Fats and Oils Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

The Fats and Oils Market Report is Segmented by Type (Fats and Oils), Application (Food, Industrial, and Animal Feed), Source (Plant-Based and Animal-Based), and Geography (North America, Europe, Asia-Pacific, South America, and the Middle East and Africa). The Report Offers the Market Size in Value Terms in USD for all the Abovementioned Segments.

Fats And Oils Market Size and Share

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Fats And Oils Market Analysis by Mordor Intelligence

The fats and oils market is projected to grow from USD 116.70 billion in 2025 to USD 144.90 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 4.42% during the forecast period. The market is experiencing steady growth driven by increasing consumption in food applications and rising demand from industrial sectors. The market's expansion is supported by population growth, changing dietary preferences, and the growing adoption of vegetable oils in various applications, including biofuels and personal care products. Additionally, the increasing awareness of health benefits associated with specific oils and fats, coupled with the rising disposable income in developing economies, continues to influence market dynamics.

Key Report Takeaways

  • By type, oils led with 54.92% of fats and oils market share in 2024, the same segment is projected to expand at a CAGR of 5.44% through 2030.
  • By application, the food segment held 55.51% of the total share, while animal feed is poised for a 5.01% CAGR from 2025 to 2030.
  • By source, plant-based accounted for 84.43% of the market in 2024, and animal-based posted the fastest 6.43% CAGR for the forecast period (2025-2030).
  • By geography, Asia-Pacific commanded a 39.89% share of the market in 2024, and the Middle East and Africa are projected to be the fastest-growing regions at 6.74% CAGR.

Segment Analysis

By Type: Oils Dominate and Outpace Growth

The oils segment dominates the market with a 54.92% share in 2024 and is expected to grow at a CAGR of 5.44% during 2025-2030, exceeding the overall market growth rate of 4.42%. This segment's strong performance stems from the widespread use of vegetable oils in both food and industrial applications, particularly in biodiesel production. The industry recognizes this strategic importance, as evidenced by significant investments in processing capacity, such as the planned oilseed crushing plant near Perth, Australia, by Cargill and CBH Group.

The fats segment, though smaller in market share, is experiencing notable developments in specialty products. Manufacturers are focusing on creating fats with specific functional properties while eliminating trans fats. For instance, in September 2024, Volac Wilmar introduced Mega-Fat 70, a rumen-protected fat product for dairy cattle. This innovative product, containing 70% palmitic and 20% oleic fatty acids, is designed to enhance milk production and maintain cattle health.

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By Application: Food Sector Leads While Animal Feed Accelerates

The food application segment dominates the market with a 55.51% share in 2024, as fats and oils remain crucial for texture, flavor, and shelf-life in processed foods. Confectionery, bakery, and dairy products are significant growth segments, where manufacturers develop specialized fat solutions for specific functional requirements. The advancement in enzymatic interesterification technology enables the production of fats with customized crystallization properties for premium confectionery products. The segment's leadership position stems from the integral role of fats and oils as structural and flavor components in processed foods.

The animal feed segment is expected to achieve the highest growth rate at 5.01% CAGR during 2025-2030. This growth is attributed to rising meat consumption in developing economies and the increased use of fats as energy-dense feed components to improve efficiency. The industrial segment expansion is primarily driven by biodiesel production, which has increased the demand for vegetable oils. This industrial demand competes with food applications, affecting prices across the market.

By Source: Plant-based Dominates Despite Animal-based Growth

Plant-based sources constitute 84.43% of the market in 2024, with vegetable oils maintaining their dominance in food and industrial applications. Palm oil continues to be a significant component of the global oils market, with prices projected to remain elevated until mid-2025 due to supply constraints and increased demand. Cargill's decision to supply only RSPO-certified palm oil from its U.S. refineries demonstrates the market's shift toward sustainable sourcing[3]Source: Cargill Incorporated, "Cargill’s U.S. oil refineries connect all customers to 100% RSPO-certified palm oil", www.cargill.com. Soybean oil maintains its position as a key market component, with Ventura Foods, a CHS and Mitsui & Co. joint venture, utilizing approximately 2 billion pounds of edible oils annually, primarily soybean oil due to its cost-effectiveness and availability.

The animal-based segment, representing 15.57% of the market share, is expected to grow at 6.43% CAGR during 2025-2030. This growth stems from increased recognition of animal fats' functional benefits in specific applications and their importance in biodiesel production. The segment's development is evident through product innovations, such as Volac Wilmar's Mega-Fat 70 for dairy cattle. Cargill's acquisition of two meat plants from Ahold Delhaize USA indicates its commitment to expanding its animal-derived products, potentially creating operational efficiencies through integrated value chain management.

Fats and Oils Market
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Geography Analysis

Asia-Pacific holds a dominant 39.89% share of the global oils and fats market in 2024, primarily due to its palm oil production capacity and growing food processing industry. Indonesia and Malaysia's palm oil industry significantly influences global market trends, with the Malaysian Palm Oil Board projecting crude palm oil prices between MYR 4,000 and MYR 4,300 per ton in 2025. Indonesia's upcoming 40% biodiesel blending mandate (B40) is expected to affect global palm oil supply and maintain high prices through 2025. In India, Adani Wilmar's expansion plans to reach 1 million direct outlets within three years, particularly in rural areas, demonstrate the strengthening distribution infrastructure in the region.

The Middle East and Africa region is expected to achieve the highest growth rate at 6.74% CAGR during 2025-2030, despite its current smaller market share. This growth stems from developments in food processing, increased biodiesel adoption, and rising edible oil consumption. North America and Europe remain important markets, with the U.S. biodiesel industry expansion driving vegetable oil demand. U.S. farmers are expanding canola production to meet renewable fuel market requirements, supported by energy and agriculture companies' investments in cultivation and processing infrastructure. European market developments are guided by regulations on trans fats and sustainability, encouraging the development of healthier fat alternatives.

South America maintains a vital position in the global supply chain through its soybean oil production, with Brazil's agricultural sector contributing substantially to global exports. Cargill's acquisition of SJC Bioenergia in Brazil strengthens its renewable energy operations, indicating the growing connection between renewable energy and the fats and oils market. These regional market dynamics create an interconnected global market where regional policy changes, such as Indonesia's biodiesel mandates, can significantly impact worldwide prices and availability.

Market Analysis of Fats and Oils Market
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Competitive Landscape

The global oils and fats market demonstrates moderate fragmentation, fostering a competitive environment where regional players effectively compete with multinational corporations in specific market segments. Major companies such as Cargill Incorporated, Bunge Limited, and ADM implement vertical integration strategies to strengthen supply chains and improve margins. These industry leaders also focus on sustainability initiatives, as exemplified by Cargill's commitment to providing exclusively RSPO-certified palm oil from its U.S. refineries.

Additionally, companies are investing in technological advancements, particularly in processing methods like enzymatic interesterification, to develop specialty fats with enhanced nutritional profiles. The industry's strategic landscape continues to evolve through acquisitions, as demonstrated by KD Pharma Group's acquisition of DSM-Firmenich's marine lipids business, including the MEG-3 brand and facilities in Peru and Canada, as of July 2024.

While large corporations maintain significant market presence, smaller players find success in specialized market segments, particularly in specialty oils with specific functional or nutritional properties. In these niche markets, the ability to respond quickly to customer needs and maintain operational agility often proves more valuable than the scale advantages possessed by larger competitors.

Fats And Oils Industry Leaders

  1. Cargill Incorporated

  2. Bunge Limited

  3. Fuji Oil Holding Inc.

  4. Archer Daniels Midland Company

  5. Olam Group

  6. *Disclaimer: Major Players sorted in no particular order
Fats And Oils Market
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Recent Industry Developments

  • September 2024: Volac Wilmar launched Mega-Fat 70, a new rumen-protected fat product designed to enhance feed mill efficiency and dairy farm performance, containing 70% palmitic and 20% oleic fatty acids to optimize milk production and cattle health.
  • May 2024: Anchor introduced a new spreadable butter product that combines butter and rapeseed oil. This launch represents an expansion of Arla's Anchor butter product line.
  • March 2024: Bunge and Chevron initiated a joint venture, Bunge Chevron Ag Renewables LLC, to construct a new processing plant in Destrehan, Louisiana, aimed at processing oilseed crops for renewable fuels and meal products

Table of Contents for Fats And Oils 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 Rising Demand for Processed and Packaged Food
    • 4.2.2 Expanding Applications in Biodiesel Production
    • 4.2.3 Technological Advancements in Oil Extraction and Processing
    • 4.2.4 Incresing Popularity of Plant-Based Diets
    • 4.2.5 Growth of the food service industry drives the demand for cooking oils and fats.
    • 4.2.6 Growing health consciousness among consumers drives the demand for healthier oil alternatives
  • 4.3 Market Restraints
    • 4.3.1 Fluctuating Raw Material Prices and Supply Chain Disruptions
    • 4.3.2 Health Issues Associated with Trans-Fats Consumption
    • 4.3.3 Strict government regulations on trans-fat content in food products
    • 4.3.4 Environmental concerns related to palm oil production and deforestation
  • 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 Geography
    • 5.4.1 North America
    • 5.4.1.1 United States
    • 5.4.1.2 Canada
    • 5.4.1.3 Mexico
    • 5.4.1.4 Rest of North America
    • 5.4.2 Europe
    • 5.4.2.1 Germany
    • 5.4.2.2 France
    • 5.4.2.3 United Kingdom
    • 5.4.2.4 Spain
    • 5.4.2.5 Netherlands
    • 5.4.2.6 Italy
    • 5.4.2.7 Sweden
    • 5.4.2.8 Poland
    • 5.4.2.9 Belgium
    • 5.4.2.10 Rest of Europe
    • 5.4.3 Asia-Pacific
    • 5.4.3.1 China
    • 5.4.3.2 India
    • 5.4.3.3 Japan
    • 5.4.3.4 Australia
    • 5.4.3.5 South Korea
    • 5.4.3.6 Indonesia
    • 5.4.3.7 Thailand
    • 5.4.3.8 Singapore
    • 5.4.3.9 Rest of Asia-Pacific
    • 5.4.4 South America
    • 5.4.4.1 Brazil
    • 5.4.4.2 Argentina
    • 5.4.4.3 Chile
    • 5.4.4.4 Columbia
    • 5.4.4.5 Peru
    • 5.4.4.6 Rest of South America
    • 5.4.5 Middle East & Africa
    • 5.4.5.1 United Arab Emirates
    • 5.4.5.2 South Africa
    • 5.4.5.3 Nigeria
    • 5.4.5.4 Saudi Arabia
    • 5.4.5.5 Egypt
    • 5.4.5.6 Morocco
    • 5.4.5.7 Turkey
    • 5.4.5.8 Rest of Middle East and Africa

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 and Services, Recent Developments)
    • 6.4.1 Cargill Incorporated
    • 6.4.2 Bunge Limited
    • 6.4.3 Archer Daniels Midland Company
    • 6.4.4 Olam Group
    • 6.4.5 Fuji Oil Holdings Inc.
    • 6.4.6 Wilmar International Ltd
    • 6.4.7 Musim Mas Holdings
    • 6.4.8 AAK AB
    • 6.4.9 Louis Dreyfus Company
    • 6.4.10 IOI Corporation Berhad
    • 6.4.11 Sime Darby Plantation
    • 6.4.12 Kuala Lumpur Kepong Berhad
    • 6.4.13 Mewah Group
    • 6.4.14 Marico Ltd
    • 6.4.15 Kerry Group plc
    • 6.4.16 J-Oil Mills Inc.
    • 6.4.17 Viterra Ltd
    • 6.4.18 COFCO Oils & Oilseeds
    • 6.4.19 Associated British Foods (ABF Ingredients)
    • 6.4.20 Richardson International

7. MARKET OPPORTUNITIES AND FUTURE OUTLOOK

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Global Fats And Oils Market Report Scope

Fats and oils are essential components in food production, industrial applications, and consumer products. These substances consist of triglycerides derived from plant and animal sources, each offering distinct characteristics and functionalities. The scope of the fats and oils market includes segmentation by type, application, source, and geography. Based on type, the market is segmented into fats and oils. Fats are further segmented into butter, tallow, lard, and specialty fats. Moreover, oil is segmented into soybean oil, rapeseed oil, palm oil, coconut oil, olive oil, cottonseed oil, sunflower seed oil, and other oils. Based on application, the market is segmented into food, industrial, and animal feed. The food segment is further segmented into confectionery, bakery, dairy products, and others. Based on geography, the market is segmented into North America, Europe, Asia-Pacific, South America, the Middle East & Africa. The market sizing has been done in value terms in USD for all the abovementioned segments.

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 Geography North America United States
Canada
Mexico
Rest of North America
Europe Germany
France
United Kingdom
Spain
Netherlands
Italy
Sweden
Poland
Belgium
Rest of Europe
Asia-Pacific China
India
Japan
Australia
South Korea
Indonesia
Thailand
Singapore
Rest of Asia-Pacific
South America Brazil
Argentina
Chile
Columbia
Peru
Rest of South America
Middle East & Africa United Arab Emirates
South Africa
Nigeria
Saudi Arabia
Egypt
Morocco
Turkey
Rest of Middle East and Africa
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 Geography
North America United States
Canada
Mexico
Rest of North America
Europe Germany
France
United Kingdom
Spain
Netherlands
Italy
Sweden
Poland
Belgium
Rest of Europe
Asia-Pacific China
India
Japan
Australia
South Korea
Indonesia
Thailand
Singapore
Rest of Asia-Pacific
South America Brazil
Argentina
Chile
Columbia
Peru
Rest of South America
Middle East & Africa United Arab Emirates
South Africa
Nigeria
Saudi Arabia
Egypt
Morocco
Turkey
Rest of Middle East and Africa
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Key Questions Answered in the Report

What is the projected oils and fats market size for 2030?

The fats and oils market size is expected to reach roughly USD 144.90 billion by 2030, based on current growth forecasts.

Which source type leads the market in 2024?

Plant-based source type leads the market with largest market share of 84.43%.

Why is Asia-Pacific so influential in the oils and fats market?

The region combines dominant palm production with expanding consumption in large economies, creating both supply and demand leadership.

How have trans-fat regulations shaped product reformulation?

Global bans on partially hydrogenated oils prompted widespread adoption of enzymatic interesterification, enabling comparable functionality without trans fats.

Page last updated on: June 13, 2025

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