Like any other industry, the UCO (Used Cooking Oil) industry is undergoing a significant change. On one hand, this might be indicative of increased awareness about the health and environmental risks that UCO poses. On the other, however, this also shows how we still haven’t reached our full potential, especially with the Covid-based slowdown. 10 key insights from the industry reveal how the market can be further tapped into.
- In 2020, the global market size was approximately USD 5.16 Bn. It underwent a staggering shock due to negative demand across all regions due to Covid. In 2020, it is estimated that the global market registered a decline of -12.46%.
- The market seems to be picking up again and is expected to grow rapidly due to increasing awareness of sustainable and alternative energy. It is expected that the market will be approximately USD 10.08 Bn in 2028. This means that the 2021-2028 period will witness a CAGR of 7.76%.
- The driving factors behind the market growth are – increased awareness about sustainable energy, circular economy, waste recycling, and biofuels (especially biodiesel). The increasing use of UCO in the biodiesel industry is one of the primary factors.
- The Biomass Board of Research and Development in the USA estimated that the global biodiesel supply is expected to reach 50,334 million Litres by 2025. It was 39,654 million liters in 2015.
- The market is also facing challenges that are impeding its growth. These challenges are faced during the refinement and processing of UCO. The transesterification of the UCO is not efficient if impurities are not effectively removed, and it yields poor-quality biodiesel.
- North America makes for the largest market share in the UCO industry because of recent legislative developments.
- Similarly, the European Commission claims that by EU27, a major percentage of diesel consumption will be replaced by biodiesel in the EU. The governments are making suitable changes and starting relevant initiatives in all these regions.
- The APAC (Asia Pacific) market is expected to show a significant increase in CAGR. This will be driven by increased awareness, as well as new and more entrants in the market.
- Brazil and Argentine are expected to reflect an increase the biodiesel and feedstock production using UCOs, due to various government initiatives and new laws.
- In MEA (Middle East and Africa), many countries will transition from conventional energy to sustainable energy. There is a significant opportunity for entrepreneurs, especially in African regions in the market.
These trends and insights indicate that if governments and market forces work together, the UCO market has significant scope for growth. It not only taps into the commercial potential of a circular economy but also creates a significant impact on the environment. You can read our blog to know more about the industry. For expert consultations, we are just a call away!