Vegetable Oil Market – Global Industry Size, Share, Trends, Opportunity and Forecast, By Product Type (Palm Oil, Soybean Oil, Rapeseed Oil, Others), By Distribution Channel (Offline, Online), By Packaging Type (Bottles, Pouches), By Region & Competition, 2020-2030F

Market Overview

Global Vegetable Oil Market was valued at USD 407.68 billion in 2024 and is expected to grow to USD 585.54 billion by 2030 with a CAGR of 6.27% during the forecast period. The global vegetable oil market is witnessing steady growth, fueled by increasing consumer preference for healthier cooking alternatives, expanding applications in the food processing and cosmetic industries, and rising demand for plant-based diets. Vegetable oils such as soybean, palm, sunflower, and canola are widely used in culinary, industrial, and biodiesel applications. Technological advancements in oil extraction and refining, along with sustainable agricultural practices, are enhancing product quality and supply chain efficiency. Additionally, growing awareness about the nutritional benefits of unsaturated fats and government support for renewable energy sources are further contributing to the market’s positive outlook across developed and emerging economies.

Key Market Drivers

Rising Health Awareness and Shift Toward Plant-Based Diets

One of the most significant drivers of the global vegetable oil market is the growing health consciousness among consumers. Increasing awareness of the health benefits associated with vegetable oils, particularly those rich in unsaturated fats like olive, canola, and sunflower oils, is leading to a shift away from animal-based fats such as butter and lard. Unsaturated fats are known to support heart health, reduce bad cholesterol levels, and improve overall well-being. As lifestyle-related diseases such as obesity, cardiovascular issues, and diabetes continue to rise globally, consumers are proactively seeking healthier cooking alternatives. According to the World Health Organization (2024), non-communicable diseases (NCDs) such as cardiovascular diseases and diabetes account for approximately 74% of global deaths, with dietary factors being one of the leading causes. This has led to increasing demand for oils lower in saturated fat and trans fats.

Additionally, the global surge in vegetarianism and veganism is further fueling demand for plant-based oils. In many developed and emerging economies, the adoption of flexitarian diets is on the rise, with consumers opting for plant-based foods more frequently, even if they are not fully vegetarian. This trend is also supported by the increasing availability of health and wellness content on digital platforms and social media, making consumers more informed and mindful about their dietary choices. As a result, vegetable oils are becoming a staple in modern, health-focused diets.

Expansion of the Food Processing Industry

The growing food processing industry worldwide is another crucial driver for the vegetable oil market. Vegetable oils are widely used in the production of snacks, baked goods, confectioneries, sauces, and ready-to-eat meals. With the rapid urbanization, changing lifestyles, and busy work schedules, consumers are increasingly relying on processed and convenience foods. This rising demand for packaged and shelf-stable food products necessitates the use of vegetable oils as essential ingredients for flavor enhancement, texture improvement, and preservation. According to the Food and Agriculture Organization (FAO, 2024), global processed food consumption is rising at an annual rate of 4.3%, driven by the growing demand for convenience and ready-to-eat products.

Moreover, the expansion of quick-service restaurants (QSRs), fast-food chains, and bakeries in both developed and developing countries is boosting the demand for high-quality cooking oils with high smoke points and long shelf lives. Vegetable oils such as soybean, palm, and sunflower are extensively used in frying, grilling, sautéing, and salad dressings, making them indispensable to food service operators and food manufacturers. As the global food processing sector continues to grow, particularly in emerging economies such as India, China, Brazil, and Southeast Asian countries, the demand for vegetable oil is expected to remain strong.

Increasing Demand for Biodiesel and Industrial Applications

The rise in global energy demand and environmental concerns related to fossil fuels have led to the increasing use of vegetable oils in biodiesel production. Biodiesel, which is produced from renewable sources such as vegetable oils and animal fats, is gaining traction as a cleaner alternative to conventional diesel. Governments in several regions, especially in Europe and North America, have implemented regulations and incentives to promote biofuel usage, including mandatory blending of biodiesel with conventional fuels.

Vegetable oils like rapeseed, soybean, and palm oil are among the primary feedstocks used in biodiesel manufacturing. As countries strive to reduce greenhouse gas emissions and achieve their climate goals, the biodiesel sector is projected to witness continued growth, thereby driving vegetable oil consumption. Beyond fuel, vegetable oils also find applications in the production of soaps, detergents, lubricants, cosmetics, and oleochemicals, further contributing to overall market expansion.

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Key Market Challenges

Environmental Concerns and Sustainability Issues

One of the most pressing challenges in the global vegetable oil market is the growing scrutiny over environmental sustainability, particularly associated with the production of palm oil and soybean oil. Large-scale cultivation of oil crops, especially palm, has been linked to deforestation, loss of biodiversity, greenhouse gas emissions, and soil degradation. Countries such as Indonesia and Malaysia, the world’s leading palm oil producers, have faced significant criticism from environmental organizations and consumers over the destruction of rainforests and habitats for endangered species.

In response, there is increasing pressure on producers to adopt sustainable agricultural practices and obtain certifications such as RSPO (Roundtable on Sustainable Palm Oil). However, transitioning to sustainable methods often involves higher costs and complex supply chain adjustments, which can affect profitability, particularly for smallholder farmers. Furthermore, stricter environmental regulations and import restrictions from regions like the European Union are posing additional hurdles for exporters. These environmental concerns not only threaten the long-term viability of the market but also influence consumer behavior, leading to a shift in preference toward sustainably sourced oils.

Price Volatility and Supply Chain Disruptions

The vegetable oil market is highly susceptible to price fluctuations due to various factors such as weather conditions, crop yields, global trade policies, and geopolitical tensions. For instance, adverse weather events like droughts or floods can significantly affect the production of oilseeds such as soybean, sunflower, and rapeseed, leading to supply shortages and subsequent price hikes. The Russia-Ukraine conflict, for example, severely impacted the global sunflower oil supply, as both countries are major exporters, causing a surge in prices and supply chain instability.

In addition to weather-related disruptions, export restrictions, trade tariffs, and currency fluctuations can further add to the volatility. Countries may impose export bans to secure domestic food supplies during times of scarcity, affecting global availability and market equilibrium. This unpredictability in pricing not only affects manufacturers and retailers but also trickles down to consumers, influencing purchasing behavior and consumption patterns. Furthermore, fluctuating prices can impact the profitability of food processors and biodiesel producers who rely heavily on consistent and affordable oil supplies.

Key Market Trends

Growing Demand for Cold-Pressed and Organic Oils

One of the most notable trends in the global vegetable oil market is the rising popularity of cold-pressed and organic oils. Consumers are becoming increasingly health-conscious and are seeking natural, minimally processed oils that retain essential nutrients, antioxidants, and flavors. Cold-pressed oils, such as olive, coconut, sesame, and flaxseed oils, are produced without heat or chemical solvents, preserving their nutritional integrity and appealing to health-focused individuals. According to the Organic Trade Association (OTA, 2024), organic food sales in the U.S. reached a record high, with organic oils growing at 7.4% annually, driven by consumer demand for clean-label and sustainable food options.

Organic oils, which are extracted from oilseeds cultivated without synthetic fertilizers or pesticides, are also gaining traction due to growing awareness about food safety and environmental sustainability. Certifications such as USDA Organic and EU Organic are becoming important markers of quality and trust. In response, brands are expanding their portfolios to include premium cold-pressed and organic options, particularly in retail and e-commerce channels. This trend is especially strong in North America, Europe, and urban areas of Asia-Pacific, where consumers are willing to pay a premium for healthier and more transparent food products.

Technological Advancements in Oil Processing

Innovation in extraction and refining technologies is transforming the vegetable oil industry by improving efficiency, quality, and sustainability. Companies are investing in advanced processing methods, including enzymatic extraction, membrane technology, and supercritical CO₂ extraction, which offer higher yields, better purity, and lower environmental impact compared to traditional solvent-based techniques.

Moreover, continuous improvements in refining processes such as degumming, bleaching, and deodorizing are enabling manufacturers to produce oils with better shelf stability, clearer appearance, and neutral taste, without compromising nutritional value. Automation, data analytics, and smart monitoring systems are also being adopted to streamline operations and reduce waste. These technological innovations are helping manufacturers cater to evolving consumer preferences for high-quality, clean-label oils while maintaining cost-effectiveness and scalability.

Sustainability and Ethical Sourcing Initiatives

Sustainability is becoming a central theme in the global vegetable oil market, as both consumers and regulators demand more responsible production practices. The environmental impact of palm oil cultivation, in particular, has sparked widespread concern, prompting industry stakeholders to adopt more sustainable and traceable supply chains. Certifications like RSPO (Roundtable on Sustainable Palm Oil), ISCC (International Sustainability and Carbon Certification), and Fair Trade are being used to assure buyers of responsible sourcing. According to the WWF Palm Oil Buyers Scorecard 2024, over 300 major global brands and retailers have committed to sourcing only certified sustainable palm oil. Additionally, the European Commission (2025) reported that 35% of vegetable oil imports into the EU are now certified under recognized sustainability schemes.

Brands are also focusing on reducing their carbon footprint through eco-friendly packaging, water conservation, and renewable energy use in manufacturing. Additionally, there is a growing emphasis on supporting smallholder farmers through training, fair pricing, and access to global markets. These sustainability initiatives not only help protect ecosystems and improve livelihoods but also enhance brand reputation and customer loyalty. As ESG (Environmental, Social, and Governance) factors become more influential in consumer and investor decisions, companies that prioritize ethical sourcing and environmental stewardship are likely to have a competitive edge.

Segmental Insights

Product Type Insights

Palm oil was the dominating segment in the global vegetable oil market due to its high yield, cost-effectiveness, and versatile applications across food, cosmetics, and industrial sectors. It is widely used in cooking oils, processed foods, soaps, and biodiesel. Countries like Indonesia and Malaysia lead global production, benefiting from favorable climatic conditions. Despite environmental concerns, palm oil remains popular due to its long shelf life and stable properties at high temperatures. Its ability to be fractionated into different products like palm olein and stearin further enhances its utility, solidifying its position as the most consumed vegetable oil worldwide.

Distribution Channel Insights

The offline segment dominated the global vegetable oil market as traditional retail formats such as supermarkets, hypermarkets, grocery stores, and convenience stores remain the primary purchasing channels, especially in developing countries. Consumers prefer offline outlets for the ability to physically examine products, access promotional deals, and rely on store staff for recommendations. In rural and semi-urban areas, limited internet access and digital literacy further reinforce the dominance of offline sales. Additionally, bulk purchasing options and established distribution networks through offline retail ensure consistent availability and consumer trust, making it the leading channel for vegetable oil sales globally.

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Regional Insights

North America was the dominating region in the global vegetable oil market, driven by high consumption of processed foods, growing awareness of health and nutrition, and strong demand for plant-based and organic oils. The region benefits from a well-established food processing industry, advanced agricultural practices, and widespread availability of various vegetable oils, including soybean, canola, and corn oil. Additionally, supportive government policies on biofuel production, particularly in the United States, have boosted the use of vegetable oils in biodiesel. Increasing consumer preference for clean-label and non-GMO products further strengthens North America's leadership in both production and consumption of vegetable oils.

Recent Developments

• ​In Jul 2025, Eni has opened Congo’s first industrial-scale certified vegetable oil extraction plant in Loudima, capable of producing 30,000 tons annually. The supply will serve its Enilive biorefineries for sustainable biofuel under strict EU sustainability standards.

• In Jan 2025, India’s Agriculture Ministry launched the country's first national edible oil consumption survey from January 9 to February 23, 2025, to assess household oil usage, dietary habits, health awareness, and inform its National Mission on Edible Oils Oilseeds (NMEO-Oilseeds).

• In July 2024, Louis Dreyfus Company relaunched its edible oil brand Vibhor in India, initially targeting North Indian markets. The refreshed line features soybean, palmolein, cottonseed, mustard oils, and vanaspati fortified with vitamins A and D, available in packaging from 500 g to 15 kg.

Key Market Players

• The Savola Group
• Bunge Limited
• Patanjali Ayurveda Limited
• Louis Dreyfus Company B.V.
• Wilmar International Ltd.
• IFFCO Group
• Sime Darby Plantation Berhad
• Fuji Oil Holdings Inc.
• Marico Ltd.
• PT Astra Agro Lestari Tbk

Report Scope:

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

•   Vegetable Oil Market, By Product Type:

o   Palm Oil

o   Soybean Oil

o   Rapeseed Oil

o   Others

• Vegetable Oil Market, By Distribution Channel:

o   Offline

o   Online

• Vegetable Oil Market, By Packaging Type:

o   Bottles

o   Pouches

• Vegetable Oil Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe

§  France

§  United Kingdom

§  Italy

§  Germany

§  Spain

o   Asia-Pacific

§  China

§  Japan

§  India

§  South Korea

§  Indonesia

o   South America

§  Argentina

§  Colombia

§  Brazil

o   Middle East & Africa

§  South Africa

§  Saudi Arabia

§  UAE

§  Turkey

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Global Vegetable Oil Market.

Available Customizations:

Global Vegetable Oil Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).