Press release
Global Fats & Oils Market Set to Hit USD 549.0 Billion by 2035, Driven by Shift Toward Healthier and Plant-Based Oils
The global Fats and Oils Market, valued at USD 337.1 billion in 2025, is projected to surge to USD 549.0 billion by 2035, expanding at a CAGR of 5.0% during the forecast period. Rising consumption of convenience foods, a shift toward healthier oil alternatives, and increased industrial applications such as oleochemicals and biodiesel continue to stimulate demand worldwide.Stay Ahead With Data-Backed Decisions. Gain Preview Access to Methodology, Sample Charts, and Key Findings by Requesting Your Sample Report. https://www.futuremarketinsights.com/reports/sample/rep-gb-2863
Strong Market Drivers
Fats and oils play a central role across food processing, foodservice, pharmaceuticals, cosmetics, and industrial manufacturing. Market expansion is primarily driven by:
• Growing demand for packaged, ready-to-eat, and processed foods
• Increased consumption of functional and specialty oils with healthier fatty-acid profiles
• Technological advancements that enhance refining efficiency and oilseed extraction
• Rising use of vegetable oils in biofuel and oleochemical production
The movement toward transparency, sustainability, and clean-label ingredients is reshaping sourcing strategies among leading producers.
Type Analysis: Fats Remain the Market Leader
In 2025, fats are expected to account for 58.5% of total market revenues, maintaining their position as the market-dominant type. Fats continue to be critical ingredients in:
• Bakery and confectionery
• Dairy and processed foods
• Industrial-scale food manufacturing
Demand for specialty fats-such as cocoa butter replacers and trans-fat-free formulations-is rising as manufacturers prioritize healthier reformulations. Rapid innovation in plant-based and vegan fat substitutes is also creating new avenues for differentiation.
Application Analysis: Food & Beverages Hold the Largest Share
The Food & Beverages segment will represent 41.7% of the total market share in 2025, powered by widespread use of oils and fats in:
• Cooking oils and frying media
• Bakery shortenings and margarine
• Confectionery fats and dairy substitutes
Manufacturers rely on fats and oils to improve texture, taste, mouthfeel, and shelf stability, crucial factors that influence consumer buying decisions.
Regional Market Insights (APAC, Europe, USA & Saudi Arabia)
Asia-Pacific (APAC): Fastest Growing Region
Growing disposable incomes and urbanization are accelerating consumption of processed foods. China and India lead the global growth trajectory, with projected CAGRs of 6.8% and 6.3% respectively.
APAC continues to dominate vegetable oil supply, driven by Indonesia and Malaysia's strong palm oil production ecosystem.
Europe: Innovation and Regulations Drive Premium Oils
Europe maintains a high preference for olive, rapeseed (canola), and specialty oils.
Germany alone is estimated to grow at 5.8% CAGR, with strong demand from bakery and confectionery industries.
United States: High Value Market with Steady Growth
The U.S. fats and oils market is expected to reach USD 188.9 billion by 2035, growing at a 4.3% CAGR. Growth is driven by:
• Increased demand for plant-based and non-GMO oils
• Expanding fast-casual and quick-service restaurant chains
• Rising biofuel mandates for soybean and corn-based oils
Saudi Arabia & GCC: Rapid Expansion Through Foodservice and Imports
Saudi Arabia continues to scale up refining operations and oil imports to support fast-growing foodservice infrastructure. The market benefits from increasing demand for bakery fats, margarines, and edible oils driven by retail chains and hospitality expansion linked to Vision 2030.
Competitive Landscape
The fats and oils industry is moderately consolidated. Key players actively engage in geographic expansion, product diversification, and sustainability initiatives.
Key companies include:
• Cargill Incorporated
• Bunge Limited
• Archer Daniels Midland Company
• Olam Group
• Fuji Oil Holdings Inc.
• Wilmar International Ltd
• Musim Mas Holdings
• AAK AB
• Louis Dreyfus Company
• IOI Corporation Berhad
• Sime Darby Plantation
• Kuala Lumpur Kepong Berhad
Strategies include capacity expansion in Southeast Asia, investments in traceable and certified sustainable palm oil programs, and partnerships for plant-based fat innovation.
For Customized Insights And Licensing Options, Get The Full Report. Purchase Full Report. https://www.futuremarketinsights.com/reports/fats-and-oils-market
Future Outlook
The market's growth trajectory is firmly aligned with:
• Health-oriented reformulations
• Increased preference for unsaturated and plant-based oils
• Expansion in biodiesel and oleochemical applications
As global dietary habits evolve and sustainability becomes a purchasing priority, the fats and oils market is positioned for strong, long-term growth.
Why FMI: https://www.futuremarketinsights.com/why-fmi
Browse Related Insights
Edible Oils and Fats Market: https://www.futuremarketinsights.com/reports/edible-oils-and-fats-market
Algae Fats Market: https://www.futuremarketinsights.com/reports/algae-fats-market
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About Future Market Insights (FMI)
Future Market Insights, Inc. (ESOMAR certified, recipient of the Stevie Award, and a member of the Greater New York Chamber of Commerce) offers profound insights into the driving factors that are boosting demand in the market. FMI stands as the leading global provider of market intelligence, advisory services, consulting, and events for the Packaging, Food and Beverage, Consumer Technology, Healthcare, Industrial, and Chemicals markets. With a vast team of over 400 analysts worldwide, FMI provides global, regional, and local expertise on diverse domains and industry trends across more than 110 countries.
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