Oilseed Processing - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)

The oilseed processing market size was valued at USD 338.60 billion in 2025 and is estimated to grow from USD 354.90 billion in 2026 to reach USD 459.90 billion by 2031, at a CAGR of 5.32% during the forecast period (2026-2031). This report is segmented by Oilseed Type (Soybean, Rapeseed and Canola, Sunflower Seed, Cottonseed, and More), by Product (Crude and Refined Oil, Meal and Cake, and More), by Application (Food and Beverages, Animal Feed, Biofuels, and More), and by Geography (North America, South America, Europe, Asia-Pacific, Middle East, Africa). The Market Forecasts are Provided in Terms of Value (USD).

Global Oilseed Processing Market Trends and Insights

Rising Edible Oil, Protein Meal, and Biofuel Demand

The oilseed processing market benefits from demand for edible oils, protein meal, and biofuel feedstocks. Rising incomes and urbanization are increasing the consumption of oils and protein-rich foods in Asia and sub-Saharan Africa. Biofuel mandates add demand that does not depend solely on food consumption cycles. The United States Environmental Protection Agency released the Set 2 rule in March 2026 with record Renewable Volume Obligations for 2026 and 2027. United States soybean oil use for biomass-based diesel is forecast to reach 17.8 billion pounds in the 2026/27 marketing year, 25% higher than the prior year.The simultaneous expansion of demand for food, feed, and biofuels increases the number of end-use markets for processed oilseeds, supporting higher utilization of crushing capacity and creating sustained demand for edible oils, protein meal, and biofuel feedstocks.

Expansion of Regional Crushing and Refining Capacity

The oilseed processing market is attracting capacity investments as producers and processors seek to capture more value locally through crushing and refining rather than exporting raw oilseeds. According to the Brazilian Association of Vegetable Oil Industries (ABIOVE), Brazilian oilseed processors are projected to invest BRL 5.9 billion (USD 1.12 billion) in processing capacity in 2026, supporting an estimated expansion of 18,850 metric tons per day in installed capacity. The expansion of processing infrastructure, particularly in major oilseed-producing regions, can improve the efficiency of converting locally produced oilseeds into higher-value oils and protein meals, strengthening supply for food, feed, and biofuel applications and supporting growth in the oilseed processing market.

Oilseed Commodity Price and Crush-Margin Volatility

Crush margins change when feedstock costs and product prices move at different speeds, creating uncertainty in processor profitability. Abundant global grain and oilseed supplies pressured crop prices and processing margins for some processors in early 2026, despite relatively strong processing volumes. Energy and fertilizer supply disruptions also added to operating and input-cost pressures during the first quarter of 2026. The timing gap between oilseed procurement and revenue realization from refined oils, protein meal, and other co-products means that sudden commodity price changes can compress margins when product prices do not adjust at the same pace. This volatility can affect inventory levels, production schedules, and plant utilization, particularly for processors with limited pricing flexibility or working capital buffers. Multi-origin sourcing and adequate working capital can reduce exposure when trade conditions shift quickly. However, persistent volatility in feedstock and processing costs can make margins less predictable, increase financial risk, and constrain investment and capacity-utilization decisions across the oilseed processing market.

Other drivers and restraints analyzed in the detailed report include:

• Higher Value Capture from Oilseed Co-Products
• Low-Carbon Feedstock Demand for Renewable Diesel and Sustainable Aviation Fuel
• Weather, Water Stress, and Crop-Yield Variability

Segment Analysis

Soybean accounted for 49.9% of the market share in 2025, supported by extensive crushing, export, and meal-trading infrastructure. Dedicated crush plants and standardized meal specifications support its broad use in food, feed, and fuel. Rapeseed and canola play an important role in European renewable fuel supply chains. Sunflower seed supports edible oil markets in Eastern Europe, North Africa, and the Middle East. Palm kernel processing remains connected to tropical oil supply chains in Southeast Asia. Cottonseed, corn germ, and other specialty oilseeds serve smaller regional and integrated processing uses.

Groundnut is the fastest-growing oilseed type and is forecast to grow at a CAGR of 7.4% from 2026 to 2031. India's exports of raw peanuts to China were valued at approximately USD 54.3 million in 2025, according to United Nations Comtrade data, demonstrating an established bilateral trade channel without relying on the earlier half-year growth comparison. Demand for both oil and protein meal improves the economics of groundnut crushing, while groundnut oil also serves premium food applications. Dedicated groundnut processing lines allow processors to maintain product identity, meet quality requirements, and serve domestic and export buyers, supporting the expansion of groundnut processing capacity.

Meal and cake accounted for 60.0% of the oilseed processing market in 2025, supported by their large-scale production as co-products of oil extraction and sustained demand from poultry, swine, and aquaculture feed manufacturers. High-protein meal provides an important source of protein in compound feed formulations, while established trading and distribution networks support its use across major livestock-producing regions. Crude and refined oil is forecast to grow at a CAGR of 5.6% from 2026 to 2031, supported by renewable fuel mandates in North America and Europe and rising demand from renewable diesel and sustainable aviation fuel producers. Long-term supply agreements with fuel producers can provide crushers with greater demand visibility and support higher utilization of oilseed processing capacity. Meal and cake continue to provide relatively stable offtake alongside oil production, making the ability to manage oil and meal sales together important for processor economics.

Lecithin and phospholipids provide higher-value applications within the product mix, including food, animal nutrition, and pharmaceutical uses. In May 2025, Cargill, Incorporated announced that its Ponta Grossa, Brazil facility had started producing feed-grade lecithin for animal nutrition, particularly fish feed, while the facility already produced technical-grade lecithin. Hulls, fiber, and biomass can also be utilized as energy inputs, while glycerin from biodiesel production and specialty modification outputs provide additional product streams. These applications enable processors to extract greater value from oilseed inputs and support the development of more integrated processing complexes.

Complete Report Scope:

• By Oilseed Type
  • Soybean
  • Rapeseed and Canola
  • Sunflower Seed
  • Cottonseed
  • Groundnut
  • Palm Kernel
  • Corn Germ
  • Other Oilseeds
• By Product
  • Crude and Refined Oil
  • Meal and Cake
  • Lecithin and Phospholipids
  • Hulls, Fiber, and Biomass
  • Other Product
• By Application
  • Food and Beverages
  • Animal Feed
  • Biofuels
  • Oleochemicals
  • Industrial and Technical Uses
• By Geography
  • North America
    • United States
    • Canada
    • Mexico
    • Rest of North America
  • South America
    • Brazil
    • Argentina
    • Colombia
    • Rest of South America
  • Europe
    • Germany
    • France
    • Italy
    • Spain
    • United Kingdom
    • Netherlands
    • Poland
    • Russia
    • Rest of Europe
  • Asia-Pacific
    • China
    • India
    • Japan
    • Indonesia
    • Malaysia
    • South Korea
    • Australia
    • Rest of Asia-Pacific
  • Middle East
    • Saudi Arabia
    • United Arab Emirates
    • Turkey
    • Rest of Middle East
  • Africa
    • South Africa
    • Egypt
    • Nigeria
    • Morocco
    • Rest of Africa

Geography Analysis

Asia-Pacific accounted for 47.2% of the market share in 2025 and is the fastest-growing region, with a CAGR of 6.0% from 2026 to 2031. China’s large soybean crushing industry and India’s extensive edible-oil refining base support the region’s dominant position. China’s soybean crush reached approximately 103 million metric tons in MY 2024/25, supported by its large feed industry and high soybean import volumes. India imported approximately 16.1 million metric tons of edible oils in 2024/25, highlighting the country’s continued dependence on imported oils and supporting domestic refining and processing activity. Vietnam, Indonesia, and Malaysia connect palm kernel, soybean, and copra supply chains, supporting the region’s role in oilseed processing and vegetable-oil production.

South America remains a major processing and export hub, led by Brazil and Argentina. According to the Brazilian Association of Vegetable Oil Industries (ABIOVE), Brazil’s oilseed processing capacity reached 76.4 million metric tons in 2025, while soybean crushing reached 58.5 million metric tons. Argentina also maintains a large soybean crushing industry linked to its meal and oil export markets. These processing bases allow South American producers to convert large domestic oilseed supplies into edible oils, protein meal, and biofuel feedstocks for both domestic and international markets. North America has an established oilseed processing base, supported by soybean and canola crushing industries. In Canada, total canola processing reached 11.6 million metric tons in 2025, producing approximately 4.9 million metric tons of canola oil and 6.8 million metric tons of canola meal. The region's processing infrastructure serves food, feed, and renewable fuel markets, while continued investment in domestic crushing supports greater utilization of locally produced oilseeds.

Europe has established rapeseed and sunflower crushing capacity, as well as specialty fat and lecithin processing capabilities. Germany and France support rapeseed processing for food and biodiesel applications. The Netherlands and Poland serve as distribution and further-processing centers for imported soy products. Russia supplies and processes sunflower seed to meet domestic edible oil demand. Saudi Arabia and the United Arab Emirates mainly refine and re-export imported crude vegetable oils. South Africa and Nigeria have established oilseed-processing sectors, while Egypt is adding local crushing and refining capacity. Wilmar International Limited commissioned a refinery and fractionation plant in South Africa in 2025. Morocco benefits from proximity to European specialty-oil buyers. Together, these regional processing and refining hubs connect major oilseed-producing areas with food, feed, biofuel, and industrial end-use markets, supporting the global expansion of oilseed processing.

List of Companies Covered in this Report:

• Archer Daniels Midland Company
• Bunge Limited
• Cargill, Incorporated
• Wilmar International Limited
• Louis Dreyfus Company B.V.
• COFCO International Limited (COFCO Corporation)
• CHS Inc.
• Ag Processing Inc.
• Richardson International Limited
• GrainCorp Limited
• Olam Agri Holdings Pte. Ltd. (Olam Group Limited)
• EFKO GROUP
• The Nisshin OilliO Group, Ltd.
• Fuji Oil Holdings Inc.
• AAK AB

Additional Benefits:

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