Fats and Oils Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2025-2034)

The fats and oils market was valued at USD 266.10 Billion in 2024. The industry is expected to grow at a CAGR of 4.20% during the forecast period of 2025-2034. The market is expected to grow with the surging global population, increasing government support, technological advances and the expansion of the food industry. In turn, all these factors are expected to result in the market attaining a valuation of USD 401.53 Billion by 2034.

Global Fats and Oils Market Report Summary

Market Size 2024

• USD Billion 266.10

Market Size 2034

• USD Billion 401.53
• CAGR 2025-2034
• 4.20%

CAGR 2025-2034 - Market by Region

• Asia Pacific
• 5.0%

CAGR 2025-2034 - Market by Country

• China
• 6.3%

CAGR 2025-2034 - Market by Country

• India
• 5.8%

CAGR 2025-2034 - Market by Application

• Food Applications
• 4.6%

CAGR 2025-2034 - Market by Sales Channel

• Online Channels
• 4.7%

Fats and Oils Market Overview

The increasing government support in the form of initiatives to boost the rate of production and enhance availability will drive the fats and oils market development. In October 2024, the Indian government introduced two missions for edible oils and palm oil with an aim to ensure food security while ending its reliance on imports. A large number of companies are placing targeted efforts on research activities to drive product innovations. For instance, in January 2024, Finnish dairy products manufacturer Valio entered into a research collaboration with Swedish food tech startup Melt&Marble for developing next-gen food products. The rapid urbanisation and the subsequently changing dietary habits will also influence the market growth.

Fats and Oils Market Growth

The fats and oils market revenue will increase with the growing technological advancements to mimic animal fat in plant-based foods. In February 2022, Swiss ingredient manufacturer Givaudan introduced PrimeLock+, its new integrated technology that helps in encapsulating and protecting the flavour and fat in plant-based meat substitutes. The higher integration of technologies and strategies in product developments can be attributed to the rising consumer desires for sustainable practices and healthier options. The expansion of the vegan population is another important factor influencing the consumption of various types of plant oils. According to industry reports, there were nearly 88 million vegans across the world in 2023.

Key Trends and Recent Developments

The global fats and oils market expansion can be attributed to the rising investment strategies, increasing sustainability initiatives, growing regulatory support, and the innovations in oil processing.

March 2025

Estonia-based food-tech start-up Äio successfully scaled the manufacturing of its fermentation-made fats and oils by an industrial-level batch of 10,000 liters. The firm transitioned from lab-scale to pilot-scale production in 2024, hitting the milestone 10,000-litre mark for accelerating its efficiency while empowering for real-world application.

May 2024

Wilmar launched the operational phase 1 of its large edible oils refinery located in Richards Bay, the United States. The new refinery would help in processing imported as well as locally sourced oilseeds, such as imported palm oil and local sunflower seed.

February 2024

Cargill emerged as the first global edible oils supplier for meeting the World Health Organization (WHO)’s best practices aimed at eliminating industrially generated trans-fatty acids. This comes as part of its continued commitment of reducing industrially produced trans fats in its oil portfolio.

March 2023

Cargill entered into a new partnership deal with food-tech company CUBIQ FOODS to provide its innovative fats to the latter’s customers who develop plant-based foods for ultimately making them healthier. This initiative was aimed at bringing innovative fats to plant-based foods.

Emerging investment strategies

The significant rise in investments aimed at ramping up production capacities will impact the fats and oils market outlook. In July 2024, Adani Wilmar Ltd disclosed plans to invested around ?600 crore for expanding its processing of edible oil business while launching more food products for consumers and institutional buyers to attain higher sales. Such strategies for proliferating the production volumes to cater to a wider base will drive the product demand.

Emphasis on sustainability

The strong focus on sustainability to render numerous health benefits whilst delivering an ideal balance of nutrition as well as environmental responsibility will boost the fats and oils industry. In October 2024, Schils launched Eurolac range, its new line of calf milk replacers (CMR) made of a unique and sustainable fat composition using medium-chain fatty acids (MCFA), specifically lauric acid to offer positive effects on antimicrobial properties, intestinal villi, and immune support.

Positive regulatory scenario

The demand of the fats and oils market is driven by the surging support from leading regulatory bodies to promote innovations. In March 2025, animal fat startup Mission Barns secured an approval from the US Food and Drug Administration (FDA) to counter questions associated with the safety of its cultivated pork fat. The increasing emphasis on nutrition, microbiological safety, and food chemical safety will thus influence industry development.

Oil processing innovations

The growing efforts on enhancing oil processing technologies and processes to reduce the concerns of achieving self-sufficiency in edible oils will drive the fats and oils market development. In March 2024, India’s leading 3F Oil Palm commenced the inaugural commercial operations of its integrated oil palm processing unit located in Arunachal Pradesh, India, marking a crucial step in the country’s quest for self-reliance in edible oils. This move was boosted by India’s National Mission on Edible Oils - Oil Palm.

Fats and Oils Market Trends

The rising shift towards using synthetic sources to mimic real components in product development is attracting significant focus on several approaches to cultivated animal fat and bioingredients, adding to the fats and oils industry growth. In August 2024, Brazilian biotechnology firm Cellva designed a new process for growing pork fat in a lab environment using advanced bioreactors for multiplying fat cells extracted from a living pig. The surging usage of vegetable oils in biodiesel production will also favour the market trends. According to industry reports, soybean oil accounts for over 40% of the total feedstocks employed for biomass-based diesel production.

Fats and Oils Market Opportunities

The increasing levels of health consciousness among consumers on account of the rising prevalence of diseases will complement the fats and oils market. The emerging need for sustainability is propelling the preference for co-processing methods as more efficient waste management solutions. In June 2024, oil firm OMV invested almost EUR 200 million in its co-processing plant located at the Schwechat refinery in Austria to convert up to 160,000 metric tons of liquid biomass into high-quality renewable hydrogenated vegetable oil components. The development of oil seeds deploying technologies, such as genome editing, along with the rising potential of precision fermentation for producing animal fats will further favour the market growth.

Fats and Oils Market Restraints

The fats and oils industry is likely to be hampered by the simple substitution of saturated fats by unsaturated leading to food wastage. Hydrogenated vegetable oils are also high in trans-fat, further leading to various health problems. The presence of stringent regulations, increasing availability of alternatives and the fluctuating prices of raw materials and ingredients will also hinder the product uptake to some extent.

Oils and Fats Industry Segmentation

“The report titled “Fats and Oils Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Breakup by Type

• Oil Type
• Palm Oil
• Soybean Oil
• Rapeseed Oil
• Sunflower Oil
• Olive Oil
• Others
• Fat Type
• Butter
• Shortenings and Margarine
• Lard
• Tallow
• Others

Breakup by Application

• Food Applications
• Industrial Applications

Breakup by Source

• Vegetable
• Animal

Breakup by Sales Channel

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

Breakup by Region

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

Fats and Oils Market Share

Market Analysis by Type

The oil type segment is likely to expand due to surging health benefits of vegetable oils, making them a valuable part of healthy and balanced diets. Palm oil is gaining traction in the fats and oils market as it resistsoxidation while providing a longer shelf life than other vegetable oils. Along with protecting brain function, palm oil helps to limit heart disease risk factors and enhance vitamin A levels. Meanwhile, soybean oil is widely preferred as it promotes improvements in cardiovascular as well as cognitive performance and inflammation levels. The demand for olive oil is set to grow with the rising investments in cultivation and production. In April 2025, the Government of Kazakhstan invested USD 20 million for an olive cultivation and oil production project.

Increasing scope in human nutrition given their nutrient content and oxidative stability will influence the growth of the fat type segment. Rising preference for butter in the fats and oils due to growing innovations will drive its uptake. In March 2025, food & beverage company Savor commercially launched its animal-and-plant-free butter, the first offering of its revolutionary sustainable fats. The demand for lard is also expected to grow with its healthy cholesterol content as well as beneficial nutrients, such as vitamin B complex, vitamin C, and iron. Further, tallow is witnessing higher consumption owing to itsfat-soluble vitamins that are important for various bodily functions, including immune support, and bone health. The increasing prominence of beef tallow in catering to the expanding needs for natural and organic skincare products will drive its uptake.

Market Analysis by Application

The fats and oils market is expected to expand through food and industrial applications. Driven by their rising usage as important raw materials and functional ingredients, fats and oils are used in several food products, such as confectionery, ice creams, bakery, emulsions, and sauces. In September 2024, Handel's Homemade Ice Cream introduced its new Peanut Butter and Jelly Ice Cream to offer innovations in its offerings.

The demand for fats and oils in industrial applications will increase with growing utilization in cosmetic formulations to offer emollient properties. Plant oils find wide usage for various industrial and technological purposes in printing inks, coatings and polymers, lubricants, and cosmetics/pharmaceuticals. Beef tallow is also increasingly employed in skin care products especially to sooth and calm sensitive skin.

Market Analysis by Source

Plant based fats and oils are likely to gain immense traction as they offer numerous benefits, emerging as key components in healthier diets.In March 2025, new research conducted by JAMA Internal Medicine revealed that higher butter consumption leads to increased cancer and total mortality. Meanwhile plant-based oils like olive, soybean, and canola can help limit the risks of cardiovascular disease and cancer-related deaths.

Animal based fats and oils market is poised for expansion due to higher application scope in pet food, feed, oleo chemistry, and energy generation. In recent years, insect oil has evolved as a sustainable innovation in pet food formulation. This can be attributed to its functional health benefits given its rich fatty acid profile.

Market Analysis by Sales Channel

Hypermarkets/supermarkets are expected to garner prominence in the fats and oils market owing to the large availability and ease of access to a variety of products. Hypermarkets sell merchandise at lower rates compared to their competitors. Convenience of one-stop shopping, vast product selection, quality assurance, competitive pricing, and community support are some of the benefits of these sales channels.

Meanwhile, convenience stores are favored as they offer quick access to essentials while serving as dependable sources for urgent needs by accommodating diverse schedules. These stores offer a great retail experience as they provide discounts on specific products as well as buy-one-get-one-free promotions.

The fats and oils industry growth is also complimented by online channels due to the ease of online shopping on account of the busy schedules of consumers and rising internet penetration. According to industry reports, the share of U.S. households purchasing groceries on online platforms jumped to 61% in February 2025. This rise in grocery shopping on the internet will drive the market ahead.

Oils and Fats Market Regional Analysis

CAGR 2025-2034 - Market by

• Country
• China
• 6.3%
• India
• 5.8%
• Japan
• 5.5%
• Brazil
• 5.3%
• Australia
• 4.5%
• Mexico
• 4.5%
• USA
• Canada
• UK
• Germany
• France
• Italy
• Saudi Arabia

North America Fats and Oils Market Factors

The significant intake of animal fats driven by the expanding meat consumption will positively influence the fats and oils industry in North America. According to industry reports, the U.S. imports of animal fats, including edible tallow, lard, inedible tallow, and poultry fats, greases, and processed oils skyrocketed from 2.2 billion pounds in 2022 to 5 billion pounds in 2023. The increasing awareness of health and sustainability is driving the demand for health-oriented foods in the region. The strong presence of some of the leading industry players, the positive regulatory scenario, increase in research and development activities and the consequent innovations will also favour the regional market growth.

Europe Fats and Oils Market Trends

Europe fats and oils market is poised to grow due to the rising number of vegans and the consequent preference for plant-based oils. According to industry reports, the vegan population in the United Kingdom was found to increase by a large 1.1 million between 2023 and 2024. This can be attributed to the shifting consumer interest in healthier options and the intensifying demand for plant-based alternatives across the region. The surging intervention by regulatory bodies regarding the use of vegetable oil in biodiesel production will also push the market forward. In March 2025, The UK Trade Remedies Authority started an investigation into hydrotreated vegetable oil biodiesel imports from the United States to respond to concerns from regional biodiesel and renewable diesel producers.

Asia Pacific Fats and Oils Market Drivers

Driven by the surging government support and the rapid expansion of the agricultural sector, mainly in India, Japan and China, the fats and oils demand growth will significantly increase in the Asia Pacific. In July 2024, the Government of China was considering the introduction of mandatory standards for edible oil transport for limiting the increasing food safety concerns among consumers. With rapid advances in the edible oil sector, India has further emerged as a leading exporter of palm oil. According to industry reports, India exported a total of USD 40.2M in palm oil, primarily to Senegal, Djibouti, and Mozambique in 2023.

Latin America Fats and Oils Market Analysis

The fats and oils market development in Latin America can be attributed to the rising rate of urbanization and the presence of sedentary lifestyles. The increasing production of avocados, mainly in Mexico is boosting imports, further driving the uptake of avocado oil. According to the United States Department of Agriculture (USDA), Mexico’s avocado production in 2024 was forecasted to reach 2.77 million metric tons (MMT), showing a 5% increase over 2023. The rising popularity of Brazilian cattle tallow due to its predominant role in biodiesel production will favor the regional market growth. As per industry reports, American purchases of Brazilian cattle tallow climbed 377% during the first four months of 2024 in comparison to a year earlier.

Middle East and Africa Fats and Oils Market Opportunities

The surging developments in the food industry and the rise in edible oil investments in the Middle East and Africa are significant drivers of the fats and oils market. In September 2023, the Saudi Agriculture and Livestock Company (SALIC) revealed its plans to invest in a palm oil project in Indonesia. The Middle East region is witnessing consistent growth in the consumption of specialty fats for its nutritional qualities and functional attributes. The jump in testing laboratories to strengthen the quality of vegetable oils exports, increased rate of sunflower oil production and positive agricultural landscape will also influence the market growth.

Competitive Landscape

Key players in the global fats and oils market are working on various growth-driven strategies, such as partnerships, mergers, and investments to gain a competitive edge. These firms are also indulging in capacity expansions, technological intervention and product launches to cater to a wider consumer base.

Ajinomoto Co. Inc.

• Founded in 1909 and headquartered in Tokyo, Ajinomoto Co. Inc. is a Japanese multinational food and biotechnology corporation. With specialties in the business of food and amino acids, the company offers a variety of oils and fats deployed with leading-edge bioscience and fine chemical technologies.

Archer Daniels Midland Company

Founded in 1902 and headquartered in Illinois, the United States, The Archer-Daniels-Midland Company, also known as ADM, is an American multinational food processing and commodities trading corporation. ADM is also a global leader in human and animal nutrition creating ingredients and solutions that are safe, healthy, and sustainable.

Associated British Foods plc

Founded in 1935 and headquartered in London, the United Kingdom, Associated British Foods is a multinational food processing and retailing company manufacturing animal feeds and other related products and services, like lipids and enzymes for the agriculture sector, and commercial applications

Bunge Limited

Founded in 1818 and headquartered in Missouri, the United States, Bunge is a global leader in agribusiness, food and ingredients. The company offers plant-based specialty oils, fats and lecithins to meet evolving dietary needs and trends while delivering functionality and sustainability to the food and nutrition industry.

Some of the other key players in the fats and oils market are Cargill Incorporated, Conagra Brands Inc., Fuji Oil Holding Inc., Unilever plc, United Plantations Berhad, and Wilmar International Limited, among others.