Vegetable Oil Market Size
| Study Period | 2018 - 2029 |
| Market Size (2024) | USD 384.89 Billion |
| Market Size (2029) | USD 551.79 Billion |
| CAGR (2024 - 2029) | 7.47 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Asia Pacific |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Vegetable Oil Market Analysis
The Vegetable Oil Market size is estimated at USD 384.89 billion in 2024, and is expected to reach USD 551.79 billion by 2029, growing at a CAGR of 7.47% during the forecast period (2024-2029).
Russia and Ukraine's war has pushed the prices of vegetable oils to an all-time high. The Black Sea countries are significant exporters of sunflower oil. Thus, this war problem has caused vegetable oil prices to rise sharply and has also prompted trade policy reactions globally that further restricted supplies and drive-up expenses. According to the international food policy research institute, with a 40% increase since the day of the invasion, sunflower oil has been most immediately impacted,
Over the short term, the industry is expected to be driven by people's growing awareness of the health benefits of consuming vegetable oils, such as controlling heart health. The monounsaturated fats in foods like olive oil, canola oil, sunflower oil, hazelnut oil, and almond oil are proven to raise good cholesterol levels and minimize the risk of heart and cardiovascular disorders. Vegetable oils are currently in high demand since they create fuels, dishwashers, and perfume compositions. This is one of the main driving forces for the market's expansion. For instance, according to USDA Foreign Agricultural Service, the volume of used cooking oil used as a feedstock for biodiesel fuel production in India in 2021 was 55,000 metric tons, increasing from 50,000 metric tons in 2020.
In addition, there is a significant rise in the need for vegetable oils as an alternative to mineral oil across different end-use industries. Vegetable isolating oils are now commercially available to replace mineral-based oils in transformer applications. Vegetable oil may be a perfect replacement for mineral oil because of its inexpensive cost, reduced volatility, improved performance under pressure, high viscosity, and widespread accessibility. Leading industry competitors are now offering vegetable oil varieties that have undergone little processing and are organic. This is encouraging the market's expansion, coupled with numerous programs launched by governing bodies of various nations to promote bio-based goods like vegetable oils.
Vegetable Oil Market Trends
This section covers the major market trends shaping the Vegetable Oil Market according to our research experts:
Increasing Demand For Fortified Vegetable Oils
The main driving force behind enriched vegetable oils is a multitude of micronutrient deficiencies that negatively influence the health and productivity of all demographic groups and result in serious public health issues. Additionally, many expectant mothers and their newborns are vitamin D deficient. Cooking oil fortification with vitamins A and D is a proven technically and economically feasible technique. According to the FSSAI, Fortifying cooking oil can aid people in consuming 25% to 30% more vitamin D and A than is required. Several nations have started large-scale initiatives to promote the fortification of staple foods, especially oils, in response to rising consumer awareness. Governments also acknowledge the importance of food fortification and its potential to support the achievement of international nutrition targets. For example, the Food Safety and Standards Authority of India (FSSAI) published a proposal in 2021 calling for the mandatory fortification of cooking/edible oil with vitamins A and D to strengthen immunity and combat malnutrition, particularly deficits in micronutrients.
Major players are also taking necessary initiatives toward the fortification of vegetable oils. For instance, in September 2021, to fortify edible oils, regardless of the quantity being produced, BASF West Africa teamed up with EDCEL Limited and launched the Vitamin A premix for edible oils. The company claimed that such initiatives would provide millers operating under the Small and Medium Scale (MSMEs) enterprise access to an affordable pack size of Vitamin A. Such actions and the rising demand for fortified vegetable oils are expected to drive sales.
Asia-Pacific Dominates the Vegetable Oil Market
Asia-Pacific is the dominant region for the vegetable oil market across the world, and in Asia-Pacific, China holds the largest share of vegetable oil consumption and production. Though the production volume is high, consumption exceeds production, resulting in higher import volumes when compared to export volumes. For instance, according to the US Department of Agriculture, in 2021, China's population consumed around 2.6 million metric tons of sunflower seed oil, an increase from approximately 2.07 million tons in the previous year.
The Chinese vegetable oil market majorly encompasses palm, soybean, rapeseed, peanut, sunflower, and olive oil. Over the past five years, soybean and palm oil had the largest shares in the Chinese vegetable oil market. Wilmar International Ltd (Yihai Kerry), Cofco Corporation, and Xiwang Food are some of the major edible vegetable oil companies operating in the Chinese and Asian markets. Japan is another major player in the industry. Japan imports most olive oil from Southern Europe, which is used for cooking and non-food uses. According to the US Department of Agriculture, the consumption volume of olive oil in Japan amounted to around 75 thousand metric tons in 2021 an increase from 69 thousand metric tons in 2020. Similarly, India is also taking agile measures to be self-reliant in edible oil. In August 2021, a National Edible Oil Mission-Oil Palm (NMEO-OP) was declared by the government to increase domestic oilseed production and achieve national self-sufficiency in cooking oils. In order to give farmers every advantage, including improved seeds and technology to increase its production of vegetable oil, the government asserted that it would invest more than 11,000 crores through the National Mission on Oilseeds and Oil Palm. Such initiatives are expected to boost productivity, consumption, and sales in the region during the forecast period.
Vegetable Oil Industry Overview
The vegetable oil market is competitive, and the practical strategies adopted by the key players in the market studied include product innovations, partnerships, expansions, and mergers and acquisitions. Sime Darby Plantation Berhad, Wilmar International Limited, Bunge Limited, Golden Agri-Resources, and Archer Daniels Midland Company are some prominent players in the market studied. The major players in the market have a broad geographical presence and extensive product portfolios to cater to numerous consumer demands. This factor assists the companies in maintaining a solid foothold in the market.
Vegetable Oil Market Leaders
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Wilmar International Limited
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Archer Daniels Midland Company
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Bunge Limited
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Golden Agri-Resources Ltd.
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Sime Darby Plantation Berhad
*Disclaimer: Major Players sorted in no particular order
Vegetable Oil Market News
- In July 2022, Eni Kenya B.V. completed the construction of the oilseed collection and pressing plant (agri-hub) in Makueni, Kenya, and started production of the first vegetable oil for bio-refineries. According to the company, the first agri-hub would have an installed capacity of 15,000 tons with an expected output of 2,500 tons in 2022.
- In June 2022, Freedom Refined Sunflower Oil, Gemini Edibles & Fats India (GEF India) announced plans to expand into other States, including Tamil Nadu and Kerala. The business asserted that it is considering strategic expansion and plans to enter Tamil Nadu and Kerala, with a strong demand for sunflower oil, in the coming years.
- In February 2021, Bunge Loders Croklaan expanded its oils and fats portfolio to meet the organic demand in Europe, offering a steady and scalable supply of organic oils and fats, including sunflower, rapeseed, soy, palm, shea, and coconut.
- In November 2021, Cargill Incorporated acquired an edible oil refinery situated in Nellore, India, and invested USD 35 million to purchase and improvise the facility, which would increase the production volume of edible oil and help the company to extend its existing supply chain to meet consumer requirements.
Vegetable Oil Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
- 4.1 Market Drivers
- 4.2 Market Restraints
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4.3 Porter's Five Forces Analysis
- 4.3.1 Threat of New Entrants
- 4.3.2 Bargaining Power of Buyers/Consumers
- 4.3.3 Bargaining Power of Suppliers
- 4.3.4 Threat of Substitute Products
- 4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
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5.1 By Type
- 5.1.1 Palm Oil
- 5.1.2 Soybean Oil
- 5.1.3 Rapeseed Oil
- 5.1.4 Sunflower Oil
- 5.1.5 Olive Oil
- 5.1.6 Other Types
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5.2 By Application
- 5.2.1 Food
- 5.2.2 Feed
- 5.2.3 Industrial
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5.3 Geography
- 5.3.1 North America
- 5.3.1.1 United States
- 5.3.1.2 Canada
- 5.3.1.3 Mexico
- 5.3.1.4 Rest of North America
- 5.3.2 Europe
- 5.3.2.1 United Kingdom
- 5.3.2.2 Germany
- 5.3.2.3 Spain
- 5.3.2.4 France
- 5.3.2.5 Italy
- 5.3.2.6 Russia
- 5.3.2.7 Rest of Europe
- 5.3.3 Asia-Pacific
- 5.3.3.1 China
- 5.3.3.2 Japan
- 5.3.3.3 India
- 5.3.3.4 Australia
- 5.3.3.5 Rest of Asia-Pacific
- 5.3.4 South America
- 5.3.4.1 Brazil
- 5.3.4.2 Argentina
- 5.3.4.3 Rest of South America
- 5.3.5 Middle East & Africa
- 5.3.5.1 United Arab Emirates
- 5.3.5.2 South Africa
- 5.3.5.3 Rest of Middle East & Africa
6. COMPETITIVE LANDSCAPE
- 6.1 Market Share Analysis
- 6.2 Most Adopted Strategies
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6.3 Company Profiles
- 6.3.1 Archer Daniels Midland Company
- 6.3.2 Sime Darby Plantation Berhad
- 6.3.3 Bunge Limited
- 6.3.4 Olam International Limited
- 6.3.5 Cargill Incorporated
- 6.3.6 Golden Agri-Resources
- 6.3.7 Kuala Lumpur Kepong Berhad
- 6.3.8 Fuji Oil Holding Inc.
- 6.3.9 Wilmar International Limited
- 6.3.10 PT Astra Agro Lestari Tbk
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Vegetable Oil Industry Segmentation
Vegetable oils are extracted from seeds or, less often, from other parts of fruits. Similar to animal fats, vegetable oils are also mixtures of triglycerides. The global vegetable oil market has been segmented by type, application, and geography. By type, the market studied is segmented into palm oil, soybean oil, rapeseed oil, sunflower oil, olive oil, and other classes. The market is segmented based on application: food, feed, and industrial. The study also involves the global-level analysis of the central regions such as North America, Europe, Asia-Pacific, South America, and the Middle East & Africa. For each segment, the market sizing and forecasts have been done based on value (in USD million).
| By Type | Palm Oil | |
| Soybean Oil | ||
| Rapeseed Oil | ||
| Sunflower Oil | ||
| Olive Oil | ||
| Other Types | ||
| By Application | Food | |
| Feed | ||
| Industrial | ||
| Geography | North America | United States |
| Canada | ||
| Mexico | ||
| Rest of North America | ||
| Geography | Europe | United Kingdom |
| Germany | ||
| Spain | ||
| France | ||
| Italy | ||
| Russia | ||
| Rest of Europe | ||
| Geography | Asia-Pacific | China |
| Japan | ||
| India | ||
| Australia | ||
| Rest of Asia-Pacific | ||
| Geography | South America | Brazil |
| Argentina | ||
| Rest of South America | ||
| Geography | Middle East & Africa | United Arab Emirates |
| South Africa | ||
| Rest of Middle East & Africa |
Vegetable Oil Market Research FAQs
How big is the Vegetable Oil Market?
The Vegetable Oil Market size is expected to reach USD 384.89 billion in 2024 and grow at a CAGR of 7.47% to reach USD 551.79 billion by 2029.
What is the current Vegetable Oil Market size?
In 2024, the Vegetable Oil Market size is expected to reach USD 384.89 billion.
Who are the key players in Vegetable Oil Market?
Wilmar International Limited, Archer Daniels Midland Company, Bunge Limited, Golden Agri-Resources Ltd. and Sime Darby Plantation Berhad are the major companies operating in the Vegetable Oil Market.
Which is the fastest growing region in Vegetable Oil Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Vegetable Oil Market?
In 2024, the Asia Pacific accounts for the largest market share in Vegetable Oil Market.
What years does this Vegetable Oil Market cover, and what was the market size in 2023?
In 2023, the Vegetable Oil Market size was estimated at USD 358.14 billion. The report covers the Vegetable Oil Market historical market size for years: 2018, 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Vegetable Oil Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the challenges faced by the vegetable oil industry in terms of sustainability?
The challenges faced by the Vegetable Oil Industry in terms of sustainability are a) Concerns like deforestation for palm oil production b) Potential solutions for sustainable sourcing practices
Vegetable Oil Industry Report
The global vegetable oil market is witnessing remarkable growth, fueled by a shift towards healthier dietary choices and an increased awareness of the benefits of unsaturated fats. This surge is supported by the demand for vegetable oils in biofuels, cosmetics, and soaps production, alongside advancements in agricultural practices. With the world's population growing, particularly in emerging economies, there's a heightened demand for edible oils, making production more efficient. Palm oil dominates due to its cost-effectiveness, with the food industry being the largest consumer for cooking and processed foods. The Asia-Pacific region, especially China, leads the market, driven by urbanization and higher incomes. The vegetable oil market size is expanding significantly, reflecting these dynamic developments. Companies in this sector are focusing on diversification, R&D, and sustainability to stay ahead. This evolving landscape offers a promising future for vegetable oil companies and brands as they adapt to consumer preferences and regulations. For detailed market insights, Mordor Intelligence™ provides a comprehensive analysis, including forecasts and historical overviews of the vegetable oil industry, available as a free PDF download.
