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August 2025
The global fats and oils market size reached at USD 268.88 billion in 2024 and is anticipated to increase from USD 281.25 billion in 2025 to an estimated USD 421.58 billion by 2034, witnessing a CAGR of 4.6% during the forecast period from 2025 to 2034. The increasing demand for processed food products, which may increase the demand for high-quality edible oils and fats, which further boosts the growth of the market.
| Study Coverage | Details |
| Growth Rate from 2025 to 2034 | CAGR of 4.6% |
| Market Size in 2025 | USD 281.25 Billion |
| Market Size in 2026 | USD 294.19 Billion |
| Market Size by 2034 | USD 421.58 Billion |
| Largest Market | Asia Pacific |
| Base Year | 2024 |
| Forecast Period | 2025 to 2034 |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
The fats & oils market includes a wide range of edible and industrial fats and oils derived from plant and animal sources. These products are used in food manufacturing, cooking, bakery, confectionery, biodiesel production, cosmetics, pharmaceuticals, and animal feed. Key properties include flavour, texture enhancement, nutritional value, lubrication, and energy density. The market covers vegetable oil, animal fats, and specialty fats tailored to specific functional and health needs.
One of the major factors driving the growth of the market is increasing consumer preference towards healthy eating habits. The fats & oils helps the growth of the natural fats and high quality oils. In addition, increasing prevalence of chronic diseases such as cardiovascular diseases and others, increasing government strict regulations by food authorities, growing biodiesel industry, increasing disposable incomes are further expected to drive the market growth during the forecast period. Furthermore, increasing government initiatives, rising economic development, growing population and increasing changing dietary habits are further expected to fuel the growth of the fats & oils market during the forecast period.
One of the major opportunities revolutionizing market growth is the rising development of health-focused and innovative oil products, driven by rising technological advancements and consumer awareness. As consumers are looking for alternatives to traditional fats, these oils are gaining popularity. In addition, riding eco-friendly distribution and packaging, transparency in production, and rising sustainable sourcing are also a major opportunity fueling the market growth. Furthermore, the rising development of innovative and health-focused oil products enhance the consumer preference towards greater awareness and healthier lifestyles to enhance well-being and diets. This trend is driven by functionality and transparency in food products, sustainability concerns and technological advancements, which further expected to revolutionize the growth of the fats & oils market in the coming years.
One of the major restraining factors hindering market growth is the increasing environmental and sustainability concerns. The large scale oil and palm oil production creates major challenges for high carbon footprints, biodiversity loss and deforestation may create major challenges. In addition, the supply chain disruptions, strict government regulations and increasing raw material price fluctuations are also a major challenging factor restraining the growth of the fats & oils market.
How Asia Pacific Dominates the Market Revenue in 2024?
Asia Pacific led the global fats & oils market in terms of revenue in 2024. The region’s growth is fueled by several factors, including rising consumer awareness about healthier oil options such as olive, sunflower, and canola oils. The rapid expansion of the food processing sector, growing demand for fortified and premium edible oils, and a shift in consumer preferences are also key contributors. Additionally, increasing urbanization, higher consumption of processed foods, and supportive government initiatives aimed at strengthening the agricultural sector further boost the market. Major contributors to this growth include China, India, Japan, and South Korea.
Is India Dominated in the Fats & Oils Market Growth?
India dominated the fats & oils market revenue in 2024. The market growth in India is driven by factors such as growing and large population, increasing changing lifestyles towards processed and packaged foods, increasing disposable incomes, growing agriculture sector rapidly, increasing government initiatives and growing food service industry. For instance, according to the Solvent Extractors’ Association of India (SEA), India produces just 11 million tones locally and consumes about 25–26 million tons of edible oil every year. These factors are expected to drive the growth of the market in India.
Middle East and Africa Fats & Oils Market Trends
Middle East and Africa is expected to grow fastest during the forecast period. The segment growth in the region is attributed to the increasing consumption of both specialized and traditional fats and oils, growing middle class population, growing rapid urbanization, rising economic development, growing food processing industry, increasing demand for convenience foods and increasing consumer awareness towards health and wellness.
Why Vegetable Oils or Palm Oils Segment Dominates the Fats & Oils Market Revenue in 2024?
In 2024, the vegetable oil segment, particularly palm oil sub-segment accounted for the largest share of market revenue. This segment’s expansion is supported by the rapid growth of e-commerce channels, rising popularity of plant-based diets, favorable government regulations, and a growing emphasis on environmental sustainability. Palm and other vegetable oils are free from pests and chemicals, offering higher nutritional value. Moreover, opting for vegetable oils promotes agricultural practices that improve soil health, conserve water, and minimize pollution, all of which contribute to the segment’s continued growth.
The Specialty and Blended Oils Segment Expects the Fastest Growth During the Predicted Period.
The segment growth in the global fats & oils market is driven by factors such as increasing demand from baking and processed foods, increasing consumer health awareness, increasing disposable incomes, increasing growth of personal care and pharmaceutical industries, growing population, increasing demand for sustainable and natural products, growing online and e-commerce presence and rising innovation and product development.
How Edible Fats & Oils Segment Dominates the Fats & Oils Market Revenue in 2024?
The edible fats & oils Segment dominated the market in 2024. The segment growth in the global market is driven by factors such as the growing rapid population, increasing demand for high-quality foods, increasing demand for processed food, health benefits, increasing disposable incomes and expanding emerging market. In addition, edible oils are known for their health benefits, including reducing the risk of breast cancer and minimizing the prevalence of cardiovascular diseases. Furthermore, edible fats and oils plays an important role in healthy diet, facilitating vitamin absorption, providing necessary energy and contributing texture and flavor of food, which is further expected to drive the segment growth.
The Industrial Fats and Oils Segment is Expected to Grow Fastest During the Forecast Period.
Industrial fats and oil offer high-quality refined oils that serve several industrial and consumer needs. Industries committed to delivering superior quality products that ensure long shelf life, promote good health, and enhance taste, with a wide range of refined oils, which are further expected to drive market growth. Industrial fats and oils are vital raw materials with diverse applications across various industries, such as biofuels, pharmaceuticals, chemicals, and food. They are crucial components in the production of several products, influencing both environmental and economic sustainability and impacting industries of food processing which expected to fuel the market growth in the global market.
What Factors Help Refined Oil Segment to Grow in 2024?
The refined oil segment dominated the fats & oils market revenue in 2024. Refined oil plays an important role in fats and oils that removes unwanted components and impurities and makes it more ideal for cooking and other purposes. This procedure reduces the tendency to produce or smoke off-flavors, improves suitability for high-temperature cooking and enhances its stability. In addition, there are various significant factors of refined oil such as enhanced stability, reduce odor and improved digestibility, increasing storage and shelf life and wide affordability and availability, which are further expected to drive the segment growth in the global market.
The Unrefined/Cold-Pressed Oils Segment is Expected to Grow Fastest During the Forecast Period.
Unrefined/cold-pressed oils are highly flavorful and nutritionally dense. They are derived without chemical processing and high heat. They offer various health benefits such as enhanced hair and skin health, better digestion and improved heart health. Extra virgin olive oil, coconut oil, groundnut oil, sunflower and flaxseed oil are examples of cold-pressed oils. These factors are expected to drive the segment growth in the global region.
Why Food and Beverages Segment Held the Largest Fats & Oils Market Revenue in 2024?
The food and beverages segment dominated the market revenue in 2024. The segment growth in the global market is driven by factors such as rising technological advancements, rising application in various industries, increasing consumer preference towards health and wellness, increasing consumption of processed foods, and increasing demand for edible oils.
The Biodiesel Production Segment is Expected to Grow Fastest During the Forecast Period.
Biodiesel production plays an important role in the fats & oils market and offers a domestically produced, eco-friendly and renewable alternative to petroleum diesel. It helps to improve air quality, reduce greenhouse gas emissions and contributes to energy security. In addition, it is promoting sustainability and highly uses waste products such as cooking oil. These factors are expected to drive the segment growth in the global market.
How Supermarket and Hypermarkets Segment Dominates the Fats & Oils Market Revenue in 2024?
The supermarket and hypermarket segment dominated the market in 2024. The segment growth in the market is attributed to various factors such as one-stop shopping convenience, product variety, competitive pricing, visibility and accessibility, promotional activities, and consumer confidence. Due to the ability of supermarkets and hypermarkets to offer convenient one-stop shopping experiences and variety of products, they are significant growth factors in the market. Consumers are highly adapted to the various range of edible oil, such as popular options, including canola oil, sunflower, olive oils and health-focused and specialty varieties. These factors are expected to drive the segment growth in the global market.
The Online Retail/E-Commerce Segment Expects the Fastest CAGR During Forecast Period.
The segment growth in the fats & oils market is driven by factors such as increasing consumer trend towards online shopping, growing e-commerce platforms, increasing busy and modern lifestyles, increasing demand for online retail stores, doorstep delivery, easy return and exchange policies.
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