processing and recycling technologies as companies pursue sustainability-linked growth. - More information is available in the sample report, the purchase enquiry page, and the company’s market reports.