U.S. Cooking Oil Recycling Market Size & Share Analysis - Emerging Trends, Growth Opportunities, Competitive Landscape, and Forecasts (2025 - 2032)

The U.S. cooking oil recycling market is projected to grow from USD 1.6 billion in 2024 to USD 2.9 billion by 2032, at a CAGR of 8.3%. This growth is driven by increasing government regulations promoting sustainable waste management and the rising demand for biodiesel as a cleaner, renewable fuel. As environmental concerns become more pressing, the U.S. has implemented stricter rules against dumping used cooking oil into sewers, thus enhancing the market for recycling services. The shift towards more eco-friendly fuel sources, coupled with the growing food service and industrial sectors, significantly contributes to the rise in used cooking oil recycling.

Key Insights

The U.S. cooking oil recycling market is expected to expand at a CAGR of 8.3%, from USD 1.6 billion in 2024 to USD 2.9 billion by 2032, driven by increasing demand for biodiesel and stringent environmental regulations.

Vegetable oils are the largest category, holding 55% of the market share in 2024, due to widespread use in food service and processing industries.

Animal-based oils are the fastest-growing segment, driven by rising waste from meat processing and increased demand for rendered fats in animal feed and industrial products.

The commercial sector leads in market share, as restaurants and food service companies generate significant waste oil, while the industrial segment is growing the fastest, with a CAGR of 8.6%.

Government initiatives such as the Renewable Fuel Standard (RFS) program and the Biorefinery Assistance Program are crucial drivers for recycling practices, particularly in biodiesel production.

California and Oregon are at the forefront of adopting low-carbon fuel standards, further boosting the need for biodiesel made from recycled cooking oil.

The increasing adoption of biodiesel in transportation sectors, including public transit and vehicle fleets, is a key trend driving the market.

Recycling used cooking oil not only helps reduce waste but also supports sustainable practices, with applications spanning biodiesel production, animal feed, and cosmetics.