Edible Oils Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Edible Oils Market is projected to expand from USD 231.48 Billion in 2025 to USD 307.56 Billion by 2031, achieving a CAGR of 4.85%. These lipid-based liquid products, derived from vegetable, animal, or synthetic origins, are essential components in culinary preparations, food processing, and industrial manufacturing. The market's growth is largely underpinned by macroeconomic and demographic factors, such as rapidly growing global populations and accelerated urbanization, which collectively boost the consumption of processed and convenience foods. Additionally, rising disposable incomes in emerging markets are driving a structural shift toward higher caloric intake and more diverse dietary habits, steadily increasing the demand for cooking oils and fats beyond basic subsistence needs.

One major hurdle for this sector is the vulnerability of raw material supplies to climatic volatility, which often leads to fluctuating harvest yields and price instability throughout the value chain. Data from the USDA Foreign Agricultural Service indicates that global vegetable oil production was expected to reach 228 million tons for the 2024/2025 marketing year. However, severe weather events and supply chain complexities pose significant risks that could limit this projected output and affect global market accessibility, potentially compromising the industry's capacity to satisfy the escalating international demand.

Market Drivers

The rising use of vegetable oils as feedstock for biofuels is fundamentally reshaping the global edible oils market, diverting substantial volumes of soybean, palm, and rapeseed oils from food channels to the energy sector. This structural transition is driven by international decarbonization mandates and the rapid growth of hydrotreated vegetable oil (HVO) and sustainable aviation fuel (SAF) production capacities. The International Energy Agency's 'Renewables 2024' report, released in October 2024, underscores this trend, projecting a 70% increase in demand for residue oils to 30 million tonnes annually by 2030. This intensified industrial competition for raw materials has tightened supplies and impacted pricing, evidenced by the Food and Agriculture Organization's report of a 7.5 percent rise in the Vegetable Oil Price Index in November 2024 due to global constraints.

Simultaneously, market evolution is being fueled by a growing consumer preference for healthy and functional oils, driving demand for high-value varieties such as olive, sunflower, and rice bran oils. Health-conscious populations in both developed and emerging economies are prioritizing lipid sources rich in monounsaturated fats and antioxidants to combat lifestyle diseases, prompting producers to enhance cultivation and extraction techniques. This trend is facilitating a recovery in production volumes to meet the premiumization of dietary fats. According to the International Olive Council's December 2024 report on the 'World Market of Olive Oil and Table Olives,' global olive oil production for the 2024/25 crop year is forecast to reach 3.38 million tonnes, marking a significant rebound aimed at satisfying this rising nutritional demand.

Market Challenges

Climatic instability remains a formidable barrier to the growth of the Global Edible Oils Market, primarily by disrupting the consistent supply of agricultural raw materials necessary for production. Unpredictable weather events, such as prolonged droughts or excessive rainfall, directly reduce yields for key oilseeds like palm, soybean, and sunflower. When harvest volumes contract unexpectedly, the entire value chain experiences supply shortages and heightened price volatility, complicating procurement strategies for food processors and industrial buyers. This inability to ensure a stable supply prevents the market from fully capitalizing on rising consumption trends driven by population growth and urbanization.

The impact of these environmental factors is clearly reflected in recent production data from major regions. In 2025, the Indonesian Palm Oil Association (GAPKI) reported that Indonesia's crude palm oil production for the 2024 fiscal year fell by 3.80% to 52.76 million tons compared to the previous year, a decline largely attributed to the adverse effects of El Niño. Such significant disruptions in output from the world's largest palm oil producer illustrate how climatic volatility directly constrains market availability. Consequently, the industry faces ongoing challenges in maintaining the reliable output levels needed to meet escalating global requirements, thereby hindering overall volume growth and revenue stability.

Market Trends

The push for deforestation-free and RSPO-certified palm oil sourcing is fundamentally altering procurement strategies, as regulatory frameworks like the EU Deforestation Regulation (EUDR) mandate stricter supply chain transparency. Major FMCG corporations are rapidly shifting from credit-based sustainability models to physical certified supply chains to minimize reputational risks and ensure compliance with global environmental standards. This transition is driving tangible growth in certified volumes despite broader production challenges, necessitating the adoption of rigorous traceability systems. According to the Roundtable on Sustainable Palm Oil's 'Annual Communication of Progress 2024' released in September 2025, global production of Certified Sustainable Palm Oil (CSPO) reached 16.2 million metric tonnes, representing 20.1% of the total volume produced by its members.

Concurrently, the rise of precision fermentation and lab-grown fat alternatives is creating a new market segment for "designer fats" that replicate the functionality of tropical oils and animal lipids without the associated land footprint. By utilizing microbial platforms to produce tailored triglycerides, manufacturers are developing sustainable substitutes for resource-intensive ingredients like palm oil, directly addressing concerns regarding supply volatility and resource usage. This sector continues to attract significant capital, with investors betting on its potential to decarbonize the value chain. As noted in The Good Food Institute's '2024 State of the Industry: Fermentation' report from June 2025, the fermentation-enabled alternative protein and fat sector secured $651 million in funding in 2024, highlighting enduring confidence in these biotechnological solutions.

Key Players Profiled in the Edible Oils Market

• Bunge Limited
• Cargill, Incorporated
• ACH Food Companies, Inc.
• Adani Group
• Salad Oils International Corporation
• American Vegetable Oils, Inc.
• Borges International Group, S.L.
• Hebany Group
• Titan Oils Inc.
• Sunora Foods

Report Scope

In this report, the Global Edible Oils Market has been segmented into the following categories:

Edible Oils Market, by Type:

• Palm Oil
• Soybean Oil
• Rapeseed Oil
• Sunflower Oil
• Peanut Oil
• Olive Oil
• Corn Oil
• Flaxseed Oil
• Avocado Oil
• Pumpkin Seed Oil
• Others

Edible Oils Market, by Nature:

• Organic
• Conventional

Edible Oils Market, by End User:

• Domestics
• Industrial
• Food Service
• Others

Edible Oils Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Edible Oils Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

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

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