Vegetable Oils Market Size, Share, By Type (Palm Oil, Sunflower Oil, Soybean Oil, Rapeseed Oil, and Olive Oil), By Method (Mechanical Extraction, Solvent Extraction, and Hydrogenation), By Application (Food, Industrial, and Biofuel), and, By Region (North America, Europe, Latin America, Asia Pacific, and Middle East & Africa) – Market Trends, Analysis and Forecast till 2034

Vegetable Oil Market was valued at US$ 410.1 Billion in 2024 and is projected to grow at a CAGR of 7.9% to reach US$ 820.5 Billion by 2034.

Vegetable oils are triglycerides extracted from seeds of rapeseed, soybean, corn, sunflower, safflower, etc. Vegetable oils are commonly used for preparation of processed food, salad dressing, mayo, and other conventional food products. There are various types of vegetable oils available in the market such as soybean oil, sesame oil, olive, coconut, sunflower oil, etc. Vegetable oils such as sunflower, almond are rich in vitamin E which is required for cell protection and development. Moreover, the fatty acids derived from vegetable oil are also used in the production of cosmetics, bactericides and pharmaceuticals. Traditionally, the non-food uses of vegetable oil have been in the manufacturing of soaps, detergents as well as in the production of greases, lubricants and candles. Vegetable oil in liquid state at room temperature.

The rising demand for vegetable oil from various end use industries such as food, and biofuel industries is a key factor driving growth of the vegetable oil market. In addition, increasing use of vegetable oil in various areas such as fuel production, pharmaceuticals, and lubricants is a major factor expected to fuel growth of the vegetable oil market over the forecast period. The increase in adoption of vegetable oil in production of shampoos, perfumes, etc. is a factor expected to boost growth of the vegetable oil market over the forecast period. Further, vegetable oil such as rapeseed oil contains high amount of the toxic fatty acids, which is harmful to human body and high consumption of vegetable oil such as sunflower, soybean oil causes breast cancer and digestive diseases. These are key factors restraining growth of the vegetable oil market. The population growth, improving living standards, and changing dietary habit leads to an increase in demand.  The growing demand for organic, healthy and natural products are also driving the target market. In addition, higher consumption of vegetable oil leads to obesity which is expected to hamper growth of the vegetable oil market over the forecast period.

Vegetable oil market is segmented by type, by method, by application and by region.   On the basis of type, the vegetable oil market is sub segmented into palm oil, sunflower oil, soybean oil, rapeseed oil, olive oil. On the basis of method, the target market is sub segmented into mechanical extraction, solvent extraction, and hydrogenation. On the basis of application, the target market is divided into food, industrial, biofuel.

Vegetable oils Market Drivers:   

Increasing disposable income and population

• The demand for food rises in tandem with the world's population growth. This is especially true in developing nations, where individuals can now buy processed meals and cooking oils more easily. Vegetable oils are a popular option in these markets because they are inexpensive and flexible culinary ingredients.

Dietary patterns are changing

• As consumers become more health-conscious, they seek for oils with higher unsaturated fat content and lower saturated fat content. One excellent source of unsaturated fats, which are necessary for a balanced diet, is vegetable oil.

Global foodservice business expansion

• The foodservice industry is expanding quickly. Vegetable oils are utilized in a wide range of restaurant cuisines, which is driving up demand for them.

Production of biofuel

• Biodiesel, a renewable fuel that is gaining popularity, may be made from vegetable oils. Vegetable oils are becoming more in demand as a result of this.

Restrains in the Vegetable oils Market:

Price volatility

• A number of factors, including weather patterns, crop yields, and geopolitical unrest, can affect the price of vegetable oil. It may be challenging for producers and consumers to make wise plans in light of this instability.

Competition from substitute fats and oils

• Lab-grown substitutes, animal fats, and palm oil are some of the sources of fats and oils that compete with vegetable oils. Vegetable oil demand may be impacted by these substitutes since they may be less expensive or seen as healthier.

Environmental issues

• Deforestation and environmental deterioration have been connected to the production of several vegetable oils, especially palm oil. This is causing consumer awareness to rise and possibly even spark boycotts, which will impact the demand for specific oils.

Dependency on imports

• To meet their demands for vegetable oil, many nations mostly rely on imports. This may make them susceptible to changes in the price of goods globally and interruptions in the supply chain.

Key Opportunities in Vegetable oils Market:

• It is essential to food preparation, baking, and cooking all around the world. To obtain the oil, the plant's seeds or fruits are usually crushed or pressed. The oil is then refined to remove contaminants.
• US vegetable oils are a major source of energy and nutrition in the human diet since they are high in important fatty acids like omega-3 and omega-6.
• Soybean oil, sunflower oil, canola oil, corn oil, and olive oil are typical US vegetable oils, each with a unique flavour and set of culinary uses.
• US Vegetable Oils are not only used in cooking but also in a variety of other industries, including biofuels, medicines, and cosmetics. As such, they are highly flexible and essential commodities in today's world.

Vegetable oils Market is segmented based on based on by Type, Method, by Application, and Region.

By Type

• Palm Oil - has the biggest market share at the moment because to its high yield per acre, affordability, and adaptability. Major obstacles, meanwhile, include environmental worries over habitat loss and deforestation related to the production of palm oil. Producers are facing growing consumer demands for sustainable sourcing methods. To overcome these issues, the industry is developing traceability and certification programs. In the future, replacements and more stringent rules might pose a threat to palm oil's hegemony, but it is still expected to play a big role in the market.
• Sunflower Oil– Growing in flavour because of its high cooking smoke point and alleged health advantages. A good source of vitamin E, an antioxidant crucial to cell formation and protection, is sunflower oil. Sunflower oil also has a high content of heart-healthy monounsaturated fats and a comparatively low content of saturated fats. The demand for sunflower oil is being driven by these factors, as well as its neutral flavour and versatility in cooking applications.
• Soybean Oil – a strong competitor with numerous uses in both industrial processes like the synthesis of biofuel and food products like margarine, cooking oil, and baked goods. There are choices that are genetically engineered; they have certain advantages for agriculture and the economy, but they also present challenges because of consumer resistance and certain health risks. It is anticipated that there will be a significant market for soybean oil as long as research is done to improve its nutritional profile and allay worries about genetically modified organisms.
• Rapeseed Oil – Rapeseed oil, commonly referred to as canola oil and popular in North America and Europe, is a good supply of essential fatty acids and monounsaturated fats. Because of its high smoke point and neutral flavour, it can be used in a variety of cooking methods, including as baking, sautéing, and frying. Rapeseed that has been genetically modified to have reduced levels of erucic acid—a substance that can be hazardous in excess—is the source of canola oil. Canola oil's reputation as a safe and healthful cooking oil has been established through a meticulous breeding procedure.
• Olive Oil - highly valued for its distinct flavour and alleged health advantages, especially for the amount of monounsaturated fat and antioxidants it contains. Although extra virgin olive oil is the least processed variety, it is more expensive and has a lower smoke point despite having more flavour and health advantages. For use in cooking at high temperatures, refined olive oil is a more cost-effective choice. Other high-oleic vegetable oils, such avocado oil, which likewise have a high monounsaturated fat content and a neutral flavour profile, compete with olive oil. But olive oil's lengthy history, tried-and-true production techniques, and distinct flavour profile should keep it firmly in the market, especially for those looking for a fine dining experience.

By Method

• Mechanical Extraction- The best way to maintain oil quality is through mechanical extraction, which physically crushes oilseeds and releases the oil using expeller screws or pressure. This process is preferred because it preserves the oil's inherent qualities and flavour, which makes it perfect for premium and specialty oils like extra virgin olive oil. Furthermore, mechanical extraction frequently requires less chemicals or other processing aids, which may appeal to customers who are concerned about their health. But mechanical extraction may not always be as effective as other techniques—especially when it comes to oilseeds with lower oil content. Lower yields and increased manufacturing costs may result from this.
• Solvent Extraction- Using organic solvents, usually hexane, this technique dissolves and extracts oil from oilseeds. In comparison to mechanical extraction, it is a very effective approach that may extract a higher yield of oil. Because of this, producing commodity vegetable oils on a wide scale at a reasonable cost is an alternative. The extracted oil may contain residual solvent traces, which could be dangerous if improperly eliminated. Strict guidelines have been set by regulatory agencies worldwide regarding the maximum number of solvent residues that can be present in vegetable oils intended for food use. Furthermore, there are safety and environmental issues with the usage of organic solvents. To reduce their negative effects on the environment and worker exposure, solvent extraction companies need to put strong protocols in place for the management, storage, and disposal of solvents.
• Hydrogenation - Because saturated fats are linked to health problems, hydrogenation—a procedure that turns some unsaturated fats into saturated fats—is being utilized less frequently. Vegetable oils that are not hydrogenated are becoming more and more popular.

By Application

• Food - largest category, fuelled by urbanization, rising disposable income, and population growth. It is anticipated that the increased desire for quick and healthful eating options will continue this trend. More and more people are going to choose healthier options such as avocado oil, speciality oils that meet dietary requirements, and high-oleic vegetable oils. Customers are looking for solutions that match with their dietary objectives as they become more aware of the advantages of various fats and oils for their health. Furthermore, the continued expansion of the foodservice sector is anticipated to increase demand for vegetable oils even further.
• Industrial- Beyond lubricants and cosmetics, vegetable oils are essential to a wide range of industrial applications. Here are a few noteworthy instances: Production of plastics: Certain vegetable oils can be utilized as feedstocks that are biobased in order to produce biodegradable polymers. This addresses the issue of plastic waste and lessens dependency on fossil fuels. Pharmaceuticals: A variety of medicinal preparations, including ointments, salves, and soft gels, are made using vegetable oils. Their biocompatibility permits safe use in drug delivery systems, and their emollient qualities make them appropriate for topical treatments.
• Biofuel- Government initiatives supporting renewable energy sources and growing environmental concerns are projected to propel the biofuel application segment's expansion.

Vegetable oils Market Regional Insights:

On region the Vegetable oils Market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

• North America developed tastes for particular vegetable oils, such as canola and soybean oils. High consumption of mayonnaise and processed foods, both of which use vegetable oils. Growing interest in sustainable sourcing methods and a growing need for healthier solutions.
• Asia Pacific is the market leader because of its sizable and expanding population and rising level of disposable income. China, India, and Indonesia are important producers and consumers. Palm oil finds extensive usage in both industrial and culinary contexts. Soybean oil is also in high demand, especially in China. The demand for healthier choices, such as high-oleic vegetable oils and sunflower oil, is rising as people become more aware of their health benefits.
• Europe is similar to North America, developed tastes for particular oils, such as olive and sunflower oils. Put your attention on premium and specialized products, such as extra virgin olive oil. Market dynamics are impacted by stricter laws pertaining to food safety and environmental impact.
• Latin America’s rising economic development and population increase are driving up demand for vegetable oils. Two common cooking oils are soybean oil and palm oil. increasing demand for healthier choices such as avocado and sunflower oils.
• Middle East & Africa substantial potential for growth in the future as a result of economic expansion and demographic growth. For cooking, palm oil is a key import. It is anticipated that the demand for vegetable oils for industrial and culinary uses would increase. Increased manufacturing of biofuel using vegetable oils could result from government policies supporting renewable energy.

Vegetable oils Market Report Scope:

Segments Covered in the Report:

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2024 to 2034. For the purpose of this study, has segmented the Vegetable oils Market report based on By Type, By Method, Application and Region:

Vegetable oils Market, By Type:

• Palm Oil,
• Sunflower Oil,
• Soybean Oil
•  Rapeseed Oil
•  Olive Oil

Vegetable oils Market, By Method:

• Mechanical Extraction
• Solvent Extraction
• Hydrogenation

Vegetable oils Market, By Application:

• Food
• Industrial
• Biofuel

Vegetable oils Market, By Region:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Russia
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • Israel
  • South Africa
  • Rest of Middle East & Africa

The key players operating the Vegetable oils Market includes, ACH Food Companies Inc., Total S.A., Archer Daniels Midland Co., Bunge North America Inc., Richardson Oilseed Ltd., Carapelli Firenzi S.P.A, CHS Inc., Fuji Oil Company, Savola Group, Cargill Agricola S.A.

• In April 2023, a definitive asset purchase agreement was signed between Bunge, a leading worldwide player in the agricultural sector, and Fuji Oil to acquire a recently built, cutting-edge refinery located in Louisiana. With its multi-oil refining capabilities, the facility at IMTT's Avondale Terminal will help Bunge expand its clientele. Customary closing requirements apply to the transaction.
• In June 2024, the government will create a plan to make edible oils self-sufficient for India and introduce a program for the dairy industry.
• According to the minister of finance, in order to increase food processing and farmers' income, the government would continue to support both public and private investment in post-harvest activities. Finance Minister Nirmala Sitharaman declared that the government will create a plan to increase domestic oilseed production and initiate a comprehensive program to assist dairy farmers in order to make India self-sufficient in edible oils.
• In March 2024, Morocco launched plans to produce twice as much vegetable oil. The Professional Federation of Olive Oil Producers in Morocco has unveiled a bold proposal to boost oil-producing plant yield to 60,000 hectares, ensuring food security from edible oils, which are regarded as a basic in the nation.

• ACH Food Companies Inc.
  • Company Overview
  • Product Portfolio
  • Key Highlights
  • Financial Performance
  • Business Strategies
• Total S.A
• Archer Daniels Midland Co.
• Bunge North America Inc
• Richardson Oilseed Ltd
• Carapelli Firenzi S.P.A.
• CHS Inc.
• Fuji Oil Company
• Savola Group 
• Cargill Agricola S.A. 

“*” marked represents similar segmentation in other categories in the respective section