Edible Oils & Fats Market Size - By Type, Application Analysis, Share, Growth Forecast, 2025 - 2034

Edible Oils & Fats Market Size

The global edible oils & fats market size was valued at USD 551.7 billion in 2024 and is projected to expand to over 5.9% CAGR from 2025 to 2034. Edible oils and fats are essential components in cooking, baking, and food production, derived from plant sources (like palm, soybean, and olive oils) and animal fats (such as butter and lard). They provide flavor, texture, and nutritional value in diets.
 

The scope of the edible oils and fats market is vast, encompassing various applications in the food industry, including processed foods, snacks, and confectioneries. Growing demand for healthier options like olive and avocado oils, along with plant-based alternatives, presents significant opportunities for innovation. Additionally, rising consumer interest in organic, non-GMO, and sustainable products is driving market growth.
 

According to the USDA Foreign Agricultural Service, global vegetable oil production reached 214.75 billion metric tons in 2022, with palm oil accounting for 77.05 billion metric tons of the total production. These oils and fats, including plant-derived oils (palm, soybean, and olive) and animal fats (butter and lard), enhance flavor and texture while providing nutritional benefits in daily diets. The FAO reports that global per capita consumption of vegetable oils increased from 23.6 kg in 2015 to 25.3 kg in 2021, reflecting growing consumer demand.
 

The edible oils and fats market serves diverse applications across the food industry, particularly in processed foods, snacks, and confectioneries. The European Commission's agricultural outlook indicates that EU vegetable oil consumption is projected to reach 24.5 billion tons by 2031, driven by increased demand for healthier options such as olive and avocado oils, alongside plant-based alternatives. Consumer preferences for organic, non-GMO, and sustainable products are further expanding market opportunities, with the USDA National Organic Program reporting a 3.5% increase in certified organic operations in 2021.
 

Edible Oils & Fats Market Trends

The edible oils and fats industry is experiencing significant changes in consumer preferences. According to the USDA, global vegetable oil consumption reached 219.44 billion metric tons in 2022, up from 208.26 billion metric tons in 2021. Health-conscious consumers are increasingly choosing alternatives like olive oil, avocado oil, and oils rich in omega-3 and unsaturated fats. The FAO reports that global olive oil production reached 3.1 billion tons in 2022, with the European Union accounting for 68% of production.
 

The industry emphasis on sustainability has led to increased adoption of environmental certifications, particularly in palm oil sourcing. The USDA Foreign Agricultural Service reports that global palm oil production reached 77.05 billion metric tons in 2023. Consumer demand for organic, non-GMO, and plant-based oils continues to grow, with the U.S. Department of Agriculture reporting a 14% increase in organic oilseed production in 2022. The market also shows increased adoption of fortified oils containing added vitamins and nutrients, meeting consumer demand for functional food products.
 

Edible Oils & Fats Market Analysis

The edible oils and fats industry is experiencing steady growth, driven by increasing population, urbanization, and changing dietary habits. Health-conscious consumers are fueling demand for oils high in unsaturated fats, such as olive, canola, and sunflower oils, while the traditional dominance of palm oil continues due to its affordability and versatility. The rise of vegan and plant-based diets is pushing the demand for plant-based oils over animal fats. Additionally, the market is seeing heightened interest in sustainable and organic products, with manufacturers focusing on eco-friendly sourcing and production practices to meet evolving consumer preferences.

The vegetable oils segment held over USD 466.4 billion in 2024, growing at a CAGR of over 5.7% during the forecast period. The scope of vegetable oils in the edible oils and fats market is vast, as they dominate global consumption due to their versatility, affordability, and health benefits. Oils such as palm, soybean, sunflower, and canola are widely used in cooking, food processing, and as ingredients in various products like snacks, sauces, and baked goods.
 

With growing consumer preferences for healthier, plant-based options, the demand for vegetable oils rich in unsaturated fats and omega-3 is increasing. Additionally, the push for sustainable and non-GMO vegetable oils presents significant growth opportunities in regions prioritizing eco-friendly and organic products.
 

The bakery and confectionery segment from edible oils & fats market was valued at USD 244.1 billion in 2024 and garner a 5.6% CAGR through 2034. The bakery and confectionery sector offers significant scope within the market, as these products rely heavily on oils and fats for texture, flavor, and shelf life. Edible oils, such as palm, canola, and sunflower oils, are key ingredients in baking bread, cakes, cookies, and pastries, while fats like butter and margarine play crucial roles in confectionery items such as chocolates and candies.
 

The growing demand for healthier alternatives, including trans-fat-free and low-saturated-fat options, has led to the development of specialized oils and fats for the bakery and confectionery industry, presenting growth opportunities for manufacturers.
 

The U.S. edible oils & fats market size dominated around USD 154 billion in 2024 and expected to grow at a 5.2% CAGR from 2025 to 2034, driven by increasing consumer awareness of health and wellness, with growing demand for healthier options such as olive oil, avocado oil, and coconut oil. The shift toward plant-based diets and the reduction of trans fats in food products are further boosting the use of vegetable oils over animal fats.
 

Additionally, the market is influenced by the rising trend of clean-label and organic products, leading to higher demand for non-GMO and sustainably sourced oils. The food processing industry, particularly in baking and frying applications, continues to be a significant driver of market growth.
 

Edible Oils & Fats Market Share

Market players in the edible oils and fats sector are adopting several key strategies to stay competitive. Product innovation is a major focus, with companies developing healthier options such as low-saturated-fat oils, trans-fat-free products, and fortified oils with added nutrients. Sustainability initiatives are also prominent, with brands emphasizing eco-friendly practices like sourcing certified sustainable palm oil and adopting carbon-neutral production processes.
 

Additionally, mergers and acquisitions are being used to expand market presence and diversify portfolios. Players are also focusing on branding and marketing, emphasizing organic, non-GMO, and plant-based attributes to meet the growing demand for healthier and more ethical products.
 

Edible Oils & Fats Market Companies

Major players operating in the edible oils & fats industry are:

• ACH Food Companies, Inc.
• Archer Daniels Midland Company (ADM)
• Bunge Limited
• Cargill Inc.
• Conagra Brands, Inc.
• Fuji Oil Co., Ltd
• GrainCorp
• IOI Corporation Berhad
• Louis Dreyfus Company B.V
• The Nisshin Oillio Group Ltd
• Wilmar International Limited
   

Edible Oils & Fats Industry News

• In October 2022, Bunge and Olleco, the ABP Food Group's renewables subsidiary, decided to establish a joint venture that would manage the entire life cycle of edible oils.
   

This edible oils & fats market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) & volume (Kilo Tons) from 2021 to 2034, for the following segments:

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Market, By Type

• Vegetable oils
  • Palm oil
  • Soybean oil
  • Rapeseed oil
  • Mustard oil
  • Coconut oil
• Animal fats
  • Tallow
  • Lard
  • Ghee
  • Others

Market, By Application

• Bakery and confectionery
• Snacks
• Meat products
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia 
• Latin America
  • Brazil
  • Mexico 
• MEA
  • UAE
  • Saudi Arabia
  • South Africa