Vegetable Oil Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2025-2034)

The global vegetable oil market reached a volume of approximately 226.70 MMT in 2024. The market is projected to grow at a CAGR of 3.10% between 2025 and 2034, reaching a value of around 307.64 MMT by 2034.

Vegetable Oil Market Growth Rate

Vegetable oils, derived from natural sources like seeds, nuts, and fruits, have widespread applications across various sectors, including food, household, and personal care. They are nutrient-rich and commonly used for cooking, as well as in margarine, non-dairy creamers, and ice cream.

Additionally, they serve as substitutes for animal fats. In non-food industries, vegetable oils are utilized in making soaps, detergents, lubricants, greases, and candles. Moreover, biofuel is emerging as an important application area for these oils. According to the data from the Open Government Data (OGD) Platform India, India imported 1,42,78,156 tonnes of edible oil globally in 2021-22 from 1,35,40,007 tonnes in 2020-21.

Key Trends and Developments

The escalation of disposable income, evolving dietary patterns, increasing sustainability practices, and growing demand for imports are the major trends impacting global vegetable oil market growth.

February 08, 2024

Algae Cooking Club has launched a cooking oil made from fermented microalgae. This sustainable alternative can produce high-quality fats, proteins, and nutrients rapidly, using minimal soil and water.

September 06, 2023

Brunei has recently introduced its first cooking oil, produced by Ghanim International Corporation Sdn Bhd under the bruneihalalfoods brand. This cooking oil was developed in partnership with Western Foods and Packaging Sdn Bhd (WFP).

August 25, 2023

Morocco has inaugurated a unique vegetable oil production facility in the El Marsa industrial park, located in the Laâyoune province in the southern region. The project involves a total investment of 190 million dirhams (US$52 million).

February 09, 2023

Cargill announced the launch of its first product, Gemini Pureit sunflower oil, in four South Indian states. This oil will be produced at the Nellore plant and distributed throughout the four states.

The escalation of disposable income

Rising disposable incomes boost the vegetable oil market by increasing demand for premium, diverse, convenient, and health-focused oils, driven by enhanced purchasing power and lifestyle changes.

Evolving dietary patterns

Changing dietary habits propel the vegetable oil market with rising health awareness, diverse cuisine choices, plant-based diets, home cooking trends, and increased processed food consumption.

Increasing sustainability practices

Growing sustainability initiatives fuel the vegetable oil market by catering to consumer preferences for ethically sourced products and minimizing environmental harm, ensuring industry longevity.

Growing demand for imports

The growing request for imports propels the vegetable oil market by broadening market access, fostering competition, and diversifying product options to align with consumer preferences.

Vegetable Oil Market Trends

Health consciousness drives demand for healthier oils like olive and avocado while plant-based diets increase consumption. Global culinary exploration expands use in diverse cuisines and sustainable sourcing meets ethical demands. Technological advances enhance production efficiency. Economic development in emerging markets spurs demand.

Rising incomes drive vegetable oil market growth through increased demand for premium and health-focused oils. Evolving diets, with more health awareness and diverse cuisines, also boost the market, catering to consumer preferences and broadening product options.

Vegetable Oil Industry Segmentation

“Vegetable Oil Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Market Breakup by Oil Type

• Palm Oil
• Soyabean Oil
• Sunflower Oil
• Olive Oil
• Canola Oil
• Coconut Oil
• Others

Market Breakup by Application

• Food
• Feed
• Industrial

Market Breakup by Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa

Vegetable Oil Market Share

Palm oil is the most widely used vegetable oil due to its high yield and cost-effectiveness, versatility in both food and non-food products, stability at high temperatures, and nutritional content

Palm oil is the market leader, primarily produced in Indonesia and Malaysia. In Indonesia, palm oil production is projected to grow by 1.8% annually during the forecast period, with notable growth also expected in Thailand, Colombia, and Nigeria.

Global production relies on perennial tropical oil plants like oil palm and the crushing of oilseeds. Indonesia and Malaysia together account for over one-third of total production, with Indonesia being the top producer worldwide.

Over half of the global production comes from crushing soybeans and other oilseeds. Although its use as biodiesel feedstock has declined compared to the peak during the introduction of biofuel policies, it is still anticipated to grow by 0.3% annually over the next five years. The decreased use in the United States and European Union is being offset by increased use in emerging nations like Argentina.

Argentina exports over 40% of its biodiesel and is expected to use nearly three-fourths of its domestic production as biodiesel feedstock during the forecast period. In Indonesia and Brazil, the growth of biodiesel applications will surpass that of the food sector. In the European Union, biodiesel feedstock will constitute about 39% of its applications during the forecast period.

Leading Manufacturers in the Vegetable oil Market

The companies manages the marketing, processing, and distribution of grains, and oilseeds, specialises in plant-based food solutions, and bakery ingredients, as well as soy ingredients committed to integration and sustainability practices.

Cargill, Incorporated

Cargill, Incorporated: Founded in 1865, with its headquarters in the United States, Cargill, Incorporated manages the marketing, processing, and distribution of grains, oilseeds, sugar, meat, other food products, and cotton.

Archer Daniel Midland Company

Archer Daniel Midland Company: Founded in 1902, with its headquarters in the United States, is a prominent figure in human and animal nutrition globally, and leading force in agricultural origination and processing worldwide.

IOI Corporation Berhad (IOI)

IOI Corporation Berhad (IOI): Founded in 1969, with its headquarters in Malaysia, IOI Corporation Berhad is a prominent international palm oil producer committed to integration and sustainability practices.

Fuji Oil Co., Ltd.

Fuji Oil Co., Ltd.: Founded in 1950, with its headquarters in Japan, Fuji Oil Co., Ltd. specialises in plant-based food solutions, and bakery ingredients, as well as soy ingredients.

Other global vegetable oil market key players are Sime Darby Plantation Berhad, Bunge Limited, Wilmar International Limited, Louis Dreyfus Company B.V., Conagra Brands, Inc, Olam Group Limited, Golden Agri-Resources (GAR), and PT Astra Agro Lestari Tbk among others.

Vegetable Oil Market Analysis by Region

India is the leading importer of vegetable oil, expected to account for over a quarter of global imports in the forecast period, with annual imports growing by 4.7%. Holding a 41% trade share in agricultural commodities, India's dominant position is projected to continue, driving the vegetable oil market by ensuring strong and consistent demand.

The growth in vegetable oil consumption will be supported by the expansion of oilseed cultivation and increased imports, particularly of palm oil from Indonesia and Malaysia. As the second largest consumer.

Indonesia and Malaysia, as leading markets, are projected to experience annual growth rates of 1.8% and 1.4%, respectively. Both countries are also major exporters, with Indonesia exporting nearly 70% of its vegetable oil production and Malaysia exporting over 80%. This high export volume from these nations will drive the global vegetable oil market.