Home Food & Beverages Vegetable Oil Market Set to Surge to $790.87 Billion by 2031

Vegetable Oil Market

Vegetable Oil Market Size, Share & Trends Analysis Report By Type (Palm Oil, Soybean Oil, Rapeseed Oil, Sunflower Oil, Peanut Oil, Coconut Oil, Olive Oil), By Application (Food, Feed, Industrial) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Report Code: SRFB54610DR
Study Period 2019-2031 CAGR 7.86%
Historical Period 2019-2021 Forecast Period 2023-2031
Base Year 2022 Base Year Market Size USD 317,829 Million
Forecast Year 2031 Forecast Year Market Size USD 790878.03 Million
Largest Market Asia Pacific Fastest Growing Market Europe
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Market Overview

The global vegetable oil market size was valued at USD 317,829 million in 2022. It is expected to reach USD 790,878.03 million by 2031, growing at a CAGR of 7.86% during the forecast period (2023–2031). Favorable laws encouraging the use of vegetable oil in many nations not only increase demand but also open up profitable prospects, particularly in light of the growing demand from more application areas and the trend toward cruelty-free and morally-responsible substitutes, such as active ingredients extracted from plants. Asia-Pacific is the largest revenue generator and is anticipated to expand at a compound annual growth rate (CAGR) of 11.18% throughout the projection period.

The seeds, nuts, and fruits of various plants extract vegetable oils. They provide essential nutrients, including vitamins E, A, and B1 and omega-3 and omega-6 fatty acids. In both food and non-food applications, they are frequently substituted for animal-based fats and petrochemicals. For example, they are employed in the manufacture of bactericides, cosmetics, and pharmaceuticals. Moreover, as they offer health benefits such as reducing the risk of cardiovascular disease, enhancing metabolism and digestion, and lowering cholesterol levels, vegetable oils are widely used to prepare a wide variety of dishes worldwide.


  • The palm oil segment is the highest contributor to the market by type.
  • The food segment is the highest contributor to the market by application. 
  • Asia-Pacific is the most significant revenue contributor by region.

Market Dynamics

Global Vegetable Oil Market Drivers

Favorable Policies on the Use of Vegetable Oil in Different Countries

The Renewable Energy Directive has played a significant role in the EU's vegetable oil consumption for biofuel (RED). By this 2009 directive, 10% of the energy used for road and rail transportation must come from renewable sources by 2020. Implementing this goal requires national laws and incentives from EU Member States (countries), such as blending mandates. Around 20% of the EU's biodiesel (fatty acid methyl ester) and renewable diesel (hydrotreated vegetable oil) are made with palm oil.

Rapeseed produces cooking oil, and animal fats are the other feedstocks for making diesel substitutes. To prevent the direct conversion of forests, wetlands, and grasslands with a high level of biological diversity to the production of biofuels, the RED includes sustainability criteria for all biofuel feedstocks. By these criteria, biofuels must also reduce greenhouse gas (GHG) emissions by at least 50% compared to diesel and gasoline and by 70% by 2021, excluding emissions related to land use change. The RFS and the biodiesel and renewable diesel tax credits have all contributed to a steady increase in the amount of soybean oil used in the US biofuel industry. This trend is anticipated to last for the foreseeable future.

Increase Demand from Expanding Application Areas

Vegetable oils are used in a variety of manufacturing processes. They are now utilized as a sustainable production technique without chemical ingredients in industries like paints, lubricants, paper, etc. Lubricants for use in industry and transportation are increasingly incorporating vegetable oils. Potential advantages include satisfactory performance, resource renewability, and biodegradability. Two-stroke engines, chainsaws, hydraulics, mold releases, open gears, farming, mining, and forestry equipment are a few areas where these oils find their niche.

These oils have demonstrated excellent performance as greases and fuels. 30% of lubricants consumed end up in the ecosystem, and most lubricants are made with environmentally harmful mineral oil as their base oil. However, the diminishing mineral oil reserves are raising worries about the adverse effects of mineral oil on the environment. The search for environmentally friendly alternatives to mineral oils as base oils has emerged as a research frontier in the lubricant industry. Vegetable oils are therefore seen as alternatives to mineral oils for lubricant base oils because of their inherent technical qualities and capacity for biodegradation.

Global Vegetable Oil Market Restraints

Deforestation to Accommodate Palm Oil Production

Large-scale deforestation, especially in rainforests, to make room for palm plantations has been connected to palm oil. Significant deforestation has been caused by the growth of new oil palm plantations, aided by smallholder farmers expanding their operations to meet the rising demand for palm oil. The rich biodiversity in these delicately balanced ecosystems and the habitat of species like the orangutan are at risk due to the clearing of acres of rainforest. Tropical rainforests have been extensively cleared to make room for palm tree plantations.

According to some sources, palm oil production causes areas of rainforest the size of five football fields to vanish every minute. Destruction of habitat and increased greenhouse gas production are two terrible effects of deforestation. The worst cases are in Indonesia and Malaysia, which produce 83% of the world's palm oil and are responsible for draining peat bogs that store enormous amounts of carbon to make way for plantations. Deforestation is predicted to cause 98% of the rainforests in Malaysia and Indonesia to vanish within the next 15 years. During the forecast period, it is anticipated that the growing environmental concerns, supported by various government initiatives to reduce the use of palm oil, will impede market growth.

Global Vegetable Oil Market Opportunities

Cruelty-Free and Ethical Alternatives

Players are pleading with consumers to avoid using cosmetics containing palm oil to save the endangered orangutans. The first business in the UK to receive certification as a cosmetics manufacturer free of palm oil was Bloomtown. The oil palm tree, primarily grown in Africa, Asia, and North and South America, produces oil extracted from the fruit and used in various products, including food, cleaning supplies, and fuel.

Plant Oil-Extracted Active Ingredient

Silver was awarded to Hallstar at in-cosmetics Latin America for Blue Oléoactif®, an active ingredient from plant oil. Chicago is the home of the specialty chemical company Hallstar. Through a patented Oléo-éco-extraction method, three varieties of rice and highly nutritive rice germ are used to create BLUE Oléoactif®, along with complementary phytomolecules from soybean oil. Clinical studies show that it enhances the cell's defense and repair systems, maintaining the skin's normal physiology in the presence of blue light and urban pollutants.

Regional Analysis

The global vegetable oil market is segmented into North America, Europe, Asia-Pacific, South America, and the Middle East and Africa.

Asia-Pacific Dominates the Global Market

Asia-Pacific is the most significant revenue contributor and is expected to grow at a CAGR of 11.18% during the forecast period. The growing wealth of China's middle class has made it possible for consumers to buy more expensive, packaged vegetable oils. Additionally, the sale of loose oils has been outlawed in some Chinese cities, which has increased the demand for packaged oils. China is the region in Asia-Pacific with the highest production and consumption rates of vegetable oil. Even though production is high, consumption outpaces it, leading to higher import volumes than export volumes. China is a nation that prioritizes imports. The market for vegetable oils in China is dominated by palm, soybean, rapeseed, peanut, sunflower, and olive oils. Soybean and palm oil held the most significant market shares for vegetable oils in China over the previous five years.

Europe is expected to grow at a CAGR of 8.93% during the forecast period. Germany's market for vegetable oil is anticipated to expand. Animal fats are less popular among consumers because plant-based oils are considered healthier. The rape seed oil has become one of the most popular vegetable oils in Germany and across Europe due to its nutritionally balanced composition. It is frequently used as a cooking oil, salad dressing, and in margarine, mayonnaise, and sauce. Rapeseed oil is a topic of interest in the non-food sector. It is used as an environmentally friendly lubricant additive in creating energy, such as biofuels. One of the biggest markets for olive oil in Europe is Germany. The widespread use of oil is substantial and steady.

Additionally, there are plenty of market opportunities for organic olive oil. In Germany, virgin olive oil is primarily consumed. Despite having a lower per capita consumption of olive oil than other Mediterranean nations, Germany is a significant and expanding premium oil market. German consumers use more olive oil in their cooking regularly. The emphasis on quality and traceability gives professional producers and exporters in developing countries opportunities. 

The United States is the country that produces the most soybean oil after China, according to the USDA report. There needs to be more palm oil consumption in the US. Due to its lower cost and extensive use in the food and personal care sectors, manufacturers are investing in expanding the application nationwide. The key players in the US vegetable oil market are Cargill, Fuji Oil Holdings, and Archer Daniels Midland Company.

Brazil is one of the major producers and exporters of vegetable oil. Additionally, the advancements in cosmetics applications are opening the nation to a growing market for vegetable oils. For instance, Cargill unveiled a brand-new class of ingredients called Ultra Oils that designates a remarkable degree of purity for oils and oil-based products. The range is created by fusing the company's unique technology and lipids expertise with the natural properties of vegetable oils. Sales of olive oil, used in cooking and dressing, continue to be boosted by consumers' rising concern for their health and well-being. Imported olive oil is used in the nation to satisfy the growing demand.

The South African palm oil market relies heavily on imports from Indonesia and Malaysia for use in food and cosmetics. Additionally, the feed application makes use of corn oil. Palm oil is used more frequently because it is less expensive than soybean, sunflower, and olive oils. Environmental destruction is a result of the production of palm oil. However, the country's palm oil market has been significantly impacted by increased apparent social action driven by consumer inclination toward sustainability. For instance, the South African volunteer organization No Palm Oil published a list of cosmetics, food, and beverage products that contain palm oil in November 2018. With its broad range of products, which include corn oil, rapeseed oil, soybean oil, sunflower oil, and palm oil, Cargill Incorporate is the dominant player operating in the nation.

Report Scope

Report Metric Details
By Type
  1. Palm Oil
  2. Soybean Oil
  3. Rapeseed Oil
  4. Sunflower Oil
  5. Peanut Oil
  6. Coconut Oil
  7. Olive Oil
By Application
  1. Food
  2. Feed
  3. Industrial
Company Profiles Archer Daniels Midland Company Sime Darby Plantation Berhad Bunge Limited Olam International Limited Cargill Incorporated Golden Agri-Resources Kuala Lumpur Kepong Berhad Fuji Oil Holding Inc. Wilmar International Limited PT Astra Agro Lestari Tbk Avril Group.
Geographies Covered
North America U.S. Canada
Europe U.K. Germany France Spain Italy Russia Nordic Benelux Rest of Europe
APAC China Korea Japan India Australia Taiwan South East Asia Rest of Asia-Pacific
Middle East and Africa UAE Turkey Saudi Arabia South Africa Egypt Nigeria Rest of MEA
LATAM Brazil Mexico Argentina Chile Colombia Rest of LATAM
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
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Segmental Analysis

The global vegetable oil market is segmented by type and application.

Based on type, the global vegetable oil market is bifurcated into palm oil, soybean oil, rapeseed oil, sunflower oil, peanut oil, coconut oil, and olive oil.

The palm oil segment is the highest contributor to the market and is expected to grow at a CAGR of 11.76% during the forecast period. In terms of oil production from a given crop area, palm oil has remained the most productive crop in the world. Oil palm produces ten times more oil from a single hectare of the crop than other oilseeds. Around eight tons of oil can be produced from one hectare of such a crop. Functional advantages of palm oil include vitamin A, anti-aging properties, and brain health. Additionally, palm oil is employed to manage high cholesterol, cyanide poisoning, malaria, and high blood pressure.

Most of the world's soybean oil production is concentrated in China, the United States, Brazil, and Argentina, which account for about one-third of the total output. The two countries that use the most soybean oil are China and the US. The two nations consume nearly half of the world's production. The most adaptable of all the edible oils is thought to be soybean oil. Its clean, natural taste and almost imperceptible odor enhance the natural flavors of prepared foods. Soybean oil is used in salad dressings, sauces, and baked goods because it mixes well with other ingredients, including other fats and oils.

Based on application, the global vegetable oil market is bifurcated into food, feed, and industrial.

The food segment owns the highest market and is expected to grow at a CAGR of 10.57% during the forecast period. Vegetable oils that have been brominated and modified in their specific gravity uniformly distribute citrusy flavors typically insoluble in water throughout the beverage, giving it a cloudy appearance reminiscent of natural fruit juice. But research indicates that BVO accumulates in fatty tissues, which could lead to serious health issues. Brominated vegetable oil is a controversial food ingredient because it resembles a flame retardant. As a result, the use of brominated oils in soft drinks was outlawed in Europe and Japan. Alpha-linolenic acid, plant sterols, vitamins E and K, provitamin A, and alpha-linolenic acid are all present in canola oil and support normal blood cholesterol levels. Due to the oil's adaptability can be used for grilling, baking, stir-frying, and sautéing. Canola oil is frequently used in marinades, sauces, and salad dressings.

Olive oil has a healing quality for burns and wounds in pharmaceutical applications. Emollient qualities are widespread in the dermo-cosmetic industry for moisturizing and as ingredients in calming lotions. In the United States, vegetable oils make up about three-fourths of the total feedstock for biodiesel, with soybean oil making up somewhat more than half of the total inputs by weight. Canola and corn oil from distillers are two more commonly discovered ingredients. Palm oil is frequently mixed with more complicated fractions, such as palm stearin, to create products with the necessary consistency without hydrogenation. The oil mixture can create margarine and spreads, non-dairy confections, confectionery, and vegetable ghee or vanaspati.

Market Size By Type

Recent Developments

  • August 2022- Indian Vegetable Oil Producers' Association inked MOU with Malaysian Palm Oil Council.
  • November 2022- Bunge and BZ Group announced their strategic alliance. By the terms of the agreement, Bunge buys out 49% of BZ Group while the Beuzelin family retains 51% of the company's shares. The transaction is pending regulatory approval and the usual closing conditions.

Top Key Players

Archer Daniels Midland Company Sime Darby Plantation Berhad Bunge Limited Olam International Limited Cargill Incorporated Golden Agri-Resources Kuala Lumpur Kepong Berhad Fuji Oil Holding Inc. Wilmar International Limited PT Astra Agro Lestari Tbk Avril Group. Others

Frequently Asked Questions (FAQs)

How big is the vegetable oil market?
The market size of global vegetable oil was valued at USD 22.47 billion in 2022. It is projected to reach USD 51.27 billion by 2031, growing at a CAGR of 9.6% during the forecast period (2023–2031).
The palm oil market sector is expected to dominate over the forecast period.
The key players in the global market include Archer Daniels Midland Company, Sime Darby Plantation Berhad, Bunge Limited, Olam International Limited, Cargill Incorporated, Golden Agri-Resources.
Asia Pacific region has the highest growth rate in the market.
Favourable policies on the use of vegetable oil in different countries, rising demand from expanding application areas are the key drivers for the growth of the vegetable oil market.

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