Vegetable Oils Market

Vegetable Oils Market Outlook (2025 to 2035)

The global vegetable oils market is projected to be USD 128.3 billion in 2025, according to Fact.MR analysis, the industry will still develop at 5% CAGR and go beyond USD 209.2 billion by 2035. Growth is driven primarily by growing health awareness, changing dietary habits, and rising applications in food processing, cosmetics, and biofuels.

Consumer demand is moving towards healthier substitute oils, where olive, sunflower, and canola oils are capturing industry share due to their perceived benefit for heart health and lower levels of saturated fat. Urbanization, growing per capita consumption in developing economies, and increasing expansion of fast food chains have encouraged demand for refined vegetable oil.

Production is regionally concentrated, with Southeast Asia leading palm oil production and soybean and canola oils originating mostly from North and South America. Trade flows and government actions-biofuel blending requirements-are strongly affecting supply patterns also the price volatility. Deforestation and monoculture farming concerns are impacting buyer decisions, resulting in the development of RSPO-certified and eco-labeled oil products.

The key end-users are food producers and HORECA distribution channels, although demand is diversifying at an accelerating rate through industrial applications like lubricants and bioplastics. Growth is also being spurred by innovations in packaging, such as drip-free bottles and portion-controlled sachets, among consumers in the home.

Over the forecasting period, stakeholders will need to balance cost, health benefits, and environmental sustainability. Investment in sustainable sourcing, clear labeling, and state-of-the-art refining technology will frame competitive success and scale worldwide.

Key Metrics

Metrics	Values
Estimated Global Size in 2025	USD 128.3 billion
Projected Global Size in 2035	USD 209.2 billion
CAGR (2025 to 2035)	5%

Fact.MR Survey Results for Industry Dynamics Based on Stakeholder Perspectives

The vegetable oils market is undergoing a structural evolution shaped by health trends, sustainability demands, and technological modernization. According to recent stakeholder surveys, 80% of participants are prioritizing health-forward reformulations that reduce saturated fats and boost beneficial compounds such as omega-3s. Clean-label preferences are transforming sourcing strategies, with 75% of companies emphasizing traceability and third-party certifications, particularly for palm, soybean, and canola oils.

Technology adoption is accelerating as firms confront pricing pressure and regulatory complexity. Between 51% and 58% of stakeholders across key regions have adopted refining and traceability automation, with blockchain, AI-driven procurement planning, and automated bleaching systems now common across top-performing facilities. A full 73% of respondents cited direct margin improvements and risk mitigation benefits resulting from these technologies, especially in export-heavy industries and high-volume industrial supply chains.

However, volatility remains a key concern. Climate-driven crop failures, fluctuating tariffs, and geopolitical tensions are disrupting both upstream sourcing and downstream logistics. Regional disparities persist-Asia-Pacific grapples with palm oil logistics and export delays; Europe faces organic import certification bottlenecks; and North America contends with rising packaging and warehousing costs.

Future investment is increasingly segmented by industry needs: Asia-Pacific seeks to scale ethical palm sourcing; Europe is doubling down on organic, non-GMO oils; and North America is betting on niche functional products like avocado, flaxseed, and cold-pressed oils. To remain competitive, brands must integrate health, transparency, and adaptability into every layer of their supply chain and innovation roadmap.

Shifts in the Market from 2020 to 2024 and Future Trends 2025 to 2035

From 2020 to 2024, the vegetable oils market experienced remarkable growth owing to increasing demand for edible oils, biofuels, and industrial applications. The industry experienced a consumption boom, particularly for emerging economies, due to urbanization, increased disposable income, and changing eating habits. Industry dynamics were, however, disrupted by challenges such as unstable prices of raw materials, disrupted supply chains, and environmental concerns with palm oil production.

For the period 2025 to 2035, the vegetable oils market is expected to grow further. Improvement in agricultural practices, increased awareness of the health benefits of specific oils, and technological advances pertaining to oil extraction will be there. Growth expectations also come from further focus on sustainability and ethics-based sourcing techniques playing a role in consumer preference and industry best practices. Industry evolutions further will be shaped by regulatory policy, trade deals, and general economic conditions globally.

Comparative Market Shift Analysis (2020 to 2024 vs. 2025 to 2035)

2020 to 2024	2025 to 2035
Affordability, availability, and convenience	Health benefits, sustainability, and ethical sourcing
Traditional oils with high saturated fat content	Healthier alternatives with unsaturated fats and functional ingredients
Standard packaging with minimal concern for sustainability	Eco-friendly and innovative packaging solutions
Conventional extraction and refining technologies	Advanced extraction technologies and upgraded refining processes
Growth in emerging economies with urbanizing populations	Expansion in industrialized markets seeking premium and specialty oils
Medium intensity regulations with top priority given to food security and quality indices	Strong regulations with top priority accorded to environmental responsibility and ethical processes

Segment-wise Analysis

By Product

In 2025, palm oil is expected to dominate the vegetable oils market with a 35% share, followed by soybean oil with 28%.

Palm oil continues to be the major oil owing to its high yield, cost-effective production, and multipurpose applications both for food and non-food users across the globe. Palm oil is most widely used in cooking oils, processed foods, and baked goods, but it also serves a significant role in personal care products, soaps, and biofuels. The half-solid form at normal room temperature and comparatively long shelf life are attributes that attracted palm to manufacturers and food processors.

The dominance of these countries in the global production of palm oil provides one of the guarantees for supply security that made it a common item in the use of edible oils. Major companies such as Wilmar International, Sime Darby Plantations, and Golden Agri-Resources are among the leading innovators and sustainability actors in this segment about meeting increasing consumer demand for deforestation-free and ethically sourced palm oil.

As one of the commonly used cooking oils in households and food manufacturing industries alike, soybean oil is on target to command an industry share of around 28%. This edible oil contains a high quantity of polyunsaturated fats and is regarded as a heart-healthy option, being used to make salad dressings, margarine, and frying oils.

Increased awareness of plant-based lifestyles and, therefore, acceptance of foods with soybean protein have led to greater growth in the cultivation and processing of the soybean, which in turn stimulates higher production of soybean oil. The United States, Brazil, and Argentina are the leading producers. At the same time, the processing and distribution are dominated by companies like ADM (Archer Daniels Midland), Bunge Limited, and Cargill across the globe.

By Application

In 2025, food applications will dominate the vegetable oils market, providing 70% share of the entire industry, while industrial applications will represent 15% of the overall demand.

Oil for food remains the main segment in the industry because these oils are indispensable elements of daily diets and the production of foods around the world. They are used in many applications, including cooking, frying, baking, salad preparation, snacks, processed foods, margarines, and confectioneries. Population growth, rising disposable income, and massive shifts toward processed and convenience foods, especially in developing economies, are bringing more and more demand into this specific segment.

Health-conscious consumers are following this trend more by preferring oils perceived as beneficial to health, like canola, olive, and sunflower oils, hence increasing diversification in the food segment. Companies like Bunge Limited, Cargill, and Wilmar International prefer to focus on highly innovative and product-reformulated developments to serve to change nutritional preferences, such as trans-fat-free and high-oleic oil offerings.

The industrial part is representative of 15% of the industry used vegetable oils in the manufacturing of biofuels, biodiesel, lubricants, surfactants, paints, cosmetics, and other oleochemical derivatives. This industrially active segment is also supported by the sustainability goals and regulations for renewable raw materials and biodegradable raw materials, especially in the European Union and North America. Of all vegetable oils, palm oil serves as the most important feedstock for biodiesel production.

Soybean and rapeseed oils will still be used in non-food application sectors. Corporates like these are BASF, Evonik, and PTT Global Chemical, which are involved in extensive procurement and processing for industrial use and undertaking R&D to improve and sustain production efficiency and sustainability of bio-based chemicals.

Country-wise analysis

Countries	CAGR (2025 to 2035)
U.S.	4.9%
U.K.	4.2%
France	4%
Germany	4.3%
Italy	3.8%
South Korea	5%
Japan	4.1%
China	5.8%
Australia-New Zealand	4.4%

U.S.

The U.S. vegetable oils market will increase at 4.9% CAGR during the forecast period. Increasing demand for plant-based and heart-healthy diets is driving demand for a bountiful variety. People are shifting away from the traditional saturated fats and adopting oils such as canola, soybean, sunflower, and avocado, all of which are promoted based on their nutritional merits. Furthermore, heightened interest in experimenting with foods and foreign cuisine has expanded consumers' options for flavored and specialty vegetable oils.

Industry growth is further stimulated by food service operations and food packagers who use these oils for frying and baking and as a product ingredient for dressings, sauces, and snacks. Besides, health-driven labeling, such as non-GMO and organic certifications, also fuels consumer demand. With supermarkets and e-commerce platforms stocking a larger variety and the vegetarian trend not abating, the U.S. industry showcases high growth potential during the forecast period.

U.K.

The U.K. vegetable oils market will achieve a 4.2% CAGR during the study period. The U.K. industry is experiencing growing consumer demand driven by nutritional consciousness and the employment of Mediterranean-style diets. Olive, rapeseed, and sunflower oils are favored due to their heart-health benefits and broad usage opportunities in cooking.

Increasing demand for veganism and flexitarianism is also fueling this shift, as consumers seek plant-based alternatives across the board within their diets. Retailers are actively expanding vegetable oil offerings, with premium and cold-pressed options commanding shelf space. In addition, traceability and sustainability have emerged as critical factors, prompting brands to pursue transparent sourcing along with eco-friendly packaging. Hospitality, which relies heavily on vegetable oils to cook food, is also recovering slowly, contributing to the bulk demand increase. All of these combine to support solid industry growth in the U.K. vegetable oils market.

France

The French vegetable oils market is also predicted to experience a 4% CAGR during the study period. The country's traditional food culture has a strong impact on vegetable oil preferences, particularly grapeseed oil and olive oil. Traditional consumption continues to dominate, but health and environmental factors are driving buyers towards organic and unrefined oil options.

French consumers and food service outlets increasingly demand healthier options and specialty oils such as walnuts and flaxseed that are in sync with wellness trends. The manufacturers focus on origin labeling, quality certification, and sustainable production as a means to tap into the evolving requirements of ethically oriented consumers. Pivoting on local manufacturing and gourmet preparation, France's vegetable oils market will develop modestly but continuously.

Germany

The German vegetable oils market is projected to grow at 4.3% CAGR during the research period. Plant-based food trends, health awareness, and sustainability are driving the demand in Germany. Rapeseed and sunflower oils remain a mainstay in the kitchen. Still, consumer interest is expanding to include niche products such as hempseed and camelina oil due to their functional health benefits.

Health food stores and supermarkets are responding to consumer demand by carrying organic, cold-pressed, and fair-trade certified oils. German consumers are looking for products with clear ingredient labeling and environmental sustainability claims. Vegetarian and vegan trends and increasing interest in cardiovascular health are also driving the shift to plant-based oils. Thus, Germany's vegetable oils market is evolving further with a focus on quality, health, and ecological accountability.

Italy

The vegetable oils market of Italy would advance at 3.8% CAGR throughout the study period. Being a major producer and consumer of olive oil, Italy possesses a mature and quality-focused vegetable oils market. Demand for olive oil dominates, driven by strong cultural ties and health benefits associated with the Mediterranean diet.

However, rising demand for other vegetable oils, particularly in health-conscious and younger consumers, is gaining pace. The trend towards premiumization is witnessed, with growth in demand for extra virgin, organic, and regional oils. Export-oriented producers, gourmet stores, and food service outlets are driving innovation in the form of packaging and product stories. While industry maturity limits overall growth, diversification in non-traditional oils and export growth is expected to support segment development over the forecast period.

South Korea

South Korea's vegetable oils market is forecast to register a 5% CAGR throughout the forecast period. Urbanization, health awareness, and diversification in nutrition are major drivers for the increasing demand in South Korea. People are moving beyond conventional cooking oils and are switching towards grapeseed, perilla, and avocado oil due to their nutritional properties and versatility in cooking.

With the popularity of Western-style and fusion cuisine, domestic consumption of foreign and premium oils is on the rise. Consumers are adding more product offerings with a focus on cold-pressed and cholesterol-free products. Additionally, public health campaigns for cardiovascular diseases are promoting reduced consumption of saturated fats and increased consumption of polyunsaturated fats. The South Korean vegetable oils market is expected to continue with rapid growth driven by innovation and informed consumer buying decisions.

Japan

The Japanese vegetable oils market is expected to register a 4.1% CAGR during the study period. Due to growing health awareness among the Japanese populace, there is a growing demand for these oils that are nutritionally superior. Traditionally dominated by soybean and canola oil, the industry is now opening to include the addition of omega-3 and vitamin E-enriched oils such as rice bran, sesame, and flaxseed oil.

Foodservice outlets and retailers are increasingly buying additive-free and preservative-free oils, often promoting natural and lightly processed qualities. Japanese cuisine culture is based on clean eating and longevity, and it also encourages the consumption of quality oils in everyday cooking. Since there is a constant demand for quality rather than quantity, the Japanese vegetable oils market is expected to experience steady, demand-driven growth.

China

The Chinese vegetable oils market will grow at 5.8% CAGR over the forecast period. The growth in the middle-class population, urbanization, and emerging diet trends are fueling the demand in China substantially. Consumers are relocating from traditional lard and animal fats to plant oils due to health concerns and global nutrition challenges. Soybean, peanut, sunflower, and, most notably, corn and avocado oil are some popular oils.

Government public health initiatives and food dietary guidelines are encouraging the use of unsaturated fats, favoring consumer preference for vegetable oils. Domestic and international brands are fiercely competing, with priority accorded to quality control and product differentiation. Internet channels are a key driver for industry penetration, particularly of premium and imported products. With increasing awareness relating to diet and disease, the Chinese vegetable oils market will continue to enjoy strong momentum in growth.

Australia-New Zealand

The Australia and New Zealand vegetable oils markets are expected to grow at 4.4% CAGR through the forecast period. High consumer attitudes towards nutrition and preference for locally sourced, sustainable food products are the major growth drivers of vegetable oils in the region. Olive oil is still dominating the industry in household usage, but other oils such as macadamia, avocado, and flaxseed are emerging popular due to perceived health benefits.

Health stores and retailers feature a broader range of oils, frequently certified in organic farming and non-GMOs. Culinary trends supporting gourmet cooking and natural ingredients also support premiumization in the oil segment. Food processors are incorporating vegetable oils into a range of health-focused ready meals and snacks. As consumers increasingly value transparency, origin, and wellness, the region's vegetable oils market will grow steadily over the forecast period.

Competitive Outlook

The vegetable oils industry remains one of the most competitive areas of the international food industry, with high-volume operations and thin profit margins. Firms are competing aggressively on efficiency, cost control, and strength in global sourcing. Diversification into specialty oils and functional blends has become increasingly competitive as firms respond to health-conscious consumer trends and commodity price fluctuations.

Bunge Limited, Cargill, and Wilmar International Ltd. are the industry leaders in this space with vertically integrated supply chains that run from raw seed procurement to end-product distribution. They benefit from global scale and processing capacity, enabling them to react to both bulk industrial buyers and retail demand. Louis Dreyfus Company BV and Incorporated are also significant contributors based on regional depth and strong trading capability.

Technological innovations such as enzymatic interesterification and green refining processes are changing product lines. Industry leaders are investing in traceability technologies and sustainability certifications to meet regulatory demands and corporate responsibility norms. Non-GMO, cold-pressed, and fortified types of oils are gaining traction among health-conscious industry segments.

Strategic industry efforts include expansions at plants, joint ventures in expanding economies, and acquisitions of specialty oil producers. These actions will diversify product offerings and deepen penetration in expansion industries, particularly in the Asia-Pacific region, where urbanization and growing disposable incomes drive demand for premium edible oils.

Market Share Analysis by Company

Company Name	Estimated Market Share (%)
Cargill	18-21%
Wilmar International Ltd.	15-18%
Bunge Limited	13-16%
Louis Dreyfus Company BV	8-10%
Incorporated	5-7%
Other Companies Combined	29-41%

Key Company Insights

Cargill (18-21%)

Cargill leads the industry through scale and innovation, offering a wide range of edible oils while investing heavily in sustainable sourcing and food technology.

Wilmar International Ltd. (15-18%)

Wilmar capitalizes on an extensive plantation and processing infrastructure, catering to fast-growing industries with competitive pricing and product variety.

Bunge Limited (13-16%)

Bunge emphasizes sustainability and technical processing expertise, supporting its leadership in canola and sunflower oil across developed and emerging industries.

Louis Dreyfus Company BV (8-10%)

Louis Dreyfus leverages global trading acumen, balancing commodity risk while expanding refined oil offerings and contract logistics capabilities.

Incorporated (5-7%)

Incorporated grows by serving private-label clients and mid-scale processors, with a flexible model and regional blending facilities to meet custom requirements.

Key Market Players

• Cargill
• Wilmar International Ltd.
• Bunge Limited
• Louis Dreyfus Company BV
• Incorporated
• Archer Daniels Midland
• Adani Wilmar
• IOI Corporation
• Ruchi Soya
• Marico
• ConAgra
• Regional edible oil processors and private-label brands

Segmentation

• By Processing Method :

  • Mechanical
  • Hydrogenation
  • Other Processing Methods

• By Product :

  • Palm
  • Soybean
  • Canola
  • Sunflower & Safflower
  • Other Products

• By Application :

  • Food
  • Industrial
  • Biofuel

• By Region :

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa