Vegetable Oil Market Size to Attain USD 526.76 Bn by 2034

Vegetable Oil Market Size, Share and Analysis 2034

The global vegetable oil market size is projected to expand from USD 348.41 billion in 2025 to USD 526.76 billion by 2034, growing at a CAGR of 4.70% during the forecast period from 2025 to 2034.

Last Updated: 22 May 2025 Category: B2C Food & Beverages Products Insight Code: 5593 Format: PDF / PPT / Excel

Vegetable Oil Market Size, Share and Growth

The global vegetable oil market size reached USD 332.77 billion in 2024 and is anticipated to increase from USD 348.41 billion in 2025 to an estimated USD 526.76 billion by 2034, witnessing a CAGR of 4.70% during the forecast period from 2025 to 2034. Rising population, growing disposable income and swift urbanization, rising health awareness among consumers increasing the demand for vegetable oil and expanding the market significantly.

Vegetable Oil Market Size 2025 to 2034

Key Highlights

  • By region, North America dominated the market with the highest share of 11% in 2024. As consumers adopt healthy eating choices, they prioritize vegetable oils over animal fats as they contain more unsaturated fats and have decreased level of cholesterol. 
  • By region, Asia Pacific is expected to grow at a notable CAGR of 57% from 20245 to 2034. Rising population, swift urbanization, increasing disposable income and dietary preferences are the contributing factor driving the Asia Pacific vegetable oil market. 
  • By product, the palm oil segment contributed the largest market share of 35% in 2024. Palm oil is commonly utilized in the food and beverage sector due to its adaptable characteristics, such as its mild taste, elevated smoke point, and strong oxidative stability. 
  • By product, the soyabean oil segment is predicted to grow at the remarkable CAGR of 6% between 2025 and 2034. Soyabean oil most widely consumed oil globally and it is used in the various sectors like cooking, food processing, and industrial items.
  • By application, food segment generated the maximum market share of 64% in 2024. Versatile application and nutritional benefits of the vegetable oils increasing their demand in food industry. 
  • By application, industrial segment is expanding at a significant CAGR in between 2025 and 2034. Among various vegetable oils such as palm oil, soybean oil, and rapeseed oil are globally significant due to their substantial worldwide production and cost-effectiveness for extensive industrial applications. 
  • By distribution channel, B2B segment registered the maximum market share of 59% in 2024. Various companies depend on large acquisitions of vegetable oils for cooking, food production, and ingredient development and therefore mostly B2B distribution channel for buying the vegetable oil. 
  • By distribution channel, B2C segment is expected to grow at the notable CAGR of 5.5% over the projected period. B2C distribution channel enables companies to engage with their desired customers and enhance brand recognition. 

Rising Consumer Demand Expanding the Vegetable Oil Market 

Utilizing vegetable oils that contain a greater level of monounsaturated and polyunsaturated fats has gained popularity to satisfy consumer preferences for healthier cuisine. Different examples of vegetable oils include arachis, olive, canola, soybean, palm oil etc. Customer preferences greatly influence their demands as well. Research indicates that consumers are increasingly recognizing the significance of fat. Due to the advantages of specific fats for health, shoppers might choose items with better fats to promote a healthier way of living. Vegetable oils possess valuable nutritional content and chemical characteristics that render them beneficial in the production of food, cosmetics, and pharmaceuticals. Current food manufacturing heavily depends on vegetable oils utilized in cooking, baking, frying, and as components in processed foods. The USDA predicts a year-on-year increase of 2.7 million tonnes in global vegetable oil production for the current crop year 2024-25, reaching an all-time high of 224.2 million tonnes. As demand rose, consumption was projected at 221.7 million tonnes, reflecting an increase of 5.3 million tonnes from the prior year. 

  • Consumer interest in sustainability and ethical sourcing is impacting the demand for vegetable oil. Enhancing traceability and transparency facilitates informed choices and assists in holding producers, investors, and buyers responsible. Producers are considering the sustainability factors to produce vegetable oil and helping for market growth. 
  • Embracing bio-based, circular, and environmentally friendly raw materials in production is key to realizing green and sustainable methods across different sectors. Due to their renewable characteristics, adaptability, and ability to substitute petroleum-derived products, vegetable oils are gaining recognition for their role in promoting sustainable development in multiple sectors. 
  • The move towards plant-based eating and the desire for natural components in food and personal care items have driven the need for vegetable oils. These oils come from plants and are viewed as more natural and sustainable than fats from animals and synthetic oils.
  • Various government initiatives and regulatory support for the oil production and agriculture sector rising the production of vegetable oil and therefore, expanding the vegetable oil market. for instance, Indian government has launched National Mission on Edible Oils-Oil Palm to improve the edible oilseeds production and oils availability throughout the nation by utilizing increased oil palm area, rising CPO production and to lower import stress on edible oils.

Market Opportunity 

Technological Advancements: Catalyst for the Market Growth

Technological advancement and innovation for the production extraction and refining of vegetable oil, improving the quality and yield of the oil to cater consumer preferences and expanding the market. In light of the recent push for sustainability, oilseed processing industries are seeking new oil extraction methods that are both effective and more eco-friendly. To begin with, employing novel pre-treatment methods for seeds can help enhance the extraction of vegetable oils. Secondly, a renewed focus on thermomechanical pressing is being noted, especially by utilizing twin-screw extruders instead of traditional single-screw presses. Finally, employing solvents for extraction that are less dangerous and harmful to the environment. Developing markets, especially in Asia, Africa, and Latin America, offer substantial growth potential for vegetable oil manufacturers. 

Market Challenge 

Supply Chain Disruption Challenging the Market

The global supply chains for edible oil are deeply interlinked, meaning that a disturbance in any region can create ripple effects in markets, resulting in significant price changes. Geopolitical dynamics and trade conflicts among nations can affect the movement of vegetable oils internationally. The impact of oil production on the environment, especially regarding palm oil, is among the most critical concerns. All these factors affect by the supply chain and can disrupt supply chain.

Regional Insights 

North America vegetable oil market dominated in 2024.

As consumers adopt healthy eating choices, they prioritize vegetable oils over animal fats as they contain more unsaturated fats and have decreased level of cholesterol. This shift in accordance with plant-based diets, which prioritize entire foods and plant-derived items like vegetable oil. New product development and launches, clean labeling demand, innovative packaging solutions, and growth of product portfolio are the important strategies considered by the North America vegetable oils for which they are constantly investing in the manufacturing of healthy vegetable oils in order to provide the products to consumer at affordable market prices.

Vegetable Oil Market Share, By Region, 2024 (%)

United States Vegetable Oil Market

The United Staes market is growing significantly as a result of the rising acceptance of vegetable oils for biofuel production and the export potential of the nation's processed food items. Due to the rise of fast food and shifts in consumer habits towards convenient food options, there has been a substantial rise in the demand for vegetable oils from the food processing and service sectors. As a result, the continuous demand has significantly driven the growth of the U.S. vegetable oil market. The adaptability of vegetable oils, obtained from different plant sources, renders them a crucial component in several sectors, such as food processing, pharmaceuticals, cosmetics, and industrial uses. 

  • The United States shipped 11,296 consignments of Vegetable Oil from October 2023 to September 2024. These exports were conducted by 809 exporters from the United States to 902 buyers, indicating a growth rate of 16% when compared to the previous twelve months. During this time, specifically in September 2024, there were 1,060 exports of Vegetable Oil shipped from the United States. This indicates a 30% increase year-on-year relative to September 2023, and a 36% rise compared to August 2024. (Source: Volza)

Asia Pacific expects the significant growth in the market during the forecast period.

Rising population, swift urbanization, increasing disposable income and dietary preferences are the contributing factor driving the Asia Pacific vegetable oil market. popularity of vegetable oils among consumers because of its wider application in various industries beyond the food sector. The market is being fueled further by the fact that these oils are important ingredients utilized in the formulation of soaps, detergents, cosmetics, and even biofuels. As the more people take decision of buying the vegetable oil based on healthy options and therefore there is increasing demand for the particular healthy vegetable oil. The demand for palm oil from leading global consumers China and India is projected to rise, as the vegetable oil is currently attractively priced in comparison to its competitors, according to the Malaysian Palm Oil Council (MPOC). India is among the biggest consumers and importers of vegetable oil, with a significant part of its demand fulfilled through imports. 

Emerging Vegetable Oil Market of China

As incomes increase and populations become more urbanized, consumption of vegetable oil increases and benefit for the expansion of vegetable oil market in China. As increasing numbers of individuals relocate to urban regions, particularly in cities such as Beijing and Shanghai, the usage of vegetable oil escalates. Brand recognition and reputation are essential for marketing vegetable oils in China. Brands utilize multiple platforms for product promotion, including Xiaohongshu, WeChat, and Douyin, which serve as significant marketing channels and powerful e-commerce platforms. 

  • In 2024, China exported $355M worth of Other Vegetable Oils, ranking as the 646th most exported product (out of 1,211) in the country. In 2024, the primary recipients of China's Other Vegetable Oils exports included, Belgium ($50.3M), Netherlands ($247M), Malaysia ($30.7M), Vietnam ($5.33M). (Source: OEC)
  • Regulation: China's leading market regulator has recently implemented mandatory guidelines for the transportation of edible vegetable oil after discovering that certain companies were using the same tankers for cooking oil as they had used for liquid fuels. As per the website of the State Administration for Market Regulation, starting February 1, 2025, the standards named "Sanitary requirements for the bulk transportation of edible vegetable oil" would be implemented. (Source: ChinaDaily)

Segmental Insights 

Product Insights

The palm oil segment dominated the vegetable oil market with the largest share in 2024.

Palm oil is commonly utilized in the food and beverage sector due to its adaptable characteristics, such as its mild taste, elevated smoke point, and strong oxidative stability. The growing food and beverage sector is providing profitable growth prospects for the entire market. Indonesia is the biggest producer and exporter of palm oil. Palm oil and its by-products are extensively utilized in cosmetics and personal care items. The expanding cosmetics market, along with the need for sustainable ingredients, presents opportunities for palm oil producers to provide certified sustainable palm oil to these sectors. The palm oil sector generates revenue, commerce, and employment in producing countries, providing livelihoods for millions of smallholder farmers. In both Indonesia and Malaysia, 4.5 million individuals depend on the palm oil sector for their income. Today, farmers generate over 70 million tonnes of palm oil annually –which is more than twice the amount they produced two decades ago. 

  • For over ten years, Unilever has led the charge in promoting industry-wide transformation to secure a sustainable future for palm oil. By the conclusion of 2024, Unilever had sustainably sourced 82% of our primary palm oil volumes, with 62% derived from certified sources: RSPO Mass Balance, RSPO Segregated. Unilever purchase the last 20% from RSPO independent smallholder credits, and Unilever remain one of the largest purchasers of these credits. (Source: unilever)

Soybean oil segment is observed to grow at the fastest rate during the forecast period. 

Soyabean oil most widely consumed oil globally and it is used in the various sectors like cooking, food processing, and industrial items. rising demand for healthier food choices as health awareness is rising consumers, they are opting for healthier eating habits, including cooking oil with low in saturated fat and high in unsaturated fat is anticipated to propel the soybean oil market expansion.  

Application Insights

The food segment held the largest share of the vegetable oil market in 2024.

Vegetable oils are important in the food sector and diet as the preliminary source of energy. They also offer vital functions in the development of numerous ingredients. Versatile application and nutritional benefits of the vegetable oils increasing their demand in food industry. Expanding food service sector further boosting the market. vegetable oil is widely used in the cooking, frying salad dressing and marinades, baking products, sauces and condiments as well as in non-dairy alternatives. 

The industrial segment is seen to grow at a notable rate during the predicted timeframe.

Among various vegetable oils such as palm oil, soybean oil, and rapeseed oil are globally significant due to their substantial worldwide production and cost-effectiveness for extensive industrial applications. In recent years, the utilization of vegetable oils has gained significant attention in various small- and large-scale sectors, including soaps, lubricants, biofuels, paints, and more. Vegetable oil finds application in food processing sectors, electrical industries, biodiesels for internal combustion engines, cutting fluids for machining, and HTF for heating and cooling purposes.  

Distribution Channel Insights

B2B segment held the dominating share of the vegetable oil market in 2024.

B2B distribution channel emphasizes developing connections and offering value to other businesses. These channels may consist of digital platforms, direct sales, collaborations, and events, each customized to address the unique requirements and desires of corporate clients. B2B fulfillment and distribution centers utilize advanced tracking systems, enabling companies to track shipments live. Various companies depend on large acquisitions of vegetable oils for cooking, food production, and ingredient development and therefore mostly B2B distribution channel for buying the vegetable oil 

B2C segment is expected to grow at the fastest rate in the market during the forecast period.

B2C distribution channel enables companies to engage with their desired customers and enhance brand recognition. Successful marketing campaigns can aid businesses in drawing in new customers, keeping current ones, and boosting sales and revenue. B2C E-Commerce has expanded swiftly in recent years, fueled by technological advancements and evolving consumer habits. E-commerce platforms provide shoppers the ease of making purchases from any location, at any hour, without the necessity of going to a brick-and-mortar shop. 

Recent Developments in the Vegetable Oil Market 

Patanjali Foods Ltd. 

Market Expansion: In March 2025, Patanjali Foods Ltd. planned to set up an oil palm mill in Mizoram as part of its initiative to grow its presence in India's edible oil retail market, an official revealed. Two top company officials met with Chief Minister Lalduhoma in Aizawl to discuss the venture. The mill is set to be established in Liapha, Lawngtlai district, and is anticipated to be finished within a year, as stated by the official. (Source: Indian retailer)

Annapurna Swadisht Ltd

Acquisition: In March 2024, packaged food firm Annapurna Swadisht Ltd purchased mustard oil brand 'Arati' from R R Proteins and Agro Ltd. The purchase introduced the brand in the FMCG industry. (Source: Business-Standard)

Vegetable Oil Market Leading Companies

Segments Covered in the Report

By Type 

  • Palm Oil
  • Soybean Oil
  • Rapeseed Oil
  • Sunflower Oil
  • Others

By Application 

  • Food
  • Feed
  • Industrial

By Distribution Channel 

  • B2B
  • B2C

By Region 

  • North America
  • Europe
  • Asia Pacific
  • Middle East and Africa
  • Latin America
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  • Report Covered: [Revenue + Volume]
  • Historical Year: 2021-2023
  • Base Year: 2024
  • Estimated Years: 2025-2034

Meet the Team

Vidyesh Swar, Senior Research Analyst at Towards Food & Beverages, specializes in market research, focusing on supply-demand evaluation, pricing analysis, alternative proteins, plant-based foods, and sustainable food technologies within the industry.

Learn more about Vidyesh Swar

Aditi Shivarkar, with 14+ years in Food and Beverages market research, specializes in food, beverage, and eco-friendly packaging. She ensures accurate, actionable insights, driving Towards FnB's excellence in industry trends and sustainability.

Learn more about Aditi Shivarkar

Related Insights

FAQ's

The global vegetable oil market reached a value of USD 332.77 billion in 2024.

The vegetable oil market is anticipated to grow at a CAGR of 4.70% from 2025 to 2034.

North America dominated the global vegetable oil market in 2024, driven by health-conscious consumers favoring vegetable oils over animal fats.