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

The global edible oils and fats market attained approximately USD 227.68 Billion in 2024. The market is estimated to grow at a CAGR of 5.80% in the forecast period of 2025-2034, reaching a value of around USD 400.11 Billion by 2034.

Edible Oils and Fats Market Growth

Edible oils and fats are lipid substances that can be obtained from foods, animals, or other synthetic sources. They are primarily used for cooking and adding flavour to food and serve as an important component of a well-balanced diet. The growing demand for organic oils and fats due to their better nutrient retention properties and pure taste, especially among health-conscious individuals, is one of the crucial market trends.

A rise in the implementation of vegetable oils in the production of biofuel, a sustainable alternative to conventional fuel, also provides impetus to the market expansion. There is a surge in the development of sustainable oilseed cropping systems due to growing environmental awareness. Moreover, increasing attempts to enhance the traceability and transparency of oil supply chains propel the demand of edible oils and fats market. Increased usage of plant-based oils such as coconut oil and olive oil due to burgeoning veganism in developed countries such as the United Kingdom, Australia, and the United States also contributes to the market growth.

Edible Oils and Fats Market Trends

One of the crucial market trends is a shift toward organic and non-GMO products, especially in countries where people are highly concerned about artificial additives. Non-GMO labels are popular, as they signal fewer chemicals and better quality. Another trend of edible oils and fats market is that the market is also seeing a push for oils produced with sustainable methods. For example, sustainable palm oil certification has become important to prevent deforestation and protect wildlife. Companies are also exploring zero-waste production and packaging methods to appeal to environmentally-conscious consumers.

Recent Developments

As per the edible oils and fats market dynamics and trends, the Union Cabinet of India has approved the National Mission on Edible Oils-Oilseeds (NMEO-Oilseeds) aimed at enhancing domestic oilseed production and attaining self-sufficiency in edible oils in October 2024. This initiative is set to run from 2024-25 to 2030-31 and has been allocated a budget of Rs 10,103 crore.

Industry Outlook

Two companies based in the United States, Spotlight Foods and Algae Cooking Club, have launched cooking oil products derived from microalgae, as reported by World Bio Market Insights, which contributes to the growth of the edible oils and fats industry. These products, developed through a fermentation process, have received the Seed Oil Free Certified seal after undergoing independent laboratory evaluations by the Seed Oil Free Alliance, according to a report dated August 16. The manufacturing process entails supplying plant-based sugars sourced from sugarcane to microalgae in large tanks, which are subsequently transformed into edible oil, as detailed in the report. The outcome is a cooking oil that is neutral in flavour, rich in monounsaturated omega-9 fatty acids, and low in omega-6 fatty acids.

As per the edible oils and fats industry analysis, the Solvent Extractors Association of India (SEA) stated that the prices for crude palm oil, soybean oil, and sunflower oil on Thursday were USD 1,145 per ton, USD 1,160 per ton, and USD 1,165 per ton, respectively. This represents an increase of 32%, 18%, and 26% compared to the previous year. According to sources within the food ministry, edible oil prices are expected to remain high in the upcoming months due to a rise in global cooking oil prices and the recent increase in import duties implemented by the government. Sources informed Financial Express that following the government's decision to raise import duties on crude palm, soybean, and sunflower oils by 27.5% last month, the global prices for these three oils - key components of the country's edible oil import portfolio have surged by 10.6%, 16.8%, and 12.3%, respectively, over the past month.

Diverse applications and demand for healthier and specialty oils are strengthening the market growth.

• Edible oils and fats are essential ingredients in food preparation worldwide, ensuring steady market demand. Edible oils and fats have diverse applications in cooking, baking, and food processing.
• Growing health consciousness drives demand for healthier and speciality oils and fats, such as olive oil, cold pressed oils etc, boosting edible oils and fats industry revenue.

Technological advancements improve production efficiency and product quality.

Health concerns, dependency on agricultural production, and market competition may pose challenges to the market players.

• The market is highly susceptible to fluctuations in raw material prices, particularly due to variable agricultural outputs and global trade policies.
• The high consumption of saturated fats in certain products like palm oil and lard has raised concerns about links to cardiovascular diseases, affecting edible oils and fats market value.

Some edible oil production, notably palm oil, has been criticized for contributing to deforestation and environmental degradation, which can impact brand reputations.

Emerging opportunities for the market due to the development of healthier alternatives and expansion in the food service industry is driving the market growth.

• The development of functional oils and fats with added health benefits, such as omega-3 enriched oils, can further drive consumer interest.
• Increasing demand for organic and non-GMO products increases edible oils and fats market revenue.
• Expansion in the food service industry boosts demand for edible oils and fats.
• Innovation in packaging enhances product shelf life and consumer convenience.

Market Competition Analysis: Global Edible Oils and Fats Market

Leading players in the global edible oils and fats market include companies like Archer Daniels Midland Company, Cargill, Incorporated, Bunge Limited, Wilmar International Limited, and IOI Corporation Berhad. These companies leverage their extensive resources, advanced production technologies, and robust distribution networks to maintain their market positions, boosting edible oils and fats demand. Smaller regional players also play a significant role by catering to local tastes and preferences, often emphasizing traditional methods and local sourcing.

Product Differentiation and Branding:

• Companies in the edible oils and fats market differentiate their offerings through product quality, branding, and innovation. For instance, the introduction of fortified oils with added vitamins and minerals, and the development of organic and non-GMO product lines cater to health-conscious consumers.
• Branding efforts often emphasise purity, health benefits, and sustainability, which appeal to a broad consumer base.

Price Competition:

• Price competition is a critical aspect of the market. Companies must balance between maintaining competitive pricing and managing production costs which can impact edible oils and fats demand forecast.
• Factors such as the cost of raw materials (like soybeans, sunflower seeds, and palm oil), labor costs, and logistics play a crucial role in pricing strategies. Fluctuations in these costs can lead to significant price variations, affecting market competition.

Innovation and Technology:

• Innovation drives competition in the edible oils and fats market. Advanced processing technologies, such as cold-press extraction and refining methods, help improve product quality and shelf life.
• The adoption of sustainable practices, such as eco-friendly packaging and waste reduction, also gives companies a competitive edge.

Distribution Channels:

• Effective distribution is crucial to boost edible oils and fats demand growth. Companies utilize various channels, including supermarkets, hypermarkets, convenience stores, and online platforms, to reach consumers.
• Strong relationships with retailers and efficient supply chain management ensure product availability and market penetration. The rise of e-commerce has further intensified competition, with companies investing in online marketing and direct-to-consumer sales models.

Regional and Local Dynamics:

• Regional dynamics significantly influence market competition. In Asia-Pacific, for example, palm oil is predominant due to its cost-effectiveness and extensive use in cooking. In contrast, olive oil is more popular in Europe and North America, driven by consumer preference for healthier options.
• Local players often have an advantage in understanding and catering to regional tastes and dietary habits, which can impact the competitive landscape.

Edible Oils and Fats Industry Segmentation

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

Market Breakup by Product

• Edible Oil
• Edible Fats

Market Breakup by Type

• Natural
• Synthetic

Market Breakup by Nature

• Organic
• Conventional

Market Breakup by Form

• Solid
• Liquid

Market Breakup by Source

• Animal
• Plant

Market Breakup by Application

• Bakery and Confectionery
• Convenience Foods
• Sauces
• Spreads and Dressings
• HORECA
• Others

Market Breakup by End-Use

• Food and Beverage
• Personal Care and Cosmetics
• Biofuel and Energy
• Pharmaceuticals
• Chemicals
• Others

Market Breakup by Distribution Channel

• Online
• Offline

Market Breakup by Region

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

Edible Oils and Fats Market Share by End Use

The food and beverage sector occupies a significant portion of the edible oils and fats market share owing to the extensive usage of edible oils and fats for the preparation of food. Oils are primarily used for frying, sauteing, and providing flavour to dishes in households as well as commercial kitchens.

The bakery and confectionery sector is expected to grow at a CAGR of 6.6% in the forecast period. Fats are utilised to provide a creamy and smooth texture to food products and improve the richness and flavour of baked goods. Additionally, the escalating popularity of convenience food among working individuals who do not have sufficient time for cooking every day positively influences the market growth.

Competitive Landscape

Archer Daniels Midland Company

Archer Daniels Midland Company, established in 1902, is a food processing company that has its headquarters in Minnesota, the United States. The product portfolio of the company includes speciality food and feed ingredients, biodiesel, animal nutrition solutions, and fertilisers, among others.

Cargill, Incorporated

Cargill, Incorporated, is a multinational food corporation founded in 1865 and based in Minnesota, the United States. The company mainly offers products and services to the food, agricultural, financial, and industrial sectors.

Bunge Limited

Bunge Limited, founded in 1818 and based in Missouri, the United States, is an agribusiness and food corporation. The company purchases, transports, and sells edible oils, foods, fertilisers, and milling products, among others.

Other edible oils and fats market players include Wilmar International Limited, IFFCO Group, FUJI OIL CO., LTD., IOI Corporation Berhad, Richardson International Limited, The Nisshin OilliO Group, Ltd., and Ventura Foods, LLC, among others.

Edible Oils and Fats Market Regional Analysis

The Asia Pacific accounts for a substantial share of the market and is expected to grow at a CAGR of 6.7% between 2025 and 2034 due to the growing population in the region, driving the growth of the edible oils and fats market in households. Moreover, the surge in health awareness, especially among the young population, boosts the demand for low-calorie oils. India, China, and Japan are expected to grow at CAGRs of 7.7%, 6.5%, and 4.0% in the forecast period.

The rise in disposable income of individuals in the region also facilitates the sales of organic and high-quality edible oils and fats. Additionally, the expansion of distribution channels such as supermarkets and hypermarkets in developing economies provides lucrative opportunities for the market growth.