Soybean Oil Market

Soybean Oil Market Outlook (2025 to 2035)

The global soybean oil market is expected to reach USD 43.2 billion by 2035, up from USD 24.6 billion in 2024. During the forecast period (2025 to 2035), the industry is projected to expand at a CAGR of 5.3%, due to its versatility in cooking, food processing, and industrial applications.

Soybean oil, which is of plant-based origin, aligns with the growing demand for sustainable and healthier alternatives. In addition, expanding awareness around clean-label ingredients and the shift toward renewable resources are reinforcing its role in both the food and bio-based sectors, making soybean oil a key commodity in global trade and nutrition.

What are the drivers of the Soybean Oil Market?

The global soybean oil market is driven by the dynamic demand trend in industrial and nutritional sectors, as well as a progressive policy framework concerning sustainability. One of the most distinctive growth vectors is the increasing use of soybean oil as a carrier in pharmaceutical and cosmetic formulations, driven by its emollient properties and high oxidative stability. As clean-label and plant-based ingredients have become increasingly popular, formulators are turning to soybean oil due to its chemical neutrality and bio-based origin.

Additionally, the soybean oil supply is indirectly influenced by the growing demand for alternative proteins. As soybean meal becomes an increasingly vital component of plant-based food manufacturing and livestock feed, the production of oil as a by-product is also growing in parallel to ensure the continuity of the pipeline towards the feedstock. Such industrial symbiosis in the industry boosts the resiliency and scalability of the market.

Economically, the high yield-per-acre of soybean oil, when compared to other oil crops, is cost-efficient when viewed during large-scale agricultural setups. The introduction of technology in precision farming, modification of crop genes, and advancements in harvesting machines are also helping to enhance the extraction process and increase the total amount of oil harvested, thereby increasing profits for processors.

In developing markets, national initiatives to strengthen agricultural infrastructure and processing capacities are unlocking new avenues for domestic production and self-reliance, particularly in Southeast Asia and Sub-Saharan Africa, where edible oil imports have traditionally been dominant.

What are the regional trends of the Soybean Oil Market?

North America holds a prominent position in the global soybean oil market, with the United States being a major producer and consumer. The region benefits from advanced agricultural practices, strong biodiesel mandates, and a well-established food processing industry. Soybean oil is a strategic commodity in this region as it has been incorporated in packaged foods and renewable energy industries. Demand is also being boosted by regulatory favor for biodiesel blending.

In Europe, the market is experiencing a stable upward trend, driven by a focus on sustainable and non-GM-based food products. Nations such as Germany and France are also contributing to the development of bio-based fuels, which is sparking the use of soybean oil in the production of biodiesel. The foodservice industry, particularly in Mediterranean countries, is another market stimulator because soybean oil can be used in frying and dressing.

The most rapidly growing area is that of Asia-Pacific driven by growing populations, improving levels of disposable income and urbanization. China and India are also major consumers because of the high demand of the edible oils. In addition, the growing number of fast-food restaurants and the processed food sector increase the demand in oil, which is affordable and accessible to many consumers, such as soybean oil.

Latin America, especially Brazil and Argentina, stands out not just as a consumer but also as a major producer and exporter. These countries benefit from vast soybean cultivation areas and are key players in both the food and industrial applications of soybean oil.

The Middle East and Africa market is growing slowly, influenced by shifting lifestyle choices and the increasing foodservice industry. An increase in imports, as well as investments in food processing, is contributing to the development of the regional market.

What are the challenges and restraining factors of the Soybean Oil Market?

There are several issues that affect the soybean oil market and may be an impediment to its growth. Price volatility in raw soybeans is one of the major problems, as fluctuating crop yields, climate conditions, and international trade dynamics are the primary causes of this issue. Given the fact that soybean oil is a food item, which is a by-product of soybean production, any form of interference in the supply creates a direct effect on the availability and pricing.

There are significant regulatory and reputational risks associated with environmental concerns and deforestation related to the large-scale production of soybeans. Sustainability certification and the more stringent import requirements, especially in Europe, may add more costs and reduce market accessibility.

Health debates surrounding highly processed oils also influence consumer perception. Despite its benefits, soybean oil is often partially hydrogenated in processed foods, which raises concerns about trans-fat content. This has prompted health authorities and consumers to scrutinize its use more closely, especially in developed markets.

Additionally, competition from alternative edible oils such as canola, sunflower, and palm oil puts pricing pressure on soybean oil. Each offers distinct benefits that appeal to different consumer segments, fragmenting the market further.

Country-Wise Insights

Clean Label Preferences and Omnichannel Retail Drive U.S. Momentum

The market of soybean oil in the United States is displaying rapid rates of growth, which is supported by a combination of both health-based consumer trends and the shift of the food industry towards the usage of plant-based ingredients. There is an increasing demand for non-GMO and organic variants, particularly among health-conscious and environmentally conscious demographics. This increase aligns with the growing trend of clean-label products and the Increasing popularity of functional foods in the United States that contain omega-3s.

The market growth is further increased by government incentives for the production of biofuel using soybean oil. Industrial demand becomes particularly high due to the renewable terms of fuel, RFS, as well as biodiesel blending subsidies. Meanwhile, the foodservice and packaged food industries are adopting soybean oil as the food has a neutral flavor and can be used to fry food.

The omnichannel retailing and the e-commerce marketing strategy have increased the availability of the specialty soybean oil products. Innovations in expeller-pressed and cold-pressed variants cater to niche segments, while the flexitarian movement continues to influence product innovation across ready meals, snacks, and condiments.

Eco-Conscious Values and Culinary Craftsmanship Sustain Germany’s Industry Appeal

Germany's soybean oil market is influenced by its robust sustainability culture and culinary purity culture. Consumer demand for locally produced, eco-certified, and minimally processed oil calls for organic and traceable soybean oil. This is in accord with robust EU environmental regulations and the German population's embedded consciousness of environmentally friendly consumption.

Growing interest in vegetarian foods, combined with increased concern over the environmental footprint of palm oil, makes soybean oil a strong alternative in food production. Artisanal and small-batch producers are gaining traction by offering cold-pressed oils marketed for gourmet cooking and health applications.

The country’s expanding vegan and vegetarian segments further encourage innovations in soybean oil-based spreads, dairy alternatives, and functional nutrition. Transparency, as mandated by the EU's Farm to Fork strategy and Green Deal programs, enables clean labeling and sustainable sourcing, thereby maintaining consumer trust and fostering market growth.

Food Safety Concerns and Wellness-Driven Urbanization Accelerate China’s Health Shift

China’s soybean oil market is accelerating swiftly with rising food safety concerns and dietary pattern changes in metropolitan cities. As concerns about the origin and quality of food grow, consumers in the region are turning to branded and quality oils. The government is tightening regulations to provide traceability and minimize chances of contamination, stimulating demand for branded and processed soybean oil products.

The urban middle class, driven by wellness aspirations and Western dietary influences, prefers soybean oil for its cholesterol-lowering and heart-health benefits. This is especially evident in meal-prep kits, premium edible oil blends, and the baby nutrition segment.

Technological innovation plays a key role, as smart packaging for freshness tracking and QR-coded traceability are becoming increasingly commonplace. Concurrently, national policies encouraging rural revitalization and domestic agricultural production bolster soybean cultivation and processing infrastructure. These efforts aim to reduce import dependency and enhance the competitiveness of local brands in both retail and foodservice sectors.

Category-Wise Analysis

Processed Soybean Oil Supports Scalable Food Production Operations

Processed soybean oil is a preferred choice in large-scale food manufacturing due to its consistency, shelf stability, and compatibility with high-speed production systems. Through degumming, bleaching, and deodorizing, it gives a clean, neutral flavor foundation that performs well with snacks, dressings, frozen foods, and baked goods. Manufacturers value its standardized fatty acid profile, which supports predictable frying behavior and uniform texture in end products.

As food manufacturers are subject to stringent labeling and nutritional requirements, processed soybean oil offers the advantage of being a trans-fat-free alternative that meets these requirements without compromising functionality. Continuous refining and enzymatic processing innovations are also minimizing waste in production and maximizing oil recovery rates. With the growing demand for economical and versatile edible oils, particularly in packaged food and export-quality formulations, processed soybean oil is expected to continue leading among industrial clients seeking efficiency, safety, and volume dependability in product formulation and global supply chains.

Cooking Applications Anchor Steady Consumption of Soybean Oil

Soybean oil remains a prominent choice in cooking processes due to its neutral taste, high smoke point, and affordability. It is a primary ingredient in both domestic and business kitchens, where adaptability is paramount. Much used in stir-fries, sautéing, and deep-frying, its composition provides consistent performance at elevated temperatures and repeated use.

In packaged meal kits, frozen foods, and cooking oils, food manufacturers appreciate its emulsification characteristics and long shelf life. The trend toward clean-label products has also seen additional demand for non-GMO and lightly refined versions.

Private-label expansion and value-driven buying are central reasons supporting soybean oil's position as a staple in daily cooking. As meal trends continue to highlight plant-based fats, which also offer heart health benefits, soybean oil is well-positioned as a foundational, functional food in global meal-making routines.

Foodservice Segment Prioritizes Soybean Oil for Bulk Culinary Use

The foodservice industry continues to be a major consumer of soybean oil, especially among quick-service restaurants, institutional caterers, and bulk meal providers. Its oxidative stability and high smoke point ensure that it is ideal for repeated-use applications, batch cooking, and deep-frying, which are of high relevance in high-volume kitchen applications.

Operators benefit from its neutral taste, which provides taste consistency for menu items. Bulk-packaged processed soybean oil also provides convenient storage and handling, with less downtime and spillage in food operations. Cost savings are still a key factor, where food buyers opt for soybean oil as a result of its price-performance advantage.

With changing nutritional standards, foodservice companies are shifting towards low-saturated-fat and trans-fat-free oils. Soybean oil fulfills those requirements while being compatible with menu transparency and health claims. With industry focus on operational efficiency and healthy reformulations, soybean oil continues to anchor institutional cooking strategies worldwide.

Competitive Analysis

Key players in the soybean oil industry include Adani Wilmar Ltd., Ruchi Soya Industries Ltd., Associated British Foods (ACH), Cargill Inc., Archer Daniels Midland Company, Bunge Limited, Adams Group Inc. (Adams Vegetable Oils), American Vegetable Oils, Inc., Wilmar International Limited, and Louis Dreyfus Company.

The industry is growing, driven by increased demand for plant-based, clean-label ingredients in both food and industrial applications. Players are streamlining supply chains, refining automation, and focusing on non-GMO, low-linolenic versions to meet changing consumer demands.

Integrated players for cost-effectiveness utilize vertical models, whereas international majors invest in sustainability and traceability. Technological advancements, strategic sourcing, and increasing focus on specialty formulations are determining competition, and there is a definite shift towards environmentally friendly and health-focused production practices.

Recent Development

• In May 2025, Resinall partnered with Azelis to introduce a soy-based alternative to tall oil fatty acid (TOFA), advancing sustainable solutions in specialty chemicals. This plant-derived innovation reduces reliance on fossil and pine-based resources, aligning with eco-conscious manufacturing goals while delivering comparable performance in lubricants, alkyd resins, and adhesives.

Fact.MR has provided detailed information about the price points of key manufacturers in the soybean oil market, positioned across regions, including sales growth, production capacity, and speculative technological expansion, in the recently published report.

Methodology and Industry Tracking Approach

Fact.MR’s 2025 analysis of the global soybean oil market is based on feedback from 14,300 participants across 42 countries, with each market contributing a minimum of 375 responses. Approximately 68 percent of respondents were end users or producers, such as food processors, oil refineries, and biofuel manufacturers. The remaining 32 percent consisted of industry stakeholders including traders, regulatory officials, and supply chain professionals.

The data was collected between June 2024 and May 2025, covering major aspects such as consumption patterns, production challenges, investment drivers, and sustainability trends. To ensure accuracy, findings were weighted according to regional market structures and demographic profiles.

More than 370 credible sources informed the analysis, ranging from scientific publications to financial disclosures. Statistical tools including risk modeling and regression analysis were used to generate reliable insights. Fact.MR has tracked this market since 2018.

Segmentation of Soybean Oil Market

• By Product Type :

  • Processed
  • Virgin
  • Blended

• By Application :

  • Cooking
  • Lubricants/ Paints
  • Biodiesel Production
  • Feed Ingredient
  • Cosmetic Base Oils
  • Others

• By End User :

  • Foodservice
  • Food Processor
  • Retail
  • Cosmetic & Personal Care
  • Biofuel Industry
  • Pharmaceuticals & Nutraceuticals

• By Distribution Channel :

  • Modern Trade
  • Franchise Outlets
  • Specialty Stores
  • Online

• By Region :

  • North America
  • Latin America
  • Western Europe
  • Eastern Europe
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa