The Used Cooking Oil (UCO) industry is a sector focused on the collection, processing, and repurposing of UCO, which results from the repeated use of vegetable oils in culinary processes. The market is marked by substantial growth fueled by an increasing emphasis on sustainable practices, supportive government regulations promoting recycling, and innovations in processing technologies.
Used cooking oil is 2 to 3 times cheaper than fresh oil, allowing cheaper alternatives for biodiesel producers and manufacturers. Sale and filtration services for recycled UCO enable restaurants and waste managers to earn revenue.
The Used Cooking Oil Market is further segmented into the Household Sector and Commercial Sector. Among which, the commercial sector dominates the market in the area of used cooking oil, contributing between 65% and 79%, and the reason behind it is the massive use of oil in restaurants and hotels. The dominance is fostered by regulatory compliance, economic incentives, and the pursuit of sustainability.