Fats and Oils Market - Growth, Trends, COVID-19 Impact, and Forecast (2022 - 2027)

The Fats and Oils Market is Segmented by Type (Fats and Oils), Applications (Food, Industrial, and Animal Feed), and Geography (North America, South America, Europe, Middle-East and Africa, and Asia-Pacific). The report offers market size and values in (USD million) for the abovementioned segments.

Market Snapshot

fats and oils market
Study Period: 2016-2027
Base Year: 2021
Fastest Growing Market: Asia-Pacific
Largest Market: Asia-Pacific
CAGR: 4.8 %

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Market Overview

The fats and oils market is projected to register a CAGR of 4.8% during the forecast period (2022-2027).

The COVID-19 pandemic significantly impacted the different segments of the fats and oils market, from edible vegetable oil to other associated industries that use fats and oils extensively in manufacturing processes. Many industries and manufacturing facilities fell short of the working force, and raw materials became expensive. The FAO price index reveals a 40% price rise in fats and oils in 2020 and 2021. These prices reached pre-CVODI-19 levels in December 2021. The use of fats and oils as lubricants in various industries increased compared to 2019.

Fats and oils are used extensively in food applications such as confectioners to produce candies and polish confectionery products. Refined olive oil and coconut oil are increasingly used for various bakery applications as they are bland in taste, allowing food to maintain its original flavor. They also do not exhibit any pungency, unlike mustard oil.

Fats and oils have gained prominence as feed products due to their health benefits for poultry and cattle. Fats and oils are high-energy supplements that ensure nutritional balance while minimizing feed costs. Thus, these are added as feed products to reduce the incidence of bloat and energy density in the feed.

Scope of the Report

Fats and oils are made up of molecules known as triglycerides, which are esters consisting of three fatty acid units connected to glycerol. The scope of the fats and oils market includes segmentation by type, application, and geography. The report offers market size and values in (USD million) for the abovementioned segments.

By Type
Specialty Fats
Soybean Oil
Rapeseed Oil
Palm Oil
Coconut Oil
Olive Oil
Cotton Seed Oil
Sunflower Seed Oil
Other Oils
By Application
Dairy Products
Other Foods
Animal Feed
By Geography
North America
United States
Rest of North America
South America
Rest of South America
United Kingdom
Rest of Europe
Middle-East and Africa
South Africa
Saudi Arabia
Rest of Middle-East and Africa
Rest of Asia-Pacific

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Key Market Trends

Increasing Demand for Vegetable Oil in Energy and Cosmetic Industry

Fats and oils are used in various manufacturing processes. With the rising awareness of the sustainable use of fossil fuels, manufacturers are opting for vegetable oils instead of lubricants. They are now being employed as a sustainable form of production in industries such as paints, lubricants, and paper, without the need for chemicals. Non-food uses, particularly oleochemicals, account for a sizable portion of the market. Oils and fats are the sources of oleochemicals. Oleochemicals from palm oil have a better odor and color than those made from low-grade animal fats. In many applications, their increased C16 content and vegetable origin provide advantages. Vegetables are also used as cutting or metal working fluid (MWF) in machinery operations. After processing, the lubricant nature of vegetable oils makes them versatile and helps ease machinery operations, which can be a possible alternative to fossil fuels. With many manufacturers using vegetable oils as lubricants, the demand for vegetable oils has been increasing and driving the market positively.

 cooking oils & fats market

Europe is the Fastest Growing Region in the Market

A considerable number of policies have been implemented by the authorities of several countries that support the production and consumption of vegetable oils, thus boosting the market’s growth. The European Union’s vegetable oil consumption for biofuel has been primarily driven by the Renewable Energy Directive (RED). This directive, established in 2009, required 10% of the energy consumption in road and rail transport to be generated from renewable sources in 2020. The EU member states (countries) must implement this target along with their national laws and incentives, such as blending mandates. Palm oil contributes to around 20% of the production of biodiesel (fatty acid methyl ester) and renewable diesel (hydro-treated vegetable oil) in the European Union. The other significant feed-stocks for producing diesel substitutes are rapeseed, used in cooking oils, and animal fats. Additionally, the amount of soybean oil used in biofuel production in the United States has been rising steadily due to the RFS and the biodiesel and renewable diesel tax credits. This trend is likely to continue in the foreseeable future.

cooking oils and fats industry

Competitive Landscape

The fats and oils market is highly fragmented yet competitive, with a significant share held by the leading player, Wilmar Internationa. Its segment, Tropical Oils, claims a dominant presence across the world. The most active companies in the market are Cargill Inc., Sime Darby Plantation, Bunge Limited, AAK, Olam International Limited, and ADM. These companies are more focused on expanding their global presence by increasing the production capacity of fats and oils. The other strategic steps major players take are partnerships, joint ventures, and sharing production facilities for a cost-effective outcome.

Recent Developments

  • In May 2021, ADM invested about USD 350 million to build a soybean crushing facility in North Dakota, United States. The plant is expected to finish and start processing by 2023. The plant functionaries include soy crushing, oil refining, and processing of soy-related products.
  • In November 2021, Cargill invested about USD 35 million to expand the Malaysian vegetable oil production facility. The facility features dry palm fractionation capacity, enabling the production of specialty fats for chocolates, coatings, and spreads.
  • In December 2021, Fuji Oil launched a joint venture with one of its subsidiaries, Fuji Specialities Inc. and ITOCHU International Inc., forming FII. The prime reason behind this collaboration is to expand the vegetable oil business in North America. The joint venture shares the raw material, manufacturing, and sales of fats and oils across North America.

Table of Contents


    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study




    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Porter's Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry


    1. 5.1 By Type

      1. 5.1.1 Fats

        1. Butter

        2. Tallow

        3. Lard

        4. Specialty Fats

      2. 5.1.2 Oils

        1. Soybean Oil

        2. Rapeseed Oil

        3. Palm Oil

        4. Coconut Oil

        5. Olive Oil

        6. Cotton Seed Oil

        7. Sunflower Seed Oil

        8. Other Oils

    2. 5.2 By Application

      1. 5.2.1 Food

        1. Confectionary

        2. Bakery

        3. Dairy Products

        4. Other Foods

      2. 5.2.2 Industrial

      3. 5.2.3 Animal Feed

    3. 5.3 By Geography

      1. 5.3.1 North America

        1. United States

        2. Canada

        3. Mexico

        4. Rest of North America

      2. 5.3.2 South America

        1. Brazil

        2. Argentina

        3. Rest of South America

      3. 5.3.3 Europe

        1. Germany

        2. United Kingdom

        3. France

        4. Russia

        5. Italy

        6. Rest of Europe


      4. 5.3.4 Middle-East and Africa

        1. South Africa

        2. Saudi Arabia

        3. Rest of Middle-East and Africa

      5. 5.3.5 Asia-Pacific

        1. China

        2. Japan

        3. India

        4. Australia

        5. Rest of Asia-Pacific


    1. 6.1 Most Active Companies

    2. 6.2 Most Adopted Strategies

    3. 6.3 Market Share Analysis

    4. 6.4 Company Profiles

      1. 6.4.1 Cargill Incorporated

      2. 6.4.2 Bunge Limited

      3. 6.4.3 The Archer Daniels Midland Company

      4. 6.4.4 Fuji Oil Holding Inc.

      5. 6.4.5 Olam International

      6. 6.4.6 Wilmar International Limited

      7. 6.4.7 Musim Mas Group

      8. 6.4.8 Alami Commodities Sdn Bhd

      9. 6.4.9 Kuala Lumpur Kepong Berhad

      10. 6.4.10 Arista Industries

    5. *List Not Exhaustive


**Subject to Availability

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Frequently Asked Questions

The Fats and Oils Market market is studied from 2016 - 2027.

The Fats and Oils Market is growing at a CAGR of 4.8% over the next 5 years.

Asia-Pacific is growing at the highest CAGR over 2021- 2026.

Asia-Pacific holds highest share in 2021.

Cargill Incorporated, Bunge Limited, Fuji Oil Holding Inc., Olam International, The Archer Daniels Midland Company are the major companies operating in Fats and Oils Market.

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