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Used Cooking Oil Market Research | Size, Value Demand, Leading Players and Forecast to 2025

Author: Suraj Taur
by Suraj Taur
Posted: Mar 05, 2020

Market Overview

Global Used Cooking Oil (UCO) Market is expected to register a CAGR of 4.03% to reach USD 895.1 Million by 2025. Used cooking oil is an oil which have been used for cooking or frying in the food processing industry, hotels, restaurants, catering, and at a consumer level in households. This used cooking oil is collected, refined, and brought into various use, which is the best example of waste management. They can be refined into different types of biofuels, which are further used for power generation and heating. Moreover, it is utilized as a high energy feed additive in various livestock feeding products. These benefits have opened the doors for used cooking oil in the market. Furthermore, increasing number of restaurants and hotels are driving the used cooking oil market.

Used cooking oils (UCO) can be considered as alternative fuels which provide families with low price fuel. Their utilization as a cooking fuel can give rise to numerous benefits not only for urban but also for rural communities. Cooking oil is a crucial item in kitchens, which plays an important role in the sustenance of human health. UCO can be recycled and further used in animal feeding, biofuel production, and others. Recycled cooking oil helps in reduction of the clog sewage line caused due to building up of fats from disposed of oil. Furthermore, used cooking oil is the primary source for biofuel production. Increasing demand for biofuel consumption is acting as a catalyst for the growth of the market of UCO. Also, nutritionists deem it to be the high energy food additive in livestock feeding. Moreover, increasing awareness regarding animal health gives impetus to the growth of the market.

Major Key Players Analysis

The health benefits associated with used cooking oil can supplement the market growth. Moreover, the rise in the number of fast food joints, restaurants, and quick service restaurants propel the market growth. On the other hand, high costs of raw materials are anticipated to undermine the market growth. Furthermore, detrimental health effects prompted by unrestricted consumption of used cooking oils are major factors that thwart its adoption globally.

Some prominent key vendors that compete in the Used Cooking Oil Market are Darling Ingredients (U.S.), Olleco (U.K.), Uptown Biodiesel Limited (U.K.), Argent Energy (U.K.), Greenergy International Ltd (U.K.) and Proper Oils (U.K.).

Market Segmentation

Used Cooking Oil is refined into different types of biofuels, used for heating as well as power generation. Steady growth in the demand for biofuel will boost the growth of the market during the forecast period (2017-2025). With that in mind, biodiesel manufacturers are favoring restaurants as a primary source of used cooking oil which helps in the growth in the number of restaurants and fast food joints in the market. Additionally, increasing focus on advancing animal health among customers is steering the used cooking oil market. On top of that, government regulations supporting clean energy applications can lead to a remarkable boost in the market. Market Research Future (MRFR) asserts in their report that all these factors will contribute to the estimated CAGR of 3.8% of used cooking oil during the forecast period.

By source, the used cooking oil market is fragmented into restaurants and caterers, food manufacturers, household, and others. Among all, food manufacturers have the edge over other sectors of the global market. Simply put, restaurants are estimated to rise rapidly over the forecast period. Increasing number of restaurants is coaxing biofuel producers towards restaurants as a major source of used cooking oil.

Major applications are animal feeding, oleo chemicals, biodiesel, and others. The biodiesel is governing the global market compared to others. Furthermore, increased expenditure on biofuel backed by environmental awareness among consumers is propelling the rise in the used cooking oil market.

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Regional Analysis

Global Used Cooking Oil (UCO) Market is segmented into Asia Pacific (APAC), North America, Europe, and Rest of the World (RoW). Out of these, Europe holds the most dominating position in the market followed by South America. European regulations have stimulated an effective biodiesel production growth, which in turn has increased the demand for used cooking oil. Furthermore, increased awareness among consumers about animal protein has catalyzed the growth of used cooking oil in this region.

Likewise, North America is projected to grow over the forecast period due to attributing factors like increasing consumption of used cooking oil in biofuel production. Moreover, Asia Pacific is exhibiting a surge in developing countries like India and China. Although, an insignificant growth is observed in this region due to lack of awareness. Focusing on the rest of the world, UAE is presumed to utilize the application of used cooking oil in the production of biodiesel.

There are numerous strategies adopted by the existing competitors that shoot them to a superior position in the market. Acquisitions are one of the most effective strategies that boost the market share of both the companies involved. This strategy assists the companies to attain qualified staff, additional skills, more elaborate knowledge of the industry or sector, as well as other business intelligence.

For instance, Darling Ingredients U.S has acquired all assets of Kruger Commodities May 2018. This move has streamlined the supply value chain of the company and enhanced its production capacity.

On the hand, Olleco (U.K) has successfully acquired a third anaerobic facility. This will help the company focus on its core business rather than just the loss-inducing facility. This strategy aids the company to cut its losses and concentrate wholly on its primary objective which is to propel as well as maintain its growth in the market.

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About the Author

At Market Research Future (Mrfr), we enable our customers to unravel the complexity of various industries through our Cooked Research Report (Crr), Half-Cooked Research Reports (Hcrr), Raw Research Reports (3R)

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Author: Suraj Taur

Suraj Taur

Member since: Nov 21, 2017
Published articles: 31

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