New York, NY (PRWEB) August 19, 2014
Cooking oil recyclers collect used cooking oil from restaurants, filter and process it and sell the recycled product to biodiesel producers and other manufacturers for use as an input in their own operations. According to IBISWorld Industry Analyst Zachary Harris, “The Cooking Oil Recycling industry has grown very strongly over the past five years.” Legislation promoting the production of biodiesel, in particular the Energy Independence and Security Act of 2007, has turned used cooking oil, which had traditionally been viewed as a waste, into a valuable commodity. Recycled cooking oil has long been used in small quantities as an input in the production of soap, cosmetics, animal food and some other goods. However, these markets have traditionally been too small to encourage large-scale cooking oil recycling. Nevertheless, as biodiesel production has grown strongly over the past decade, demand for used cooking oil has expanded as well. While most biodiesel fuel is manufactured with vegetable oil, used cooking oil can also be used to produce biodiesel after it has been filtered to remove food and other contaminants. Therefore, as the biodiesel manufacturing industry has expanded, demand for the Cooking Oil Recycling industry's services has grown strongly as well. As a result, IBISWorld expects industry revenue to grow at an annualized rate over the five years to 2014.
The Cooking Oil Recycling industry is forecast to continue to grow strongly over the five years to 2019 as the EPA's Renewable Fuel Standard requirements continue to encourage strong biodiesel production growth, which will increase the demand for used cooking oil. In addition, economic expansion over this period is expected to drive an expansion in truck transportation, the primary market for diesel fuel. “While the majority of diesel fuel consumed by the US truck fleet is currently petroleum-based, the increased availability of biodiesel in coming years is projected to drive increased demand for this fuel from the trucking sector, indirectly further expanding industry demand,” says Harris. However, the Cooking Oil Recycling industry is also expected to face growing competition from virgin vegetable oil producers as anticipated declines in the price of soybeans and oilseeds allows the Margarine and Cooking Oil Processing industry (IBISWorld report 31122) to lower its prices. As a result, industry revenue is estimated to grow over the five years to 2019.
For more information, visit IBISWorld’s Cooking Oil Recycling in the US industry report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189
IBISWorld industry Report Key Topics
Companies in this industry collect cooking oil (yellow and brown grease) from restaurants and other foodservice establishments 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.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.