South Korea Used Cooking Oil Market Overview, 2031

South Korea Used Cooking Oil Market

• South Korea has developed one of Asia's most organized Used Cooking Oil markets, supported by stringent waste management regulations and strong public awareness regarding recycling. The country generated an estimated 320–380 thousand tons of UCO in 2025, with formal recovery rates exceeding 70 percent of commercially recoverable volumes. Metropolitan areas such as Seoul, Busan, Incheon, Daegu, and Daejeon serve as the primary feedstock generation centers due to their concentration of foodservice establishments and institutional kitchens.
• According to the research report, "South Korea Used Cooking Oil Market Outlook, 2031," published by Bonafide Research, the South Korea Used Cooking Oil market is expected to reach a market size of more than USD 261.90 Million by 2031. The country's relatively mature collection infrastructure limits dramatic volume expansion; however, increasing competition from renewable diesel and sustainable aviation fuel applications is enhancing the strategic value of each ton of certified UCO collected. Companies including SK Energy, GS Caltex, Hyundai Oilbank, and S-OIL are strengthening their low-carbon fuel portfolios, increasing downstream demand potential.
• South Korea's objective to achieve carbon neutrality by 2050 has accelerated discussions around advanced biofuels. The country's sophisticated logistics infrastructure and established industrial capabilities provide a favorable environment for high-value UCO utilization pathways.

Recent Industry Developments

SK Energy advanced renewable fuel initiatives utilizing waste-based feedstocks during 2025
The company continued exploring opportunities to strengthen its low-carbon fuel portfolio, increasing attention toward sustainable feedstock sourcing strategies.
GS Caltex expanded sustainable fuel collaborations during 2024
The company accelerated activities related to alternative fuel development, supporting broader industry interest in certified waste-derived raw materials.
South Korean municipalities enhanced food waste and recycling awareness programs during 2025
Local governments in cities including Seoul and Busan expanded educational initiatives designed to improve participation in organized waste collection systems.

Regulatory Landscape

• South Korea's UCO market operates within a robust waste management framework emphasizing environmental protection and resource efficiency. Regulatory oversight is provided primarily through the Ministry of Environment, while renewable energy and industrial policies are influenced by MOTIE.
• Commercial entities generating UCO are generally required to engage authorized collection channels. The country's broader sustainability agenda and carbon neutrality commitments are expected to reinforce support for advanced biofuel applications utilizing waste-derived feedstocks.

Value Creation Hotspots Across the Supply Chain

• Seoul, Busan, Incheon, and other metropolitan areas provide high-density commercial collection opportunities capable of improving operating margins by approximately 12–16 percent.
• South Korea's mature waste handling infrastructure enables efficient feedstock consolidation and consistent supply chain performance.
• Processors emphasizing quality control and traceability can improve competitiveness in premium renewable fuel applications.
• The increasing focus on low-carbon fuels creates attractive opportunities for businesses supplying qualified waste-derived feedstocks.
• Operators capable of meeting international sustainability expectations may benefit from participation in higher-value export markets.

Import Dependency Analysis

• South Korea relies primarily on domestic UCO generation supported by well-developed collection systems. Domestic recovery is estimated to satisfy approximately 70–80 percent of industrial demand, with the remaining requirements supplemented through imported feedstocks when necessary.
• As renewable fuel applications expand, dependence on imported certified UCO could increase modestly. Strengthening domestic collection efficiency and improving household participation rates will remain important strategies for maintaining supply security.

Segment Analysis

By Source
Food Service dominates South Korea's UCO market, accounting for approximately 72–76 percent of total recoverable volumes, supported by the country's extensive restaurant and catering sector. Food Processing contributes around 15–18 percent, while Household sources represent approximately 8–10 percent, reflecting relatively strong consumer participation compared with several neighboring markets. Other institutional sources account for the remaining share.
By Application
Biodiesel Production remains the largest application segment with approximately 45–50 percent share, supported by established renewable fuel demand. Renewable Diesel Production accounts for approximately 20–25 percent, while Sustainable Aviation Fuel represents an emerging opportunity with an estimated 10–15 percent share. Oleochemicals, Soaps and Detergents, and other industrial applications collectively account for approximately 20–25 percent of market utilization.
By Collection Method
Direct Commercial Collection represents approximately 50–55 percent of total recovered volumes, reflecting the importance of organized foodservice operators. Third-Party Waste Aggregators account for approximately 25–30 percent, benefiting from established waste management networks. Municipal Collection Systems contribute approximately 10–15 percent, while Household Drop-off and Recycling Programs account for 10–12 percent, highlighting South Korea's comparatively advanced consumer participation levels within the region.


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