North America Fats and Oils - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)

The north america fats and oils market size was valued at USD 19.03 billion in 2025 and is estimated to grow from USD 19.58 billion in 2026 to reach USD 23.27 billion by 2031, at a CAGR of 3.51% during the forecast period (2026-2031). This report is Segmented by Type (Fats and Oils), Application (Food, Industrial, and Animal Feed), Source (Plant-Based, and Animal-Based), and Country (United States, Canada, Mexico, and Rest of North America). The Market Forecasts are Provided in Terms of Value (USD) and Volume (Tons).

North America Fats And Oils Market Trends and Insights

Preference for organic, non-GMO, and sustainably certified fats and oils

Sales of organic edible oils are increasing at a faster pace compared to conventional oils, driven by retailers dedicating more shelf space to products bearing United States Department of Agriculture (USDA) Organic and Non-GMO Project Verified labels. The USDA launched an Organic Transition Initiative to assist farmers in converting their acreage to organic oilseed production. This initiative aims to address supply constraints that have kept organic soybean oil prices significantly higher than conventional benchmarks. Sunflower oil, traditionally a minor crop in North America, is gaining renewed attention as organic-certified hectares in the Northern Plains have increased substantially. This growth is attributed to the rotational benefits and premium pricing, which help compensate for the lower per-acre yields compared to soybeans. Additionally, sustainability certifications are expanding beyond organic standards, with the Roundtable on Sustainable Palm Oil (RSPO) including a growing number of North American member companies. This reflects food manufacturers' responses to investor demands and non-governmental organization scorecards emphasizing supply chain transparency. These developments are particularly notable in premium retail channels and foodservice operations catering to health-conscious consumers. However, adoption remains limited in cost-sensitive institutional segments, where the cost per serving continues to be the primary factor influencing procurement decisions.

Plant-based diets driving demand for diverse plant oils

Plant-based food sales in the United States have significantly increased the demand for specialty oils, particularly in categories that rely on coconut, oat, and almond oils for texture and mouthfeel. The growing popularity of plant-based meat alternatives has created a need for oils that replicate the sizzle and browning characteristics of animal fat. To address this, formulators often blend high-oleic sunflower oil with small amounts of coconut oil, achieving the desired sensory profile while ensuring compliance with saturated-fat labeling thresholds. Olive oil imports into the United States rose by 23 percent year-over-year in early 2024, driven by the increasing adoption of the Mediterranean diet. Consumers are increasingly replacing butter with olive oil in home cooking, a behavioral shift that continues even as retail prices stabilize following the 2023 European drought. Similarly, avocado oil, which was nearly absent from North American retail shelves a decade ago, now occupies dedicated sections in mainstream grocery stores. Its premium pricing is justified by its high smoke point and monounsaturated fat content, which align with cardiologist recommendations. This shift in consumer preferences is further supported by social media influencers and celebrity endorsements, which have elevated niche oils into household staples. Traditional commodity processors face challenges in replicating this marketing approach.

Negative perception of palm oil and tropical fats

Palm oil's connection to deforestation and habitat destruction has created a significant reputational challenge, influencing consumer behavior and pressuring food manufacturers to reformulate their products to avoid social media backlash and potential removal from retail shelves. Companies such as Ferrero, Nestlé, and Unilever have committed to using 100% Roundtable on Sustainable Palm Oil (RSPO)-certified sustainable palm oil by 2025. However, certification alone has not been enough to address criticism, as satellite monitoring by organizations like Global Forest Watch continues to report forest loss in concession areas. North American confectionery brands are exploring palm-free alternatives, including shea butter and enzymatically structured blends of high-oleic sunflower oil and fully hydrogenated soybean oil. These substitutes often increase ingredient costs by 15% to 25% and require reformulation trials to replicate palm oil's unique melting properties. The technical challenges are particularly significant in applications such as chocolate coatings and sandwich cookie creams, where palm kernel oil's sharp melting point and neutral flavor are difficult to replace. Consumer surveys indicate that 43% of shoppers in the United States actively avoid palm oil when reading product labels. This shift in consumer behavior has prompted major retailers to introduce palm-free private label product lines. The impact of this trend is most evident in the confectionery and bakery segments, where palm oil has historically accounted for 20% to 30% of fat inputs. In contrast, the effect on frying oil and industrial applications has been minimal, as functionality and cost remain the primary factors influencing purchasing decisions.

Other drivers and restraints analyzed in the detailed report include:

• Bakery and snack industries require specialty fats and oils
• Reformulation trends sustain demand for trans-fat replacements
• Regulatory challenges on trans fats and nutrition labeling

Segment Analysis

In 2025, oils accounted for 56.53% of the market share and are projected to grow at an annual rate of 5.82% through 2031, representing the fastest growth among product types. This growth is driven by food manufacturers' preference for liquid formats that eliminate hydrogenation steps and simplify ingredient declarations. Soybean oil continues to play a central role in North American food processing due to its neutral flavor and competitive pricing. However, high-oleic soybean oil is increasingly replacing conventional grades in frying applications, where extended use cycles justify a 10 to 15 percent price premium. Canola oil, the second-largest segment by volume, benefits from its favorable fatty acid profile, which supports heart-health claims and high-temperature stability. Canadian production expansions ensure a steady supply for United States food manufacturers and foodservice distributors.

Palm oil, despite ongoing sustainability concerns, maintains its presence in industrial bakery and confectionery applications due to its unmatched solid-fat content and oxidative stability. However, import volumes are stabilizing as brands increasingly promote palm-free reformulations. Coconut oil serves a dual-purpose market: refined grades are used as palm oil substitutes in vegan confections, while virgin coconut oil commands premium pricing in natural food channels, despite its high saturated fat content conflicting with dietary guidelines. Olive oil, traditionally a niche import, is expanding its use beyond salad dressings into cooking applications as consumers adopt Mediterranean diet principles. California production is contributing an increasing share to the domestic supply. Sunflower and cottonseed oils cater to regional markets. Sunflower oil is gaining popularity in organic and high-oleic formats, while cottonseed oil remains concentrated in the southern United States, where it is a by-product of the textile industry. Specialty fats, including butter, tallow, lard, and engineered blends, are undergoing significant changes. Butter is being premiumized with grass-fed and European-style variants gaining retail traction. Tallow, once a low-value rendering by-product, is now in high demand as a renewable diesel feedstock, commanding prices comparable to edible grades. Lard is experiencing a resurgence in culinary applications, particularly in baking and frying, though its volumes remain modest compared to plant-based oils.

Complete Report Scope:

• By Type
  • Fats
    • Butter
    • Tallow
    • Lard
    • Specialty Fats
  • Oils
    • Soybean Oil
    • Rapeseed Oil
    • Palm Oil
    • Coconut Oil
    • Olive Oil
    • Cotton Seed Oil
    • Sunflower Seed Oil
    • Others
• By Application
  • Food
    • Confectionary
    • Bakery
    • Dairy Products
    • Others
  • Industrial
  • Animal Feed
• By Source
  • Plant-based
  • Animal-based
• By Country
  • United States
  • Canada
  • Mexico
  • Rest of North America

List of Companies Covered in this Report:

• Cargill Inc.
• Archer Daniels Midland Co.
• Bunge Limited
• Wilmar International Ltd.
• Louis Dreyfus Company
• AAK AB
• CHS Inc.
• Richardson International Ltd.
• Ag Processing Inc.
• Olam International
• Arista Industries Inc.
• Batory Foods
• Sime Darby Oils
• Kerry Group plc
• Darling Ingredients Inc.
• Associated British Foods plc
• Fuji Oil Co., Ltd.
• Musim Mas Group
• Mewah International Inc.
• Alami Commodities Sdn. Bhd.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support