Dublin, Jan. 27, 2025 (GLOBE NEWSWIRE) -- The "Cooking Oil Recycling in the US - Industry Market Research Report" has been added to ResearchAndMarkets.com's offering.
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.
Cooking oil recyclers have been challenged in recent years, reversing previous trends. As biodiesel production expanded, the use of cooking oil followed suit. While most biodiesel fuel is produced with virgin vegetable oil, used cooking oil can also be used to produce biodiesel after it is filtered to remove food and other contaminants. However, demand for recycled oil has waned on account of more affordable substitutes that are easier to source and transport. Although recycled oil serves as an input in soap, cosmetics and animal feed production, the presence of readily available alternatives and the limited scale of these markets have contributed to drop off in demand. As a result, industry revenue is expected to contract at a CAGR of 7.1% to total $2.1 billion over the five years to 2024, including a drop of 7% in 2024 alone.
Support from the federal government has helped stabilize biofuel production throughout volatile conditions. Crude oil and diesel prices dropped at the outset of the pandemic, but minimum production capacities under the Renewable Fuel Standard helped maintain demand for biodiesel's inputs. Tax credits for renewable fuel production were also extended by the Inflation Reduction Act (IRA). In December 2022, the Department of Agriculture made $50.0 million available to expand the use of higher-blend biofuels, and plans to invest up to $500.0 million to increase the availability of domestic biofuels under the IRA.
The continued expansion of renewable fuel production will help slow the industry's decline, but the existence of substitutes will prevent cooking oil recyclers from recouping their previous positions. Tightening regulations will mandate that many restaurants recycle their cooking oil. Still, this lifeline will be available to only the largest recycling recyclers already well positioned to offer expansive services at competitive prices. Ultimately, industry revenue is forecast to fall at a CAGR of 0.7% to $2 billion over the five years to 2030. Profit across the industry will likewise come under pressure, deteriorating in the coming years.
Trends and Insights
- Despite earlier success, cooking oil recyclers face challenges from substitutes. While biodiesel production grew and incorporated recycled oil, the preference for virgin vegetable oil has curtailed the demand for recycled oil.
- Yellow grease collection is the primary service among cooking oil recyclers. While cooking oil recycling companies now need to pay for used oil, yellow grease is easier to recycle than brown grease.
- Highly populated regions use more cooking oil. Because the Southeast, West and Mid-Atlantic have a large portion of the nation's population, the regions naturally have more cooking oil that needs recycling.
- Cooking oil recyclers face stiff competition for large customers. While buying used cooking oil is not a challenge, securing a contract with a major biofuel or animal feed producer is essential to success. This means recycling companies often undercut each other's prices.
Market size and recent performance (2015-2030)
- Industry revenue has declined at a CAGR of 7.1 % over the past five years, to reach an estimated $2.1bn in 2025.
Select Company Coverage includes:
- Darling Ingredients Inc.
- Restaurant Technologies Inc.
Key Topics Covered:
ABOUT THIS INDUSTRY
- Industry Definition
- Main Activities
- Similar Industries
- Additional Resources
INDUSTRY AT A GLANCE
INDUSTRY PERFORMANCE
- Executive Summary
- Key External Drivers
- Current Performance
- Industry Outlook
- Industry Life Cycle
PRODUCTS & MARKETS
- Supply Chain
- Products & Services
- Demand Determinants
- Major Markets
- International Trade
- Business Locations
COMPETITIVE LANDSCAPE
- Market Share Concentration
- Key Success Factors
- Cost Structure Benchmarks
- Basis of Competition
- Barriers to Entry
- Industry Globalization
MAJOR COMPANIES
OPERATING CONDITIONS
- Capital Intensity
- Technology & Systems
- Revenue Volatility
- Regulation & Policy
- Industry Assistance
KEY STATISTICS
- Industry Data
- Annual Change
- Key Ratios
For more information about this report visit https://www.researchandmarkets.com/r/uigajv
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