The global Edible Oils and Fats industry is estimated to be worth USD 138.0 Billion by 2025. It is anticipated to reach USD 261.5 Billion by 2035, reflecting a CAGR of 6.6% over the assessment period 2025 to 2035.
The growth is stable and is being propelled mainly by the massive consumer preference for healthier cooking and functional food ingredients. Edible oils and fats are key contributors during food preparation, as they supply essential fatty acids, give the right texture, and add the needed flavor. The trend of vegetable oils, organic, and minimally processed oils is also a strong driver of growth.
The growth is chiefly due to the rising understanding of the positive health effects of different types of edible oils and fats. The number of people who prefer oils artificial lights, which are good for the heart, such as olive oil, avocado oil, and sunflower oil, has increased with the wavelengths and trans fats-the consumption of hydrogenated oils. Moreover, the need for functional and fortified oils that are improved with the addition of omega-3 fatty acids and antioxidants is changing the shape of the industry.
The rapid growth of the food processing and bakery industries is also contributing to growth. Fats and oils are among the main ingredients in packaged foods, confectionery, and ready-to-eat meals. The rise of plant-based dairy and meat alternatives is yet another factor driving demand for oils such as coconut, canola, and soybean oil in vegan formulations.
Innovation in extractive oil, refining, and fortification technologies improves the quality and nutritional value of edible oils and fats. Cold-pressed, solvent-free extraction and sustainable palm oil production are some examples of innovations addressing consumers' queries about purity and environmental impact. Furthermore, the move towards the use of biodegradable and eco-friendly packaging materials is in line with sustainability initiatives.
Several challenges exist, such as fluctuating raw material prices, dietary fat trans regulations, and palm oil production threatening to deforest the land. Moreover, competition from alternative fat sources, such as nut butter and plant-based spreads, could lead to shifts in traditional oil and fat consumption.
There is immense potential for considerable growth. The increasing demand for organic and non-GMO oils, along with the initiation of sustainable sourcing and ethical production practices, brought up new opportunities for development. Side by side, the rise of online retail and direct-to-consumer sales networks has improved accessibility and consumer engagement.
The edible oils and fats sector is thus due for long-term growth in the years to come, especially as food choices tend to lean towards health-conscious and environmentally friendly ones.
| Attributes | Description |
|---|---|
| Estimated Global Edible Oils and Fats Industry Size (2025E) | USD 138.0 billion |
| Projected Global Edible Oils and Fats Industry Value (2035F) | USD 261.5 billion |
| Value-based CAGR (2025 to 2035) | 6.6% |
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The industry is being shaped by health trends, sustainability, and changing consumer tastes. Food processing and home use segments constitute the largest volume, with demand for healthier substitutes like olive oil, coconut oil, and plant-based fats.
In the food service industry, cost-effectiveness is still an essential consideration, but there is growing demand for trans-fat-free and organic products. The pharmaceutical and cosmetics industries use edible oils for medicine preparations and cosmetic products and emphasize purity and functional qualities.
Sustainability is proving to be a key driver, with producers emphasizing fair sourcing, palm oil that is deforestation-free, and green packaging. Also, cold-pressed and less processed oils are becoming popular with health-oriented buyers. With trends in functional food increasing, there will be demand for oils supplemented with omega-3s, antioxidants, and vitamins.
From 2020 to 2024, there was considerable movement in the world edible oils and fats industry stimulated by dynamic changing consumerism, supply chain setbacks, and altered dietary pattern trends. There was a significant shift in 2020 that was pandemic-induced due to COVID-19, causing volatile levels of production, logistics flows, and purchasing power of buyers.
Panic purchases under lockdown caused spikes in consumption of edible oils and fats on a temporary basis, whereas supply bottlenecks in the supply chains drove prices for key oils such as palm, soybean, and sunflower oil higher. Awareness of health also gained momentum throughout the period and led to an increasing demand for oils that are believed to be good for health, such as olive oil and avocado oil.
Further, demand for functional and plant-based food products grew, pushing manufacturers to think outside the box for healthier substitutes for oils. Concurrently, consumer aversion to trans and saturated fats resulted in regulatory measures, such as the prohibition of PHOs, which forced producers to embrace sophisticated processing methods such as enzymatic interesterification.
In the future, from 2025 to 2035, the edible oils and fats industry worldwide will experience tremendous change fueled by technological innovation, diversified sources of supply, and changing consumer behavior. Population expansion and growing urbanization will propel additional demand for edible oils and fats, particularly in the developing economies of Asia-Pacific and Africa.
Biotechnology advancements are likely to be instrumental in enhancing oilseed yields and developing new oils with improved nutritional value. More sophisticated extraction methods like cold pressing and enzymatic extraction will be more in vogue, with better product quality while maintaining the pace of consumers' demands for less processed food.
A Comparative Market Shift Analysis (2020 to 2024 vs. 2025 to 2035)
| 2020 to 2024 | 2025 to 2035 |
|---|---|
| Increasing demand for healthy oils, growing food processing consumption, and expanding retail segments. | Shift towards functional and fortified oils, sustainability-led production, and precision fermentation-led fats. |
| Low cholesterol, trans-fat-free oils, and organic equivalents. | Greater demand for customized nutrition, vegan fats, and bioengineered substitutes for oil. |
| Cold-pressed oils, blends with enhanced stability, and omega-enriched products. | AI-formulated oil, lab-cultured fats, and extremely personalized oil blends. |
| Emphasis on palm oil sustainability, deforestation reduction, and responsible sourcing. | Complete traceability with blockchain, net-zero carbon footprint, and regenerative agriculture. |
| Enhanced refining processes and better packaging for extended shelf life. | Smart dispensers for oil, AI-based oil quality analysis, and enzymatic processing for healthier profiles. |
Currently, there is a high volatility in the prices of raw materials, which is caused by very unpredictable weather patterns, geopolitical tension, and changing agricultural yields. The disruption in the production of palm oil, soybean oil, and sunflower oil affects proportionately the commodity and logistics chain, which in turn means that the manufacturers have to find new and more diversified sources of palm oil, soybean oil, and sunflower oil in order to reduce their financial risk.
The increase in consumer demand for healthier choices, such as olive oil and plant-based fats, is affecting the demand among other competitors. Concerns over the dangers posed by cholesterol to human health in firefighters who are consuming high-fat foods are a reasonable negotiation to revert back to a time when fats were not consumed in excess. As people have become health-oriented, this has necessitated the need for additive and organic inventions in products for manufacturers to be relevant.
However, the problems in the logistics chain mainly stem from transportation constraints and trade embargoes. The imported oils essential for various products are among the most disposable ones.
Many local and foreign companies are affected by the prices of imported oil caused by political conflicts. This is one of the major reasons why companies are seeking local production and partnership strategies to control the supply chain and become less reliant on foreign markets.
| Countries | CAGR (2025 to 2035) |
|---|---|
| USA | 7.1% |
| UK | 5.3% |
| France | 5.1% |
| Germany | 5.5% |
| Italy | 4.9% |
| South Korea | 5.7% |
| Japan | 6.5% |
| China | 5.5% |
| Australia | 5.2% |
| New Zealand | 5.0% |
The USA edible oil and fat market is also expected to experience great growth following altered consumer trends and technological advancements in oil processing. The need for healthier alternatives like high-oleic vegetable oil and vegetable fats is transforming the industry.
With increasing awareness of health, consumers are skipping trans fats in favor of monounsaturated and polyunsaturated fats, and demand for sunflower, canola, and avocado oils is being driven.
Concomitant expansion in snacking and ready-meal markets is driving demand for specialty oils. Sustainable practices like the use of regenerative agriculture and green extracts are increasingly requisite differentiation drivers among competitors. Moreover, the growth would also be supported by enhanced interest in functionally upgraded Omega-3-rich and other bioactive-enhanced oils.
Premium and organic oils are driving the UK edible oils and fats market. A more health-conscious consumer base is propelling the movement towards cold-pressed, non-GMO, and unrefined oils, with the retail and food service channels being the most prominent. Increasing demand for plant-based diets has been found to be the expression of increased consumption of alternatives like rapeseed, flaxseed, and coconut oil.
Sustainability initiatives are also making businesses change to traceable and responsibly sourced oils, and palm oil certification and carbon-neutral production is becoming the focus. The growing reliance on high-stability frying and baking oils in the food manufacturing industry is also driving growth.
Government policies promoting lower consumption of saturated fat are promoting product reformulation through the use of healthier blends of oil. Britain's position as a major specialty oil importer is a force in the marketplace, and its position is all the more powerful as an operating and expanding industry for edible oils and fats.
France's production of gourmet and high-quality edible oils and fats is emerging solidly, fueled by demand for these oils. Demand for olive oil, the staple of French cooking, is strong, driven by increasing domestic production from sources such as Provence. Specialty oils such as walnut oil and hazelnut oil are gaining traction, fueled by perceived health advantages as well as culinary fashions.
The bakery and confectionery food processing needs many high-end oils, fueling demand for safe, high-heat products. France's strong commitment to organic certification and sustainable sourcing is influencing purchasing behavior, with national farmers launching organic product lines.
The demand to eliminate trans fats from processed food has also led manufacturers to invest more in better formulations. As consumers still insist on cold-pressed and traditional oils, the French market will begin to trend toward less processed natural oils.
Germany’s growth is driven by expanding customer appeal for natural and nutrient-rich oils. A strong preference for rapeseed oil, aside from domestic cooking, is exhibited in Germany due to its high level of Omega-3 and lack of flavor.
The growing vegetable and plant food trend is driving the growth of various oils, such as algae oil and hempseed oil. Furthermore, stringent food safety and environmental regulations in Germany are promoting the use of sustainably produced and organic-certified oil. Functional and fortified oil innovation through products with added antioxidants and vitamins is also gaining momentum.
Though the nation is still dedicated to green production practices, companies are investing in advanced refining processes to guarantee quality and minimize environmental impact. Germany will most probably continue to be a trendsetter in the manufacturing of sustainable edible oil, with continuous research and product development investment.
Italy is propelled by its long tradition of rich cuisine and qualitative olive oil production. The nation remains among the world's leading producers of extra virgin olive oil, with regional oils and protected designation of origin (PDO) labeling. Exports are being spurred by foreign demand for authentic Italian oils, particularly in North America and Asia. Local demand for high-polyphenol olive oils that contain large amounts of antioxidants is also fueled by increasing health awareness.
The food processing industry, including pasta and bakery production, is a big user of refined oils, which offers stable demand. Italian emphasis on sustainability and biodiversity conservation is driving organic olive oil production, and the country is becoming a global leader in high-quality, artisanal olive oils.
South Korea is developing dynamically due to altering consumption patterns and increasing requirements for functional food. Since consumers are becoming increasingly interested in Western diets, demand for blended vegetable oils, sunflower, and canola is rising. The country's thriving instant food and snack industry is a primary driver for demand for industrial oil.
At the same time, health and wellness awareness is driving the adoption of cold-pressed and unrefined oils. Specialty probiotic and herbal-extract-based oils are in growing demand from health-conscious consumers.
Japan shows a good demand for functional and premium oils. The consumption of foods via tempura chains and ramen restaurants still has the greatest dependency on top-notch frying oils. Extremely rigorous food regulations in Japan compel firms to pursue specialty and traditional foods that have high purity and minimal additions. There is a shift towards specialty and conventional oils.
China is expanding with rising demand for industrial and specialty oils. Rising food processing and pharmaceutical sectors are fueling demand for high-performance oils.
Investment in refining technology is allowing the manufacture of tailor-made oil blends for specific uses. China's emergence as a leading exporter of specialty oils will make the industry competitive and dynamic.
Australia's growth is being driven by the increasing consumer appetite for locally grown and sustainable items. Macadamia oil and olive oil are in demand due to their health properties. The country's agricultural growth is driving the production of oilseeds, which is driving steady growth.
New Zealand is benefiting from the growth in demand for specialty and premium product offerings. Avocado and flaxseed oils are gaining popularity because of their health advantages. Organic and cold-pressed oils, which are the nation's priority, are driving growth to position New Zealand as a high-quality specialty oil supplier.
| Segment | Value Share (2025) |
|---|---|
| Vegetable Seed Oil | 31.2% |
Dietary habits are changing nowadays, and there is rising awareness about healthy fat consumption and food processing applications. Liquid Oil holds the market share, and the market is segmented based on type and divided into liquid and solid forms.
Based on product type, the report segments the global market into vegetable and seed oils and animal and marine oils. Of these segments, vegetable, and seed oils accounted for the highest share in the market at 31.2% in 2025, attributed to the rising usage of sunflower, soybean, canola, and palm oil in household, food processing, and food service outlets.
The likes of Cargill, Archer Daniels Midland (ADM), and Bunge have innovated in the space thanks to rising demand for heart-healthy, non-GMO, and organic oils driving growth.
Increasing consumer preference for cold-pressed or minimally processed oils has also supported the growth of this segment, driven by a trend towards higher nutritional content and natural antioxidants in cooking oils. Moreover, the food sector's sprinkling of plant-based oils into processed foods and snack manufacturing is encouraging demand.
The spreadable oils and fats segment is expected to account for a 28.6% market share, driven by rising demand for margarine, butter alternatives, and plant-based spreads. As vegan and dairy-free diets take hold, options-including plant-based butter made with coconut, olive, and avocado oils-have gained traction among health-conscious shoppers.
Top players like Upfield (Flora, Blue Band), Unilever (Becel, Country Crock), and Conagra Brands (Earth Balance) are broadening their portfolios with cholesterol-lowering, vitamin-fortified, and trans-fat-free spreadables. Baking and confectionery applications also continue to propel demand for spreadable fats through commercial food production.
Dynamic Formulation Capabilities of Liquid Oils Elevating Their Market
| Segment | Value Share (2025) |
|---|---|
| Liquid (Form) | 63.4% |
Liquid oils are the leading type of edible oil product due to their broad use in cooking and industry. Liquid oils, such as vegetable oil, seed oil, specialty cooking oil, etc., hold a 63.4% share. Because of their health advantages and adaptability, oils like olive oil, sunflower oil, soybean oil, and canola oil are utilized in households, food service, and food processing industries
Increasing adoption of cold-pressed, organic, and fortified oils is propelling the segment growth owing to the expansion of product portfolios by manufacturers such as Cargill, Bunge, Wilmar International, and Archer Daniels Midland (ADM). Likewise, the trend for heart-healthy and healthful oils enriched with omega-3, antioxidants, and vitamins is catching up with health-conscious customers.
36.6% of the solid fat segment is held by butter, margarine, and shortening, which are hydrogenated vegetable fats. Fats are essential in baking, confectionery, and industrial food processing, as they offer functionality, such as texture, flavor, and shelf-life extension.
As more consumers are wary of trans fats and saturated fats, plant-based replacements and non-hydrogenated solid fats pasture have higher demand. Brands like Upfield, Unilever, and Conagra are making healthier choices, such as dairy-free spreads and palm-free margarine.
Globally, the competitive environment is dominated by multinationals, regional leaders, and specialized players catering to consumers, food service, and industrial sectors. Rising demand for healthier oils, sustainable sourcing practices, and advanced processing technologies drive growth, pushing companies to innovate and optimize their supply chains.
Key industry leaders Cargill, Archer Daniels Midland (ADM), Wilmar International, and Bunge Limited enjoy a commanding presence through vertical integration, modern refining technologies, and extensive distribution networks around the world.
They control major segments of the oilseeds supply chain from cultivation and crushing to refining and packaging of edible oils and, therefore, ensure product quality, cost management, and scalability. However, Wilmar International has established its dominance in Asia and African markets by utilizing its integrated supply chain and extensive retail network.
At the same time, ADM has expanded its oilseed crushing and refining operations, thereby enhancing its presence in food manufacturing and industrial applications worldwide.
Tier 2 players such as Fuji Oil Company and Olam Agri Holdings achieve differentiation with specialized formulations and regional expansions. Fuji Oil is a leader in specialty fats for confectionery and bakery applications and engages in continuous product development in cocoa butter alternatives and plant fat solutions.
On the other hand, Olam Agri establishes a strong position in the marketplace through investments in emerging industries and its capacities in oil processing to address the changing needs of the industrial and consumer segments.
As the industry continues to pursue sustainability and health-driven innovations, the companies are investing in oil solutions with low trans fats, non-GMOs, and functionalities woven with traceability and responsible sourcing. Modifications in food preferences, policy formulations, and advanced technology in oil processing will shape the evolution of the markets and will, therefore, ensure a vibrant and intensely competitive environment.
Market Share Analysis by Company
| Company Name | Estimated Market Share (%) |
|---|---|
| Cargill, Incorporated | 20-24% |
| Archer Daniels Midland (ADM) | 18-22% |
| Wilmar International Limited | 15-19% |
| Bunge Limited | 12-16% |
| Fuji Oil Company, Ltd. | 8-12% |
| Other Companies (Combined) | 30-40% |
| Company Name | Key Offerings/Activities |
|---|---|
| Cargill, Incorporated | Leading producer of vegetable oils, palm oil, and specialty fats , investing in sustainable and non-GMO oil production. |
| Archer Daniels Midland (ADM) | A global leader in oilseed processing, expanding its portfolio of high-oleic and specialty edible oils. |
| Wilmar International Limited | Major supplier of palm oil and packaged edible oils with a strong distribution network across Asia and Africa. |
| Bunge Limited | Focuses on soybean, canola, and sunflower oil, with strategic partnerships in biofuel and sustainable oil production. |
| Fuji Oil Company, Ltd. | Specializes in cocoa butter substitutes, confectionery fats, and palm-based specialty oils for bakery and food processing. |
Key Company Insights
Cargill, Incorporated (20-24%)
Cargill dominates with its broad portfolio of edible oils and fats, including sunflower, soybean, and palm oil products. The company invests in sustainable palm oil initiatives and non-GMO, high-oleic oils to align with consumer health trends.
Archer Daniels Midland (ADM) (18-22%)
ADM continues to expand its global oilseed processing capacity, strengthening its position in high-oleic and specialty oils. The company’s recent acquisitions in plant-based and functional oils enhance its product portfolio for food manufacturers.
Wilmar International Limited (15-19%)
Wilmar is a key player in Asia and Africa, leveraging its vertically integrated palm oil operations to supply both industries and consumers. Its Golden Agri Resources subsidiary enhances its palm oil production capabilities.
Bunge Limited (12-16%)
Bunge focuses on soybean, canola, and sunflower oil production, supplying major food processors. The company has expanded into renewable biofuels, diversifying its revenue streams.
Fuji Oil Company, Ltd. (8-12%)
Fuji Oil is recognized for its specialty fats used in chocolate, bakery, and plant-based food applications. The company continues to innovate in cocoa butter alternatives and emulsified fat solutions.
Other Key Players (30-40% Combined)
The industry is expected to reach USD 138.0 billion in 2025.
The market is projected to grow to USD 261.5 billion by 2035.
The market is expected to grow at a CAGR of 6.6% from 2025 to 2035.
The USA is expected to grow at the fastest rate, with a CAGR of 7.1% during the forecast period.
The Vegetable Seed Oil segment is among the most widely used in the market.
Leading companies include Cargill, Incorporated; Archer Daniels Midland Company (ADM); Wilmar International Limited; Bunge Limited; Fuji Oil Company, Ltd.; Conagra Brands, Inc.; Olam Agri Holdings Pte Ltd; Louis Dreyfus Company B.V.; Marico Limited; Patanjali Foods; and Associated British Foods plc.
The segmentation is into Vegetable and Seed Oils, Spreadable Oils and Fats, Olive Oil, Cooking Fats, and Others.
The segmentation is into plant-based and animal-based sources.
The segmentation is into Liquid and Solid.
The segmentation is into Supermarkets & Hypermarkets, Convenience Stores, Departmental Stores, and Online.
The industry analysis covers North America, Latin America, Western Europe, Eastern Europe, East Asia, South Asia and the Pacific, Central Asia, Russia and Belarus, Balkan and Baltic Countries, and the Middle East and Africa.
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Edible Oils and Fats Market
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