Vegetable Oil Market Size, Share, Growth, Report 2025 to 2034

Vegetable Oil Market Size and Growth 2025 to 2034

The global vegetable oil market size was valued at USD 396.92 billion in 2024 and is expected to be worth around USD 734.83 billion by 2034, growing at a compound annual growth rate (CAGR) of 6.35% from 2025 to 2034.

Vegetable oils are oils that are obtained from plant material, usually seeds, nuts, or fruits. Common vegetable oils include soybean, sunflower, olive, palm and canola oil. Vegetable oils do not have a strong flavor at any given temperature and they also have a very high smoke point. For this reason, and because they are inexpensive to produce and easy to store and transport, vegetable oils are most commonly used in cooking and frying. Vegetable oils find use in manufacturing in the production of lotions, soaps, topical creams, pharmaceuticals and biofuels. They contain unsaturated fats and are a healthier alternative to animal fats. When consumed in moderation, vegetable oils can reduce the risk of heart disease.

Report Highlights

• The Asia-Pacific region has accounted for highest revenue share of 54.24% in 2024.
• The Europe has generated revenue share of around 23.15% in 2024.
• By type, the palm oil segment has generated revenue share of 34.20% in 2024.
• By application, the food segment has captured revenue share of 63.19% in 2024.
• By distribution channel, the B2B segment has garnered revenue share of 59.40% in 2024.

Vegetable Oil Market Growth Factors

• Demand-growth of plant-based foods: Consumer awareness of health and environmental issues has given rise to a shift towards plant-based diets. This shift is propelling the demand for vegetable oils-the key ingredient for plant-based alternatives to animal products. Depending on the midday snacks or oils promoted for heart health and other health benefits, the oils most commonly offered are Olive oil, Soybean oil, and Canola oil. This trend is intensified among the developed countries, where vegetarianism and flexitarianism are quite in vogue.
• Urbanization and change of consumer lifestyles: Urban population growth worldwide is to all effect an introduction to a change in mindsets according to which many people now turn to easy processed and ready-to-eat foods with a prevalent demand nowadays for vegetable oils during their preparation. Urban consumers would often earn more disposable income and have less time to cook from scratch, hence leading to increased fast food and packaged products. This change has been more favorable for the increased demand for vegetable oil, increasingly in the fast-growing urban centers of developing countries.
• Growing disposable income: As economies in regions such as Asia and Latin America progress, disposable incomes are rising and so is their expenditure on food and cooking oils. As consumers enter the middle class, they shift towards diets that utilize a greater quantity of refined oils. Higher incomes enable the consumer to opt for oils of higher quality and variety, stimulating the growth of the premium segment such as cold-pressed or extra virgin oils.
• Expansion due to the booming food processing industry: The need for ready-to-eat and packed food will visa versa become a great catalyst for vegetable oils and food processing. Vegetable oils are among the most important ingredients in frying, baking, and preserving foods. An industrial boom through this expansion is going particularly strong for palm oil, sunflower oil, and soybean oil.
• Innovations in oil extraction technology: The introduction of advanced technologies in oil extraction, such as cold pressing and improved refining methods, has brought about efficient and more sustainable production. Such innovations have improved oil yield from oilseeds and enhanced the product quality by ensuring the retention of nutritional value. The uptake of such green technologies and energy-efficient technologies meets consumers' rising demand for eco-friendly products, thus furthering growth in the vegetable oil market.

Vegetable Oil Market Trends

• Changing preference to the healthy oils: Consumers are opting for oils with high unsaturated fat contents-such as olive and avocado oils-which have gained acceptance among health-conscious buyers. In contrast to saturated fats in palm or coconut oils, they are considered healthier options. Such a movement has an implication for dietary change directed toward cardiovascular health, weight management, and anti-inflammatory properties-something which is likely to have its influence on the worldwide vegetable oil market.
• Organic and non-GMO oils: A growing awareness of health and environmental sustainability has sparked an upward trend in organic and non-GMO oils. Unlike their counterparts, which are produced using synthetic pesticides and fertilizers, organic oils are grown without them, with non-GMO oils showing no genetic alteration at all. The fact that organic oils are currently making great strides in attracting attention among potential consumers in North America and Europe, where the popularity of organic food is at a continuous rise, further adds to the desirability of minimally processed oils.
• Specialty oils on the rise: Specialty oils like grapeseed, chia seed, and flaxseed are gaining more popularity on account of their fairly high omega-3 content and other health benefits. The oils find extensive applications in functional foods or dietary supplements that address specific consumer health issues, such as those with cholesterol-related health, weight loss, and those dealing with joint health. Such demand is growing, especially among health-minded consumers seeking varieties beyond the traditional oils.
• Expansion in food services: An extensive number of food processing establishments like restaurants, hotels, and catering services create a substantial amount of demand within the vegetable oil industry. The growth of this sector has increased demand for cooking oils in frying, baking, and food preparation, where regions like Asia-Pacific are involved. As trends in more people eating out develop, there is a steady demand for bulk oil supply.
• Rise in demand for cold-pressed oils: Minimally processed and retaining the majority of nutrients found in the seeds, cold-pressed oils are gaining popularity among health-conscious consumers. These oils are deemed to be more natural and nutritious, containing more antioxidants and vitamins than solvent-refined oils. This is especially noticeable in steadily developed regions- North America and Europe- where consumers are willing to pay high prices for healthier options.
• Market penetration by private label products: Supermarkets and retailers are expanding their offer of private-label vegetable oils, creating rival products in direct competition with already-existing brands. Private label offers are often an inexpensive alternative that attracts price-sensitive consumers, especially in times of economic downturn. The establishment of this pattern extends to both developed and developing regions, whereby their retailers seek to shape the marketplace by meeting consumer needs with diversified oil products offered at a reasonable price.

Report Scope

Vegetable Oil Market Dynamics

Drivers

• Rising consumption of food: The increase in food consumption is a major propeller of the vegetable oil market because oils play a unique and very critical role in everyday cooking, food preparation, food processing and in other aspects of food market aspects. With the world booming with increased growth in populations, demand for food is bound to increase with edible oil consumption propounding. Vegetable oils find extensive usage in many cooking methods ranging from frying to baking, as a very important staple in household and commercial kitchens alike.
• Advancements in technology: Besides food, edible oils are instrumental in many non-food sectors like beauty and healthcare, and the energy sector focusing on biomass conversion. In the cosmetic sector, they are used mainly to keep the skin moist while in the drug industry they serve as a medium in drug distribution. In addition, the increasing demand for biofuel, which is mainly fueled by sustainability objective, uses oils like palm and soybean to provide pulp material thus fuelling the growth of the industry.
• Biofuel demand: The vegetable oil market has stemmed from a profound need for coordinations of vegetable oil with biofuels, as there has been great optimism worldwide regarding the switch to renewable energy. Biodiesel, made using palm and soybean oil, thus becomes a substantial asset for the comparative and competitive bandwagon against fossil fuels. Government enaction and provision across the regions for a cleaner energy solution have insisted upon the overriding demand for vegetable oils for inclusion in biodiesel production.
• Health-conscious consumers: A further transformation in what health-conscious consumers perceive as edible is taking place. Olive, canola, and sunflower oil are among the some of the healthier oils. These oils, considered as generally high in unsaturated fats and contain a low amount of cholesterol, fit very well into heart-conscious and weight-conscious programs. With the increased awareness in nutrition and health among consumers, oils that provide cardiovascular benefits and reduce inflammation are on the rise, thereby spurring certain vegetable oil segments.
• Growth of urbanization and the growing middle class: With the urban migration, the preference shifted towards processed and convenience foods entailing higher per capita consumption of vegetable oils. Apart from that, with an emerging middle class in the plural continents such as the Asia-Pacific and Africa, greater demand for oil quality and variety is giving further stimulus to the market growth.

Restraints

• Environmental issues: All along, the vegetable oil space has grappled with major environmental ones, especially in the palm oil sector. The expansion of palm oil plantations-is not without serious concerns-over deforestation, habitat destruction, and loss of biodiversity, especially in countries such as Indonesia and Malaysia. Growing traffic on these tracks has manifested itself in mounting criticism from environmental groups and consumers, thereby placing pressure on the shoulders of the companies to embrace more sustainable sourcing.
• Health concerns related to some oils: The oils that are rich in saturated fats are coming increasingly under fire for heart problems, especially palm and coconut. With their growing attention to good health, the consumers want to steer away from these oils in favor of some oils such as olive or canola oil. This change on the part of the consumers could prove difficult for the producers of oils high in saturated fats in terms of market demand.
• Competition from synthetic oils: The competition between the rising synthetic and alternative oils, such as lab-grown or plant-based oils, and traditional vegetable oils becomes apparent-face to face. These alternatives, in most cases, are marketed as being friendly to the environment and healthier, and this might really affect the demand for conventional oils. If the technology progresses and this accessibility and competitiveness begin to become real, the synthetic oils could prove a major constraint in the market.

Challenges

• Sustainability and deforestation hurdles: The realization of sustainable production, notably with palm oil, remains one of the most daunting hurdles in vegetable oil markets. Deforestation has marginally added to it alongside some other problems being faced by the major players; for instance, South-east Asian deforestation has raised demands on environmental NGOs and consumers alike. Firms should find relationships that counter the environmental concerns and maintain consumer trust by adopting responsible sourcing and certified measures such as RSPO (Roundtable on Sustainable Palm Oil).
• Technological advancement: Pulling up with improvements surrounding oil extraction and refining technology cannot be underestimated in competitive settings. Better processing can maximize the oil yield and improve the oil quality; however, it entails a good deal of investment in research and development. To dwell more on product and efficiency, innovations bring two challenges in an increasingly competitive market-by the time they reach the market, it's already an outdated approach.
• Consumer awareness of health: As consumers become educated and informed about the health implications of oils, alternative searches for healthful oils are increasing. Oils containing trans and saturated fats-such as palm oil-are yielding to lesser marketed oils-olive oil, canola oil-in the face of health-conscious consumers. Meeting rising demand against maintaining profitability is a great challenge that such companies are felled by traditional users of oils.

Vegetable Oil Market Segmental Analysis

The vegetable oil market is segmented into type, application, distribution type and region. Based on type, the market is classified into palm oil, soybean oil, rapeseed oil, sunflower oil, others. Based on application, the market is classified into food, feed and industrial. Based on distribution type, the market is classified into B2B and B2C.

By Type

Palm Oil: The palm oil segment has dominated the market in 2024. Palm oil is regarded as the world's most-produced and consumed vegetable oil, due to its multiple uses and high-yield production. The food industry uses it on a grand scale as margarine, cooking oil, and in processed foods and personal care products as well as biodiesel. Sources for palm oil are heavily from Indonesia and Malaysia, accounting very largely for the world market. Environmental issues related to deforestation and sustainability issues have influenced economics for the palm oil market.

Soybean Oil: Soybean oil is heart-healthy, light, versatile, and easy to use in cooking. It finds usage in salad dressings, frying oils, and in processed foods. Major sources of soybean oil production include North American and South American countries such as the U.S. and Brazil. As global hydrocarbon reserves become extremely low, it's increasingly growing into other uses, such as in biodiesel.

Rapeseed Oil: Rapeseed oil, or canola oil in one of its low-erucic-acid variants, is valued for having less saturated fat and a higher proportion of omega-3 fats. It has an important usage in cooking and food manufacturing owing to its neutral flavor and health benefits. In rapeseed oil production, Europe accounts for a large area of cultivation; it is grown for both food and industrial applications, including the production of biodiesel.

Sunflower Oil: Sunflower oil is rated to have a very light taste to it, plus a lot of vitamin E content, making it widely used in cooking, mostly by frying and baking. Countries like Ukraine and Russia extensively produce it and rule the globe's supply. Sunflower oil usage is also progressing toward markets in health-consciousness, because compared to palm or coconut oils it contains lesser amounts of saturated fats.

By Application

Food: The food sector-that is, mostly frying, baking, and ingredient-based-vigourously drives the market for the vegetable oils sector. Palm, sunflower, and soybean oils hold the prime position due to their cooking versatility. Innovations in this direction have been in response to the escalating calls for healthy oils or plant-based diets, because of rising requests for unsaturated fatty acid-rich oils. Nevertheless, the population growth and urbanization will provide base fuels for the application growth.

Feed: The incorporation of vegetable oils into animal feed formulation, especially in poultry and swine, is as sources of energy and essential fatty acids. Soy and palm oil are commonly used animal feed ingredients. The increasing demand for quality animal feed has been driven by growing global meat consumption, and vegetable oils are a critical component in this respect. This will gew further, as more and more livestock farmers try to enhance feed efficiency and improve the health of their animals through balanced diets.

Vegetable Oil Market Revenue Share, By Application, 2024 (%)

Industrial: Besides, the other uses of vegetable oils-for example, the biofuels, lubricants, cosmetics, and pharmaceuticals-are also taking their blocks of instructions from the industrial sector. High demands for renewable energy sources, driven by the growth of biodiesel, led to a rapid resurgence in the use of oils such as palm and soybean. More so, vegetable oils are increasingly taking the place of petroleum-derived products in lubricants and cosmetics with globally sustainable trends. This segment continues to grow with governmental support from the green industry and environmentally friendly products and markets.

Vegetable Oil Market Regional Analysis

The vegetable oil market is segmented into several key regions: North America, Europe, Asia-Pacific, and LAMEA (Latin America, Middle East, and Africa). The Asia-Pacific region has dominated the market in 2024.

What makes Asia-Pacific the leader in the vegetable oil market?

The Asia-Pacific vegetable oil market size was accounted for USD 215.29 billion in 2024 and is predicted to surpass around USD 398.57 billion by 2034. Asia-Pacific still accounts for the largest share of vegetable oil consumption, with China, India, Indonesia, and Malaysia being the key consumers. Palm oil production in Indonesia and Malaysia makes up most of the global supply while China and India are huge consumers of soyabean and palm oils both for food and industrial uses. The population increase, the disposable income increase, and the need for processed foods are the major growth drivers. Improving biodiesel production in this region is another area in which the vegetable oil market will grow.

What are the driving factors of North America vegetable oil market?

The North America vegetable oil market size was valued at USD 67.99 billion in 2024 and is expected to reach around USD 125.88 billion by 2034. North America witnesses a genuine demand boom headed by plant-based products and biofuels. The U.S. and Canada are the main maize-reliant producers, with the bulk of production from soybean oil. Health concerns of a burgeoning consumer base-and a preference for non-GMO and organic oils-define market trends. U.S. biofuel policies seem to promote a realization of higher vegetable oil production in favor of biodiesel, usually based on soy oil, giving North America an edge in the global market.

Why is the Europe vegetable oil market experiencing significant growth?

The Europe vegetable oil market size was estimated at USD 91.89 billion in 2024 and is projected to hit around USD 170.11 billion by 2034. Europe is a significant market for vegetable oils, being mainly rapeseed oils and sunflower oils. The region emphasizes sustainability, with countries like Germany, France, and the Netherlands leading in biofuel production and organic oil consumption. Rapeseed oil is primarily used for biodiesel production, driven by the EU’s renewable energy policies. Increasing demand for healthier alternatives and organic food products, as well as the region’s strong regulatory framework for sustainable agriculture, makes Europe a significant market for vegetable oils.

LAMEA vegetable oil market growth

The LAMEA vegetable oil market was valued at USD 21.75 billion in 2024 and is anticipated to reach around USD 40.27 billion by 2034. The LAMEA region offers an increasing demand for vegetable oils spurred by a burgeoning population and urbanization. Brazil and Argentina are leading soybean oil-producing countries, bearing large export commodities. Latin America diverges somewhat from Africa and Middle East in the consumption trend for cooking oils by employing sunflower and olive oil more often due to the health aspects associated with cooking oils. Africa's demand for inedible and industrial oils surged; the growth of the vegetable oil market is intertwined with the progress of economic development and increasing industrialization in these regions.

Vegetable Oil Market Top Companies

• Archer Daniels Midland Company
• Sime Darby Plantation Berhad
• Bunge Limited
• Olam International Limited
• Cargill Incorporated
• Golden Agri-Resources
• Kuala Lumpur Kepong Berhad
• Fuji Oil Holding Inc.
• Wilmar International Limited
• PT Astra Agro Lestari Tbk

The Vegetable oil market is significantly dominated by key players like Archer Daniels Midland Company, Sime Darby Plantation Berhad, Bunge Limited, Olam International Limited, and others. These companies leverage their vast global supply chains, advanced processing technologies, and strong presence in key regions to meet rising demand across various applications, including food, industrial uses, and biodiesel production. Additionally, their investments in sustainable practices, such as responsible sourcing and reducing carbon footprints, allow them to address the growing consumer demand for eco-friendly and healthier oil products.

CEO statements

Juan Luciano, CEO of Archer Daniels Midland (ADM)

• "ADM continues to focus on expanding our portfolio in sustainable and plant-based oils. We are committed to meeting the growing demand for renewable energy and sustainable food production. Our investments in renewable diesel production reflect our focus on both environmental responsibility and meeting market needs."

Dato’ Mohd Bakke Salleh, CEO of Sime Darby Plantation

• "Sime Darby remains dedicated to producing sustainable palm oil. As global regulations tighten around deforestation and responsible land use, we are ensuring that our production practices meet these standards, setting an example for the industry."

Greg Heckman, CEO of Bunge Limited

• "We are expanding our supply chain capabilities to handle the increased demand for vegetable oils, particularly in the renewable energy and food sectors. Our efforts to optimize operations in emerging markets align with our strategic vision of global growth and resilience."

Recent Developments

Recent product launches in the vegetable oil market underscore a notable trend toward innovation and strategic partnerships among key industry players. Companies like Archer Daniels Midland Company, Sime Darby Plantation Berhad, Bunge Limited, and Olam International Limited are investing in advanced processing technologies and sustainable practices to meet the increasing consumer demand for high-quality, eco-friendly oils. This proactive approach not only enhances product offerings but also positions these companies to capitalize on market opportunities, ensuring they remain competitive in a rapidly evolving industry landscape driven by sustainability and health consciousness. Some notable examples of key developments in the Vegetable oil Market include:

• In February 2024, Cargill launched its Gemini Pureit sunflower oil brand across four southern states of India: Andhra Pradesh, Telangana, Karnataka, and Tamil Nadu.
• In July 2022, Italian energy giant Eni began vegetable oil production for biorefining in Kenya. They established an oilseed collection and pressing facility, known as an agri-hub, in Makueni, Kenya, with an initial production capacity of 15,000 tons.

Market Segmentation

By Type

• Palm Oil
• Soybean Oil
• Rapeseed Oil
• Sunflower Oil
• Others

By Application

• Food
• Feed
• Industrial

By Distribution Type

• B2B
• B2C

By Region

• North America
• APAC
• Europe
• LAMEA