Vegetable Oil Market Size & Share | Growth Report – 2034

According to the report by Expert Market Research (EMR), the global vegetable oil market reached a volume of approximately 226.70 million metric tons (MMT) in 2024. Aided by the growing demand for plant-based food products, expanding applications in non-food sectors, and increasing awareness of the health benefits associated with certain vegetable oils, the market is projected to grow at a compound annual growth rate (CAGR) of 3.10% during the forecast period of 2025-2034, reaching a volume of around 307.64 MMT by 2034.

Vegetable oil is a vital component in global food consumption and industrial use. Extracted from various plant sources, including soybeans, palm fruits, rapeseeds, sunflowers, and others, vegetable oils are widely used in cooking, baking, processed food production, biodiesel manufacturing, and cosmetic formulations. Their widespread utility, coupled with affordability and accessibility, continues to position vegetable oils as an indispensable commodity in both developed and developing economies.

Vegetable Oil Market Size and Share

With a production volume of 226.70 MMT in 2024, the vegetable oil market represents one of the largest segments in the global agricultural commodities sector. Asia Pacific leads the global market in both production and consumption, with countries such as China, India, Indonesia, and Malaysia dominating supply and demand dynamics. Indonesia and Malaysia are the two largest producers and exporters of palm oil, while China and India are key consumers of multiple vegetable oil types, including soybean and sunflower oil.

In terms of market segmentation by oil type, palm oil holds the largest share, followed by soybean oil, canola (rapeseed) oil, and sunflower oil. Palm oil remains popular due to its high yield, lower production cost, and versatility in food and non-food applications. Meanwhile, oils perceived as healthier alternatives, such as sunflower, olive, and canola oils, are witnessing rising demand in health-conscious consumer segments.

Vegetable Oil Market Trends

The global vegetable oil market is currently experiencing several transformative trends that are shaping its growth and development. One of the most prominent trends is the rising consumer preference for healthier oils with low trans-fat and high unsaturated fat content. This trend has led to a surge in demand for sunflower oil, olive oil, and canola oil, especially in North America and Europe.

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Sustainability and ethical sourcing are also gaining prominence. Consumers are becoming increasingly aware of the environmental impact associated with large-scale palm oil production, particularly deforestation and habitat loss. In response, market participants are adopting certified sustainable palm oil (CSPO) practices and investing in traceability and deforestation-free supply chains.

Another notable trend is the expanding application of vegetable oils in the biofuel industry. Governments across the globe are implementing biodiesel blending mandates and encouraging the use of renewable energy sources. As vegetable oils serve as key feedstocks for biodiesel, this trend is positively influencing market demand.

Additionally, innovation in value-added products, such as cold-pressed and organic oils, is opening new growth avenues. These premium oils are marketed based on nutritional benefits and purity, appealing to affluent and health-conscious consumers in urban regions.

Drivers of Growth

Several key drivers are fuelling the growth of the global vegetable oil market. First and foremost is the growing global population and rising per capita income, particularly in emerging economies. As diets diversify and processed food consumption increases, the demand for edible oils continues to rise. Urbanisation and evolving culinary practices are also encouraging the use of a variety of oils in both household and commercial cooking.

Another significant growth driver is the increased application of vegetable oils in non-food sectors. These include biofuel production, cosmetics, pharmaceuticals, animal feed, and industrial lubricants. The multifaceted functionality of vegetable oils makes them a sought-after raw material across various industries.

Government initiatives and supportive policies, such as subsidies for oilseed farmers, import-export regulations, and public awareness campaigns promoting heart-healthy diets, are further augmenting market development. Additionally, technological advancements in extraction and refining methods are improving oil yields, reducing costs, and enhancing product quality.

Technology and Advancement

Technological innovation is playing a vital role in enhancing the efficiency and sustainability of the vegetable oil industry. Advanced extraction methods such as cold pressing, supercritical CO₂ extraction, and enzymatic extraction are gaining traction due to their ability to retain nutritional value and improve product purity. These techniques are especially popular for producing high-value oils like extra virgin olive oil and specialty seed oils.

Refining technologies have also evolved significantly, enabling manufacturers to remove impurities, improve shelf life, and meet stringent food safety standards. Bleaching, deodorisation, and winterisation processes are commonly used to refine crude oils and ensure uniformity in taste, colour, and odour.

The adoption of digital technologies, such as precision agriculture and blockchain, is revolutionising the supply chain. These tools help optimise oilseed cultivation, monitor environmental impact, and ensure traceability in sourcing, thereby aligning with global sustainability goals.

Furthermore, innovations in biotechnology are paving the way for genetically modified oilseed crops with enhanced oil content, pest resistance, and adaptability to changing climatic conditions. Such advancements are expected to improve productivity and reduce reliance on chemical inputs.

Competitive Landscape

Some of the major players explored in the report by  Expert Market Research are as follows:

• Cargill, Incorporated
• Archer Daniel Midland Company
• IOI Corporation Berhad (IOI)
• Fuji Oil Co., Ltd.
• Sime Darby Plantation Berhad
• Bunge Limited
• Wilmar International Limited
• Louis Dreyfus Company B.V.
• Conagra Brands, Inc
• Olam Group Limited
• Golden Agri-Resources (GAR)
• PT Astra Agro Lestari Tbk
• Others

Challenges and Opportunities

While the vegetable oil market holds considerable promise, it also faces several challenges. The environmental impact of large-scale oilseed cultivation, particularly palm oil, remains a major concern. Issues such as deforestation, biodiversity loss, and greenhouse gas emissions have led to reputational risks and regulatory pressures for producers.

Volatility in raw material prices and fluctuating weather patterns due to climate change can affect crop yields and disrupt supply chains. Trade restrictions, tariffs, and geopolitical tensions may also influence market stability, particularly for importing countries reliant on external supply sources.

Health concerns related to excessive oil consumption and rising awareness of dietary fats’ impact on cardiovascular health have prompted some consumers to limit oil usage, which could temper market growth in specific segments.

However, these challenges also present opportunities for innovation and differentiation. The increasing demand for clean label, non-GMO, and organically produced oils is encouraging manufacturers to invest in sustainable farming and production practices. The development of fortified oils, enriched with vitamins and omega-3 fatty acids, is another promising growth area.

In addition, the rise of plant-based diets and veganism is expanding the consumer base for vegetable oils, especially as substitutes for animal fats in food preparation and processing. The growing bioeconomy and increasing interest in green chemicals also present untapped opportunities in industrial applications.

Vegetable Oil Market Forecast

The global vegetable oil market is expected to witness stable growth over the forecast period of 2025 to 2034. With a projected CAGR of 3.10%, the market volume is anticipated to rise from 226.70 MMT in 2024 to approximately 307.64 MMT by 2034.

Asia Pacific will continue to lead the global market, supported by strong domestic demand, favourable production conditions, and growing exports. Europe and North America are likely to experience moderate growth, driven by demand for value-added and sustainably sourced products.