Vegetable Oil Market Size (2024 - 2029)

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 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).