Edible Oils Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type (Palm Oil, Soybean Oil, Rapeseed Oil, Sunflower Oil, Peanut Oil, Olive Oil, Corn Oil, Flaxseed Oil, Avocado Oil, Pumpkin Seed Oil, Others), By Nature (Organic, Conventional), By End User (Domestics, Industrial, Food Service, Others), By Region, By Competition 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 231.48 Billion
CAGR (2026-2031)	4.85%
Fastest Growing Segment	Organic
Largest Market	North America
Market Size (2031)	USD 307.56 Billion

Market Overview

The Global Edible Oils Market will grow from USD 231.48 Billion in 2025 to USD 307.56 Billion by 2031 at a 4.85% CAGR. Edible oils are lipid-based liquid products extracted from vegetable, animal, or synthetic sources that serve as essential ingredients for culinary applications, food processing, and industrial manufacturing. The market is primarily propelled by fundamental economic and demographic drivers, including rapidly expanding global populations and accelerated urbanization which collectively heighten the consumption of processed and convenience foods. Furthermore, rising disposable incomes in emerging economies are facilitating a structural shift towards higher calorie intake and diverse food preparations, thereby steadily increasing the demand for cooking oils and fats beyond subsistence levels.

One significant challenge facing this sector is the susceptibility of raw material supply to climatic volatility, which frequently disrupts harvest yields and induces price instability across the value chain. According to the USDA Foreign Agricultural Service, in 2024, global vegetable oil production for the 2024/2025 marketing year was projected to grow to 228 million tons. However, adverse weather patterns and supply chain complexities remain potential impediments that could constrain this anticipated output and impact global market accessibility, potentially hindering the industry's ability to meet the escalating worldwide demand.

Key Market Drivers

Increasing utilization of vegetable oils as biofuel feedstock is fundamentally reshaping the global edible oils market, diverting significant volumes of soybean, palm, and rapeseed oils from food channels to the energy sector. This structural shift is driven by global decarbonization mandates and the rapid expansion of hydrotreated vegetable oil (HVO) and sustainable aviation fuel (SAF) production capacities. Consequently, the intensified industrial competition for raw materials has heightened market sensitivity to supply-side constraints and influenced global pricing mechanics. According to the International Energy Agency (IEA), October 2024, in the 'Renewables 2024' report, demand for residue oils is projected to climb 70% to reach 30 million tonnes per year by 2030, highlighting the aggressive trajectory of non-food requirements. This pressure on feedstock availability has immediate market-wide implications; according to the Food and Agriculture Organization, in 2024, the Vegetable Oil Price Index rose by 7.5 percent in November due to tightening global supplies across major oil categories.

Growing consumer preference for healthy and functional oils is further propelling market evolution, fostering demand for high-value categories such as olive, sunflower, and rice bran oils. Health-conscious populations in both developed and emerging economies are increasingly prioritizing lipid sources rich in monounsaturated fats and antioxidants to mitigate lifestyle diseases, encouraging producers to expand cultivation and improve extraction technologies. This trend is facilitating a rebound in production volumes for premium oils to meet the premiumization of dietary fats. According to the International Olive Council, December 2024, in the 'World Market of Olive Oil and Table Olives' report, global olive oil production for the 2024/25 crop year is forecast to reach 3.38 million tonnes, marking a significant recovery specifically aimed at satisfying this escalating nutritional demand.

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Key Market Challenges

Climatic volatility stands as a formidable obstacle to the expansion of the Global Edible Oils Market, primarily by disrupting the consistent supply of agricultural raw materials required for production. Unpredictable weather patterns, ranging from prolonged droughts to excessive rainfall, directly reduce crop yields for key oilseeds such as palm, soybean, and sunflower. When harvest volumes contract unexpectedly, the entire value chain suffers from supply shortages and heightened price volatility, which complicates procurement strategies for food processors and industrial buyers. This inability to guarantee a stable supply prevents the market from fully capitalizing on the rising consumption trends driven by population growth and urbanization.

The impact of such environmental factors is evident in recent production data from major producing regions. According to the Indonesian Palm Oil Association (GAPKI), in 2025, it was reported that Indonesia's crude palm oil production for the 2024 fiscal year declined by 3.80% to 52.76 million tons compared to the previous year, largely due to the adverse effects of El Niño. Such significant disruptions in the output of the world's largest palm oil producer illustrate how climatic instability directly constrains market availability. Consequently, the industry faces ongoing difficulties in maintaining the reliable output levels necessary to satisfy escalating global requirements, thereby hindering the sector's overall volume growth and revenue stability.

Key Market Trends

The acceleration of deforestation-free and RSPO-certified palm oil sourcing is fundamentally altering procurement strategies as regulatory frameworks like the EU Deforestation Regulation (EUDR) enforce stricter supply chain transparency. Major FMCG corporations are rapidly transitioning from credit-based sustainability models to physical certified supply chains to mitigate reputational risks and ensure compliance with global environmental standards. This shift is driving tangible growth in certified volumes despite broader production challenges, compelling producers to adopt rigorous traceability systems. According to the Roundtable on Sustainable Palm Oil, September 2025, in the 'Annual Communication of Progress 2024' results, global production of Certified Sustainable Palm Oil (CSPO) reached 16.2 million metric tonnes, accounting for 20.1% of the total volume produced by its members.

The emergence of precision fermentation and lab-grown fat alternatives is creating a new market segment focused on "designer fats" that replicate the functionality of tropical oils and animal lipids without their associated land footprint. By leveraging microbial platforms to produce tailored triglycerides, manufacturers are developing sustainable substitutes for high-impact ingredients like palm oil, directly addressing concerns regarding resource intensity and supply volatility. This sector continues to command significant capital interest as investors bet on its potential to decarbonize the value chain and offer stable, climate-resilient alternatives. According to The Good Food Institute, June 2025, in the '2024 State of the Industry: Fermentation' report, the fermentation-enabled alternative protein and fat sector attracted $651 million in total funding in 2024, highlighting the enduring confidence in these biotechnological solutions.

Segmental Insights

The Organic segment is currently the fastest-growing category within the Global Edible Oils Market, driven by heightened consumer awareness regarding health and food safety. This expansion is primarily attributed to the increasing demand for products free from synthetic pesticides, chemical solvents, and genetically modified organisms. Furthermore, the clean-label trend has compelled manufacturers to obtain certifications from established regulatory bodies, such as the USDA and the European Commission, to validate product authenticity. These stringent standards build consumer trust and facilitate the wider adoption of organic oils across both retail and industrial applications.

Regional Insights

North America holds a dominant position in the Global Edible Oils Market, sustained by a mature food processing industry and widespread consumption of processed and convenience foods. Rising health consciousness has accelerated the demand for high-value, organic, and healthy vegetable oils, encouraging manufacturers to innovate. The region also benefits from a consolidated competitive landscape with major global players optimizing supply chains. Stringent quality regulations enforced by the Food and Drug Administration (FDA) play a critical role, mandating clear labeling and safety compliance, which ultimately reinforces consumer trust and stabilizes market growth.

Recent Developments

• In July 2024, the Louis Dreyfus Company (LDC) announced the strategic relaunch of its consumer-facing edible oil brand, Vibhor, in India to strengthen its position in the business-to-consumer market. The company introduced a refreshed product line that includes refined soybean, palm olein, cottonseed, and mustard oils, all enriched with essential vitamins to meet the nutritional needs of health-conscious consumers. This move was part of the company's broader strategy to extend its reach downstream in the value chain and diversify its offerings in one of the world's fastest-growing edible oil markets. The relaunch aimed to leverage the company's extensive global distribution network to target both rural and urban demographics.
• In July 2024, Adani Wilmar revealed plans to invest approximately ₹600 crore during the fiscal year to expand its edible oil processing capacities and enhance solar power generation. The Managing Director and CEO of the company stated that the capital expenditure would focus on increasing the processing capabilities for oilseeds such as sunflower and cottonseed at its existing facilities. Additionally, the investment was allocated to boost the company's solar power generation capacity from 8 MW to 15 MW to support sustainable operations. This expansion was designed to meet the rising demand for branded edible oils and to support the company's volume-led growth strategy in the consumer food segment.
• In March 2024, AAK introduced a new plant-based innovation, AkoVeg 163-14, a coconut oil and insoluble fiber flake solution designed to improve the texture and visual appeal of meat alternatives. Launched to address the challenges of replicating the marbling effect of traditional meat, this new ingredient offers a heat-stable fat solution that enhances the mouthfeel and juiciness of plant-based products. The product contains less total fat and no cholesterol compared to conventional animal fats, catering to the growing demand for healthier and more sustainable food ingredients. This launch expanded the company's portfolio of value-adding specialty vegetable fats and oils for the plant-based food sector.
• In January 2024, Cargill became the first global supplier to comply with the World Health Organization's recommended standards for industrially produced trans-fatty acids (iTFA) across its entire worldwide edible oils portfolio. The company achieved this milestone by limiting iTFA content to no more than two grams per 100 grams of fats and oils in all its products, even in countries without legislative mandates. This development followed a multi-year effort involving significant investments in facility upgrades and research to reformulate products while maintaining taste and texture. The achievement aligned with the company's commitment to removing iTFAs from the global food supply chain to address public health concerns related to coronary heart disease.

Key Market Players

• Bunge Limited
• Cargill, Incorporated
• ACH Food Companies, Inc.
• Adani Group
• Salad Oils International Corporation
• American Vegetable Oils, Inc.
• Borges International Group, S.L.
• Hebany Group
• Titan Oils Inc.
• Sunora Foods

By Type	By Nature	By End User	By Region
Palm Oil Soybean Oil Rapeseed Oil Sunflower Oil Peanut Oil Olive Oil Corn Oil Flaxseed Oil Avocado Oil Pumpkin Seed Oil Others	Organic Conventional	Domestics Industrial Food Service Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• Edible Oils Market, By Type:

• Palm Oil
• Soybean Oil
• Rapeseed Oil
• Sunflower Oil
• Peanut Oil
• Olive Oil
• Corn Oil
• Flaxseed Oil
• Avocado Oil
• Pumpkin Seed Oil
• Others

• Edible Oils Market, By Nature:

• Organic
• Conventional

• Edible Oils Market, By End User:

• Domestics
• Industrial
• Food Service
• Others

• Edible Oils 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