
Study Period | 2019 - 2030 |
Market Size (2025) | USD 413.64 Billion |
Market Size (2030) | USD 593.01 Billion |
CAGR (2025 - 2030) | 7.47 % |
Fastest Growing Market | Asia Pacific |
Largest Market | Asia Pacific |
Market Concentration | Low |
Major Players![]() *Disclaimer: Major Players sorted in no particular order |
Vegetable Oil Market Analysis
The Vegetable Oil Market size is estimated at USD 413.64 billion in 2025, and is expected to reach USD 593.01 billion by 2030, at a CAGR of 7.47% during the forecast period (2025-2030).
The vegetable oil industry has experienced significant supply chain disruptions and price volatility, particularly due to geopolitical tensions affecting major producing regions. The Russia-Ukraine conflict has had a profound impact on the global vegetable oil market, with sunflower oil prices surging by 40% since the invasion began. This situation has triggered widespread trade policy reactions globally, leading to export restrictions and supply constraints that have further amplified price pressures. The Black Sea region's crucial role in global sunflower oil exports has forced many countries to seek alternative sourcing strategies and diversify their supply chains to ensure market stability.
The industry is witnessing a substantial transformation with increasing emphasis on sustainable production practices and certification standards. Malaysia and Indonesia, collectively accounting for approximately 85% of global palm oil production, have implemented stringent sustainability initiatives and certification programs. Major industry players are investing heavily in sustainable farming practices, with companies like Wilmar International and Sime Darby Plantation leading the charge in implementing radar monitoring technology for detecting deforestation and ensuring sustainable palm oil production. These initiatives are reshaping industry standards and influencing global trade dynamics.
Industrial applications of vegetable oils are expanding beyond traditional food uses, particularly in the renewable energy sector. India's biodiesel industry has shown significant growth, with used cooking oil utilization as feedstock reaching 55,000 metric tons in 2021. The global oil refining industry has expanded its capacity to over 100 million barrels per day, reflecting the growing industrial demand for vegetable oil market-based products. This diversification of end-use applications has created new market opportunities and is driving significant investments in processing capabilities.
The industry is experiencing substantial capacity expansions and technological advancements across the value chain. Major producers are investing in advanced processing facilities and innovative technologies to improve efficiency and product quality. Companies like Cargill have made strategic investments in soybean processing facilities, while others are focusing on developing specialized products for specific industrial applications. These investments are accompanied by innovations in processing technologies, including the development of more efficient extraction methods and the implementation of automation systems to optimize production processes. The industry is also witnessing increased investment in research and development activities focused on developing new applications and improving product functionality.
Vegetable Oil Market Trends
Rising Demand for Fortified Vegetable Oils
The growing awareness of micronutrient deficiencies and their impact on public health has significantly driven the demand for fortified vegetable oil. According to the Food Safety and Standards Authority of India (FSSAI), fortified cooking oil trends can help individuals achieve 25-30% higher intake of essential vitamins A and D compared to recommended daily requirements. This scientific validation has prompted both government bodies and industry players to invest heavily in fortification initiatives. The trend is particularly evident in developing nations where vitamin deficiencies are prevalent among expectant mothers and newborns.
The industry's response to this demand has been robust, with major players forming strategic partnerships to enhance fortification capabilities. A notable example is the September 2021 collaboration between BASF West Africa and EDCEL Limited, which launched Vitamin A premix solutions for edible vegetable oil. This initiative specifically targeted small and medium-sized enterprises (MSMEs), making fortification technology accessible to smaller producers. Such partnerships, combined with government mandates for fortification, have created a strong foundation for market growth, particularly in regions with high micronutrient deficiency rates.
Expanding Industrial Applications Beyond the Food Sector
The versatility of industrial vegetable oil has led to their increased adoption across various industrial applications, particularly in the renewable energy sector. The biodiesel industry has emerged as a significant driver, with approximately 60-70% of US-produced vegetable-oil-based biofuels currently generated from soybean oil. This industrial demand has prompted major investments in processing capacity, exemplified by Cargill's USD 475 million investment across seven states to expand soybean processing capabilities for meeting biofuel demand.
The personal care and cosmetics industry has also become a substantial driver for vegetable oil consumption. Major companies like L'Oréal have implemented sustainable sourcing action plans for various vegetable oils, recognizing their value in skincare products. The company's commitment is evidenced by its careful sourcing of soybean extract and derivatives, with precise tracking of usage volumes to ensure sustainability. Additionally, the oleochemical industry's growing demand for natural-based raw materials has further diversified the industrial applications of vegetable oil, creating new market opportunities beyond traditional food uses.
Supportive Government Policies and Infrastructure Development
Government initiatives and policies have emerged as crucial drivers for market growth, particularly in major consuming nations. India's National Edible Oil Mission-Oil Palm (NMEO-OP) represents a significant development, with the government committing over 11,000 crores to enhance domestic oilseed production. This comprehensive approach includes investments in improved seeds, advanced technology, and farming practices, demonstrating the strategic importance of edible vegetable oil self-sufficiency in national agricultural policies.
The support extends beyond financial investments to include regulatory frameworks that encourage sustainable production and quality enhancement. Governments are increasingly implementing policies that promote the adoption of advanced processing technologies and sustainable farming practices. These initiatives are complemented by infrastructure development projects that improve storage, transportation, and processing capabilities. The combination of policy support and infrastructure development has created a favorable environment for market expansion, particularly in regions seeking to reduce dependence on imports and establish domestic production capabilities.
Segment Analysis: By Type
Palm Oil Segment in Global Vegetable Oil Market
Palm oil continues to dominate the global vegetable oil market, commanding approximately 28% market share in 2024, with a value of USD 110,203 million. The segment's prominence is attributed to its versatility and cost-effectiveness in various applications, from food processing to industrial uses. Palm oil's high yield per hectare compared to other oilseeds makes it an economically attractive option for producers and manufacturers. The segment's growth is primarily driven by increasing demand from emerging economies, particularly in Asia-Pacific, where it is extensively used in food processing, cosmetics, and biofuel production. Major producing countries like Indonesia and Malaysia continue to expand their production capabilities while implementing sustainable practices to meet the growing global demand.

Sunflower Oil Segment in Global Vegetable Oil Market
The sunflower oil segment is experiencing remarkable growth in the global vegetable oil market, projected to grow at approximately 14% during 2024-2029. This impressive growth rate is driven by increasing consumer preference for healthier cooking oils, as sunflower oil is known for its light taste, high vitamin E content, and heart-healthy properties. The segment's expansion is further supported by growing adoption in the food service industry and increasing use in cosmetic applications. Rising health consciousness among consumers and the oil's versatility in various cooking methods have contributed to its growing popularity. Additionally, major producing countries are investing in expanding their production capabilities and implementing advanced processing technologies to meet the rising global demand for sunflower oil.
Remaining Segments in Global Vegetable Oil Market
The other significant segments in the vegetable oil market include soybean oil, rapeseed oil, peanut oil, coconut oil, and olive oil, each serving distinct market needs and applications. Soybean oil maintains a strong position as the second-largest segment, particularly popular in the Americas and Asia. Rapeseed oil, also known as canola oil, is preferred in European markets for its health benefits and versatility. Peanut oil has carved out a niche in specific culinary applications, especially in Asian cuisine. Coconut oil continues to gain traction in both food and non-food applications, particularly in the personal care industry. Olive oil maintains its premium position in the market, particularly in Mediterranean countries and health-conscious consumer segments, while other specialty oils cater to specific regional and application-based demands.
Segment Analysis: By Application
Food Segment in Vegetable Oil Market
The food segment dominates the global vegetable oil market, accounting for approximately 79% of the total market value in 2024. This substantial market share is driven by the widespread use of edible vegetable oil in various food applications, including cooking oil, salad dressings, margarine, and bakery products. The segment's growth is further supported by increasing consumer awareness about healthy eating habits and the rising demand for premium cooking oils. Additionally, the expanding food processing industry, particularly in developing regions, continues to drive the demand for vegetable oils as key ingredients in packaged and processed foods. The segment also benefits from the growing popularity of specialty oils like olive oil and avocado oil among health-conscious consumers, while the rising adoption of vegetable oils in the foodservice industry further strengthens its market position.
Industrial Segment in Vegetable Oil Market
The industrial segment is emerging as the fastest-growing application segment in the vegetable oil market, with a projected growth rate of approximately 11% during 2024-2029. This robust growth is primarily attributed to the increasing adoption of vegetable oils in biodiesel production, as governments worldwide implement favorable policies to promote renewable energy sources. The segment is also witnessing significant expansion due to the growing use of vegetable oils in various industrial applications, including cosmetics, pharmaceuticals, and lubricants. The rising demand for bio-based chemicals and materials, coupled with increasing environmental consciousness, is driving manufacturers to incorporate vegetable oil-based ingredients in their production processes. Furthermore, ongoing research and development activities are continuously uncovering new industrial applications for vegetable oils, particularly in the oleochemical industry.
Remaining Segments in Vegetable Oil Market by Application
The feed segment, while smaller in market share, plays a crucial role in the overall vegetable oil market dynamics. This segment primarily serves the animal feed industry, where vegetable oils are used as energy supplements and nutritional additives in livestock and aquaculture feed formulations. The segment's importance is underscored by the growing demand for protein-rich animal products and the expansion of the global livestock industry. Additionally, the increasing focus on improving feed efficiency and animal health has led to greater incorporation of vegetable oils in animal feed formulations. The segment also benefits from the rising awareness about the nutritional benefits of vegetable oil supplements in animal diets and their positive impact on meat quality and production efficiency.
Vegetable Oil Market Geography Segment Analysis
Vegetable Oil Market in North America
The North American vegetable oil market demonstrates a robust structure supported by advanced processing capabilities and strong agricultural foundations across the United States, Canada, and Mexico. The region benefits from extensive soybean cultivation, modern refining facilities, and well-established distribution networks. Consumer preferences in North America are increasingly shifting toward healthier oil variants, driving innovation in product development and processing techniques. The market is characterized by strong domestic production capabilities, particularly in soybean oil, while also maintaining significant import channels for specialized oil varieties.

Vegetable Oil Market in the United States
The United States dominates the North American vegetable oil market with its extensive processing infrastructure and large-scale soybean cultivation. With approximately a 71% share of the North American market in 2024, the country maintains its position through advanced technological capabilities and strong domestic demand. The US market is characterized by significant investments in processing facilities and research and development, particularly in sustainable oil production methods. The country's vegetable oil industry benefits from strong integration between agricultural producers, processors, and distributors. The market shows particular strength in soybean oil production, supported by extensive farming operations across the Midwest region.
Vegetable Oil Market in Mexico
Mexico emerges as the fastest-growing market in North America, with a projected growth rate of approximately 11% during 2024-2029. The country's vegetable oil market is experiencing rapid development driven by expanding food processing industries and increasing domestic consumption. Mexico's strategic location facilitates trade relationships with both North and South American markets, contributing to its growth trajectory. The country has been focusing on modernizing its processing facilities and expanding its distribution networks. Mexican consumers are showing an increasing preference for healthier oil varieties, driving market diversification and product innovation in the region.
Vegetable Oil Market in India
The vegetable oil market in India is a significant component of the Asia-Pacific region, with India being one of the largest consumers and producers of vegetable oils. The market is driven by a growing population, increasing urbanization, and rising health consciousness among consumers. India's vegetable oil industry is characterized by a diverse range of oil types, including palm, soybean, and mustard oils, catering to varied consumer preferences across the country. The market is also witnessing a shift towards healthier oil options, influenced by changing dietary habits and increased awareness of health benefits associated with certain oil types.
Global Vegetable Oil Market Overview
The global vegetable oil market is experiencing dynamic growth, driven by increasing demand for edible oils and biofuels across various regions. The market is characterized by a diverse range of oil types, including palm, soybean, sunflower, and olive oils, each catering to specific consumer preferences and industrial applications. Technological advancements in oil processing and extraction methods are enhancing production efficiency and product quality. The global market is also influenced by factors such as fluctuating raw material prices, regulatory policies, and evolving consumer trends towards healthier and sustainable oil options.
Vegetable Oil Industry Overview
Top Companies in Vegetable Oil Market
The global vegetable oil market is led by prominent players including Archer Daniels Midland, Bunge Limited, Wilmar International, Cargill, and Sime Darby Plantation. These vegetable oil companies are heavily focused on product innovation, particularly in developing sustainable and health-conscious offerings to meet evolving consumer preferences. Operational agility is demonstrated through vertical integration strategies, from plantation ownership to end-product manufacturing, enabling better supply chain control and cost management. Strategic moves in the industry are primarily centered around forming partnerships for sustainable palm oil production and expanding processing capabilities. Companies are actively pursuing geographical expansion through both organic growth and strategic acquisitions, with a particular focus on emerging markets in Asia-Pacific and Africa. The emphasis on research and development capabilities, coupled with investments in new processing technologies and sustainable practices, has become a key differentiator for market leaders.
Consolidated Market with Strong Regional Players
The vegetable oil industry exhibits a unique structure where global conglomerates coexist with strong regional players, particularly in key production regions like Malaysia, Indonesia, and South America. The market demonstrates moderate consolidation, with major players controlling significant portions of the supply chain through vertical integration, while regional specialists maintain strong positions in specific geographic markets or product segments. The industry has witnessed increased collaboration between large multinationals and local players to enhance market penetration and ensure sustainable sourcing practices.
Merger and acquisition activity in the sector is characterized by strategic moves to strengthen presence in high-growth markets and acquire specialized capabilities. Companies are increasingly focusing on acquiring sustainable production facilities and technologies to meet growing environmental concerns. The trend of cross-border acquisitions has been particularly strong in Southeast Asia, where major players are expanding their plantation holdings and processing capabilities. Joint ventures have emerged as a preferred mode of expansion, allowing companies to combine their strengths while managing risks in new markets.
Innovation and Sustainability Drive Future Growth
Success in the vegetable oil industry increasingly depends on companies' ability to address sustainability concerns while maintaining operational efficiency. Incumbent players are focusing on developing certified sustainable supply chains, investing in traceability technologies, and expanding their portfolio of eco-friendly products. Market leaders are also strengthening their position through digital transformation initiatives, improving supply chain transparency, and developing value-added products for specific industry applications. The ability to manage regulatory compliance while maintaining cost competitiveness has become crucial for maintaining vegetable oil market share.
For contenders looking to gain ground, the focus needs to be on developing specialized product offerings and establishing a strong regional presence before expanding globally. The industry faces moderate substitution risk from alternative oils and fats, making product differentiation and innovation critical success factors. End-user concentration varies across segments, with the food processing industry being the largest consumer group, followed by industrial applications. Regulatory requirements, particularly regarding sustainability certifications and food safety standards, are becoming more stringent, making compliance capabilities a key determinant of market success. Companies that can effectively balance these requirements while maintaining cost competitiveness will be better positioned for future growth.
Vegetable Oil Market Leaders
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Wilmar International Limited
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Archer Daniels Midland Company
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Bunge Limited
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Golden Agri-Resources Ltd.
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Sime Darby Plantation Berhad
- *Disclaimer: Major Players sorted in no particular order

Vegetable Oil Market News
- In July 2022, Eni Kenya B.V. completed the construction of the oilseed collection and pressing plant (agri-hub) in Makueni, Kenya, and started production of the first vegetable oil for bio-refineries. According to the company, the first agri-hub would have an installed capacity of 15,000 tons with an expected output of 2,500 tons in 2022.
- In June 2022, Freedom Refined Sunflower Oil, Gemini Edibles & Fats India (GEF India) announced plans to expand into other States, including Tamil Nadu and Kerala. The business asserted that it is considering strategic expansion and plans to enter Tamil Nadu and Kerala, with a strong demand for sunflower oil, in the coming years.
- In February 2021, Bunge Loders Croklaan expanded its oils and fats portfolio to meet the organic demand in Europe, offering a steady and scalable supply of organic oils and fats, including sunflower, rapeseed, soy, palm, shea, and coconut.
- In November 2021, Cargill Incorporated acquired an edible oil refinery situated in Nellore, India, and invested USD 35 million to purchase and improvise the facility, which would increase the production volume of edible oil and help the company to extend its existing supply chain to meet consumer requirements.
Vegetable Oil 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 Palm Oil
- 5.1.2 Soybean Oil
- 5.1.3 Rapeseed Oil
- 5.1.4 Sunflower Oil
- 5.1.5 Olive Oil
- 5.1.6 Other Types
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5.2 By Application
- 5.2.1 Food
- 5.2.2 Feed
- 5.2.3 Industrial
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5.3 Geography
- 5.3.1 North America
- 5.3.1.1 United States
- 5.3.1.2 Canada
- 5.3.1.3 Mexico
- 5.3.1.4 Rest of North America
- 5.3.2 Europe
- 5.3.2.1 United Kingdom
- 5.3.2.2 Germany
- 5.3.2.3 Spain
- 5.3.2.4 France
- 5.3.2.5 Italy
- 5.3.2.6 Russia
- 5.3.2.7 Rest of Europe
- 5.3.3 Asia-Pacific
- 5.3.3.1 China
- 5.3.3.2 Japan
- 5.3.3.3 India
- 5.3.3.4 Australia
- 5.3.3.5 Rest of Asia-Pacific
- 5.3.4 South America
- 5.3.4.1 Brazil
- 5.3.4.2 Argentina
- 5.3.4.3 Rest of South America
- 5.3.5 Middle East & Africa
- 5.3.5.1 United Arab Emirates
- 5.3.5.2 South Africa
- 5.3.5.3 Rest of Middle East & Africa
6. COMPETITIVE LANDSCAPE
- 6.1 Market Share Analysis
- 6.2 Most Adopted Strategies
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6.3 Company Profiles
- 6.3.1 Archer Daniels Midland Company
- 6.3.2 Sime Darby Plantation Berhad
- 6.3.3 Bunge Limited
- 6.3.4 Olam International Limited
- 6.3.5 Cargill Incorporated
- 6.3.6 Golden Agri-Resources
- 6.3.7 Kuala Lumpur Kepong Berhad
- 6.3.8 Fuji Oil Holding Inc.
- 6.3.9 Wilmar International Limited
- 6.3.10 PT Astra Agro Lestari Tbk
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Vegetable Oil Industry Segmentation
Vegetable oils are extracted from seeds or, less often, from other parts of fruits. Similar to animal fats, vegetable oils are also mixtures of triglycerides. The global vegetable oil market has been segmented by type, application, and geography. By type, the market studied is segmented into palm oil, soybean oil, rapeseed oil, sunflower oil, olive oil, and other classes. The market is segmented based on application: food, feed, and industrial. The study also involves the global-level analysis of the central regions such as North America, Europe, Asia-Pacific, South America, and the Middle East & Africa. For each segment, the market sizing and forecasts have been done based on value (in USD million).
By Type | Palm Oil | ||
Soybean Oil | |||
Rapeseed Oil | |||
Sunflower Oil | |||
Olive Oil | |||
Other Types | |||
By Application | Food | ||
Feed | |||
Industrial | |||
Geography | North America | United States | |
Canada | |||
Mexico | |||
Rest of North America | |||
Europe | United Kingdom | ||
Germany | |||
Spain | |||
France | |||
Italy | |||
Russia | |||
Rest of Europe | |||
Asia-Pacific | China | ||
Japan | |||
India | |||
Australia | |||
Rest of Asia-Pacific | |||
South America | Brazil | ||
Argentina | |||
Rest of South America | |||
Middle East & Africa | United Arab Emirates | ||
South Africa | |||
Rest of Middle East & Africa |
Vegetable Oil Market Research FAQs
How big is the Vegetable Oil Market?
The Vegetable Oil Market size is expected to reach USD 413.64 billion in 2025 and grow at a CAGR of 7.47% to reach USD 593.01 billion by 2030.
What is the current Vegetable Oil Market size?
In 2025, the Vegetable Oil Market size is expected to reach USD 413.64 billion.
Who are the key players in Vegetable Oil Market?
Wilmar International Limited, Archer Daniels Midland Company, Bunge Limited, Golden Agri-Resources Ltd. and Sime Darby Plantation Berhad are the major companies operating in the Vegetable Oil Market.
Which is the fastest growing region in Vegetable Oil Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2025-2030).
Which region has the biggest share in Vegetable Oil Market?
In 2025, the Asia Pacific accounts for the largest market share in Vegetable Oil Market.
What years does this Vegetable Oil Market cover, and what was the market size in 2024?
In 2024, the Vegetable Oil Market size was estimated at USD 382.74 billion. The report covers the Vegetable Oil Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Vegetable Oil Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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Vegetable Oil Market Research
Mordor Intelligence provides comprehensive oil market intelligence and oil market analysis for the rapidly evolving vegetable oil industry. Our expert analysts offer detailed insights into the global vegetable oil market. They cover everything from industrial vegetable oil applications to edible vegetable oil trends. The report examines key vegetable oil companies and their strategic positioning. It also analyzes crucial cooking oil trends that shape the cooking oil industry.
This detailed analysis of the vegetable oil market offers stakeholders valuable insights into market dynamics. It includes precise oil market size calculations and growth projections. The report, available as an easy-to-download PDF, covers extensive analysis of plant oil segments. It explores used cooking oil market opportunities and emerging applications. Our research helps businesses understand the north america vegetable oil market dynamics, organic edible oil market developments, and vegetable oil market price fluctuations. This provides actionable intelligence for informed decision-making in the edible oil market.