China Used Cooking Oil Market Overview, 2031

China Used Cooking Oil Market Insight

• China represents one of the world's largest Used Cooking Oil markets, generating an estimated 4.5–5.5 million tons of UCO annually in 2025, driven by its extensive foodservice industry and urban population exceeding 940 million people. Cities such as Beijing, Shanghai, Guangzhou, Shenzhen, Chengdu, and Chongqing serve as major UCO generation hubs due to their dense restaurant networks and expanding food delivery ecosystems. Despite the scale of generation, formal collection systems capture approximately 55–65 percent of recoverable volumes, leaving substantial room for further market development.
• According to the research report, " China Used Cooking Oil Market Outlook, 2031," published by Bonafide Research, the China Used Cooking Oil market is expected to reach a market size of more than USD 1745.91 Million by 2031. The country's historical "gutter oil" incidents fundamentally altered regulatory priorities. As a result, authorities have implemented increasingly stringent traceability requirements to prevent illegally recycled oils from re-entering the food chain. This unique market characteristic has accelerated investment in licensed collection systems and enhanced oversight across the value chain.
• Chinese refiners and aviation stakeholders are increasingly evaluating waste-derived feedstocks to support decarbonization objectives. Companies such as Sinopec, Longyan Zhuoyue Group, Zhejiang Jiaao Enprotech, and China National Aviation Fuel Group are strengthening their positions within renewable diesel and SAF supply chains, creating long-term demand momentum for certified UCO.

PESTLE Analysis

• China's policy environment increasingly favors resource efficiency and circular economy development. Agencies including the National Development and Reform Commission NDRC, the Ministry of Ecology and Environment MEE, and local municipal governments continue promoting waste utilization initiatives. The country's commitment to achieving carbon neutrality by 2060 has strengthened interest in advanced biofuels derived from waste feedstocks.
• UCO prices in China ranged between CNY 7,200 and CNY 9,500 per ton during 2025, influenced by export demand, domestic processing capacity, and certification requirements. Coastal provinces generally exhibit stronger pricing due to proximity to export infrastructure and industrial demand centers. Collection and transportation expenses account for approximately 12–18 percent of total supply chain costs.
• China's restaurant industry generated revenues exceeding CNY 5 trillion in 2025, supporting substantial UCO generation potential. Food delivery platforms such as Meituan and Ele.me have indirectly expanded commercial cooking activity across urban areas. However, consumer awareness regarding household UCO recycling remains limited, with formal participation rates estimated at below 15 percent nationwide.
• Leading processors are investing heavily in digital traceability systems, automated pre-treatment facilities, and advanced conversion technologies. Technological improvements have enhanced processing efficiency by approximately 18–22 percent since 2023, particularly among export-oriented operators targeting international sustainability markets.
• China maintains strict regulatory controls governing the collection, transportation, and utilization of waste cooking oils. Authorities continue intensifying enforcement actions against illegal reuse practices. Violations involving the unauthorized handling of gutter oil may result in significant financial penalties and criminal prosecution.
• The diversion of UCO toward renewable fuel production supports national emissions reduction objectives. UCO-derived biofuels can achieve lifecycle greenhouse gas reductions of approximately 75–90 percent compared with conventional petroleum fuels, strengthening their environmental value proposition.

Recent Industry Developments

Sinopec advanced SAF initiatives utilizing waste-based feedstocks during 2025
Sinopec continued expanding renewable aviation fuel activities through projects designed to support China's emerging SAF market, increasing interest in large-scale UCO procurement.
Longyan Zhuoyue strengthened export-oriented UCO processing operations during 2024
The company expanded its position within international waste-based biofuel supply chains by enhancing certified processing capabilities and increasing export volumes.
Municipal authorities intensified gutter oil enforcement campaigns during 2025
Cities including Shanghai and Shenzhen strengthened inspections targeting illegal collection activities, supporting the transition toward more transparent and regulated supply systems.

Regulatory Landscape

• China's UCO market is governed by a combination of food safety regulations, environmental policies, and waste management requirements administered by agencies including the NDRC, MEE, State Administration for Market Regulation SAMR, and local governments.
• The country's regulatory approach differs significantly from many international markets because of its strong emphasis on preventing gutter oil re-entry into food supply chains. Licensed collection, transportation permits, and documentation requirements have therefore become central components of market operations. As renewable fuel applications expand, sustainability verification practices are also gaining importance.

Value Creation Hotspots Across the Supply Chain

• Major metropolitan regions including Shanghai, Beijing, Guangzhou, Shenzhen, and Chengdu provide attractive collection opportunities due to their concentration of restaurants, hotels, and institutional kitchens. Route optimization within these cities can improve profitability by approximately 15–20 percent.
• Large aggregators capable of consolidating fragmented commercial volumes benefit from lower processing costs and enhanced supply reliability, particularly in economically developed eastern provinces.
• Facilities equipped with advanced quality control and documentation systems are better positioned to access export markets and supply high-value downstream applications.
• As Chinese energy companies increase investments in renewable diesel and SAF, processors supplying qualified feedstocks are likely to experience stronger demand conditions.
• Export-focused operators serving markets with strict sustainability standards can achieve significant pricing advantages compared with purely domestic channels.

Import Dependency Analysis

• China remains predominantly supported by domestic UCO generation due to the sheer scale of its foodservice sector. Internal production is estimated to satisfy more than 85 percent of national processing requirements, limiting reliance on imported feedstocks.
• However, regional imbalances exist between coastal industrial demand centers and inland supply areas. As renewable fuel production expands, competition for high-quality certified UCO may intensify, increasing the importance of efficient domestic collection systems. China also plays a notable role within international UCO trade flows through exports of processed waste-based feedstocks destined for overseas renewable fuel markets.

Segment Analysis

By Source
Food Service dominates China's UCO market, accounting for approximately 75–80 percent of total recoverable volumes, reflecting the country's extensive restaurant and food delivery ecosystem. Food Processing contributes around 12–15 percent, supported by China's large packaged food manufacturing industry. Household sources account for approximately 5–8 percent, constrained by relatively low participation in formal recycling programs. Other institutional sources represent the remaining market share.
By Application
Biodiesel Production currently accounts for approximately 35–40 percent of market demand, while Renewable Diesel Production represents around 20–25 percent as investments in advanced biofuel technologies expand. Sustainable Aviation Fuel remains an emerging but rapidly developing segment with approximately 10–15 percent share, supported by growing aviation decarbonization initiatives. Oleochemicals, Soaps and Detergents, and other industrial applications collectively account for approximately 25–30 percent of utilization.
By Collection Method
Direct Commercial Collection dominates the Chinese market with approximately 50–55 percent share, supported by relationships with restaurants, hotels, and institutional kitchens. Third-Party Waste Aggregators account for around 30–35 percent, particularly in densely populated urban regions. Municipal Collection Systems contribute approximately 8–10 percent, while Household Drop-off and Recycling Programs represent below 5 percent of recovered volumes, highlighting significant opportunities for future development.

Considered in this report
• Historic Year: 2020
• Base year: 2025
• Estimated year: 2026
• Forecast year: 2031

Aspects covered in this report
• Mixed Used Cooking Oil Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Source
• Food Service
• Food Processing
• Household
• Others

By Application
• Biodiesel Production
• Renewable Diesel Production
• Sustainable Aviation Fuel
• Oleochemicals
• Soaps & Detergents
• Others

By Collection Method
• Direct Commercial Collection
• Third-Party Waste Aggregators
• Municipal Collection Systems
• Household Drop-off / Recycling Programs
• Others