Europe Fats And Oil Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

The Europe Fats and Oil Market Report is Segmented by Product Type (Fats and Oils), Application (Food, Industrial, and Animal Feed), Source (Plant-Based and Animal-Based), and Geography (United Kingdom, Germany, France, Italy, Spain, and More). The Market Forecasts are Provided in Terms of Value (USD).

Europe Fats And Oil Market Size and Share

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Europe Fats And Oil Market Analysis by Mordor Intelligence

The Europe fats and oil market is valued at USD 29.59 billion in 2025 and is forecast to reach USD 34.89 billion by 2030, advancing at a 3.35% CAGR. The market's momentum is driven by a diverse product mix, harmonizing traditional animal fats with an expanding selection of plant-based oils, which have increasingly taken center stage on supermarket shelves. The growing consumer preference for healthier and sustainable food options has significantly influenced the shift toward plant-based oils. Additionally, the rising demand for specialty oils, such as olive oil, avocado oil, and coconut oil, is further propelling market growth. Innovations in product formulations, including the development of fortified oils enriched with vitamins and omega-3 fatty acids, are also contributing to the market's expansion. The market is shaped by evolving dietary trends, regulatory frameworks promoting healthier alternatives, and the increasing adoption of plant-based diets across the region. Furthermore, the food processing industry plays a crucial role in driving demand, as fats and oils are essential ingredients in various processed food products, including baked goods, snacks, and confectionery.

Key Report Takeaways

  • By product type, oils commanded 59.44% of the European fats and oils market share in 2024 while expanding at the fastest 5.97% CAGR through 2030.
  • By application, food held 59.12% revenue share in 2024; animal feed is on track for a 5.77% CAGR to 2030.
  • By source, plant-based inputs secured an 86.43% share in 2024, whereas animal-based fats posted the highest 6.03% CAGR through 2030.
  • By geography, Italy led with 14.51% revenue share in 2024, while Germany recorded a 4.70% CAGR during the forecast period.

Segment Analysis

By Product Type: Oils Dominate Through Processing Innovation

In 2024, oils accounted for 59.44% of the European Fats and Oils market, underscoring their critical role in shaping the market's overall dynamics. The segment is projected to grow at a strong CAGR of 5.97% through 2030, outpacing the growth of the overall market. This growth trajectory highlights the versatility and indispensability of oils across a wide range of applications, including food, industrial processes, and animal feed. These oils are not only essential for culinary purposes but also play a significant role in industrial applications, such as biofuel production and cosmetics, further solidifying their importance in the European market. 

Within the oils category, sunflower oil has emerged as a standout performer, particularly in Eastern Europe, where it has gained a significant market share. This growth is largely attributed to the region's strong local production capabilities, which ensure a consistent supply and competitive pricing compared to imported alternatives. Fats, the other segment of the market, continue to play a vital role in the region's food industry. They are extensively used in bakery products, confectionery, and processed foods, catering to the evolving preferences of consumers. Fats are also integral to the production of margarine and shortening, which are widely utilized in both household and commercial baking. The demand for specialty fats, such as those used in chocolate production and other premium applications, is also on the rise, driven by the growing focus on product quality and innovation in the food sector.

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By Application: Food Sector Leads with Industrial Uses Gaining Ground

In 2024, food applications dominated the Europe fats and oils market, accounting for a 59.12% share. This dominance was primarily driven by the confectionery segment, which exhibited significant demand for specialty fats. The increasing consumer preference for premium and indulgent confectionery products has further fueled the adoption of specialty fats in this segment. Additionally, the growing trend of clean-label and plant-based ingredients in food products has contributed to the sustained demand for specialty fats across various food applications. The bakery sector also plays a crucial role in driving demand, as specialty fats are widely used to enhance texture, shelf life, and flavor in baked goods.

The animal feed segment, although smaller in market share, is projected to grow at the fastest rate, with a 5.77% CAGR forecasted through 2030. This growth is attributed to the rising consumption of meat across Europe, which has led to a heightened focus on improving feed efficiency and ensuring better animal health outcomes. The increasing adoption of high-quality fats and oils in animal feed formulations to enhance nutritional value and optimize livestock productivity is expected to drive the segment's expansion during the forecast period. Additionally, the growing awareness among livestock farmers regarding the benefits of incorporating specialty fats and oils in feed, such as improved energy density and better digestion, is further supporting the segment's growth. 

Europe Fats And Oil Market: Market Share by Application
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Note: Segment shares of all individual segments available upon report purchase

By Source: Plant-based Dominates While Animal-based Accelerates

In 2024, the European fats and oils market witnessed plant-based sources securing a dominant 86.43% share. This significant market share underscores the strength of well-established supply chains and a growing consumer inclination toward vegetable oils. Their versatility primarily drives the demand for plant-based fats and oils in various applications, including cooking, baking, and processed food production. Additionally, the rising awareness of health benefits associated with plant-based products and the increasing adoption of vegan and vegetarian diets further bolsters the segment's growth. The availability of a wide range of plant-based oils, such as olive oil, sunflower oil, and rapeseed oil, also contributes to their widespread acceptance across the region.

On the other hand, the animal-based segment is projected to grow at a notable CAGR of 6.03% through 2030, outpacing its plant-based counterpart in terms of growth rate. This segment's expansion is fueled by its niche applications in food processing and industrial uses, where animal fats play a critical role. Despite the dominance of plant-based oils, animal-based fats, such as lard and tallow, continue to find demand due to their unique properties, including flavor enhancement and texture improvement in food products. Furthermore, the industrial sector leverages animal fats in the production of biodiesel, soaps, and other non-food applications, contributing to the segment's steady growth. 

Geography Analysis

In 2024, Italy held a significant 14.51% share of the European fats and oils market, driven by its robust olive oil production and consumption. Italy is renowned for its high-quality olive oil, which is a staple in its cuisine and a key export product, contributing to its dominant market position. Additionally, the country's focus on traditional and organic production methods has further enhanced its reputation and market share. Italy's olive oil industry benefits from government support and initiatives promoting sustainable farming practices, which have helped maintain its competitive edge. Furthermore, the increasing global demand for Mediterranean diets, which heavily feature olive oil, has bolstered Italy's market position.

Meanwhile, Germany is set to outpace with a projected CAGR of 4.70% during the forecast period. The growth in Germany is attributed to the increasing demand for healthier oil alternatives, such as rapeseed and sunflower oils, as well as the rising trend of plant-based diets in the country. For instance, the German market has seen a surge in the consumption of cold-pressed oils, which are perceived as healthier options due to their minimal processing. Additionally, Germany's strong focus on sustainability and environmental consciousness has led to a growing preference for locally sourced and organic oils. The rise of veganism in Germany, supported by initiatives like Veganuary and the availability of plant-based food products, has further driven the demand for plant-based fats and oils, such as coconut oil, avocado oil, and flaxseed oil. 

The United Kingdom also plays a crucial role in the Europe fats and oil market. The market in the UK is driven by the growing popularity of processed and convenience foods, which require a variety of fats and oils as ingredients. Additionally, the rising awareness of health and wellness has led to increased demand for low-fat and trans-fat-free products, further shaping the market dynamics. Spain, another key player in the market, is a global leader in olive oil production, accounting for a significant portion of the world's supply. The country's favorable climate and extensive olive groves support its dominance in this segment. Moreover, Spain's strong export network ensures its olive oil reaches international markets, bolstering its market share within Europe.

Competitive Landscape

In the European fats and oil market, a moderate fragmentation, characterized by a blend of global leaders and regional specialists. The competitive landscape is shaped by companies employing various strategies to gain a competitive edge. Strategic consolidations, acquisitions, and partnerships are key approaches adopted by market players to expand their specialty fats portfolios and strengthen their foothold in the region. For instance, Cargill has been actively acquiring smaller firms to enhance its product offerings and regional presence, while Bunge has focused on partnerships with local suppliers to ensure a steady supply of raw materials and improve operational efficiency. 

Additionally, sustainability has emerged as a critical focus area for companies operating in the European fats and oils market. With increasing consumer awareness and stringent European Union regulations on environmental impact, companies are prioritizing the development of sustainable supply chains. For example, Wilmar International has made significant investments in sustainable palm oil production, while AAK has committed to sourcing 100% sustainable palm oil by 2025. These initiatives aim to address environmental concerns, reduce carbon footprints, and enhance brand reputation. Moreover, companies are also adopting traceability measures to ensure transparency in their supply chains, which has become a key factor influencing consumer purchasing decisions. 

Innovation in product offerings is another significant driver shaping the competitive landscape of the market. Companies are heavily investing in research and development to cater to niche applications and emerging consumer trends. For instance, the rising demand for plant-based and vegan products has prompted companies to develop alternatives to traditional animal-based fats. Unilever has introduced plant-based spreads under its Flora brand to tap into this growing segment, while ADM has been focusing on specialty oils tailored for applications in bakery, confectionery, and ready-to-eat meals. Furthermore, the increasing popularity of functional foods has encouraged companies to develop fats and oils enriched with omega-3 fatty acids and other health-promoting ingredients. 

Europe Fats And Oil Industry Leaders

  1. Archer Daniels Midland Company

  2. Wilmar International Limited

  3. Cargill Incorporated

  4. Bunge Limited

  5. Olam International Ltd.

  6. *Disclaimer: Major Players sorted in no particular order
Europe Fats and Oil Market Concentration
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Recent Industry Developments

  • June 2024: OMV has launched its co-processing facility at the Schwechat refinery in Austria. The company invested nearly EUR 200 million to enable the conversion of up to 160,000 metric tons of liquid biomass into premium renewable hydrogenated vegetable oil components.
  • February 2024: Bioplanete established Europe's first purely organic oil mill, known as Oil Mill Moog. This facility is dedicated to producing the BIO PLANÈTE brand of organic oils, which are crafted to meet high-quality standards and cater to the growing demand for organic products.
  • July 2023: Edible Oils Limited (EOL) has completed a major investment initiative at its Erith and Belvedere locations in south-east London. This upgrade includes the installation of four new oil tanks. At the adjacent Belvedere site, EOL has successfully installed and commissioned four new oil tanks, each with a capacity of 60,000 litres, marking a significant boost to the company's tank farm capacity.
  • March 2022: Olenex, a top producer of vegetable oils, has commenced the construction of a new specialty fats facility in Zaandam, The Netherlands. The facility will boast a product development center, packaging capabilities, and a customer experience center.

Table of Contents for Europe Fats And Oil Industry Report

1. INTRODUCTION

  • 1.1 Study Assumptions and Market Definition
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET LANDSCAPE

  • 4.1 Market Overview
  • 4.2 Market Drivers
    • 4.2.1 Growing Demand for Speciality Fats in Bakery and Confectionay
    • 4.2.2 Advancement in Fat Modification Technology
    • 4.2.3 Rising Popularity of Clean-Label and Natural Ingredients
    • 4.2.4 Increse in Demand for Organic and Non-GMO Ingredients
    • 4.2.5 Technological Advancements in Processing
    • 4.2.6 Shift Toward Plant-Based Diets
  • 4.3 Market Restraints
    • 4.3.1 Stringent EU Regulations on Labeling and Food Safety Standards
    • 4.3.2 Health Concerns with Animal Fats
    • 4.3.3 Environmental Concerns Over Palm Oil
    • 4.3.4 Allergen and Nutritional Limitations
  • 4.4 Supply Chain Analysis
  • 4.5 Regulatory Outlook
  • 4.6 Porter's Five Forces
    • 4.6.1 Threat of New Entrants
    • 4.6.2 Bargaining Power of Buyers/Consumers
    • 4.6.3 Bargaining Power of Suppliers
    • 4.6.4 Threat of Substitute Products
    • 4.6.5 Intensity of Competitive Rivalry

5. MARKET SIZE AND GROWTH FORECASTS (VALUE)

  • 5.1 By Type
    • 5.1.1 Fats
    • 5.1.1.1 Butter
    • 5.1.1.2 Tallow
    • 5.1.1.3 Lard
    • 5.1.1.4 Specialty Fats
    • 5.1.2 Oils
    • 5.1.2.1 Soybean Oil
    • 5.1.2.2 Rapeseed Oil
    • 5.1.2.3 Palm Oil
    • 5.1.2.4 Coconut Oil
    • 5.1.2.5 Olive Oil
    • 5.1.2.6 Cotton Seed Oil
    • 5.1.2.7 Sunflower Seed Oil
    • 5.1.2.8 Others
  • 5.2 By Application
    • 5.2.1 Food
    • 5.2.1.1 Confectionary
    • 5.2.1.2 Bakery
    • 5.2.1.3 Dairy Products
    • 5.2.1.4 Others
    • 5.2.2 Industrial
    • 5.2.3 Animal Feed
  • 5.3 By Source
    • 5.3.1 Plant-based
    • 5.3.2 Animal-based
  • 5.4 By Country
    • 5.4.1 Germany
    • 5.4.2 United Kingdom
    • 5.4.3 France
    • 5.4.4 Italy
    • 5.4.5 Russia
    • 5.4.6 Rest of Europe

6. COMPETITIVE LANDSCAPE

  • 6.1 Market Concentration
  • 6.2 Strategic Moves
  • 6.3 Market Share Analysis
  • 6.4 Company Profiles (includes Global-level Overview, Market-level Overview, Core Segments, Financials (if available), Strategic Information, Market Rank/Share, Products & Services, Recent Developments)
    • 6.4.1 Cargill, Incorporated
    • 6.4.2 Bunge Limited
    • 6.4.3 Archer Daniels Midland Company
    • 6.4.4 Wilmar International Limited
    • 6.4.5 Olam International Ltd.
    • 6.4.6 AAK AB
    • 6.4.7 Fuji Oil Holdings Inc.
    • 6.4.8 Louis Dreyfus Company B.V.
    • 6.4.9 Avril Group (Saipol)
    • 6.4.10 Associated British Foods plc
    • 6.4.11 Unilever PLC
    • 6.4.12 Mewah International Inc.
    • 6.4.13 Musim Mas Holdings
    • 6.4.14 Deoleo S.A.
    • 6.4.15 Olenex Sàrl
    • 6.4.16 Aveno NV
    • 6.4.17 Vandeputte Group
    • 6.4.18 KTC Edibles Ltd.
    • 6.4.19 Aigremont NV
    • 6.4.20 PPB Group Berhad

7. MARKET OPPORTUNITIES AND FUTURE OUTLOOK

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Europe Fats And Oil Market Report Scope

Fats and oils are both types of lipids, which are complex molecules that store energy. The key difference lies in their state at room temperature: fats are solid, while oils are liquid. Both are composed of triglycerides, which are esters of glycerol and three fatty acids.

The European Fats and Oil Market is segmented by type into fats, oils, application, source, and country. Based on fats, the market is segmented into butter, tallow, lard, and specialty fats. Based on Oils, the market is segmented into soybean oil, rapeseed oil, palm oil, coconut oil, olive oil, cottonseed oil, sunflower seed oil, and others. Based on application, the market is segmented into food, industrial, and animal feed. Based on the source, the market is segmented into plant-based and animal-based. Based on country, the market is segmented into Germany, the United Kingdom, France, Italy, Russia, and the Rest of Europe. For each segment, the market sizing and forecasts have been done on the basis of value (in USD million). Source: https://www.mordorintelligence.com/industry-reports/north-america-coffee-market

By Type Fats Butter
Tallow
Lard
Specialty Fats
Oils Soybean Oil
Rapeseed Oil
Palm Oil
Coconut Oil
Olive Oil
Cotton Seed Oil
Sunflower Seed Oil
Others
By Application Food Confectionary
Bakery
Dairy Products
Others
Industrial
Animal Feed
By Source Plant-based
Animal-based
By Country Germany
United Kingdom
France
Italy
Russia
Rest of Europe
By Type
Fats Butter
Tallow
Lard
Specialty Fats
Oils Soybean Oil
Rapeseed Oil
Palm Oil
Coconut Oil
Olive Oil
Cotton Seed Oil
Sunflower Seed Oil
Others
By Application
Food Confectionary
Bakery
Dairy Products
Others
Industrial
Animal Feed
By Source
Plant-based
Animal-based
By Country
Germany
United Kingdom
France
Italy
Russia
Rest of Europe
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Key Questions Answered in the Report

What is the current value of the Europe fats and oil market?

The market stands at USD 29.59 billion in 2025 and is forecast to reach USD 34.89 billion by 2030.

Which product type leads the Europe fats and oil market?

Oils dominate with 59.44% revenue share in 2024 and show the fastest 5.97% CAGR through 2030.

Why are specialty fats gaining traction in Europe?

Bakery and confectionery manufacturers are adopting tailored fats that match cocoa-butter performance while mitigating cost volatility, driving premium growth.

How are EU regulations influencing market dynamics?

Stricter contaminant, labeling, and deforestation rules elevate compliance costs, favoring larger integrated processors and accelerating product reformulation.

Page last updated on: July 3, 2025

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