Edible Oil Market By Oil Type (Vegetable Oils {Sunflower Oil, Soybean Oil, Canola Oil, Palm Oil, Corn Oil, Safflower Oil, Cottonseed Oil, Grapeseed Oil}, Animal-Based Oils {Lard, Fish Oil, Butterfat}, Others), By Processing Method (Refined Oil, Cold-Pressed Oil, Blended Oil, Unrefined Oil), By Application (Food and Cooking {Frying, Baking, Salad Dressings, Sauces & Spreads, Others}, Non-Food Applications {Cosmetics & Skincare Products, Pharmaceuticals, Biofuels, Others}), By Distribution Channel (Supermarkets, Hypermarkets, Local Grocery Stores, E-commerce Platforms, Online Grocery Apps), By End-User (Food Service Industry, Cosmetics and Personal Care Industry, Pharmaceutical Industry, Biofuel Producers), Global Market Size, Segmental analysis, Regional Overview, Company share analysis, Leading Company Profiles And Market Forecast, 2025 – 2035

Industry Outlook

The Edible Oil market accounted for USD 245.2 Billion in 2024 and is expected to reach USD 412.8 Billion by 2035, growing at a CAGR of around 4.85% between 2025 and 2035. The edible oil market is defined as the international industry that involves producing, processing, distributing, and selling oils that are from plant and animal sources and edible to humans.

Among the popular types are palm oil, soybean oil, sunflower oil, canola oil, olive oil, and coconut oil. This market is driven by population growth, changing dietary habits, rising health awareness, and the demand for processed and convenience foods. The top players include multinational firms, regional producers, and small-scale manufacturers. The market is extremely competitive, and competition is affected by crop yields, weather conditions, technological changes in oil extraction and refining, and government policies towards agriculture and trade. Sustainability concerns, particularly for palm oil production, are leading to growing demand for more environmentally friendly and non-GMO oils.

Report Scope:

Market Dynamics

Growing health consciousness among consumers, driving demand for healthier oils like olive and canola.

The main force driving the edible oils market is the growing focus on health among buyers. People now choose foods that support a healthier way of life. This shift in how people eat has led to more people wanting oils thought to be good for you, like canola and olive oil. These oils are believed to offer several health perks. These oils are not only rich in unsaturated fats, antioxidants, and essential nutrients that contribute to heart health and work well to reduce bad cholesterol levels but also promote general wellness among their consumers.

More educated consumers, who are increasingly worrying about adverse health effects associated with excessive saturation and trans fats contained in traditional oils, are turning away from oils that exhibit healthier fat profiles. Social media influence, health influencer influence, and more availability of nutrition information are supporting factors in this direction. Consumer preference is also influenced by the government's efforts and education provided for healthy eating habits. For example, the WHO states that there is an increasing drive to reduce intake of unhealthy fats and increase healthy fat consumption; this will complement the increased interest in oils like olive and canola. And as more and more consumers increasingly look for foods that are considered functional, where they can lead to long-term health, the edible oil market will increase.

Rising population and increasing per capita consumption of edible oils globally.

One of the key drivers of the edible oil market's growth is the expanding population and edible oil consumption per capita around the world. The demand for food products, such as edible oils, which are crucial ingredients in cooking and food preparation for various cultures, will increase in line with the growth of the world's population. Increased consumption of edible oil has been experienced in both developed and developing countries due to the changing dietary patterns and the growing demand for processed and convenience foods.

Lifestyle changes have also been caused by urbanization and increasing earnings as more people opt for packaged and ready-to-eat foods that contain a lot of edible oils. Food service industries, restaurants, fast food chains, and bakeries, among others, have also increased. The demand will be higher, and the growth of the consumption of vegetable oils in daily diets is steady because of the increasing population, says the Food and Agriculture Organization. This trend is expected to continue with the population and food consumption requirements increasing and edible oils remaining an essential commodity in the global food supply chain.

Health risks associated with excessive consumption of certain oils high in trans fats.

The excessive consumption of certain oils, which are very high in trans fats, exposes consumers to considerable health risks that act as significant restraints for the edible oil market. Trans fats, commonly associated with partially hydrogenated oils, have been established to cause different health problems that include heart diseases, obesity, and diabetes, among other chronic disorders. Customers have become extra careful about what kinds of oils they consume through being aware of the health hazard factors. Trans-fat-containing oil customers have witnessed a reduction as the preference shifts to the preferences of the oils. These oils include some processed vegetable oils, which are typically incorporated in baked products, packaged snacks, and fast foods.

Besides, advocacy for healthy living through media campaigns by health experts and authorities regulating industries has also forced manufacturers to change their formulations for such products. Governments and health authorities have also imposed further regulations in the form of bans and labeling requirements on food for less or no trans fats. Thus, producers of such oils face considerable difficulties in keeping their market shares, with a large percentage forced to either innovate or migrate toward healthier variants. This increase in health-conscious consumerism has led to an unrelenting drag on the expansion potential of these traditional edible oils linked with bad health conditions.

Rising demand for organic and non-GMO edible oils in health-conscious markets.

This increasing demand for organic and non-GMO edible oils is a major growth opportunity for the edible oil market, especially in health-conscious consumer segments. As people grow more aware of the risks that GMOs can pose and the benefits of organic products, there has been a clear shift toward oils free from synthetic chemicals, pesticides, and GMOs. These oils, including organic olive oil, avocado oil, and non-GMO canola oil, are attractive to consumers who want to consume natural, wholesome foods.

Health-conscious buyers, especially in developed markets, are willing to pay a premium for products that resonate with their values of sustainability, environmental responsibility, and health. Yet another reason behind the organic and non-GMO oil market growth is the surging demand for clean-label products with minimal processing and fewer ingredients. Due to the increased availability of these oils in supermarkets and online retailing, they have now become accessible to consumers seeking premium, ethically sourced oils. By fulfilling this need, companies may differentiate themselves in the saturated edible oil market, create customer loyalty, and tap into a broader market of consumers seeking healthier and more transparent food choices.

Expansion of e-commerce platforms enabling broader distribution channels.

The expansion of e-commerce platforms makes possible wider distribution channels and increased customer reach, thus offering the edible oil market a very promising possibility. Customers may now readily obtain a large range of edible oils, including specialty, organic, and non-GMO oils, among other niche products, due to the growing popularity of internet shopping. With the use of e-commerce websites, customers have now gained the edge they should have had all these years to simply compare the goods, read reviews, and decide what to buy from the comfort of their own homes. This just goes to show that the market is very dynamic and competitive.

Specifically, it provides regional manufacturers and smaller businesses access to a global market without having to open wide retail networks. Moreover, e-commerce ensures more rapid and efficient supply chain management, which also reduces inventory costs and ensures the availability of the products for the customers. Edible oil manufacturers and distributors can tap into subscription models, targeted marketing, and promotion to increase consumer interaction and foster brand loyalty because of the growing dependence on digital platforms. In other words, e-commerce growth does provide the edible oil industry with a very exciting opportunity to expand and explore new markets to sell its products to the changing tastes of modern consumers.

Industry Experts Opinion

"Edible oil plays a crucial role in both cooking and food processing, with its nutritional and functional properties influencing consumer choices. 'Oils such as olive, canola, and sunflower are favored for their heart-healthy fats and versatility in various cooking applications.”

• Dr. Linda Green, Nutrition Expert at Global Health Institute.

Segment Analysis

Based on the Oil Type, the Edible Oil market is classified into Vegetable, Animal-Based Oils, and Others. In the edible oil market, vegetable oils hold the largest share because of their widespread use, versatility, and cost-effectiveness. Among the vegetable oils, palm oil is the most dominant, as it is used widely in cooking, food processing, and other industrial applications. Palm oil is now found to be famous due to having higher production per hectare, a cheaper price, and a longer shelf life than other oils. It is also preferred because of its stable thermal characteristics that make it ideal for frying and baked goods, snack foods, and margarine.

Other important vegetable oils are sunflower oil, soybean oil, and canola oil, while depending on regional tastes, health awareness, and the economy, its preferences differ in one region from another. While animal-based oils, like lard and butterfat, have cultural significance in specific regional areas, they have very little demand as the attitude against saturated fat content increases, and people more and more opt for plant-based products. Fish oil is less applied as it finds its major markets in supplements and certain traditional cuisines. The growth of health-conscious consumer trends has led to a shift towards oils such as olive oil and avocado oil, although they remain less widespread than palm or soybean oil. However, because of their relatively low price, availability, and wide range of culinary uses, vegetable oils are still the market leaders.

Based on the Processing Method, the Edible Oil market is classified into Refined Oil, Cold-Pressed Oil, Blended Oil, and Unrefined Oil. In the edible oil market, it is the major and dominant group that is referred to as the refined oil category. Refined oils undergo multiple processing procedures for cleaning, degumming, decolorizing, and deodorizing, followed by bleaching in some types, which brings out a finished product that presents a neutral flavor, long storage life, and can be prepared at high frying temperatures. The main reason behind the wide adoption of refined oils is their affordability, stability, and versatility. They are, therefore, in high demand across households and food industries around the world.

Refined palm oil, refined sunflower oil, and refined soybean oil constitute a large part of the market share. Apart from the consumption of these oils in household cooking, they are used in processed food products, ready snacks, and fast food. Even though cold-pressed oils have been highly promoted to healthy customers who appreciate the preservation of natural flavor and nutrient profile, the market share of refined oils is substantially greater due to a higher price point and lower shelf life for cold-pressed oils. A well-balanced product that fulfills the demand of cost-conscious as well as health-conscious consumers, blended oils, which are a mix of refined and cold-pressed oils, have also gained extreme popularity. Being pricier and having a shorter shelf life, unrefined oils are niche products to an extent, though appreciated for their richer taste and nutrients with little processing. Despite these alternatives, refined oil remains the dominant choice because of its convenience, long shelf life, and cost-effectiveness for mass consumption.

Regional Analysis

The Asia-Pacific region is the leading region for the global edible oil market, mainly due to its diversified culinary customs and its enormous population. Among its many countries, China, India, Indonesia, and Malaysia are significant consumers and producers of edible oils. The demand for vegetable oils such as soybean, palm, and sunflower has grown with the large food processing industry within the region. It serves all local and export markets. The most important factor behind the region's dominance is the growing consumption of oil-based products because of urbanization, a rising middle class, and changing consumer preferences.

There is an ever-present demand for several varieties of edible oils in the region due to their culinary versatility and use in frying, baking, or salad dressings. An increase in the region's economy brings about greater disposable incomes for people to afford oils that can satisfy both traditional and modern cooking demands. The region continues to expand rapidly despite challenges such as unstable oil prices and environmental concerns surrounding the production of palm oil. Expanding distribution channels, increasing convenience, and greater consumption of healthier oils due to increasing consumer nutrition awareness all drive this growth. The availability of local harvests, which provide inexpensive feedstocks for oil production, enhances the competitive outlook even further.

Demand for healthier and environmentally friendly oil products is what characterizes the European edible oil markets. Oils of perceived health, such as olive, canola, and rapeseed oils, are slowly replacing the usual conventional cooking oils in the region, including palm and sunflower oils. The main cause for this is higher consumer awareness concerning the incorporation of healthy fats into the diet, as several European consumers favor low saturated fat and high monounsaturated oils. Olive oil popularity is indeed an important ingredient of Mediterranean diet patterns, and it remains to be seen to be one of the most valuable reasons for continued growth in that continent. Other environmental issues are to be determinants of consumption behaviors, along with the shift toward an oil-conscious consumer.

The European consumer is increasingly looking at oils with a view toward sustainability. Organic and non-GMO products lead this charge, but an increasing number of vegans and vegetarians are also driving the demand for plant-based and specialty oils. This diverges further from a growing momentum in the European edible oil industry into the pattern of plant-based diets and eco-friendly packaging options. Additionally, the region's stringent regulatory system checks on food safety, quality, and openness in labeling, which encourages market viability as well as trust among its customers. While this is happening, the edible oil market has also changed the game by giving room to highly nutritious and responsibly sourced products to hit Europe's shelves.

Competitive Landscape

The edible oil market is competitive with strong competition between the big global and regional players for share. Some key players are Cargill, ADM, Wilmar International, and local players such as Sime Darby and Bunge, engaged in both manufacturing and trading. These firms sell grades of canola, soybean, sunflower, and palm oils, among others. Going by recent trends, plant-based substitutes and sustainability are gaining more focus in the market. Businesses now focus on cleaner and more sustainable ways of procuring products to address deforestation problems that include using certified palm oil. Moreover, innovation in processing technologies is driving product diversification, with fortified and healthier oils becoming more common. Consumer preference for organics and non-GMO continues to influence market dynamics, changing the nature of portfolios as players adapt to market demands. Besides these, shifting raw material price fluctuations and resultant regulatory pressures influence the competitive arena, where dynamic mergers and acquisitions, in addition to entry into new products, are happening.

Edible Oil Market, Company Shares Analysis, 2024

To explore in-depth analysis in this report - Request Free Sample Report

Recent Developments:

• In December 2024, Wilmar International Limited (“Wilmar” or the “Company”) is pleased to announce that its wholly-owned subsidiary, Lence Pte. Ltd. (“Lence”), has entered into an agreement with Adani Commodities LLP (“ACL”) for an option to acquire upto a maximum of 403,739,517 equity shares representing 31.06% of the existing paid-up equity share capital of Adani Wilmar Limited (“AWL”) held by ACL as at the date of exercise of the option (“Shares”). The option price per equity share will be mutually agreed upon by the parties, subject to a maximum price of INR305.
• In November 2024, Wilmar International Limited is pleased to announce that its new suncare ingredient, WILSOL SPF Booster, has been awarded the Silver prize, Functional Category, at in-cosmetics Asia Innovation Awards 2024 in Bangkok,Thailand.

Report Coverage:

By Oil Type

• Vegetable Oils
  • Sunflower Oil
  • Soybean Oil
  • Canola Oil
  • Palm Oil
  • Corn Oil
  • Safflower Oil
  • Cottonseed Oil
  • Grapeseed Oil
• Animal-Based Oils
  • Lard
  • Fish Oil
  • Butterfat
• Others

By Processing Method

• Refined oil
• Cold-pressed oil
• Blended oil
• unrefined oil

By Application

• Food and Cooking
  • Frying
  • Baking
  • Salad Dressings
  • Sauces & Spreads
  • Others
• Non-Food Applications
  • Cosmetics & Skincare Products
  • Pharmaceuticals
  • Biofuels
  • Others

By Distribution channel

• Supermarkets
• Hypermarkets
• Local grocery stores
• E-commerce platforms
• Online grocery apps

By End-user

• Food Service Industry
• Cosmetics and Personal Care Industry
• Pharmaceutical Industry
• Biofuel Producers

By Region

North America

• U.S.
• Canada

Europe

• U.K.
• France
• Germany
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Australia
• South Korea
• Singapore
• Rest of Asia Pacific

Latin America

• Brazil
• Argentina
• Mexico
• Rest of Latin America

Middle East & Africa

• GCC Countries
• South Africa
• Rest of Middle East & Africa

List of Companies:

• Wilmar International Ltd.
• Conagra Brands, Inc.
• Manischewitz Company
• Oliyar
• Gokul Agro Resources Ltd.
• Kriti Nutrients
• Modi Naturals Ltd.
• Ajanta Soya Ltd.
• BCL Industries Ltd.
• Agro Tech Foods Ltd.
• N K Industries Limited
• Raj Oil Mills Ltd.
• Vijay Solvex Ltd.
• Shri Venkatesh Refineries Ltd.
• Ambar Protein Industries Ltd.
• Ambo Agritec Ltd.
• Devoted Infotech

Frequently Asked Questions (FAQs)