United States Fats and Oils Industry Analysis

Fats and Oils Industry Analysis in the United States 2025 to 2035

The fats and oils industry in the United States is projected to grow from USD 18.9 billion in 2025 to approximately USD 22.5 billion by 2035, recording an absolute increase of USD 3.6 billion over the forecast period. This translates into total growth of 19.0%, with demand forecast to expand at a compound annual growth rate (CAGR) of 1.8% between 2025 and 2035.

Overall sales are expected to grow by nearly 1.19X during the same period, supported by steady food processing expansion, increasing industrial applications, and growing demand for sustainable oil solutions across cooking and manufacturing applications. The United States, characterized by substantial agricultural infrastructure and mature food processing systems, continues to demonstrate steady growth potential driven by population growth and industrial diversification.

Quick Stats about the United States Fats and Oils Industry

• United States Fats and Oils Sales Value (2025): USD 18.9 billion
• United States Fats and Oils Forecast Value (2035): USD 22.5 billion
• United States Fats and Oils Forecast CAGR: 1.8%
• Leading Type in United States Fats and Oils Demand: Vegetable Oils (78.3%)
• Key Growth Regions in United States Fats and Oils Demand: West, Northeast, Midwest, and South
• Regional Leadership: West holds the leading position in demand
• Top Key Players in United States Fats and Oils Demand: Cargill Inc., Archer-Daniels-Midland Company, Bunge Limited, Louis Dreyfus Company, Tyson Foods Inc.

Between 2025 and 2030, sales of fats and oils in the United States are projected to expand from USD 18.9 billion to USD 20.7 billion, resulting in a value increase of USD 1.8 billion, which represents 50.0% of the total forecast growth for the decade. This phase of growth will be shaped by steady food processing expansion across the United States, particularly in regions where cooking oil consumption and industrial applications are sustaining fats and oils adoption.

Increasing deployment of sustainable oil technologies and growing adoption of specialty formulations continue to drive demand. Food processing companies are maintaining their oil ingredient capabilities to address the consistent requirements of modern food production and industrial challenges, with operations continuing investments in established oil processing systems.

From 2030 to 2035, demand is forecast to grow from USD 20.7 billion to USD 22.5 billion, adding another USD 1.8 billion, which constitutes 50.0% of the overall ten-year expansion. This period is expected to be characterized by maintenance of industrial applications, integration of sustainable processing infrastructure, and development of specialized applications across different manufacturing operations. The steady adoption of sustainable agriculture principles and enhanced quality requirements, particularly in West and Northeast regions, will drive demand for more efficient processing systems and specialized oil capabilities.

Between 2020 and 2025, United States fats and oils demand experienced steady expansion, driven by consistent food processing consumption in manufacturing sectors and stable demand for cooking applications for meal preparation and industrial processing. The industry developed as food manufacturers and industrial suppliers, especially in major processing corridors, maintained the need for reliable oil sources and established supply solutions to meet production expectations while maintaining cost effectiveness and processing efficiency. Processors and distributors continued emphasizing proper sourcing techniques and quality optimization to maintain product consistency and commercial viability.

United States Fats and Oils Industry Key Takeaways

Metric	Value
United States Fats and Oils Sales Value (2025)	USD 18.9 billion
United States Fats and Oils Forecast Value (2035)	USD 22.5 billion
United States Fats and Oils Forecast CAGR (2025-2035)	1.8%

Why are Sales of Fats and Oils Growing in the United States?

Demand expansion is being supported by the steady emphasis on food processing consistency and industrial applications nationwide, with the United States maintaining its position as a food processing stability and agricultural commodity leadership region, and the corresponding need for effective oil systems for cooking applications, industrial processing, and manufacturing reliability toward consistent food production.

Modern food processing strategies rely on fats and oils to ensure cooking performance, processing efficiency, and optimal cost achievement toward competitive manufacturing operations. Food production requires comprehensive oil solutions including vegetable oils, animal fats, and specialized applications to address diverse processing applications and industrial requirements.

The steady demand for food processing and consistent industrial application adoption, particularly reliable supply commitments across the United States, are driving demand for fats and oils products from proven agricultural suppliers with appropriate processing expertise and supply capabilities.

Food manufacturers and industrial professionals are consistently investing in established oil solutions and integrated supply management systems to maintain production reliability, access cost stability, and demonstrate operational consistency in competitive food processing environments.

Processing trends and industrial requirements are maintaining standardized oil expectations that require processing technologies and proper storage, with United States food operations continuing large-scale implementation of established oil systems.

Segmental Analysis

The industry is segmented by type, application, source, and end-user. By type, the landscape is divided into vegetable oils and animal fats. By application, it is segmented into food processing, industrial uses, and biodiesel.

By source, the landscape is divided into soybean oil, corn oil, canola oil, and others. By end-user, the industry includes food manufacturers, restaurants, and households. Regionally, the West represents a key growth and innovation hub for fats and oils.

Which Fats and Oils Type Dominates in the United States?

Vegetable fats and oils are projected to account for 78.3% of demand in 2025 in the United States. This dominance reflects the versatile processing applications of vegetable oils in food processes where their cooking properties provide optimal performance characteristics and processing benefits.

In the United States, where diverse food processing operations require reliable oil sources without complete recipe modification, vegetable oils provide practical solutions for cooking enhancement while maintaining processing efficiency.

Continuous improvements are maintaining vegetable oil quality, processing consistency, and application reliability characteristics, enabling food manufacturers to achieve consistent production standards while minimizing processing variation penalties. The segment's strong position is reinforced by the extensive culinary landscape requiring reliable supply and established availability of processing suppliers with proven food processing experience.

• Processing versatility and cooking reliability make vegetable oils the preferred oil type for diverse food applications and industrial processing consumption.
• Processing maturity and commercial availability track records are maintaining manufacturer confidence and sourcing reliability across large-scale food distribution initiatives.

By Application, Which Category will Dominate in the United States Fats and Oils Landscape?

Food processing applications are expected to represent 64.2% of United States fats and oils demand in 2025, highlighting the critical importance of manufacturing operations requiring consistent oil solutions. Food processing facilities including packaged food production, prepared meal manufacturing, and commercial cooking provide concentrated oil consumption that is technically and economically favorable for processing applications.

The segment benefits from production scale characteristics that often provide consistent volume efficiency compared to other channels, maintaining processing complexity and costs. Food processing applications also access established manufacturing positioning through oil integration that maintain production economics and processing optimization.

In the United States, where food processing represents substantial portions of total oil consumption, food processing channels require fats and oils availability across diverse manufacturing operations. In Midwest and South regions, where food processing concentrations are significant, food processing demand is sustained by emphasis on maintaining production quality while achieving manufacturing efficiency targets.

• Manufacturing scale and processing integration make this the largest application segment for fats and oils consumption.
• Food processing consistency and production optimization drive sustained demand across packaged food manufacturing, prepared food production, and commercial cooking facilities.

What are the Drivers, Restraints, and Key Trends in the United States Fats and Oils Landscape?

The United States fats and oils industry is advancing steadily due to consistent food processing requirements and stable recognition of oil necessity for production maintenance, with West region serving as a key driver of sustainability innovation and quality product development.

The industry also challenges including commodity price volatility from global supply fluctuations, need for sustainable sourcing infrastructure development, and ongoing concerns regarding health consciousness and dietary preferences. Processing trends and industrial requirements, particularly efficiency-focused operations in Midwest and South regions, continue to influence oil selection and processing patterns.

Expansion of Sustainable Sourcing and Processing Technologies

The enhancement of sustainable processing methods, gaining particular significance through environmental stewardship initiatives and responsible sourcing preferences, is enabling oil processors to maintain quality positioning without prohibitive processing costs, providing stable revenue streams through sustainability certifications and responsible product development.

Enhanced sustainable processing methods offering consistent quality standards and environmental stewardship profiles provide foundational economics while allowing processors to secure food processing agreements and sustainability partnerships. These approaches are particularly valuable for responsible sourcing projects and quality certification development that require substantial supply chain investments without immediate premium returns.

Integration of Specialty Applications and Industrial Diversification

Modern oil processors and industrial manufacturers are maintaining specialty processing systems and diversified applications that support industrial outcomes through innovation sharing and application awareness. Integration of biodiesel processing methods, industrial applications, and coordinated diversification enables more efficient oil management across multiple industrial segments.

Advanced diversification concepts also support established oil processing including sustainable applications, regional processing integration, and coordinated industrial networks that optimize system-level efficiency while enabling comprehensive application maintenance across oil regions, with United States developments continuing adopting established diversification models to maintain individual processor costs and continue industrial adoption.

Analysis of the Fats and Oils Demand in the United States by Key Regions

Region	CAGR (2025-2035)
West	2.1%
Northeast	1.9%
Midwest	1.6%
South	1.5%

The United States fats and oils industry is witnessing steady growth, supported by consistent food processing, stable industrial applications, and the maintenance of established processing technologies across regions. West leads the nation with a 2.1% CAGR, reflecting progressive processing operations, substantial sustainability adoption, and continued implementation of quality processing technologies.

The Northeast follows with a 1.9% CAGR, driven by established food culture, mature processing infrastructure, and concentration of food processing expertise that maintain distribution. The Midwest grows at 1.6%, as food processing operations and agricultural capabilities continue to drive consumption. South demonstrates growth at 1.5%, supported by maintaining food processing infrastructure and industrial applications.

West Leads National Growth with Innovation and Sustainability Focus

Demand for fats and oils in the West is projected to exhibit steady growth with a CAGR of 2.1% through 2035, driven by progressive processing operations, substantial sustainability integration maintaining quality oil demand, and concentration of processing innovation across California and surrounding states.

As the dominant region with extensive established food processing infrastructure and sustainability expertise, West's emphasis on sustainable sourcing and quality processing is maintaining significant demand for established fats and oils varieties with proven processing standards and sustainability potential.

Major food processing companies and oil ingredient distributors are maintaining comprehensive sourcing programs to support quality ingredient development and sustainability certification across diverse applications.

• Processing innovation and sustainability advancement are maintaining comprehensive quality oil strategies and sustainable sourcing methods, supporting demand for fats and oils varieties with demonstrated quality benefits and sustainability integration capabilities throughout sustainability-focused food processing operations.
• Innovation ecosystem strength and quality oil availability are supporting maintenance of established oil varieties and processing pathways that maintain oil differentiation, continue processing costs, and sustain established opportunities across food processing and quality processing applications, positioning West as a national processing leadership region.

Northeast Demonstrates Strong Potential with Established Food Culture

Demand for fats and oils in the Northeast is expanding at a CAGR of 1.9%, supported by established food culture including traditional food processing, established restaurants, and food processing companies generating consistent oil consumption streams favorable for established distribution.

The region's processing characteristics, featuring mature food sophistication and established oil preferences, provide natural advantages for consistent consumption development. Food and processing expertise concentrated in New York, Pennsylvania, and northeastern states facilitates oil management and distribution operations. Established food companies and processing organizations are implementing consistent supply chain strategies to serve stable food processing requirements throughout Northeast.

• Food sophistication and established oil economics are creating opportunities for consistent processing operations that can integrate fats and oils products with existing established food infrastructure and leverage proximity to food professionals across established food processing and traditional restaurant complexes.
• Established food synergies and oil capacity are building regional competitive advantages in mature food infrastructure, enabling comprehensive established oil network development and food cluster maintenance that meets established food targets while accessing established-focused distribution systems.

Midwest Maintains Robust Growth with Agricultural Processing Focus

Demand for fats and oils in Midwest is growing at a CAGR of 1.6%, driven by substantial agricultural processing capacity from manufacturing operations, commodity processing facilities, and agricultural networks requiring consistent supply pathways.

The region's processing base, supporting critical agricultural processing output, is consistently adopting established oil technologies to maintain competitiveness while meeting processing expectations. Processing operators and oil companies are investing in oil system maintenance and regional storage infrastructure to address consistent processing requirements.

• Processing capabilities and agricultural competitiveness concerns are facilitating maintenance of established oil technologies that enable continued agricultural processing operations while achieving consistency improvements across commodity processing and agricultural processing facilities.
• Agricultural processing opportunities including commodity supply and processing distribution are creating consistent regional advantages and established oil types throughout Midwest agricultural operations.

South Shows Progressive Adoption with Industrial Processing Development

Demand for fats and oils in the South is advancing at a CAGR of 1.5%, supported by industrial processing development, regional processing traditions including participation in agricultural processing programs, and consistent emphasis on processing efficiency across the corridor.

Processing transformation and industrial facility maintenance are driving consideration of established oils as processing pathways. Processing operators and oil suppliers are developing regional capabilities to support consistent efficiency-focused requirements.

• Processing development and oil preferences are creating economic drivers for efficiency maintenance technologies and fats and oils deployment across processing facilities and manufacturers seeking consistency pathways.
• Regional processing cooperation and coordinated distribution frameworks are establishing consistent processing environments and shared oil infrastructure development that support cross-state fats and oils distribution throughout South processing operations.

Competitive Landscape of the United States Fats and Oils Ecosystem

The United States fats and oils industry is defined by competition among integrated agricultural companies, established commodity processors, and supply organizations, with major agricultural corporations maintaining significant influence through processing capacity and supply expertise.

Companies are investing in processing technology maintenance, product quality characterization, supply reliability structures, and comprehensive agricultural services to deliver effective, reliable, and consistent fats and oils solutions across United States food processing and industrial operations.

Strategic partnerships, regional processing development, and established processing practices are central to maintaining competitive positioning and presence across food manufacturing, industrial transformation, and established processing applications.

Cargill Inc., a globally based agricultural processing and commodity leader, offers comprehensive fats and oils production including processing maintenance, quality management, and distribution services with focus on food processing applications, supply reliability, and cost optimization across the United States.

Archer-Daniels-Midland Company, operating internationally with extensive United States distribution, provides integrated agricultural solutions leveraging processing expertise, commodity development, and large-scale manufacturing capabilities.

Bunge Limited delivers full-service commodity processing including quality innovation, supply management, and supply chain coordination serving United States and international food processing projects.

Louis Dreyfus Company emphasizes comprehensive commodity solutions with established processing, supply innovation, and distribution capabilities leveraging agricultural expertise. Tyson Foods Inc. offers specialized commodity processing and established food operations for food manufacturing and industrial applications across United States operations.

Key Players in the United States Fats and Oils Industry

• Cargill Incorporated
• Archer-Daniels-Midland Company
• Bunge Limited
• Louis Dreyfus Company B.V.
• Tyson Foods Incorporated
• Wilmar International Limited
• Associated British Foods Public Limited Company (plc)
• Conagra Brands Incorporated
• Richardson International Limited

Scope of the Report

Item	Value
Quantitative Units	USD 22.5 Billion
Type	Vegetable oils, animal fats
Application	Food processing, industrial uses, biodiesel
Source	Soybean oil, corn oil, canola oil, others
End-User	Food manufacturers, restaurants, households
Regions Covered	West, Midwest, Northeast, South
Key Companies Profiled	Cargill Inc., Archer-Daniels-Midland Company, Bunge Limited, Louis Dreyfus Company, Tyson Foods Inc., Wilmar International Limited, Associated British Foods plc, Conagra Brands Inc., Richardson International Limited
Additional Attributes	Sales by type and application segment, regional demand trends across West, Northeast, Midwest, and South, competitive landscape with established agricultural companies and specialized commodity processors, processing preferences for vegetable oils versus animal fats, integration with sustainable sourcing programs and processing efficiency particularly prominent in West region, innovations in processing consistency and quality maintenance, and adoption of established processing models, sustainable sourcing structures, and comprehensive supply chain solutions for enhanced consistency and commercial viability across food processing, industrial applications, and specialty uses throughout United States processing initiatives

United States Fats and Oils Demand by Segments

• Type :

  • Vegetable Oils
  • Animal Fats

• Application :

  • Food Processing
  • Industrial Uses
  • Biodiesel

• Source :

  • Soybean Oil
  • Corn Oil
  • Canola Oil
  • Others

• End-User :

  • Food Manufacturers
  • Restaurants
  • Households

• Region :

  • West
  • Northeast
  • Midwest
  • South