High Demand for Used Cooking Oil in Biodiesel Production to Drive Market Growth
The global used cooking oil market is expected to value USD 6.02 Billion in 2021 and is expected to exhibit a CAGR of 4.36% over the forecast period from 2021 to 2030, as per a market study by Quince Market Insights. Used cooking oil means the oil which has been already used in restaurants, hotels, food industries, and in households. Used cooking oil can be derived from a variety of vegetable oils like soya, rape, palm, sunflower, and others in a mixed variety. Furthermore, after the refining process it is used for different purposes.
The rapid urbanization, increasing pollution and increasing population worldwide have created several serious issues related to greenhouse gas emission, climate change, and other environmental issues. Government along with a few leading fuel and energy companies, are adopting norms and policies that can support the green energy space. Due to the environmental welfare consumer preference has shifted from using petroleum diesel to biodiesel. Moreover, the strict safety regulation associated with the products and the growing awareness regarding food wastage among consumers contributes to the increased availability of waste cooking oil for fuel production.
People are encouraged by the recent technological advancements in waste recycling, which helps to recycle waste products and convert them into useful products that are advantageous for the environment. The product has an immense potential to be refined into different biofuels to generate energy. Biodiesels which are produced using used cooking oil have a burn cleaner and lower carbon footprints. They are cost effective and release less amount of carbon monoxide as compared to petroleum diesel. The increasing demand for recycled used cooking oil for biodiesel production is expected to boost the growth of the market.
Worldwide governments in several countries are putting in more effort to create public awareness by enabling norms to encourage the use of recycled waste cooking oils. Directing the used cooking oil into biodiesel products also prevents it from re-enrolling in the food chain.
The challenges which are faced during the refinement and processing of used cooking oil hamper the growth of the market. The presence of a high amount of undesirable water and free fatty acids are some impurities that must be removed before transesterification, which is a most important process of refining. The high amount of free fatty acids reacts with alkaline catalysts that hinder the reaction, which results in a poor quality of biodiesel yield. Due to some safety purpose high number of impurities limits their utilization in animal feed. The biodiesel produced by using used cooking oil may reduce its engine power and combustion level to hamper its demand worldwide.
Opportunity for Market Participants in the Global Used Cooking Oil Market
Used cooking oil offers a sustainable result in the biofuel industry and animal feed which provides the manufacturers better chances to promote the used cooking oil in the market and gain the implicit growth in the used cooking oil market.
In addition, offering the used cooking oil in developing countries can further enhance the consumption of used cooking oil at the global stage. Spreading awareness about the feasible solutions of used cooking oil may further boost the growth of manufacturers of used cooking oil and provide a potential growth to the used cooking oil market.
Recent Developments in the Global Used Cooking Oil Market
· January 2020- BioD energy (India), a biodiesel producer announced to start two new biodiesel processing plants that manufacture biodiesel by utilizing used cooking oil.
· August 2020- Phillips 66 Humber Refinery (U.K) announced the expansion of its used cooking oil production site situated in Immingham.
Argent Energy (U.K), Baker Commodities (Vernon, California), Biomotive Fuel Ltd. (U.K), Brocklesby Ltd. (East Yorkshire), Darling Ingredients (U.K), Devon Biofuels (England), Greenergy (U.K), Harvest Energy (U.K), Lywood Consulting (U.K), Nidera (Netherlands).