2026 market overview
The global used cooking oil market was valued at USD 17.2 billion in 2024 and is projected to reach USD 36.9 billion by 2036. India, growing at 8.4% CAGR, is one of the fastest-expanding markets — driven by biodiesel mandates, SAF ambitions, and FSSAI's RUCO push.
For buyers and sellers on BioTradX, understanding pricing dynamics is essential for profitable trading.
Factors driving UCO and feedstock prices
Several supply and demand factors influence biofuel feedstock pricing in India.
- Biodiesel blending mandate expansion — increasing structural demand.
- SAF production scaling — UCO is the preferred feedstock globally.
- FSSAI enforcement — more UCO entering formal channels reduces supply scarcity premium.
- Crude oil prices — biofuel competitiveness vs fossil diesel affects feedstock demand.
- Seasonal variations — festival seasons and tourism affect restaurant oil consumption.
- Regional differences — metro cities have higher collection density and competition.
Price trends by feedstock type
UCO commands the highest per-unit price among biofuel feedstocks due to its low carbon intensity and high demand from biodiesel and SAF producers. Animal tallow and non-edible oils trade at lower per-unit prices but offer more volume consistency.
Used engine oil pricing is emerging as a new category, with industrial partnerships (like Globe Toyota) establishing benchmark rates for large-volume collection contracts.
How BioTradX brings price transparency
Historically, UCO pricing in India was opaque — sellers had little visibility into fair market rates, and buyers couldn't compare supplier quotes efficiently. BioTradX changes this with RFQ-based price discovery, historical pricing data, and market insight reports.
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Outlook for H2 2026
We expect continued price firming for quality UCO as biodiesel capacity expands and SAF projects come online. Sellers who establish consistent supply relationships now will benefit from long-term contracts at favorable rates. Buyers should diversify feedstock sources and invest in quality verification to secure reliable supply.