The global used cooking oil market size is projected to reach USD 8.48 billion by the end of 2027. The presence of several large scale UCO refineries will have a massive impact on the growth of the overall market. According to a report published by Fortune Business Insights, titled “Used Cooking Oil Market Size, Share & COVID-19 Impact Analysis, By Source (Food Services and Households), Applications (Industrial Usage, Animal Feed & Others), and Regional Forecast, 2020-2027, ” the market was worth USD 5.50 billion in 2019 and will exhibit a CAGR of 6.0% during the forecast period 2020-2027.
Used cooking oil can be put to several applications across diverse industry verticals. With the gradual, yet serious depletion of natural resources that are non-renewable, there has been a severe need for recycling and sustainable product use. The amount of cooking oil that is wasted globally has resulted in the need for recycling the product for further use.
The rise of the food and beverage industry across the world has led to the massive consumption of the product. Technological advancements have made it possible for the recycling of UCO and also allowed applications such as domestic use. The rising awareness regarding environmental pollution and depletion of non-renewable resources has emerged in favor of the growth of the overall market in the coming years.
Reduced Consumption of Restaurant and Fast Foods during the Covid-19 Pandemic will Restrict Market Growth
The recent coronavirus outbreak has created a sense of panic across the world. With several major countries implementing strict measures to curb the spread of the disease, businesses across all sectors have been affected. With measures such as lockdowns and social distancing practices adopted in almost all countries, SMEs as well as large scale businesses have found it hard to operate seamlessly. The reduced consumption of restaurant foods has been daunting to businesses in the food and beverage sector. Thus, manufacturers in the UCO market have found it difficult of late to find ways of generating revenues or even sustain current challenges.
Global Number for Company Collaborations is Rising; Analysts Attributing the Stat to Rising Demand for Sustainable Energy
The report encompasses several factors that have contributed to the growth of the overall market in recent years. Accounting to the increasing demand for sustainable product use, there have been several company collaborations in the global used cooking oil market in the past few years. Major businesses are looking to collaborate with tech companies that are loaded with resources that can extract and process UCO for applications in diverse industries.
In May 2020, SPAR announced that it has partnered with E&P UCO Recycling. The collaboration is aimed at reducing the impact of disposed cooking oil in sewer and drainage. The efforts taken to minimize the effects of UCO as well as maximize the applications of UCO are consequential to the rising demand for sustainable energy use. Increasing number of such company collaborations will bode well for the growth of the overall market in the coming years.
Europe Accounts for Largest Market Share; Increasing Government Initiatives Towards Promoting Use of UCO will Bode well for Market Growth
The report analyzes the ongoing market trends across five major regions, including North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. Among all regions, the market in Europe holds the largest market share. The massive investments in technological intervention by large scale companies towards the integration of UCO refineries will emerge in favor of the growth of the regional market. The presence of several large scale UCO processing refineries will also contribute to market growth. As of 2019, the market in Europe was worth USD 2.84 billion and this value is projected to rise at a considerable pace in the coming years.
March 2020: Neste announced that it has completed the acquisition of Mahoney Environmental, a US-based collector and recycler of cooking oil. This acquisition is aimed at creating a global waste and residue raw material platform that can fulfill the growing demand for renewable products.
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