Cooking Oil Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Product Type (Soy Oil, Palm Oil, Sunflower Oil, Others), By Application (Residential, Commercial), By Region, By Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 214.29 Billion
CAGR (2026-2031)	5.15%
Fastest Growing Segment	Commercial
Largest Market	Europe
Market Size (2031)	USD 289.64 Billion

Market Overview

The Global Cooking Oil Market will grow from USD 214.29 Billion in 2025 to USD 289.64 Billion by 2031 at a 5.15% CAGR. Cooking oil is defined as a lipid-based liquid extracted primarily from plant, animal, or synthetic sources, serving as a critical medium for frying, baking, and flavoring in culinary applications. The market’s growth is fundamentally supported by robust demographic drivers, specifically global population expansion and rapid urbanization, which necessitate higher aggregate food production. Furthermore, rising disposable incomes in emerging economies are facilitating a dietary shift toward increased consumption of processed foods and edible fats. Illustrating this trajectory, according to the 'Union for the Promotion of Oil and Protein Plants', in '2025', global production of vegetable oils is projected to reach 234.5 million tonnes for the 2025/26 crop year.

Despite this positive momentum, the sector faces a significant challenge regarding raw material price volatility. The industry’s heavy reliance on agricultural commodities renders it highly susceptible to climatic irregularities and geopolitical tensions, which can severely disrupt supply chains. This instability leads to unpredictable input costs, thereby compressing profit margins for manufacturers and creating pricing uncertainty that may hamper long-term market expansion.

Key Market Drivers

The escalating utilization of vegetable oils as feedstock for biofuel production is a primary catalyst reshuffling global demand dynamics. Governments worldwide are aggressively increasing blending mandates for biodiesel and renewable diesel, diverting substantial feedstock volumes from food supply chains to energy sectors. This structural shift is most evident in major producing nations, where energy security policies are prioritizing domestic lipid consumption over exports. Consequently, industrial demand is competing directly with culinary applications, tightening inventory levels and establishing higher price floors for raw materials. Illustrating this trend, according to the Indonesian Palm Oil Association (GAPKI), March 2025, in their 44th-anniversary report, domestic palm oil consumption allocated specifically for the B40 biodiesel program is projected to reach 13.6 million tons in 2025.

Concurrently, rising disposable incomes and urbanization in emerging economies are fueling unprecedented consumption volumes, particularly in import-dependent regions. As populations move toward urban centers, there is a marked transition from traditional, unrefined fats to packaged, processed edible oils sold through organized retail channels. This demand surge is further amplified by the inability of domestic crop production in developing nations to keep pace with these dietary shifts, necessitating massive reliance on cross-border trade. According to the Solvent Extractors' Association of India, November 2025, in their annual import data release, India imported 16 million tonnes of edible oils during the 2024-25 marketing year to meet this escalating domestic requirement. This robust consumption pattern underpins the expansion of international logistics, as according to the United States Department of Agriculture, in January 2025, global vegetable oil trade was projected to reach 86.4 million tons.

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Key Market Challenges

Raw material price volatility constitutes a significant barrier to the sustainable expansion of the global cooking oil market. The industry’s intrinsic reliance on agricultural crops exposes supply chains to unpredictable climatic patterns and geopolitical instability, resulting in sudden and often severe fluctuations in input costs. This unpredictability creates a difficult environment for manufacturers, who face compressed profit margins and increased financial risk. Consequently, businesses are often forced to delay capital investments or increase consumer prices, which can dampen demand and restrict the overall volume of market growth.

The direct impact of these supply and pricing irregularities is evident in the contraction of trade volumes for key commodities. When prices spike or supplies become erratic, major import markets are compelled to reduce their procurement, stalling the sector's upward trajectory. Illustrating this contraction, according to the 'Solvent Extractors’ Association of India', in '2025', palm oil imports declined sharply to 7.58 million tonnes from 9.02 million tonnes in the previous year due to unfavorable price disparities. Such volatility limits the market's ability to maintain consistent momentum, directly hampering volume growth despite the underlying demand.

Key Market Trends

The shift toward sustainable and RSPO-certified palm oil sourcing is fundamentally reshaping procurement strategies as the industry aligns with stringent environmental governance and deforestation-free supply chain mandates. This trajectory is characterized by a comprehensive departure from conventional, opaque trading models toward certified frameworks that prioritize ecological preservation and ethical social responsibility. Producers are increasingly adopting rigorous standards to decouple lipid production from habitat degradation, creating a premium market tier for verifiable, eco-friendly ingredients. Validating this industry-wide transition, according to the Roundtable on Sustainable Palm Oil, July 2025, in the 'Impact Update 2025', the total global certified oil palm area reached 5.1 million hectares, effectively securing the conservation of over 425,000 hectares of high conservation value forests.

Concurrently, the expansion of the used cooking oil (UCO)-to-biofuel circular economy is emerging as a critical value driver, distinguishing itself from primary crop-based energy models by valorizing waste streams. Unlike the resource competition associated with virgin vegetable oils, this trend focuses on establishing sophisticated reverse logistics networks to recover waste lipids for conversion into renewable diesel and sustainable aviation fuel (SAF). This development effectively turns a disposal challenge into a revenue-generating commodity trade, reducing reliance on agricultural inputs. Underscoring the global scale of this waste-to-energy trade, according to the United States Department of Agriculture Foreign Agricultural Service, March 2025, in the 'China: UCO Trade Update' report, China's exports of used cooking oil to the United States reached a record 1.27 million metric tons in 2024.

Segmental Insights

The commercial segment is projected as the fastest-growing category in the global cooking oil market, primarily driven by the expanding food service and food processing sectors. Rapid urbanization and changing lifestyles have significantly increased the frequency of dining out, creating substantial demand from hotels, restaurants, and catering businesses. Additionally, the rising global consumption of processed snacks and convenience foods necessitates large volumes of oil for industrial production. This consistent requirement for bulk supplies in professional food preparation supports the segment's accelerated trajectory relative to household retail sales.

Regional Insights

Europe holds the leading position in the global cooking oil market, primarily driven by established consumer preferences for vegetable oils such as olive and rapeseed oil. This dominance is supported by a strong emphasis on health and wellness, which encourages the adoption of products rich in unsaturated fats. Additionally, the European Food Safety Authority enforces rigorous quality and labeling standards, ensuring product transparency that strengthens consumer trust. The robust food processing infrastructure across the region, combined with a sustained demand for organic and clean-label ingredients, further consolidates Europe’s status as the major revenue contributor.

Recent Developments

• In August 2024, the European Commission granted conditional approval for the acquisition of Viterra by Bunge, a development poised to create a massive global agribusiness entity. This regulatory clearance was provided after the companies agreed to divest Viterra’s oilseed processing businesses in Hungary and Poland to address competition concerns in the Central European market. The merger is designed to integrate the companies' complementary assets, enhancing their ability to connect farmers to consumers and deliver essential food, feed, and cooking oils worldwide. This approval marked a critical step toward finalizing a deal that is expected to reshape global agricultural trading networks.
• In July 2024, Louis Dreyfus Company (LDC) relaunched its "Vibhor" edible oil brand in India as part of a strategic initiative to deepen its downstream presence in the country's consumer market. The refreshed product line included fortified soybean, palm olein, cottonseed, and mustard oils, all enriched with vitamins A and D to address the growing consumer demand for nutritious cooking ingredients. Leveraging its extensive supply chain capabilities and local market insights, the company aimed to extend the brand's reach to both rural and urban demographics. This move underscored LDC's long-term commitment to expanding its market share in the Indian edible oil sector.
• In May 2024, Adani Wilmar Limited expanded its product offerings in the Indian market by launching "Fortune Pehli Dhaar," a premium first-pressed mustard oil. The company introduced this new variant to cater to consumers seeking authenticity, employing a traditional wooden crushing process that preserves the natural pungency and aroma of the mustard seeds. This launch was a strategic move to strengthen the company's foothold in the branded mustard oil segment by providing a high-quality option that aligns with regional culinary preferences. The product was rolled out across various general trade outlets and e-commerce platforms to ensure widespread accessibility.
• In February 2024, Cargill announced that it had become the first global edible oil supplier to fully comply with the World Health Organization's recommended standards for industrially produced trans-fatty acids (iTFAs). The company confirmed that its entire worldwide portfolio of fats and oils now met the strict limit of no more than two grams of iTFA per 100 grams, even in countries without legislative mandates. This significant milestone was the result of decades of research and millions of dollars in capital investments to upgrade facilities and reformulate products, effectively removing over one billion pounds of harmful trans fats from the global food supply.

Key Market Players

• Archer Daniels Midland Company
• Cargill Incorporated
• Bunge Limited
• Olam International Limited
• Fuji Oil Group
• Wilmar International Limited
• Alami Commodities Sdn Bhd
• Musim Mas Group
• Richardson International
• Oil Mills Inc.

By Product Type	By Application	By Region
Soy Oil Palm Oil Sunflower Oil Others	Residential Commercial	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Cooking Oil Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Cooking Oil Market, By Product Type:

• Soy Oil
• Palm Oil
• Sunflower Oil
• Others

• Cooking Oil Market, By Application:

• Residential
• Commercial

• Cooking Oil Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE