
Study Period | 2019 - 2030 |
Base Year For Estimation | 2024 |
Forecast Data Period | 2025 - 2030 |
Historical Data Period | 2019 - 2023 |
CAGR | 4.59 % |
Market Concentration | Low |
Major Players![]() *Disclaimer: Major Players sorted in no particular order |
South America Fats and Oils Market Analysis
The South America Fats and Oil Market is expected to register a CAGR of 4.59% during the forecast period.
The South American fats and oils industry is experiencing a significant transformation driven by changing consumer preferences and sustainability initiatives. Major producers in the region, particularly Brazil and Argentina, are increasingly adopting sustainable production practices and obtaining certifications from organizations like the Roundtable on Sustainable Palm Oil (RSPO). This shift is particularly evident in countries like Ecuador, which became the first in the region to adopt a jurisdictional approach to sustainable palm oil production across the entire country. The industry's commitment to sustainability is further demonstrated through various partnerships between producers and environmental organizations, focusing on conservation actions and good agricultural practices.
The market is witnessing substantial growth in industrial applications, particularly in the biodiesel sector, where vegetable oils serve as key feedstock. Argentina's position as an export-oriented biodiesel industry, with over 40% of production meant for export, exemplifies this trend. The industrial sector is diversifying beyond traditional applications, with fats and oils finding new uses in pharmaceuticals, cosmetics, and technical applications. Companies are actively exploring opportunities in the animal feed value chain, developing value-added products and services for the local feed industry.
The beauty and cosmetics sector represents a significant growth driver for the fats and oils market in South America. Brazil, as the third-largest cosmetics market globally, is experiencing a surge in demand for natural and organic ingredients, with approximately 32% of Brazilian consumers preferring sustainable cosmetics and personal care products. This trend has attracted both global giants and local players to the organic cosmetics market, particularly focusing on vegetable oil-based products for various applications including balms, lipsticks, and anti-aging products.
The market is experiencing a notable shift toward plant-based alternatives and clean-label products. Manufacturers are responding to consumer demands for minimally processed oils and fats, with increasing preference for products labeled as raw, natural, and cold-pressed. This trend is particularly evident in the development of new oil ingredients and innovative processing technologies. Companies are also focusing on developing specialty fats and refined oils for specific applications, such as dairy alternatives and confectionery products, while maintaining clean label standards and addressing health concerns related to saturated and trans fats.
South America Fats and Oils Market Trends
Supportive Policies on vegetable oil Usage for Different Applications in the Region
Government policies and environmental commitments are significantly driving the fats and oils market in South America. Brazil's commitment to the 21st Conference of the Parties (COP21) of the United Nations Framework Convention on Climate Change (UNFCCC) has led to the implementation of programs like RenovaBio, which provides a framework for certifying biofuel production based on greenhouse gas emission reduction efficiency. The program allows for the sale and trade of decarbonization credits (CBios), encouraging the use of soybean oil as a feedstock for biofuel production. This policy framework has resulted in over 70% of soy oil being utilized as feedstock for biofuel production, demonstrating the significant impact of supportive regulations on market growth.
The long-term sustainability commitments are further strengthening the market outlook, with Brazil confirming its objective of reaching climate neutrality by 2060. By the end of 2020, 241 biofuel plants, representing 59% of the total plants in Brazil, were certified to issue CBios, with 22 specifically being biodiesel plants. The program recognizes approximately ten companies to certify plants aiming to issue CBios, including prominent organizations like Green Domus, SGS, Instituto Totum, and PricewaterhouseCoopers (PwC). These certification mechanisms have created a structured framework that continues to drive the demand for vegetable oils in biofuel applications.
Surge in Demand from Growing Application Areas
The fats and oils market is experiencing substantial growth due to their expanding applications across various industries. In the animal feed sector, these products are gaining prominence as high-energy supplements that ensure nutritional balance while minimizing feed costs. The versatility of fats and oils extends to household cleaning products, lubricants, paints, and paper industries, where they are increasingly being used as sustainable alternatives to chemical ingredients. Research from the State University of Maringa and the University of Zaragoza has demonstrated that incorporating oil in feedlot-raised cow diets can improve animal performance and feed intake without the use of antibiotics.
The non-food applications, particularly in the oleochemical category, represent another significant growth driver. Palm oil-based oleochemicals are preferred over those derived from low-grade animal fats due to their superior odor and color characteristics. Their higher C16 content and vegetable origin provide advantages in numerous applications, including surface cleaners, fabric cleaners and softeners, dishwashing tablets, automotive care products, and industrial cleaners. Additionally, seed oils are finding increasing application in industrial oil lubricants and transportation, offering benefits such as resource renewability and biodegradability while maintaining satisfactory performance in applications ranging from two-stroke engines to farming and mining equipment.
Increasing Reliance on Natural Cosmetics and Personal Care Products
The growing consumer preference for natural and sustainable personal care products is significantly driving the fats and oils market in South America. The region's rising middle-class population, coupled with increasing disposable income, has created a substantial consumer base willing to spend more on sophisticated, safer, and more sustainable products. This trend has led to an explosion of brand launches and product innovations from major players, particularly in Brazil, where 53% of consumers express interest in natural beauty products, and 40% specifically seek face and body products made from Brazilian plant ingredients.
The trend toward natural products continues to advance despite higher price points compared to traditional products. Consumer awareness and demand for environmentally safer products with fewer chemicals have prompted companies to create targeted marketing campaigns emphasizing the use of natural oils, fats, and other organic ingredients. Local companies like Laboratorios Recamier are entering the market with brands such as Vitane Dermo Green, an anti-aging line made with natural extracts, while established brands like Avon Naturals, Natura, and Oriflame are expanding their natural and organic product offerings. The incorporation of natural ingredients in beauty and personal care products, especially in hair care, skincare, and soap, has become particularly prominent in the upper-income segment, driving the demand for various natural oils and fats.
Segment Analysis: By Type
Oils Segment in South America Fats and Oils Market
The oils segment continues to dominate the South America fats and oils market, commanding approximately 82% market share in 2024. This substantial market position is primarily driven by the extensive use of vegetable oil, particularly soybean oil, in Brazil and Argentina, which are among the world's leading soybean producers. The segment's dominance is further strengthened by the increasing adoption of edible fats in various applications including food processing, biodiesel production, and industrial uses. The versatility of oils, particularly in food applications such as frying, baking, and as ingredients in processed foods, has maintained their position as the preferred choice among manufacturers and consumers alike. Additionally, the growing trend toward healthier cooking options and the rising demand for plant-based alternatives have further boosted the consumption of various vegetable oils across the region.

Specialty Fats Segment in South America Fats and Oils Market
The specialty fats segment is emerging as the fastest-growing category in the South America fats and oils market, projected to grow at approximately 6% during 2024-2029. This remarkable growth is driven by the increasing demand for specialized fat solutions in the confectionery and bakery industries, particularly in Brazil and Argentina. The segment's expansion is supported by rising consumer preferences for premium chocolate products and the growing need for specific functional properties in food applications. Manufacturers are increasingly focusing on developing innovative specialty fats solutions, such as cocoa butter alternatives and dairy fat replacers, to meet the evolving requirements of food processors. The growth is further propelled by the rising demand for clean-label products and the increasing adoption of specialty fats in premium food applications across the region.
Remaining Segments in South America Fats and Oils Market
The fats segment represents a significant portion of the South America fats and oils market, playing a crucial role in various food and industrial applications. This segment encompasses products such as butter, tallow, and lard, which are essential ingredients in the food processing industry. The segment's importance is particularly evident in the bakery and confectionery sectors, where these animal fat products contribute to product texture, flavor, and functionality. Animal-based fats continue to maintain their relevance in traditional food applications, while also finding increasing use in specialized industrial applications. The segment's performance is influenced by factors such as changing consumer preferences, traditional cooking practices, and the growing demand for natural ingredients in food processing.
Segment Analysis: By Application
Food Segment in South America Fats and Oils Market
The food segment maintains its dominant position in the South America fats and oils market, commanding approximately 62% market share in 2024. This substantial market presence is driven by the extensive use of edible fats and oils across various food applications, including confectionery, bakery, dairy products, and other food segments. The confectionery sector leads the food segment applications, particularly in Brazil, which ranks as the third-largest confectionery-consuming country among BRIC nations. The growing demand for premium chocolate products, increasing consumption of processed foods, and the rising popularity of specialty fats in food applications have further strengthened this segment's market position. Additionally, the segment's growth is supported by increasing consumer awareness about healthier oil alternatives and the expanding food processing industry across South America.
Industrial Segment in South America Fats and Oils Market
The industrial segment emerges as the fastest-growing category in the South America fats and oils market, with projections indicating robust growth from 2024 to 2029. This accelerated growth is primarily driven by increasing applications in biodiesel production, cosmetics, personal care products, and oleochemicals. Brazil's position as the third-largest cosmetics market globally has significantly contributed to this growth, with approximately 32% of Brazilians preferring sustainable cosmetics and personal care products. The segment's expansion is further supported by the rising demand for natural and organic ingredients in industrial applications, particularly in the beauty and personal care sector. The increasing adoption of vegetable oils in various industrial applications, coupled with growing environmental consciousness and sustainability initiatives across South American countries, continues to drive innovation and market expansion in this segment.
Remaining Segments in Application Segmentation
The animal feed segment plays a crucial role in the South American fats and oils market, serving as an essential component in livestock nutrition and feed production. This segment's significance is particularly evident in major agricultural countries like Brazil and Argentina, where the animal feed industry continues to expand. The segment benefits from the increasing demand for high-energy feed supplements and the growing livestock industry across the region. The use of animal fat in animal feed has gained prominence due to its role in providing nutritional balance and reducing feed costs, while also offering health benefits for poultry and cattle. The segment's growth is further supported by ongoing research and development in animal nutrition and the increasing adoption of specialized feed products across South America.
South America Fats and Oil Market Geography Segment Analysis
Fats and Oils Market in Brazil
Brazil dominates the South American fats and oils market, commanding approximately 54% of the total market value in 2024. The country's market leadership is primarily driven by its position as one of the world's leading soybean oil producers and exporters, particularly as the primary soybean supplier to China. The country's robust food processing industry, coupled with increasing local consumption, has aided the expansion of soybean agriculture and soybean oil production. The mandatory biodiesel mix rate for marketed diesel fuel has significantly influenced the industrial application of soybean oil. Furthermore, Brazil's cosmetics and personal care industry has been experiencing substantial growth, creating additional demand for various oils and fats. The country's strategic focus on sustainable palm oil production, particularly in regions like Para and Roraima, has also contributed to market diversification. Local companies have been actively innovating in the fats and oils sector, particularly in developing healthier alternatives with reduced saturated fat content for dairy and confectionery applications.
Fats and Oils Market in Chile
Chile represents one of the most dynamic markets in the South American fats and oils industry, projected to grow at approximately 6% annually from 2024 to 2029. The country's market is characterized by its sophisticated approach to oil production, particularly in the olive oil sector, where about 95% of Chile's olive orchards focus on producing extra virgin oil. The country's economic growth has been significantly influenced by exports, with the fish meal and marine oil industries standing out for their technological advancement and international competitiveness. Chilean consumers have shown an increasing preference for healthier oil alternatives, driving the demand for high-quality vegetable oil. The improvement in the country's economic situation has led to a shift in fat and oil consumption patterns, with a notable increase in the consumption of liquid oils and a decrease in solid fats of animal origin. The country's strategic location and well-developed infrastructure have made it an attractive hub for international trade in fats and oils products.
Fats and Oils Market in Argentina
Argentina maintains its position as a crucial player in the South American fats and oils market, with its strength primarily derived from its robust agricultural sector and advanced processing capabilities. The country has established itself as a major producer of olive oil in South America, with significant investments in production facilities and quality improvement initiatives. Argentina's market is characterized by its export-oriented nature, particularly in the biodiesel sector, where vegetable oil uptake plays a significant role in domestic consumption. The country's sunflower oil production capabilities have made it a key supplier to neighboring countries, while its soybean oil industry continues to evolve with new technological implementations. Local producers have been focusing on quality enhancement and international certifications to maintain their competitive edge in both regional and global markets.
Fats and Oils Market in Other Countries
The rest of the South American region, including countries such as Colombia, Venezuela, Ecuador, Bolivia, and Peru, presents diverse market dynamics in the fats and oils industry. These countries are increasingly focusing on sustainable production practices, particularly in palm oil cultivation, with Colombia and Ecuador leading initiatives for RSPO certification. The region has shown growing potential in specialty oils production, with Peru and Uruguay developing their olive oil sectors. These markets are characterized by increasing domestic consumption and growing industrial applications, particularly in the biodiesel and personal care sectors. The development of local processing capabilities and increasing foreign investments have been key factors in market growth. Additionally, these countries are actively participating in regional trade, with some specializing in specific types of oils and fats based on their agricultural strengths and processing capabilities.
South America Fats and Oils Industry Overview
Top Companies in South America Fats and Oil Market
The South American fats and oil market is led by prominent players, including Bunge Limited, Archer Daniels Midland Company, Cargill Inc., Wilmar International, and Olam International Limited. These companies are actively pursuing product innovation through the development of sustainable and healthier oil variants, particularly focusing on reduced saturated fat content and improved functionality for various applications. Operational agility is demonstrated through their extensive distribution networks and integrated supply chains spanning multiple countries in the region. Strategic moves predominantly revolve around partnerships with local producers and sustainability initiatives, particularly in palm oil sourcing and production. Companies are expanding their presence through capacity additions at existing facilities and establishing new processing units, while simultaneously investing in research and development capabilities to meet evolving consumer preferences for natural and clean-label products.
Fragmented Market with Strong Regional Players
The South American fats and oil market exhibits a fragmented structure characterized by the presence of both global conglomerates and regional specialists. Global players leverage their extensive research capabilities and international supply networks to maintain market position, while local players capitalize on their deep understanding of regional preferences and established distribution channels. The market demonstrates moderate consolidation, with larger players continuously seeking to strengthen their position through strategic acquisitions of local manufacturers and processors.
Merger and acquisition activities in the market are primarily driven by the need to secure raw material sources, expand geographic presence, and acquire specialized product portfolios. Companies are particularly focused on vertical integration strategies, acquiring upstream assets like plantations and processing facilities to ensure supply chain control and maintain quality standards. The competitive landscape is further shaped by increasing investments in sustainable practices and certification programs, which have become crucial differentiators in the market.
Innovation and Sustainability Drive Market Success
For incumbent players to maintain and expand their market share, a focus on sustainable sourcing practices and investment in advanced processing technologies has become crucial. Companies need to develop comprehensive sustainability programs that address environmental concerns while ensuring consistent supply quality. The ability to offer specialized products for specific applications, particularly in the food processing and personal care segments, while maintaining cost competitiveness through operational efficiency, has emerged as a key success factor.
New entrants and smaller players can gain ground by focusing on niche market segments and developing innovative product formulations that address specific consumer needs. Success in the market increasingly depends on building strong relationships with local farmers and processors, while also investing in traceability systems and sustainability certifications. The regulatory environment, particularly regarding labeling requirements and environmental standards, continues to shape competitive strategies, while the growing influence of large food manufacturers and processors as key customers necessitates strong business-to-business relationship management capabilities. Additionally, the demand for refined oils and processed oils is rising, driven by the need for consistency and quality in edible oils used in various applications.
South America Fats and Oils Market Leaders
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Cargill Inc.
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Bunge Limited
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Olam International Limited
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Fuji Oil Holding Inc.
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ADM
- *Disclaimer: Major Players sorted in no particular order

South America Fats and Oils Market News
In October 2021, Cargill declared the introduction of poultry feed with essential oils for healthy flocks and augmented egg production. Enhanced Nutrena® NatureWise® formulas increase the wellness, happiness, and productivity of backyard chickens. Backyard poultry owners require organic, wholesome feeds that assist in their birds' flourishing and maintain their eggs healthily and their coops naturally.
In 2020, Cargill Brazil launched Lévia+c, 'a new fat' that can reduce the saturated fat content in ice cream, cream, and dairy drinks by up to 30%. The fat is a blend of vegetable oils, primarily soybean oils and emulsifiers, used to achieve firmness, slower melting, texture, and creaminess. The technology used to develop it is patent-pending.
In 2019, ADM acquired Brazilian oilseed facilities from Algar Agro. ADM will also gain access to an extensive network of origination and storage silos throughout northeastern and southeastern Brazil.
South America Fats and Oils Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
- 4.1 Market Drivers
- 4.2 Market Restraints
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4.3 Porter's Five Forces Analysis
- 4.3.1 Threat of New Entrants
- 4.3.2 Bargaining Power of Buyers/Consumers
- 4.3.3 Bargaining Power of Suppliers
- 4.3.4 Threat of Substitute Products
- 4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
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5.1 By Type
- 5.1.1 Fats
- 5.1.1.1 Butter
- 5.1.1.2 Tallow
- 5.1.1.3 Lard
- 5.1.2 Specialty Fats
- 5.1.2.1 Cocoa Butter Equivalents
- 5.1.2.2 Cocoa Butter Replacers
- 5.1.2.3 Cocoa Butter Substitutes
- 5.1.2.4 Cocoa Butter Improver
- 5.1.2.5 Milk Fat Replacer
- 5.1.2.6 Other Specialty Fats
- 5.1.3 Oils
- 5.1.3.1 Soybean Oil
- 5.1.3.2 Palm Oil
- 5.1.3.3 Coconut Oil
- 5.1.3.4 Olive Oil
- 5.1.3.5 Sunflower Seed Oil
- 5.1.3.6 Other Oils
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5.2 By Application
- 5.2.1 Food
- 5.2.1.1 Confectionary
- 5.2.1.2 Bakery Products
- 5.2.1.3 Dairy Products
- 5.2.1.4 Other Foods
- 5.2.2 Industrial
- 5.2.3 Animal Feed
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5.3 Geography
- 5.3.1 Brazil
- 5.3.2 Argentina
- 5.3.3 Chile
- 5.3.4 Rest of South America
6. COMPETITIVE LANDSCAPE
- 6.1 Most Active Companies
- 6.2 Most Adopted Strategies
- 6.3 Market Share Analysis
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6.4 Company Profiles
- 6.4.1 AAK
- 6.4.2 Cargill Inc.
- 6.4.3 Bunge Limited
- 6.4.4 Olam International Limited
- 6.4.5 Fuji Oil Holding Inc.
- 6.4.6 Archer Daniels Midland Company
- 6.4.7 Sime Darby Plantation Berhad
- 6.4.8 Agropalma
- 6.4.9 Aceitera General Deheza
- 6.4.10 Wilmar International
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. IMPACT OF COVID-19 ON THE MARKET
South America Fats and Oils Industry Segmentation
The South American fats and oils market is segmented by type into fats, specialty fats, and oils. Based on the application, the market is classified according to the application of fats and oils in food, industrial, and animal feed applications. The market is also differentiated on the basis of geography.
By Type | Fats | Butter | |
Tallow | |||
Lard | |||
Specialty Fats | Cocoa Butter Equivalents | ||
Cocoa Butter Replacers | |||
Cocoa Butter Substitutes | |||
Cocoa Butter Improver | |||
Milk Fat Replacer | |||
Other Specialty Fats | |||
Oils | Soybean Oil | ||
Palm Oil | |||
Coconut Oil | |||
Olive Oil | |||
Sunflower Seed Oil | |||
Other Oils | |||
By Application | Food | Confectionary | |
Bakery Products | |||
Dairy Products | |||
Other Foods | |||
Industrial | |||
Animal Feed | |||
Geography | Brazil | ||
Argentina | |||
Chile | |||
Rest of South America |
South America Fats and Oils Market Research FAQs
What is the current South America Fats and Oil Market size?
The South America Fats and Oil Market is projected to register a CAGR of 4.59% during the forecast period (2025-2030)
Who are the key players in South America Fats and Oil Market?
Cargill Inc., Bunge Limited, Olam International Limited, Fuji Oil Holding Inc. and ADM are the major companies operating in the South America Fats and Oil Market.
What years does this South America Fats and Oil Market cover?
The report covers the South America Fats and Oil Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the South America Fats and Oil Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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South America Fats and Oil Market Research
Mordor Intelligence provides a comprehensive analysis of the South America fats and oils industry. We leverage extensive expertise in lipids research and market consulting. Our detailed report covers the entire spectrum of edible fats and oils, including segments such as palm oil, coconut oil, sunflower oil, rapeseed oil, and soybean oil. The analysis includes both natural oils and processed oils, with a focus on oleochemical applications and industrial oil usage. Our report PDF is available for immediate download and offers in-depth insights into vegetable oil production, cooking oil consumption patterns, and refined oils manufacturing processes across South America.
Stakeholders gain valuable insights into specialty fats development, marine oil production, and dietary fats consumption trends. The comprehensive analysis also covers animal fat utilization and emerging essential oils applications, offering strategic value for industry participants. The report examines edible oil supply chains and processed oils manufacturing capabilities, providing actionable intelligence for business planning. Whether focusing on traditional fats and oil segments or exploring new opportunities in industrial oil applications, our research delivers crucial data in an accessible format. This supports informed decision-making across the value chain.