Australia Cooking Oil Market Report and Forecast 2025-2034

According to this report, the Australia cooking oil market size witnessed a healthy growth in 2024. Aided by the growing demand for healthier cooking oils, increasing awareness of food quality, and the rising preference for plant-based diets, the market is projected to grow at a CAGR of 4.7% between 2025 and 2034.

Cooking oils are a crucial part of the Australian culinary landscape, with a wide range of options available, including vegetable oils, olive oil, sunflower oil, canola oil, and palm oil. A key factor driving the Australia cooking oil market growth is the rising awareness of health and wellness among consumers. As individuals become more knowledgeable about the impact of fats on overall health, there has been a noticeable shift towards oils that are perceived to be healthier, such as olive oil, avocado oil, and oils high in omega-3 fatty acids. Olive oil, in particular, has gained popularity due to its association with the Mediterranean diet, which is known for its heart health benefits.

The popularity of plant-based diets is another significant driver propelling the Australia cooking oil market expansion. As the number of vegans, vegetarians, and flexitarians continues to rise, plant-derived oils are increasingly replacing animal fats in cooking. For instance, the demand for canola oil, sunflower oil, and other plant-based oils is on the rise, driven by the growing trend towards plant-based and meatless meals. These oils not only cater to the dietary preferences of a larger portion of the population but are also seen as more sustainable alternatives, given that they typically have a lower environmental footprint than animal fats.

In addition to health-conscious choices, the growing trend of clean-label products is further influencing consumer decisions in the Australia cooking oil market. Australian consumers are increasingly seeking products that contain fewer additives and are made with minimal processing. This preference aligns with the rise in demand for oils that are cold-pressed, organic, and free from artificial preservatives and chemicals. For example, the increasing popularity of extra virgin olive oil, which is made from cold-pressed olives and free from chemicals and preservatives, reflects this broader consumer trend towards more natural and wholesome food products.

As per the Australia cooking oil market analysis, the sustainability factor is becoming more significant as well, with a growing number of consumers considering the environmental impact of the oils they purchase. The demand for sustainably sourced cooking oils is on the rise, and Australian consumers are showing a clear preference for oils produced through environmentally friendly practices. Palm oil, for example, has come under scrutiny in recent years due to concerns about deforestation and the destruction of natural habitats. As a result, many Australian consumers are choosing certified sustainable palm oil or opting for alternative oils with better sustainability credentials.

Another contributing factor to the Australia cooking oil market development is the booming foodservice sector. As restaurants, cafes, and catering businesses recover and thrive, the need for large quantities of cooking oils has grown. The hospitality industry, which uses cooking oils for deep-frying, sautéing, and preparing various dishes, continues to be a significant consumer of cooking oils. Furthermore, many foodservice providers are opting for oils that offer high heat tolerance and stability, ensuring that their dishes are prepared safely and with optimal flavour.

However, the Australia cooking oil market does face certain challenges. One such challenge is the fluctuation in the prices of raw materials, which can impact the cost of cooking oils. Factors such as adverse weather conditions, trade disruptions, and market volatility can affect the availability of key ingredients, like soybeans and palm fruit, which are essential in oil production. These price fluctuations can result in higher retail prices for consumers, which may affect the demand for cooking oils.

Additionally, the presence of counterfeit or low-quality cooking oils in the market can raise concerns about food safety and authenticity. While the Australian food industry is tightly regulated, there have been instances of substandard oils being sold to consumers, often labelled as premium oils like extra virgin olive oil but with a different composition. This has led to increased calls for more rigorous enforcement of food safety standards and for greater transparency in labelling to ensure that consumers are getting the products they expect.

Despite these challenges, the Australia cooking oil market outlook remains positive. The continued shift towards healthier, sustainable, and plant-based cooking oils, coupled with growing demand from the foodservice industry, will likely sustain market growth in the coming years. As Australian consumers become more focused on their health and the environmental impact of their purchasing decisions, the demand for healthier and ethically sourced oils is expected to rise, further driving innovation and competition in the market. As such, businesses in the cooking oil sector will need to continue evolving to meet consumer preferences for quality, transparency, and sustainability. The future of the market is set to be shaped by these key trends, which will influence both consumer behaviour and industry practices.

Market Segmentation

The market can be divided based on type, application, distribution channel, and region.

Market Breakup by Type

• Palm Oil
• Soy Oil
• Sunflower Oil
• Peanut Oil
• Olive Oil
• Rapeseed Oil
• Others

Market Breakup by Application

• Bakery and Confectionery
• Snack Foods
• Salads
• Margarine, Fillings and Spreads
• Others

Market Breakup by Distribution Channel

• Supermarkets and Hypermarkets
• Convenience Stores
• Online Channels
• Others

Market Breakup by Region

• New South Wales
• Victoria
• Queensland
• Australian Capital Territory
• Western Australia
• Others

Competitive Landscape

The report looks into the market shares, plant turnarounds, capacities, investments, and mergers and acquisitions, among other major developments, of the leading companies operating in the Australia cooking oil market. Some of the major players explored in the report are as follows:

• Plenty Foods Pty Ltd.
• Cobram Estate Olives Limited
• Koala Gold
• Grampians Olive Co.
• Alba Edible Oils
• Others