Soybean Oil Market Size & Share Analysis - Growth Trends And Forecast (2025 - 2030)

Global Soybean Oil Market Trends and Insights

Expanding livestock industry driving soybean meal consumption

The global rise in protein demand is significantly boosting soybean meal consumption, which, in turn, is driving the growth of the soybean oil market. This correlation exists because higher demand for soybean meal necessitates increased soybean crushing, a process that also yields soybean oil as a by-product. Livestock operations, particularly in emerging markets, are expanding rapidly, with soybean meal serving as a crucial protein source for animal feed. In the United States, poultry stands out as the top domestic consumer, accounting for 66.2% of soybean meal usage. Following closely, swine consume 17.5% of the total, as per the Iowa Soybean Association^{[1]Source: Iowa Soybean Association, “Is Soybean Meal Losing Its Dominance in Livestock Deed?,” iasoybeans.com}. Urbanization is further influencing dietary patterns, resulting in increased consumption of animal protein, particularly in the Asia-Pacific region. This shift is particularly evident in the aquaculture sector, where the demand for high-protein feed formulations is intensifying. Concurrently, the global livestock industry is transitioning toward more intensive and efficient production systems, which require consistent and high-quality protein inputs to sustain growth. 

Expanding food processing and fast-food industries boost oil consumption

The demand for soybean oil is witnessing significant growth as manufacturers increasingly prioritize stable, neutral-flavored oils for large-scale production processes. This rising demand, particularly from the food industry, is being driven by the rapid expansion of fast-food chains and the growing processed food manufacturing sector. These trends reflect broader consumer behavior shifts, including the increasing preference for convenience and the effects of urbanization in developing markets, where higher disposable incomes are fueling processed food consumption. The food processing sector's reliance on soybean oil is primarily due to its advantageous functional properties, such as its suitability for frying applications and its ability to extend product shelf life. These characteristics make soybean oil a critical component of global food supply chains, which require consistent quality and reliable availability across diverse geographic regions.

Growth in biodiesel production using soybean oil

With the expansion of biodiesel capacity, a significant portion of the soybean oil supply is being redirected from food applications to energy use, thereby reducing its availability in the edible oil market. Renewable fuel mandates, driven by government efforts to reduce carbon emissions in transportation sectors, are significantly increasing soybean oil consumption. In 2023, the United States achieved a production volume of 4.6 billion gallons of biomass-based diesel, United States Department of Agriculture^{[2]Source: United States Department of Agriculture, " Soybean and Oil Crops", usda.gov}. In March 2024, Brazil's biodiesel mandate was expected to increase, with a 14% adjustment anticipated to add 300,000 tonnes of soybean oil. This regulatory-driven demand is creating price premiums for soybean oil, encouraging farmers to prioritize high-oil-content crop varieties and prompting processors to expand their crushing capacities. These developments are fundamentally transforming the traditional economics of the soybean value chain.

Rising health awareness shifts preference towards healthier oils

Health-conscious consumers are increasingly gravitating toward products labeled as non-GMO and organic, driven by the perceived health benefits associated with these options. Organic soybeans, in particular, command a farm-gate price that is more than double that of conventional soybeans. This significant price difference reflects the costs associated with organic certification and the premium positioning of these products in the market. Retailers are placing a strong emphasis on clean-label oils, which is prompting processors to prioritize sourcing traceable soybeans and investing in identity-preserved supply chains to meet consumer expectations. Meanwhile, breeders are focusing on developing high-oleic soybean varieties that offer enhanced oxidative stability and eliminate trans fats, thereby combining health benefits with improved fry-life performance. This emerging yet steadily growing demand is creating diversified revenue opportunities for both soybean growers and processors.

Competition from alternative oilseeds hinders growth

Farmers are increasingly diversifying their crop rotations, while processors actively seek more cost-effective feedstock options, resulting in alternative oilseed crops posing a significant challenge to the soybean oil market share. Canola, sunflower, and palm oil are emerging as direct competitors to soybean oil in biodiesel production. A notable development in this space is the sharp rise in used cooking oil imports, which escalated to over 3 billion pounds in 2023 from less than 300 million pounds in 2021^{[3]Source: American Soybean Association, " Used Cooking Oil Imports for Biofuels Exceed Expectations", soygrowers.com}. This surge highlights a growing shift toward feedstock diversification in renewable fuel production. The competitive landscape is further intensified by carbon intensity scoring mechanisms, which increasingly prioritize waste-based feedstocks over virgin vegetable oils. This trend has the potential to erode the premium position of soybean oil in renewable fuel markets. Competition in the protein meal segment is gaining momentum. Swine feed formulations have reduced soybean meal usage by 30% through the adoption of mid-protein alternatives. 

Fluctuating global prices due to weather and trade policies restricts growth

Price volatility is a significant challenge for the soybean oil market, as unpredictable changes in supply and demand, often caused by weather conditions and geopolitical issues, make it difficult for stakeholders to plan for the long term and maintain market stability. For instance, in March 2025, China halted soybean imports from 3 United States companies due to alleged contamination. This action disrupted supply chains and had an immediate impact on soybean oil prices. Similar disruptions have occurred during droughts in Brazil and Argentina, which reduced soybean production and led to sharp increases in global soybean oil prices. Rising demand for biodiesel in the United States has, at times, diverted large quantities of soybean oil away from food production, further tightening the supply of edible oil and increasing price uncertainty. Such volatility discourages farmers from growing high-oil soybean varieties, as they cannot rely on stable returns. 

Segment Analysis

By Nature: Organic Premiums Drive Niche Expansion

Conventional soybean oil continues to dominate the market, accounting for 96.04% of the total output in 2024. This dominance is driven by their robust supply chains and genetically adaptable traits, which enhance pest resistance and reduce herbicide usage, ultimately leading to lower production costs. These factors make conventional soybeans highly competitive in global commodity markets. Advancements in breeding and biotechnology are enabling higher yields and improved field performance, further solidifying their market position. Bayer’s planned 2027 launch of Vyconic, a soybean variety tolerant to 5 herbicides, is expected to provide farmers with greater flexibility in weed management and significantly boost profitability, reinforcing the strength of conventional soybeans in the market.

Organic soybean oil, while representing a smaller segment of the market, are experiencing notable growth with a compound annual growth rate (CAGR) of 7.60%, driven by increasing consumer demand for non-GMO and clean-label products. Producers in this segment place a strong emphasis on maintaining consumer trust, which has led to the adoption of rigorous measures, including on-farm audits, digital traceability systems, and third-party testing. To cater to this growing demand, processors are investing in dedicated crushing facilities to prevent cross-contamination with conventional soybeans, despite the high costs involved. Although organic farming incurs higher expenses for certification and weed management, the premium prices offered at the farm gate incentivize growers to remain committed. 

By Application: Industrial Surge Reshapes Value Chains

In 2024, food applications dominated the revenue landscape, claiming a notable 80.57% share, largely due to their integration in spreads, frying fats, and packaged snacks. The versatility of these oils in food preparation and processing has made them indispensable in the food sector. Palm and sunflower oils, in particular, are highly sought after for their neutral flavors, which do not interfere with the taste of final products, and their diverse fatty-acid profiles, which cater to varying health and dietary preferences. These attributes have positioned them as strong competitors in the market, challenging other edible oils to innovate and meet evolving consumer demands. The growing trend of convenience foods and ready-to-eat snacks continues to drive the demand for these oils, further solidifying their dominance in the food sector.

The industrial segment is experiencing rapid growth, boasting a compound annual growth rate (CAGR) of 5.92%. This surge is largely fueled by the rising mandates for biofuels and sustainable aviation fuels (SAF). The industrial use of oils, particularly soybean oil, has gained significant traction due to its role as a key feedstock in the production of renewable fuels. In the United States, planned capacity expansions are set to boost renewable fuel production by a staggering 1 billion gallons, amplifying the demand for soybean oil as a primary ingredient. Policies such as tax incentives and blending mandates are instrumental in this industrial surge, often nudging processors to adjust their blending tactics to meet regulatory requirements. The push for sustainability and the global shift toward reducing carbon emissions have accelerated the adoption of biofuels and SAF. Still, co-product credits from glycerin and meal act as a safety net, enhancing plant profit margins and ensuring the economic viability of these industrial operations.

Note: Segment shares of all individual segments available upon report purchase

Geography Analysis

Asia-Pacific continues to dominate as the largest regional consumer, accounting for 43.11% of the global market. This dominance is driven by the rapid expansion of livestock and aquaculture industries, which heavily depend on soybean meal and oil as essential inputs. Governments in the region are actively investing in enhancing domestic production capacities and approving advanced crop technologies to reduce reliance on imports. Processors are modernizing and expanding crushing facilities, particularly near major ports, to optimize efficiency and strengthen regional supply chains. These developments are ensuring a steady supply to meet the growing demand for soybean oil products.

The Middle East is projected to witness the fastest growth, with a robust CAGR of 6.72% through 2030. National food security initiatives and the rising demand for soy-based inputs in the poultry and dairy industries drive this growth. Countries like the United Arab Emirates and Saudi Arabia are focusing on integrating soybean meal and oil into their feed systems while simultaneously investing in local oilseed processing infrastructure. The establishment of climate-controlled feed mills and advanced poultry complexes is further driving the demand for soybean oil and its derivatives. These efforts are positioning the region as a key growth market for soybean oil products.

Europe is experiencing steady growth as it navigates the dual priorities of sustainability and supply chain resilience. The introduction of stringent environmental regulations and deforestation policies is encouraging buyers to source certified and traceable soybean oil from responsible suppliers. This shift is driving the adoption of digital monitoring systems, enhanced transparency, and long-term procurement strategies. The region's focus on sustainable practices is reshaping the market landscape, fostering a transition toward environmentally compliant and ethically sourced soybean oil products. These measures are ensuring that Europe remains a significant player in the global soybean oil market.