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Key Insights

Rising Popularity of UCO for Production of Biodiesel is Steering Market Growth

Rising awareness in regards to improving energy distribution system while promoting sustainable approach  has widely gained momentum across the globe. Among these sustainable approaches is the production of biodiesel by using used cooking oil (UCO). The increasing prominence of biodiesel due to its effective properties as compared to its counterpart has greatly boosted the production as well as consumption of the energy fuel.

Recently in 2018, government of India started a uniform platform for collection of UCO from large eateries or restaurants and supply the same to various refineries. The government plans to collect nearly 1.4 billion litres of UCO from bulk consumers and produce approximately 1.1 billion lures of biodiesel. The government has enrolled 13 biodiesel manufactures as of 2019. Thus,  push by the government coupled with increased focus towards sustainable approach is likely to push the production of biodiesel from UCO over the forecast period.

Creative Uses of UCO Pushing Market Growth

Use cooking oil has many niche creative applications such as leather preservation, lamp oil, household lubricant, paint remover, hair moisturizer, and many more. The increasing focus of consumer masses to reduce wastage and enhance recycling efforts has pushed the inception of sustainable approaches.

The rising focus towards sustainability along with increasing enthusiasm towards DIY is likely to fuel the usage of product in the aforementioned application. The unique properties of the UCO allows it to be used as a protective medium against external factors such as dust, sand,  and others. Owing to the various application of the product as a lubricator, moisturizer, preservative, and others is likely to push its market growth over the predicted timeline.

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Source Outlook

On the basis of source, market is bifurcated into household and commercial sectors respectively. Within this segment, commercial sector is likely to remain the largest sourcing point for used cooking oil. The large restaurants consume huge amount of vegetable oil for frying and thus, is projected to remain a key sourcing medium over the forecast period. The push to connect these commercial settlements with refiners is expected to remain a key factor in driving this segments growth. The integration through  digital platforms are anticipated to remain a efficient way to establish the required integration.

Household application sector is likely to show stable growth over the predicted timeline. The various uses of the product in daily use work is projected drive its demand. However, lack of awareness regarding the proper usage of UCO is likely to hinder short term growth. Despite the short comings the segment is likely to prosper as the consumer masses move towards awareness regarding the UCO.

Application Outlook

On the basis of application, market is segmented into biodiesel, animal feed, chemicals, and others. Within this category, biodiesel is likely to remain as a dominant application segment over the predicted timeline. The use of UCO in the production of biodiesel is likely to grow at swift rates as the governments around the globe focus towards changing their energy distribution system with sustainable approaches.

The entry of India within the fold of biodiesel production is likely to offer huge boost to the market as the country is among the leading consumers of cooking oil. Since country is largely import dependent for its transportation fuel requirements,  the initiative to use UCO to produce biodiesel in the country is likely to provide new growth mediums.

Similarly,  the use of product in production of biodiesel in the U.S., UK, France, Germany, Spain,  and others developed countries has gained momentum over the last one decade. Biodiesel mixed with petrol and diesel offers reduction in  pollutant emmission from vehicle. The useful properties of the product coupled with strong focus towards sustainability is likely to push the market growth over the coming years

Competitive Landscape

The key vendors of the industry are Waste Oil Recyclers, Baker Commodities Inc., Proper Oils Company Ltd., Greasecycle, LLC, Oz Oils Pty Ltd., Olleco, Grand Natural Inc., Brocklesby Limited, Arrow Oils Ltd. and Valley Proteins, Inc.

The industry participants are focusing on improving supply chain and logistics in order to form an effective integration of operations. The vendors are quickly forming fleets for collection of UCO from large commercial spaces. In addition,  use of automation to track transport shipment is likely to push efficiency level of the vendors over the coming years.


Used Cooking Oil is generally termed as waste vegetable oil with a total polar compounds at 20 percent and beyond. The content regularization of total polar compounds differ country to country.

Global Used Cooking Oil (UCO) Market Segmentation

By Source

 Household sector

 Commercial sector


By Application



       Animal Feed



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