Brazil Used Cooking Oil Market- Trend Analysis & Forecasts

Market/ Product Overview

Used cooking oil refers to vegetable and animal oils collected after frying and food preparation, which can be refined into biodiesel, oleochemicals, and renewable fuels. The Brazilian UCO market has grown from just US$ ** million in 2019 to US$ 120 million in 2024, as formalized collection networks and industrial off-take agreements expanded. Demand is expected to rise steadily in the forecast period, driven by higher blend mandates in diesel and increasing interest in SAF production.

The biodiesel sector alone consumes more than ** billion liters of feedstock annually, and while soybean oil accounts for over **%, UCO usage has increased to about ** cubic meters annually. Although UCO currently represents less than **% of biodiesel feedstock, its share is set to climb as refiners prioritize low-carbon intensity inputs.

In terms of collection, the HoReCa (hotels, restaurants, catering) sector remains the largest contributor, responsible for nearly **% of total volumes collected in 2024, followed by household collection programs at around **%. Regional variation is significant: São Paulo, Rio de Janeiro, and Minas Gerais account for over **% of all UCO collected, reflecting both population density and advanced municipal waste initiatives.

Significance of Brazil in Global Used Cooking Oil Supply Chain

Globally, the UCO market exceeds US$ 7 billion and is projected to reach nearly US$ 13 billion by 2032. While Asia and Europe dominate in exports and structured collection, Brazil is emerging as Latin America’s key supplier. Its role in the global supply chain is strengthened by its dual capacity: as a country with one of the world’s largest food service industries and as the second-largest biodiesel producer globally.

Brazil’s annual generation potential is estimated at ** billion liters of UCO, though only about **% is currently collected through formal channels. This gap highlights the market’s growth headroom. In recent years, Brazilian authorities have aligned certification standards with international markets, allowing local producers to tap into high-value export demand from North America and Europe, where UCO is increasingly imported for renewable diesel and SAF.

By 2032, Brazil is expected to contribute close to **% of global UCO trade, up from just **% in 2024, thanks to improved traceability systems, collection networks, and international trade agreements.

Brazil Used Cooking Oil Supply & Demand Trend

On the supply side, Brazil’s food industry generates an estimated ** billion liters of waste cooking oil annually, but collection remains underdeveloped, with only ** million liters formally recovered in 2024. Collection efficiency is improving by around **% year-on-year, driven by urban reverse-logistics systems and partnerships between municipalities and private collectors.

Demand, however, is rising faster than supply. The biodiesel sector alone could consume up to ** million liters of UCO by 2030, assuming blend mandates rise from the current **% to **% or **%. In addition, the sustainable aviation fuel sector is expected to demand ** million liters annually by 2032 as Brazilian airlines and airports adopt decarbonization strategies.

This supply-demand imbalance creates upward price pressure. UCO collection costs average USD 0.50–0.55 per liter, while biodiesel refiners are willing to pay premiums above USD 0.70 per liter, reflecting its lower carbon intensity compared with soybean oil. Export demand, particularly from the U.S. and EU, further tightens local availability, as international buyers often offer 10–15% higher prices for certified Brazilian UCO.

Brazil Used Cooking Oil Market Growth Factors

Brazil Used Cooking Oil Market Segmentation

The Brazilian UCO market can be segmented by source, application, and region.

By source, HoReCa dominates with around **% of collection volume in 2024, followed by households at **%, food processing industries at **%, and others (schools, institutions, street vendors) at **%. HoReCa is expected to retain dominance, but household participation will expand as reverse-logistics regulations tighten, potentially reaching **% share by 2032.

By application, biodiesel accounted for over **% of UCO utilization in 2024, representing about ** thousand cubic meters of annual demand. Sustainable aviation fuel (SAF) is still nascent, at less than 3% of usage, but will likely surpass 12% by 2032 as Brazilian airports expand SAF supply. Oleochemicals and animal feed represent smaller but steady niches, each holding **% market share.

By region, the Southeast dominates collection with nearly **% of volumes, led by São Paulo, Rio de Janeiro, and Minas Gerais. The South region contributes about **%, while the North and Northeast remain underdeveloped, together accounting for just **% despite high generation potential. These regions are expected to witness the fastest growth, supported by new collection hubs and federal incentives.

Brazil Used Cooking Oil Trade (Export & Import) Trend

Brazil exported an estimated ** thousand tonnes of UCO in 2024, valued at US$ ** million. Exports are expected to rise to ** thousand tonnes by 2032, potentially exceeding US$ ** million in value. The United States and the European Union remain the primary destinations, together absorbing more than **% of Brazil’s exports.

Import activity is minimal, as domestic supply is sufficient to meet internal demand. However, tariffs and non-tariff barriers, especially stringent certification requirements in Europe, pose challenges for exporters.

Brazil’s trade competitiveness lies in its cost advantage. Average export prices for certified UCO were around US$ 1,550 per ton in 2024, compared with USD 1,750 per ton in Europe, making Brazilian UCO attractive to international refiners.

Influence of Brazil in Global Used Cooking Oil Price

Although Brazil accounts for less than 5% of global UCO exports in 2024, its influence on regional prices is growing. Export prices have historically tracked soybean oil trends, but in recent years, UCO premiums have emerged due to SAF demand. Between 2020 and 2024, average UCO export prices rose by 22%, reaching about USD 1,550 per ton.

By 2032, Brazil’s expanded role could influence global benchmarks, especially if exports exceed 200 thousand tons annually. Domestically, wholesale UCO prices have increased from USD 0.45 per liter in 2018 to USD 0.72 in 2024, reflecting tighter supply and rising export competition. This price trend positions Brazil as a secondary price setter in Latin America, alongside Argentina and Mexico.

Market Competitive Landscape

Future Outlook

The outlook for the Brazilian UCO market is strongly positive. Market value is projected to expand from US$ 120 million in 2024 to nearly US$ ** million in 2032, supported by a CAGR of about 6.7%. By then, collection efficiency is expected to reach **% of potential volumes, equivalent to ** million liters annually.

Biodiesel will continue to dominate demand, but SAF is expected to emerge as the fastest-growing segment, with an annual growth rate of nearly 12%. Exports will expand significantly, generating close to US$ ** million in annual revenue by 2032. With government support, private investment, and global low-carbon commitments, Brazil’s UCO market will not only strengthen its domestic renewable energy security but also carve out a strategic role in global biofuel supply chains.