The global used cooking oil market refers to the market for the collection, processing, and distribution of used cooking oils that are generated from homes, restaurants, and food processing industries. Used cooking oils are recycled and used as raw materials for producing biofuels, animal feed, and other industrial applications. The repeated use of cooking oils in hotels, restaurants, food processing units, and household sectors leads to the used cooking oil (UCO), also known as waste vegetable oil. It is leftover cooking oil made from sunflower, corn, canola, olive, palm, rapeseed, soya, and other oils and fats. It is also available in a variety of mixed compositions. UCOs that have been recycled and processed are commonly used in the production of soaps, composts, oleochemicals, hydrogenated vegetable oils (HVO), industrial greases, biodiesels, and animal feed. In comparison to conventional materials, UCO is highly cost-effective, environmentally friendly, and readily available in bulk quantities for mass production of a variety of products.
The market for used cooking oil is driven by the increasing demand for sustainable and eco-friendly energy sources, as well as the growing need for waste management solutions. The increasing awareness of the harmful effects of traditional fossil fuels on the environment and the need to reduce greenhouse gas emissions are also driving the demand for biofuels.
Used Cooking Oils (UCO) are double-counted under the EU’s renewable energy directive because they can help decarbonise Europe’s transport sector. Europe burns through 130,000 barrels of used cooking oil a day – 8 times more than it collects. The US now consumes 40,000 barrels a day.