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

U.S. Cooking Oil Recycling Market Dynamics

Regulatory Push for Sustainable Waste Management Is Major Market Driver

• The market growth is mainly supported by the government requirements to manage waste in environment-friendly ways.
• The country aims to cut food wastage by 50% by 2030, by which time no more than 164 pounds of food should be wasted per capita.
• The federal government banned the putting of food waste into landfills in 2005 and since 2013, it has mandated its recycling.
• Many local authorities in the country have enforced strict rules against putting used cooking oil into sewers, imposing stiffer penalties than ever before for non-compliance.
• Connecticut was one of the first states to implement such regulations, mandating supermarkets, food processing firms, and restaurants to recycle all their food waste since 2011.
• Since 2016, all entities in California producing more than 8 cubic yards of food waste that is organic in nature a week are required to recycle it.
• In 2022, the New York State Food Donation and Food Scraps Recycling law was implemented, mandating anyone who wastes over 2 tons of food a week to have it recycled if they are within 25 miles of a food reprocessing facility, apart from donating free meals.
• Businesses want to avoid regulatory penalties; so, they join forces with recycling services to benefit from the increasing market opportunities.

Rising Adoption of Biodiesel as a Sustainable Fuel Offers Opportunities

• The government at both the federal and state levels encourages used cooking oil recycling through the Renewable Fuel Standard (RFS) program, by giving production credits.
• The Biorefinery Assistance Program of the U.S. Department of Agriculture offers loan guarantees to entities developing, demonstrating, or retrofitting their biorefineries with advanced biodiesel production technologies.
• The USDA’s Bioenergy Program for Advanced Biofuels offers payments to those who create biodiesel for biomass other than corn kernel starch, in order to expand production.
• Alternative Fuel Vehicle Refueling Property Credits are available for each fuel station dispenser providing at least a 20% biodiesel blend.
• People across the U.S. are increasingly choosing biodiesel over conventional distillates because it keeps the environment cleaner.

California and Oregon lead the nation in the adoption of low-carbon fuel standards that boost the need for biodiesel production.

• Businesses such as vehicle fleets and public transit operators across the nation now prefer biodiesel blends made from recycled cooking oil.
• Cooking oil recycling helps cut transportation sector emissions more effectively.
• As per the Energy Information Energy Agency (EIA), the U.S. had an annual capacity to produce billion gallons of biodiesel in the beginning of 2023 at 17 biorefineries in 12 states.
• In 2022, the country produced 1.5 billion gallons and consumed 1.7 billion gallons of renewable diesel, making it the third-most-widely consumed fuel.

Segmentation and Category Analysis

Type Analysis

Vegetable oils were the largest category in 2024, with a revenue share of 55%. This is because the food service and food processing industries, as well as houses, use massive quantities of vegetable oils extracted from soybeans, canola, and corn. This creates a regular flow of waste oil for recycling programs. Their chemical nature is ideal for producing biodiesel, the demand for which is growing due to the emission rules and renewable fuel standards.

Animal-based oils are the fastest-growing category during the forecast period. As more meat-processing factories throw away their waste and industrial entities increasingly demand rendered fats for animal feed and soap production, the demand for animal-based oils keeps on rising. The higher energy level in animal fats than those derived from plants makes them useful for special industrial needs.

The types analyzed here are:

• Vegetable Oils (Largest Category)
• Animal-Based Oils (Fastest-Growing Category)
• Mixed Oils

Source Analysis

The commercial category is the largest as restaurants, quick-service chains, hotels, and other catering services produce mammoth quantities of waste oil daily, hence supplying the bulk of the feedstock for recycling companies. With an increasing emphasis on sustainability in business operations, most food service companies have now adopted procedures for the disposal and recycling of used oil, partnering with specialized waste managers. The rise of environmentalism and the implementation of legislations are the key factors impelling the adoption of sound strategies for oil recycling by these firms.

The industrial category has the highest CAGR, of 8.6%, due to the expanding network of food processing facilities in the country. These plants generate large quantities of used cooking oil as waste products, which can be reused in the production of biodiesel and animal feed. Fueled by the demand for sustainable practices, several industrial players are likely to contract recycling services as a means of cutting on waste and meeting their CSR goals.

The sources analyzed here are:

• Commercial (Largest Category)
• Industrial (Fastest-Growing Category)
• Household

Application Analysis

The leading application of cooking oil recycling in the U.S. is biofuels, which hold a revenue share of 45%. This is a result of the strong interest in environment-friendly energy sources for transportation, generators, and industrial facilities. Vegetable oil, particularly used cooking oil, is the preferred raw material for biodiesel production because of its energy density and carbon-neutrality. With government initiatives, such as the RFS, biodiesel has become popular in commercial vehicles, public transport, and industrial equipment, creating a booming market for used cooking oil.

The animal feed category is experiencing the fastest growth owing to the expanding livestock herds and the need for affordable feed. Used cooking oils, particularly those obtained from animals, is usually utilized in the production of animal feed, including as energy supplements. The growth of this category is supported by the rising concerns over sustainable farming and the adoption of methods that can lower feed expenses.

The applications analyzed here are:

• Biofuels (Largest Category)
• Animal Feed (Fastest-Growing Category)
• Industrial
• Cosmetics and Personal Care
• Others

U.S. Cooking Oil Recycling Market Geographical Analysis

The West region held the largest share, of 35%, in 2024. The high emphasis on sustainability and utilization of renewable resources for energy production, besides state regulations, drives the demand for recycled cooking oil in the region, especially for biodiesel production. California is one of the biggest markets for biofuels in the country with a vast number of entities involved in used oil management to help fulfill renewable fuel obligations. This is particularly due to the state’s Low-Carbon Fuel Standards, which seek to lower emissions and provide more low-carbon alternative fuels with time. The West is also home to a huge food service industry, especially the major cities of Los Angeles, Seattle, and San Francisco, which supplies vast quantities of used cooking oil for recycling.

The market in the Northeast region is growing the fastest, mainly due to a well-developed logistics base for handling and recycling waste. Some states, such as New York and Massachusetts, have set stringent environmental policies to support the recycling of cooking oil for biodiesel and animal feed production.

The regions analyzed here are:

• Northeast (Fastest-Growing Category)
• Midwest
• West (Largest Category)
• South

U.S. Cooking Oil Recycling Market Share Analysis

• The market is fragmented as numerous SMEs and few large players are involved in recycling waste cooking oil.
• This fragmentation is mainly because of the diversity in the sources of utilized cooking oil, which include the commercial, industrial, and residential sectors. The versatility of the end products, which range from biofuel to animal feed and industrial goods, also lead to such a market nature.
• The regional firms are normally specialized in certain lines of business, such as grease trap cleaning, biodiesel manufacturing, or cosmetics or animal feed production.
• Therefore, even with the presence of giants, such as Darling Ingredients and Baker Commodities, which operate countrywide, the market has no clear leader.

U.S. Cooking Oil Recycling Market Developments

• In November 2024, Darling Ingredients Inc. introduced DarLinQ, which features the Bluetooth and sonar technologies to monitor used cooking oil storage tanks in real time.
• In January 2022, Darling Ingredients Inc. acquired Valley Proteins Inc., an oil recycler, for USD 1.1 billion. This acquisition enhanced Darling’s capabilities of producing renewable energy and securing eco-friendly raw materials.