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Worldwide Used Cooking Oil Industry By 2026

The global trends around the UCO (Used Cooking Oil) industry show that despite the impact caused by the pandemic on the industry, there is a growth of approximately 7.76% to be witnessed during the period of 2021 – 2028. Given the fact that the market faced a negative demand shock, this growth indicates that there is more than one factor at play behind the growth of the market. Some of these central trends are:

  1. Awareness about Green Energy – As the world increasingly becomes aware of the impending environmental crises, it is rapidly trying to adopt clean fuels, sustainable sources of energy, and a circular economy. As a result, biodiesel is increasingly becoming a preferred substitute for petroleum diesel. This is leading to significant growth in consumption and thus demand the UCO all around the globe, thus driving the market for growth.
  2. Increasing Government and Legislative Initiatives – Governments all around the world (EU, Americas, Brazil, Argentina, Asia Pacific, Middle East, and Africa) are implementing significant legislative changes regarding the biofuel and UCO industry. Governments are encouraging biofuels, especially biodiesel, thereby also encouraging other related industries like the global UCO market.
  3. An increasing number of new entrants in the market – This is another driving factor for the UCO market. Only policy and legislative efforts mean nothing unless the industrial and commercial players enter a new market. Like every new market, this market comes with its own risks too. However, with increasing emphasis on the use of the end product (biofuel), new players find it safe, and viable in the long run to enter the market. This in turn drives growth in the market.
  4. Expansion of Food Service Industry – As the foodservice and food tech industry grows, so does the commercial production of food and food products. This results in increased production of UCO, and resultant ease of raw material supply for biodiesel production.

Together all these factors, combined with increased willingness for the food industry to be regulation-compliant, create a fine equilibrium for the UCO industry that is driven by growth. If all stakeholders continue to be committed to sustainable, cleaner energy, and circular economy; the market is bound to see consistent growth in the future.

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