Oilseeds Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Biotech Trait (Insecticide-Resistant, Herbicide-Tolerant), By Oilseed Type (Peanut, Soybean, Sunflower Seed, Cottonseed, Copra, Palm Kernel, Rapeseed), By Type (Conventional, Genetically Modified), By Application (Oilseed Meal, Vegetable Meal), By Product (Edible Oil, Animal feed), By Region, and By Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 300.03 Billion
CAGR (2026-2031)	5.39%
Fastest Growing Segment	Sunflower Seed
Largest Market	North America
Market Size (2031)	USD 411.11 Billion

Market Overview

The Global Oilseeds Market will grow from USD 300.03 Billion in 2025 to USD 411.11 Billion by 2031 at a 5.39% CAGR. Oilseeds encompass a diverse group of crops, including soybeans, sunflower, and rapeseed, cultivated primarily for the extraction of vegetable oil and the production of meal with high protein content. The global market is propelled by the escalating demand for edible oils in food processing and the expanding biofuel sector, alongside the rising consumption of animal protein which necessitates quality feed ingredients. According to FEDIOL, in 2024, the European vegetable oil and proteinmeal industry processed approximately 40.6 million tons of oilseeds, highlighting the substantial industrial utilization of these commodities.

Despite this robust demand, the sector faces a significant impediment in the form of climatic volatility and extreme weather events. Irregular precipitation patterns and prolonged droughts in major agricultural regions frequently disrupt cultivation cycles and diminish crop yields. This environmental unpredictability fosters instability in raw material availability and pricing, thereby complicating supply chain management and hindering steady market expansion.

Key Market Drivers

The expansion of biofuel and renewable diesel production mandates serves as a primary catalyst for the Global Oilseeds Market, fundamentally altering consumption patterns for vegetable oils. Governments worldwide are enforcing stricter decarbonization policies, compelling the energy sector to integrate higher percentages of biomass-based fuels. This regulatory shift has aggressively diverted soybean, rapeseed, and sunflower oils from traditional food applications to industrial fuel manufacturing, particularly for renewable diesel which requires significant feedstock volumes. Consequently, crushing activities have intensified to meet this burgeoning energy demand, creating a tight supply environment for oil-rich crops. According to the USDA, December 2024, in the 'Oil Crops Outlook' report, U.S. soybean oil use for biofuel production in the 2023/24 marketing year was finalized at approximately 13.0 billion pounds, underscoring the critical role of energy mandates in driving oilseed utilization.

Simultaneously, the increasing demand for protein-rich animal feed remains a foundational driver, propelled by the rising global consumption of livestock products. As meat and poultry production scales to feed a growing population, the requirement for high-quality protein meal—a byproduct of oilseed crushing—has surged. This dynamic ensures that value is generated from both the oil and meal components of the crop, sustaining favorable crushing margins and incentivizing higher trade volumes. According to the U.S. Soybean Export Council, December 2024, in the 'Soybean Meal Exports Set New Record' report, exports of U.S. soybean meal reached a record 14.4 million metric tons in the 2023/24 marketing year. To satisfy this dual demand for fuel and feed, producers are ramping up cultivation; according to the International Grains Council, in October 2025, global soybean output for the 2025/26 season is forecast to reach 426 million tons.

Download Free Sample Report

Key Market Challenges

Climatic volatility and extreme weather events represent a substantial constraint on the growth of the global oilseeds market. The cultivation of essential crops such as soybeans, rapeseed, and sunflowers is heavily dependent on consistent environmental patterns. Irregular precipitation and prolonged droughts directly disrupt agricultural cycles, leading to diminished harvest yields and compromised crop quality. These environmental disruptions result in immediate supply shortages, which inevitably drive up raw material costs and create severe price instability within the trading ecosystem. This volatility complicates procurement strategies for processors and hinders the ability of manufacturers to maintain stable profit margins.

Consequently, production volumes in key regions frequently suffer due to these adverse conditions, limiting the overall market supply. According to COCERAL, in 2024, the total rapeseed production for the European Union and the United Kingdom was forecast to decrease to 19.4 million tons, primarily due to unfavorable weather affecting yields in major producing member states. Such unpredictable fluctuations in output create uncertainty across the supply chain, deterring long-term investment and restricting the industry's capacity to consistently meet the rising global demand for oil and meal products.

Key Market Trends

The growing commercialization of winter cover crops like Camelina and winter canola for bioenergy is reshaping supply dynamics by unlocking new feedstock volumes without displacing food production. By utilizing fallow periods in traditional crop rotations, producers are introducing dedicated oilseeds for the renewable energy sector, effectively addressing the food-versus-fuel dilemma while maximizing land efficiency. This expansion is particularly evident in the adoption of double-cropping systems designed to produce low-carbon oil specifically for renewable diesel and sustainable aviation fuel. According to Southern Ag Today, July 2025, in the 'Winter Canola Expansion in the Southern U.S' article, the winter canola initiative driven by the partnership between Bunge, Chevron, and Corteva expanded to over 35,000 acres across the southern United States for the 2024-25 season.

Simultaneously, the shift toward regenerative agriculture practices in oilseed cultivation is gaining momentum as processors seek to lower the Carbon Intensity (CI) scores of their supply chains. This trend prioritizes soil health methods, such as reduced tillage and cover cropping, to decrease the environmental footprint of the crop, thereby allowing the resulting vegetable oil to command premiums in regulated biofuel markets. Agribusinesses are rapidly scaling these programs to secure traceable, lower-carbon raw materials that meet stringent environmental standards. According to Milling and Grain, September 2025, in the 'ADM surpasses regenerative agriculture goal' article, Archer Daniels Midland engaged over 5 million acres in its regenerative farming program globally, achieving its target ahead of schedule.

Segmental Insights

The Sunflower Seed segment is identified as the fastest growing category in the Global Oilseeds Market due to increasing consumer preference for non-genetically modified and heart-healthy ingredients. This growth is largely driven by the widespread adoption of high-oleic sunflower oil in food processing as a functional substitute for fats high in saturated content. Additionally, dietary guidelines from institutions such as the World Health Organization advocating for the reduction of trans-fats have prompted manufacturers to reformulate products. These factors collectively sustain the rapid expansion of sunflower seed utilization across international markets.

Regional Insights

North America maintains a leading position in the Global Oilseeds Market, underpinned by substantial production capacities in the United States and Canada. This dominance is attributed to the extensive cultivation of soybeans and canola, feeding a robust processing sector. The region experiences high demand for vegetable oils in food applications and protein meal for livestock feed. Furthermore, the United States Department of Agriculture (USDA) highlights that established agricultural infrastructure and favorable policies regarding biodiesel production continue to drive sector expansion. These factors collectively secure the region’s status as a global hub for oilseed commodities.

Recent Developments

• In September 2025, ADM Agri-Industries completed a significant expansion of its grain and oilseed terminal at Port Windsor in Ontario, Canada. The comprehensive upgrade project included the installation of advanced grain dryers, a new roadway, and a modernized kiosk system specifically designed to improve the loading efficiency of soybean and canola meal. Supported by federal investment, this expansion increased the facility’s export capacity to key markets in Europe, the United States, and Latin America. The completion of this project reinforced the terminal's position as a vital logistics hub for handling agricultural production from the region.
• In July 2024, Cargill announced that it had surpassed the 50 percent completion milestone for its new canola processing facility in Regina, Saskatchewan. The plant was designed to possess an annual processing capacity of 1 million metric tons, intended to produce crude canola oil for the food and biofuel markets and canola meal for animal nutrition. To support the facility's future operations, the company also completed the acquisition of over 400 acres of land nearby to improve rail and road infrastructure. This development aimed to enhance logistics for farmers and streamline access to domestic and international destination markets.
• In March 2024, Bunge and Chevron approved a final investment decision to construct a new oilseed processing facility in Destrehan, Louisiana, through their joint venture, Bunge Chevron Ag Renewables. The new plant was designed with a flexible operational capability to process soybeans as well as softseeds, including winter canola and novel cover crops. This facility was established to address the growing demand for renewable fuel feedstocks while simultaneously supplying meal products to the animal feed and protein sectors. The project represented a strategic step in expanding the companies' collaborative value chain to produce lower carbon intensity fuels.
• In March 2024, Corteva Agriscience launched a new portfolio of soybean varieties known as the Z-Series Enlist E3 across North America. These seeds were engineered to deliver improved agronomic performance, featuring enhanced resistance to prevalent diseases such as sudden death syndrome and white mold. The launch marked a significant advancement in the company’s research and development efforts, offering farmers genetics with higher yield potential and greater stability across diverse environmental conditions. This new product line was introduced to replace previous offerings, ensuring that growers had access to the latest breeding innovations for their oilseed cropping systems.

Key Market Players

• Cargill Inc
• BASF SE
• Chr Hansen Holding A/S
• Evonik Industries AG
• Novus International Inc
• Alltech Inc
• Associated British Foods PLC
• Charoen Pokphand Foods PCL
• ForFarmers NV
• Land O' Lakes Inc

By Biotech Trait	By Oilseed Type	By Type	By Application	By Product	By Region
Insecticide-Resistant Herbicide-Tolerant	Peanut Soybean Sunflower Seed Cottonseed Copra Palm Kernel Rapeseed	Conventional Genetically Modified	Oilseed Meal Vegetable Meal	Edible Oil Animal feed	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• Oilseeds Market, By Biotech Trait:

• Insecticide-Resistant
• Herbicide-Tolerant

• Oilseeds Market, By Oilseed Type:

• Peanut
• Soybean
• Sunflower Seed
• Cottonseed
• Copra
• Palm Kernel
• Rapeseed

• Oilseeds Market, By Type:

• Conventional
• Genetically Modified

• Oilseeds Market, By Application:

• Oilseed Meal
• Vegetable Meal

• Oilseeds Market, By Product:

• Edible Oil
• Animal feed

• Oilseeds 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