The Used Cooking Oil (UCO) market is a vital component of the recycling and energy sectors, playing a crucial role in the circular economy by diverting waste from landfills and transforming it into valuable commodities. This market encompasses the processes of collecting, processing, and repurposing cooking oils that have been previously used in food preparation, which may come from various sources including households, restaurants, and food manufacturing facilities. These oils, once considered waste due to contamination with food particles and other residues, are now valuable resources for producing biodiesel, animal feed additives, and industrial lubricants.
Europe is the largest market for used cooking oil, owing to the high level of awareness about the importance of sustainable and eco-friendly energy sources in the region. The European Union has implemented various regulations and initiatives that encourage the recycling and reuse of used cooking oil for the production of biofuels and other products. This has led to the development of a well-established used cooking oil market in the region.
Global used cooking oil (UCO) prices were highly volatile throughout 2024 amid market uncertainty, trade flow and policy changes, with market sources expecting the prices to increase further in 2025, pushed up by higher demand and increased biofuel production obligations
UCO demand is likely to grow in Europe with sustainable fuel production mandates increasing in 2025 and a 2% sustainable aviation fuel (SAF) production obligation being introduced.
Some European countries are to decrease or ban virgin vegetable oils usage in biofuel production in 2025, adding to waste feedstock demand such as UCO.
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