Vegetable Oil Market Size & Share | Growth Report - 2034

The global vegetable oil market reached a volume of approximately 226.70 million metric tons in 2024. The market is poised to grow steadily due to increasing demand from the food and beverage, biofuel, cosmetics, and pharmaceutical sectors. Supported by changing dietary preferences, rising awareness regarding healthier fats, and the expanding application of vegetable oil in industrial sectors, the market is projected to grow at a CAGR of 3.10% during the forecast period of 2025 to 2034, reaching nearly 307.64 million metric tons by 2034.

Vegetable oil, derived from various seeds, nuts, and fruits, plays a central role in global diets and industrial applications. Oils such as palm, soybean, sunflower, canola, and olive oil are widely used in food preparation, while others like castor and rapeseed oils are key inputs in the manufacture of biodiesel, soaps, lubricants, and cosmetics. As sustainability gains prominence in global trade and production, the demand for plant-based oils is expected to rise significantly.

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Market Size

The vegetable oil market size, reaching 226.70 million metric tons in 2024, reflects the strong dependence of consumers and industries on plant-based oil products. This size is not only indicative of massive food consumption worldwide but also points to its increasing utility in non-food applications. Demand from households, restaurants, food processors, and industrial users collectively contributes to this robust market volume.

Countries with large populations and rising disposable incomes, particularly in Asia-Pacific, are key contributors to this volume. Additionally, growing urbanization and evolving dietary patterns, including the adoption of vegan and vegetarian diets, are boosting consumption of healthier and plant-based oils.

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Market Share

Palm oil holds the largest share of the global vegetable oil market owing to its affordability, high yield, and diverse applications. It is followed by soybean oil and sunflower oil, which are widely used due to their health-related benefits such as lower saturated fat content. Canola and olive oils also hold significant market shares, particularly in regions with a higher preference for healthy and premium cooking oils.

Regionally, Asia-Pacific commands the largest share of the market due to high population density, extensive palm oil production, and rapidly increasing demand in emerging economies. North America and Europe follow, with their market share supported by a strong preference for organic, non-GMO, and cold-pressed oils. Latin America, the Middle East, and Africa are witnessing steady growth due to improvements in food processing infrastructure and trade expansion.

Market Trends

The vegetable oil market is witnessing several key trends that are reshaping its development. One of the most significant trends is the rising preference for healthier oils. Consumers are increasingly shifting towards oils that offer better nutritional profiles, such as those high in monounsaturated and polyunsaturated fats. Oils like olive, sunflower, and canola are therefore gaining traction among health-conscious buyers.

Another growing trend is the use of vegetable oil in biofuel production. Biodiesel derived from oils like palm, soybean, and rapeseed is being promoted by government policies to reduce carbon emissions and promote renewable energy. The increasing use of vegetable oil as a feedstock for biofuel is expected to significantly expand the market's industrial segment.

Sustainability is also becoming a major focal point. Certified sustainable oils are gaining preference from environmentally aware consumers. Producers are adopting sustainable farming practices and acquiring certifications that validate eco-friendly sourcing and production.

Drivers of Growth

Several factors are propelling the growth of the vegetable oil market globally. Firstly, rising global population and urbanization are significantly increasing food demand, including edible oils. As more people migrate to urban areas and adopt convenience-based diets, the consumption of processed and packaged foods that use vegetable oils is rising.

Secondly, health consciousness among consumers is increasing demand for oils with proven health benefits. Oils rich in omega-3 and omega-6 fatty acids, antioxidants, and vitamins are being preferred over traditional saturated fats. The popularity of plant-based diets is also pushing the demand for oils derived from seeds and nuts.

Additionally, supportive government policies for biofuel blending are acting as major growth catalysts. Mandates for biodiesel production and the transition toward renewable energy are increasing the industrial consumption of vegetable oil, especially in the transportation sector.

Technological advancements in oil extraction and refining are further enhancing product quality and yield, contributing to increased profitability and market growth.

Technology and Advancement

Technology is playing a pivotal role in advancing the vegetable oil industry. Innovations in seed genetics have led to the development of high-yield and pest-resistant oilseed crops, enabling higher productivity and reducing environmental impact.

In processing, technologies such as cold-press extraction and solvent extraction are being refined to improve oil quality while preserving nutritional content. Advanced refining techniques are also enabling manufacturers to produce odorless, colorless, and impurity-free oils suited for both culinary and industrial applications.

Digital tools are being integrated into the supply chain to improve traceability and transparency, which is critical for meeting quality standards and gaining consumer trust. Blockchain technology and smart labeling are helping consumers verify the origin and processing methods of the oils they purchase.

Key Players

Cargill, Incorporated
Archer Daniel Midland Company
IOI Corporation Berhad (IOI)
Fuji Oil Co., Ltd.
Sime Darby Plantation Berhad
Bunge Limited
Wilmar International Limited
Louis Dreyfus Company B.V.
Conagra Brands, Inc
Olam Group Limited
Golden Agri-Resources (GAR)
PT Astra Agro Lestari Tbk
Others

Challenges and Opportunities

Despite its strong growth trajectory, the vegetable oil market faces several challenges. Environmental concerns related to deforestation and habitat loss, especially due to palm oil cultivation, continue to attract scrutiny. Producers must comply with stringent environmental regulations and adopt sustainable practices to mitigate these concerns.

Fluctuations in commodity prices and supply chain disruptions due to geopolitical tensions or climate-related issues also pose risks to market stability. Furthermore, the growing demand for non-GMO and organic oils requires companies to adapt their sourcing and processing methods, often leading to increased production costs.

However, these challenges are accompanied by significant opportunities. Emerging markets in Asia, Africa, and Latin America present vast potential for expansion due to rising incomes and growing awareness about nutrition and hygiene. The diversification of oil sources, including the development of specialty oils like avocado, rice bran, and flaxseed oil, offers new product avenues.

The increasing popularity of plant-based foods and clean-label products also presents strong prospects for manufacturers to innovate and differentiate their offerings.

Market Forecast

The global vegetable oil market is expected to continue its steady growth, reaching a volume of approximately 307.64 million metric tons by 2034. This expansion will be supported by rising global consumption, growing use in industrial applications, and an increasing shift toward sustainable and healthier oils.

With a forecasted CAGR of 3.10% from 2025 to 2034, the market is set to benefit from evolving dietary habits, technological advancements, and expanded applications beyond the food sector. Producers that prioritize innovation, sustainability, and consumer transparency will be well-positioned to capitalize on the expanding demand.

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