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Cooking Oil Recycling in the US Industry Data and Analysis
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 7.0% 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 $2.0 billion over the five years to 2030. Profit across the industry will likewise come under pressure, deteriorating in the coming years.
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What's included in this industry analysis
IBISWorld's research coverage on the Cooking Oil Recycling industry in the United States includes market sizing, forecasting, data and analysis from 2015-2030. The most recent publication was released May 2025.
About this industry
What's this industry report about?
The Cooking Oil Recycling industry in the United States operates under the NAICS industry code OD5810. Companies in this industry collect cooking oil (yellow and brown grease) from restaurants and other food service businesses for sale to downstream markets that process this grease into biodiesel, animal feed and other products. Industry operators also process and refine the used cooking oil they collect prior to selling it to downstream markets. Related terms covered in the Cooking Oil Recycling industry in the United States include environmental protection agency (epa), fog, biofuel, waste vegetable oil (wvo), decantation, yellow grease, brown grease, biodiesel, renewable fuel standard and grease interceptor.
What's included in this industry?
Products and services covered in Cooking Oil Recycling industry in the United States include Cooking oil collection and yellow grease processing, Grease trap pumping and brown grease processing and Other.
What companies are included in this industry?
Companies covered in the Cooking Oil Recycling industry in the United States include Darling Ingredients Inc. and Restaurant Technologies Inc.
Performance
What's included in the Performance chapter?
The Performance chapter covers detailed analysis, datasets, detailed current performance, sources of volatility and an outlook with forecasts for the Cooking Oil Recycling industry in the United States.
Questions answered in this chapter include what's driving current industry performance, what influences industry volatility, how do successful businesses overcome volatility, what's driving the industry outlook. This analysis is supported with data and statistics on industry revenues, costs, profits, businesses and employees.
Products & Markets
What's included in the Products and Markets chapter?
The Products and Markets chapter covers detailed products and service segmentation and analysis of major markets for the for the Cooking Oil Recycling industry in the United States.
Questions answered in this chapter include how are the industry's products and services performing, what are innovations in industry products and services, what products or services do successful businesses offer and what's influencing demand from the industry's markets. This includes data and statistics on industry revenues by product and service segmentation and major markets.
Geographic Breakdown
What's included in the Geographic Breakdown chapter?
The Geographic Breakdown chapter covers detailed analysis and datasets on regional performance of the Cooking Oil Recycling industry in the United States.
Questions answered in this chapter include where are industry businesses located and how do businesses use location to their advantage. This includes data and statistics on industry revenues by location.
Competitive Forces
What's included in the Competitive Forces chapter?
The Competitive Forces chapter covers the concentration, barriers to entry and supplier and buyer profiles in the Cooking Oil Recycling industry in the United States. This includes data and statistics on industry market share concentration, barriers to entry, substitute products and buyer & supplier power.
Questions answered in this chapter include what impacts the industry's market share concentration, how do successful businesses handle concentration, what challenges do potential industry entrants face, how can potential entrants overcome barriers to entry, what are substitutes for industry services, how do successful businesses compete with substitutes and what power do buyers and suppliers have over the industry and how do successful businesses manage buyer & supplier power.
Companies
What's included in the Companies chapter?
The Companies chapter covers Key Takeaways, Market Share and Companies in the Cooking Oil Recycling industry in the United States. This includes data and analysis on companies operating in the industry that hold a market share greater than 5%.
Questions answered in this chapter include what companies have a meaningful market share and how each company is performing.
External Environment
What's included in the External Environment chapter?
The External Environment chapter covers Key Takeaways, External Drivers, Regulation & Policy and Assistance in the Cooking Oil Recycling industry in the United States. This includes data and statistics on factors impacting industry revenue such as economic indicators, regulation, policy and assistance programs.
Questions answered in this chapter include what demographic and macroeconomic factors impact the industry, what regulations impact the industry, what assistance is available to this industry.
Financial Benchmarks
What's included in the Financial Benchmarks chapter?
The Financial Benchmarks chapter covers Key Takeaways, Cost Structure, Financial Ratios, Valuation Multiples and Key Ratios in the Cooking Oil Recycling industry in the United States. This includes financial data and statistics on industry performance including key cost inputs, profitability, key financial ratios and enterprise value multiples.
Questions answered in this chapter include what trends impact industry costs and how financial ratios have changed overtime.
Industry Data
What's included in the Industry Data chapter?
The Industry Data chapter includes 10 years of historical data with 5 years of forecast data covering statistics like revenue, industry value add, establishments, enterprises, employment and wages in the Cooking Oil Recycling industry in the United States.
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Frequently Asked Questions
What is the market size of the Cooking Oil Recycling industry in the United States in 2026?
The market size of the Cooking Oil Recycling industry in the United States is $2.1bn in 2026.
How many businesses are there in the Cooking Oil Recycling industry in the United States in 2025?
There are 86 businesses in the Cooking Oil Recycling industry in the United States, which has declined at a CAGR of 7.4 % between 2020 and 2025.
How may import tariffs affect the Cooking Oil Recycling industry in the United States?
The Cooking Oil Recycling industry in the United States is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.
How may export tariffs affect the Cooking Oil Recycling industry in the United States?
The Cooking Oil Recycling industry in the United States is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.
Has the Cooking Oil Recycling industry in the United States grown or declined over the past 5 years?
The market size of the Cooking Oil Recycling industry in the United States has been declining at a CAGR of 5.1 % between 2020 and 2025.
What is the forecast growth of the Cooking Oil Recycling industry in the United States over the next 5 years?
Over the next five years, the Cooking Oil Recycling industry in the United States is expected to decline.
What are the biggest companies in the Cooking Oil Recycling industry in the United States?
The biggest companies operating in the Cooking Oil Recycling industry in the United States are Darling Ingredients Inc. and Restaurant Technologies Inc.
What does the Cooking Oil Recycling industry in the United States include?
Used cooking oil collection and Grease trap cleaning are part of the Cooking Oil Recycling industry in the United States.
Which companies have the highest market share in the Cooking Oil Recycling industry in the United States?
The company holding the most market share in the Cooking Oil Recycling industry in the United States is Darling Ingredients Inc..
How competitive is the Cooking Oil Recycling industry in the United States?
The level of competition is moderate and increasing in the Cooking Oil Recycling industry in the United States.
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