The European used cooking oil (UCO) market enters 2026 with strong momentum, driven primarily by tighter climate targets under the EU Renewable Energy Directive (RED III). Higher renewable fuel quotas and a growing focus on greenhouse-gas reduction are increasing demand for waste-based feedstocks, positioning UCO as a key raw material for biodiesel and sustainable aviation fuel (SAF).
At the same time, regulatory changes are reshaping market structure. The EU is tightening sustainability criteria, traceability requirements, and import controls for UCO, aiming to reduce fraud risks and improve supply chain transparency. These measures are pushing market participants to strengthen documentation, certification, and domestic collection networks, while adding compliance costs. Major collectors and processors are expanding through acquisitions, particularly in the UK and Western Europe, to secure feedstock supply and improve logistical efficiency.
Overall, the European UCO market in 2026 is expected to remain tight, policy-driven, and increasingly focused on verified, locally sourced supply.