Cooking Oil Recycling in the UK: Market Size, Businesses & Forecast 2026

The UK cooking oil recycling industry collects used cooking oil from food service establishments, manufacturers, and households, refining it into biodiesel, animal feed, or other industrial products. The industry has been growing steadily in response to environmental regulations and renewable energy targets, with approximately 250,000 tonnes of used cooking oil collected in 2022 (WRAP). The sector is expanding as part of the UK's broader circular economy initiatives and decarbonization efforts.

Industry snapshot

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What does the Cooking Oil Recycling in the UK industry cover?

The cooking oil recycling industry encompasses the collection, transportation, processing, and recycling of used cooking oil from commercial kitchens, food manufacturers, and domestic sources. Recycled cooking oil is primarily converted into biodiesel for fuel, but also used in animal feed, industrial lubricants, and other products. The industry operates within the broader waste management and renewable energy sectors.

• •Approximately 80% of recycled cooking oil in the UK is processed into biodiesel (Department for Transport, 2023)
• •The industry handles both waste vegetable oil (WVO) and waste cooking oil (WCO) from various sources (Environment Agency, 2022)

Who operates in the industry and how is it structured?

The UK cooking oil recycling market comprises specialized waste management companies, waste oil collectors, and biodiesel producers. Many operators are part of larger waste management groups or renewable energy companies. The market includes both independent recyclers and subsidiaries of international waste management firms.

• •There are approximately 150 registered waste cooking oil carriers in the UK (Environment Agency, 2023)
• •The industry employs around 1,200 people directly (Office for National Statistics, 2022)

What drives demand in the industry?

Demand for cooking oil recycling is driven primarily by environmental regulations promoting circular economy principles and renewable energy targets. The Renewable Transport Fuel Obligation (RTFO) mandates that a percentage of fuel sold in the UK comes from renewable sources, creating demand for biodiesel. Additionally, commercial premises are increasingly seeking sustainable waste disposal solutions.

• •The RTFO requires 14.3% of renewable fuel in transport by 2030 (Department for Transport, 2023)
• •Commercial food premises are required by law to dispose of waste cooking oil properly (Food Standards Agency, 2022)

Who are the notable companies in the industry?

The UK cooking oil recycling market features several established operators with national coverage alongside smaller regional players. Major companies have integrated vertically, from collection to processing and biodiesel production. The market has seen consolidation in recent years as larger waste management firms acquire specialist recycling companies.

• •Olleco UK - Specializes in collecting waste cooking oil from food service businesses
• •Biofuels Corporation - Processes used cooking oil into biodiesel at their facility in Avonmouth
• •Crown Oil Environmental - Provides waste oil collection and recycling services across the UK
• •Edible Oil Solutions - Collects and processes waste cooking oil primarily for the food industry

What are the recent trends and outlook?

The industry has experienced growth in recent years due to increased environmental awareness and policy support for renewable energy. Biodiesel production from recycled cooking oil has expanded to help the UK meet carbon reduction targets. The outlook remains positive as the UK continues to invest in renewable energy infrastructure and circular economy initiatives.

• •UK biodiesel production from used cooking oil increased by 18% between 2020 and 2022 (Department for Energy Security and Net Zero, 2023)
• •Investment in advanced processing technologies has improved the efficiency of cooking oil recycling (WRAP, 2022)

How is the industry regulated?

The industry operates under a framework of environmental regulations governing waste handling, transportation, and processing. Operators must comply with the Environment Agency's permitting requirements and waste hierarchy principles. The industry also follows sustainability criteria under the Renewable Energy Directive (RED) for biodiesel production.

• •The Environment Agency requires permits for waste cooking oil handling and processing (Environment Agency, 2023)
• •Biodiesel produced from recycled cooking oil must meet sustainability criteria under the RED (Department for Transport, 2022)

Government, statistical and trade sources used for this Claight analysis.

• Environment Agency - UK Waste Oil Register 2023 ·
• Department for Transport - Renewable Transport Fuel Obligation 2023 ·
• WRAP - UK Food Waste Reduction Roadmap 2022 ·
• Office for National Statistics - Waste Management Industry Statistics 2022 ·
• Department for Energy Security and Net Zero - Renewable Energy Statistics 2023 ·
• Food Standards Agency - Food Waste Regulations 2022