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Global Vegetable Oils Market to Surpass USD 209.2 Billion by 2035, Growing at 5% CAGR

05-06-2025 04:28 PM CET | Food & Beverage

Press release from: Fact.MR

Vegetable Oils Market

Vegetable Oils Market

The global vegetable oils market is expected to reach USD 128.3 billion by 2025. With a projected compound annual growth rate (CAGR) of 5%, the market is anticipated to surpass USD 209.2 billion by 2035.

The vegetable oils market has become a vital component of the global food and industrial sectors. These oils, derived from plant sources such as soybeans, sunflowers, canola, palm, and olives, are used extensively in cooking, food manufacturing, biofuels, cosmetics, and pharmaceuticals. As consumer preferences shift towards healthier diets and sustainable practices, the market is evolving rapidly. This sector has witnessed steady growth due to rising awareness about the health benefits of vegetable oils and their versatility in various applications. Key players are diversifying their product offerings, leveraging technological advancements, and expanding their footprint in emerging economies to meet global demand.

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Market Insights

Consumer preferences are becoming more nuanced, favoring non-GMO, organic, and cold-pressed vegetable oils. There is a marked transition toward oils perceived as healthier alternatives, such as olive oil, canola oil, and sunflower oil, due to their high content of unsaturated fats. Additionally, the increasing popularity of plant-based diets has given rise to new consumer segments, expanding market demand beyond traditional culinary uses. The cosmetic and personal care industries also contribute significantly, utilizing oils like coconut and almond oil for their emollient and moisturizing properties. Moreover, industries are investing in sustainable sourcing practices to appeal to environmentally conscious consumers.

Future Outlook

The future of the vegetable oils market appears promising, with several trends set to shape its trajectory. Demand for plant-based and clean-label products is likely to grow stronger, driven by health and environmental concerns. In the next decade, innovation in oil extraction and refining technologies is expected to boost efficiency and quality while reducing environmental impact. The emergence of algae-based and lab-grown oils could further diversify the market and reduce pressure on land and water resources. As the food industry continues to prioritize healthier formulations and clean ingredients, vegetable oils will remain central to product development across multiple sectors. Additionally, the rise of e-commerce platforms will create new distribution channels, especially for niche and specialty oils.

List of Key Companies Profiled in The Report

Cargill
Wilmar International Ltd.
Bunge Limited
Louis Dreyfus Company BV
Incorporated
Archer Daniels Midland
Adani Wilmar
IOI Corporation
Ruchi Soya
Others

Recent Industry News

In recent months, several industry players have made strategic moves to solidify their positions in the global market. Major manufacturers have announced expansions and acquisitions aimed at increasing production capacity and diversifying product lines. There is a growing trend of collaboration between agri-tech startups and oil producers to improve crop yields and reduce environmental footprints. Several companies have also launched new product lines targeting the health food segment, such as high-oleic sunflower oil and organic coconut oil. At the same time, supply chain disruptions caused by geopolitical tensions and climate change have prompted discussions around more resilient sourcing and logistics strategies. Governments in various regions are introducing subsidies and incentives to encourage local production, thereby reducing dependence on imports.

Notable Developments

Recent notable developments in the vegetable oils market include technological advancements in oilseed processing, improved sustainability practices, and the introduction of high-performance oils tailored to specific applications. For instance, enzymatic interesterification is gaining traction as a cleaner alternative to chemical methods of modifying oil properties. On the sustainability front, certifications such as RSPO (Roundtable on Sustainable Palm Oil) and Fairtrade are becoming more prevalent, driven by consumer demand for ethical products. In addition, multinational food companies are reformulating their products to reduce saturated fat content and include healthier oil blends. The increasing use of artificial intelligence and data analytics to optimize crop production and processing operations marks another important development, indicating a more data-driven future for the industry.

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Competitive Outlook

The vegetable oils industry is highly competitive, marked by large-scale operations, tight margins, and a strong focus on efficiency and cost control. Leading players like Bunge Limited, Cargill, and Wilmar International dominate through vertically integrated supply chains and global reach. Firms are increasingly investing in specialty oils, sustainability, and health-focused products to meet evolving consumer demands. Technological advances and strategic moves-such as plant expansions, joint ventures, and acquisitions-are driving growth, especially in emerging Asia-Pacific markets.

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About Fact.MR:

Fact.MR is a market research and consulting agency with deep expertise in emerging market intelligence. Spanning a wide range - from automotive & industry 4.0 to healthcare, technology, chemical and materials, to even the most niche categories.

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