| Study Period | 2019 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Historical Data Period | 2019 - 2023 |
| CAGR | 3.81 % |
| Market Concentration | Low |
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*Disclaimer: Major Players sorted in no particular order |
South America Vegetable Oil Market Analysis
The South America Vegetable Oil Market is expected to register a CAGR of 3.81% during the forecast period.
- South American countries, such as Brazil and Argentina, are the major exporters of peanut oil. Brazil and Venezuela are the leading vegetable oil-producing countries in South America. Amplifying demand for healthy edible oils obtained from natural sources is propelling the growth of the vegetable oils market. The growing processed food industry of the region, coupled with the growth of the food service industry, is further expected to aid the market growth of vegetable oils in South America.
- Moreover, the growing consumer emphasis on health and wellness in the region further boosts the demand for olive oil. Olive oil is not only used as a dressing but also as a cooking aid, making it a preferred choice among health-conscious individuals. The rising demand is met by imported olive oil in the region. According to the United States Department of Agriculture (USDA) Foreign Agricultural Service, Brazil imported 120,000 metric tons of olive oil in 2021, majorly from Portugal, Spain, Argentina, and other global countries.
- Similarly, as the population in South America continues to grow, so does the demand for edible oils. Vegetable oils, which are used for cooking and frying as well as being a component of many processed foods, are a significant source of calories and fat in the diet of South America. Vegetable oils are generally considered healthier than animal fats, as they are lower in saturated fat and higher in unsaturated fat. This has led to a growing awareness of the health benefits of vegetable oils among consumers, increasing demand. Moreover, vegetable oils are utilized in creating biofuels, which are becoming increasingly popular as a more environmentally friendly substitute for fossil fuels. This has helped to create an additional market for vegetable oils, driving further growth in the industry.
- South America has a favorable climate for growing oilseed crops such as soybeans and sunflowers, which are the primary sources of vegetable oils in the region. This has led to high yields and lower production costs, making South American vegetable oils more competitive in the global market, thus supporting the market's growth. Sunflower and soybean are the major oils consumed and produced in Argentina. According to a USDA report, in 2020-2021, Argentina produced 2,900 and 48,000 thousand metric tons of sunflower and soybean, respectively.
South America Vegetable Oil Market Trends
Rising Demand for Biofuels to Support the Market Growth
- Growing concerns about the rate of climate change are fueling an increase in demand for biofuels, boosting market growth. Also, consumers' demand for biofuels is rising as fossil fuels negatively influence the environment; many people are searching for more environmentally friendly and sustainable alternatives. This has resulted in the increased production of biofuels in the region, which is expected to support and drive the market's growth during the forecast period. For example, according to BP, a prominent oil industry company, Brazil stands out as the leading biofuel producer in South America. In 2021, the country's biofuel production reached an impressive 376 thousand barrels of oil equivalent per day.
- In comparison, Colombia produced 13 thousand barrels per day of biofuel, while Argentina witnessed an increase in biofuel production from 27 thousand barrels of oil equivalent per day in 2020 to 38 thousand barrels per day in 2021. Thus, it is anticipated that the growing demand for biofuels will increase the need for canola, palm, and soybean oil to fuel market expansion.
- Moreover, the palm oil market is expected to grow faster as it is used to produce both methyl ester and hydro-deoxygenated biodiesel. Transesterification is the method used to produce methyl ester from palm oil. Palm oil biodiesel is frequently blended with other fuels to make palm oil biodiesel blends. For instance, according to the United States Department of Agriculture (USDA), in 2021, industrial consumption of palm oil in Brazil was estimated at 780 thousand metric tons, the highest figure reported among Latin American countries. That same year, Columbia's industrial palm oil consumption ranked second in the region at 625 thousand tons.
- Palm oil is used in both countries as a feedstock for biodiesel production. Additionally, countries like Colombia, Brazil, and Ecuador are increasingly embracing sustainable palm oil production as palm oil gains a stronger foothold in the rest of South America through certification from the Roundtable on Sustainable Palm Oil.
- Given the widespread use of palm oil in the region, numerous manufacturers are actively expanding their local operations and participating in the overseas palm oil trade, thereby contributing to the overall expansion of the market.
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Brazil Accounts for the Largest Market Share
- Brazil is one of the prominent producers and exporters of vegetable oil after the United States. A few major factors, like the discovery of new offshore oil deposits, inducing multinational oil companies like the state-owned enterprise Petrobras and other companies focused on actively setting up new refineries, are driving the increased oil production and are expected to increase the vegetable oil production in the country.
- For instance, according to the United States Department of Agriculture (USDA), in 2022-22, the production of soybean oil in Brazil accounted for nearly 9.77 million metric tons, an increase in comparison to the previous year in which the production of soybean oil was 8.99 million metric tons. This would also be the highest figure reported in the study period. Additionally, soybean oil accounted for just over 72% of the volume of raw materials used for biodiesel production in Brazil in 2021.
- Moreover, Brazil has a large area of arable land and a favorable climate for growing vegetable oil-producing crops like soybeans, palm, and others which gives it an advantage as it has an increased vegetable oil crop production area. For instance, according to USDA Foreign Agricultural Service, in the marketing year ending September 2021, the area planted with oil palm in Brazil was estimated to reach 180,000 hectares which increased from 175,000 hectares when compared with 2019.
- Furthermore, a few government initiatives and regulation has been further supporting the market's growth making Brazil the largest country in the region to hold the market share. For instance, Brazil boasts one of the world's largest biodiesel programs, which includes a mandate stipulating a minimum blend of biodiesel in diesel fuel.
- As per Brazil's National Agency of Petroleum, Natural Gas, and Biofuels (ANP), the current mandate sets the blend rate at 10% (B10) as of 2022. This commitment to biodiesel usage showcases Brazil's dedication to promoting renewable and sustainable energy sources in the transportation sector. This has created an additional market for vegetable oils in the country as the requirement for biofuels made of vegetable oils has increased.
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South America Vegetable Oil Industry Overview
The South American vegetable oil market is competitive. The most active companies in the South American vegetable oils market are Bunge Limited, Cargill Incorporated, Sime Darby Plantation Berhad, Wilmar International Limited, and Agropalma, among others. The active companies in the market have adopted product innovation as the strategy due to changing consumer preferences in the region.
The major focus of the companies is to offer products with a wider application range aiding all feed, food and beverage, and industrial sectors, thereby catering to consumers' preferences efficiently. Moreover, the companies have adopted continuous expansion as their strategy to achieve a competitive advantage in the market and expand their geographical presence and customer base.
South America Vegetable Oil Market Leaders
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Sime Darby Plantation Berhad
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Cargill, Incorporated
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Bunge Limited
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Agropalma
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Wilmar International Limited
- *Disclaimer: Major Players sorted in no particular order
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South America Vegetable Oil Market News
- October 2022: BrasilBiofuels announced its plans to build Brazil's first sustainability aviation fuel facility in Manaus using technology developed by Denmark's Topsoe Haldor. The company claimed that they would use palm oil which they will grow in Brazil, as feedstock for the biorefinery to meet the growing demand for renewable fuels, including SAF.
- April 2022: Brazilian fuel distributor Vibra Energia SA leveraged its existing partnership with Brasil BioFuels (BBF) to venture into the production and sale of palm oil-based jet fuel. This strategic decision reflects Vibra Energia's commitment to expanding its involvement in sustainable energy solutions and further accelerating the transition towards greener alternatives in the aviation industry.
- July 2021: Agropalma announced a partnership with Ciranda. In partnership with Ciranda, Agropalma expanded its production of organic palm oil to meet growing demand. The companies announced that they would supply the organic food sector with the highest quality palm oils and shortening.
South America Vegetable Oil Industry Segmentation
Vegetable oils, also known as vegetable fats, are oils that are derived from seeds or other fruit portions of the plant.
The South American vegetable oil market is segmented by type, application, and geography. Based on type, the market is segmented into palm oil, soybean oil, rapeseed oil, sunflower oil, olive oil, and other types. Based on application, the market is segmented into food, feed, and industrial. Based on geography, the market is segmented into Brazil, Argentina, and the Rest of South America.
The market sizing has been done in volume terms in tons for all the abovementioned segments.
| Type | Palm Oil |
| Soybean Oil | |
| Rapeseed Oil | |
| Sunflower Oil | |
| Olive Oil | |
| Other Types | |
| Application | Food |
| Feed | |
| Industrial | |
| Geography | Brazil |
| Argentina | |
| Rest of South America |
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South America Vegetable Oil Market Research FAQs
What is the current South America Vegetable Oil Market size?
The South America Vegetable Oil Market is projected to register a CAGR of 3.81% during the forecast period (2025-2030)
Who are the key players in South America Vegetable Oil Market?
Sime Darby Plantation Berhad, Cargill, Incorporated, Bunge Limited, Agropalma and Wilmar International Limited are the major companies operating in the South America Vegetable Oil Market.
What years does this South America Vegetable Oil Market cover?
The report covers the South America Vegetable Oil Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the South America Vegetable Oil Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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South America Vegetable Oil Industry Report
Statistics for the 2025 South America Vegetable Oil market share, size and revenue growth rate, created by Mordor Intelligenceā¢ Industry Reports. South America Vegetable Oil analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
