Stellar Market Research examines the growth rate of the Edible Oils and Fats Market during the forecast period 2025-2032

Edible Oils & Fat market size was valued at over USD 273.7 billion in 2024 and is expected to grow to USD 404.38 billion in 2032 at a CAGR of 5.0%.

SAN DIEGO, CA, UNITED STATES, June 13, 2025 /EINPresswire.com/ -- The Global Edible Oils and Fats Market is predicted to grow around 5.0% in the forecast period. The Edible Oils and Fats Market was worth USD 273.7 billion and is expected to reach USD 404.38 billion by 2032. Key drivers of the edible oils and fats market include rising health consciousness, plant-based diets, growth in processed foods, technological advancements, favorable trade policies, sustainability focus, and industrial demand like biodiesel, especially influencing palm and soybean oil consumption.

Edible Oils and Fats Market Overview

The Edible Oils and Fats Market encompasses plant-based and animal-based products. Generally, consumers use them during cooking and food preparation, but demand is spurred by a growing population, increasing health concerns, and a booming foodservice sector. The market includes plant oils, animal fats, and both blended varieties. End-users include households, consumers in a retail environment, food manufacturers, and other business-to-business (B2B) users.

Asia has the largest share of global consumption, and North America and Europe have a high demand to consume premium-quality products. Some of the prominent businesses in the sector include Cargill, Archer Daniels Midland (ADM), and Wilmar International. Some of the current trends in the market space will include blended formulations, cold-pressed formulations, and sustainability initiatives focusing on land-efficient alternatives. Players in the market are increasingly focusing on local sourcing, building resilience in their supply chains, and reducing regional manufacturing to deliver on increasing consumer expectations for transparency, with a demand for sustainability and product quality.

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Edible Oils and Fats Market Dynamics

Drivers

Rising Health Awareness and Nutritional Shifts

More health-conscious consumers are choosing healthier oils with unsaturated fats, such as olive and rice bran oil, and trans and saturated fats are declining in popularity. The demand for fortified oils containing vitamins A and D is growing, especially in developing economies. A backlash against seed oils is also igniting interest in other possibilities like avocado oil. In response, companies are quickly launching healthier oil alternatives as a result of both public health campaigns and regulations to promote fortification.

Industrial and Biodiesel Applications

Food oils like palm and soybean are significant feedstocks for the manufacture of biological fuels, personal care products, and other manufactured goods. The various levels of governmental regulation-such as Indonesia's B40 requirement and India's RUCO program-are increasing market demand for sustainable oil. The U.S. has the EPA pushing for biodiesel production to reach 3.35 billion gallons of biodiesel production by the year 2025. At the same time, innovations like nanocatalysts are driving the conversion process forward. As the amount of biofuels being produced increases, there is a tight supply of food oils driving prices upwards. Many critics point out that the dual demand for agricultural land increases pressures on food security because agricultural land is being used for both agriculture and biofuels.

Government Policies and Fortification Programs

Governments around the world press for edible oil fortification to tackle micronutrient gaps. India’s FSSAI ballasts vitamin A and D fortification, while Nigeria and Ethiopia also have required programs. Public-private ties, like SEA-Techno Serve, help quality fortified oils. Rules on trade, like India’s cuts on duty for unrefined oil, help keep supply and cost. These steps, with consumers who want to be healthy, make the fort oils market grow fast and with much help from businesses.

Technological Advancements in Processing and Refining

Technological advances in the making of edible oils, like the use of special enzymes in the removal of water from oils, the use of cold-pressing, and the use of light refining, have made the oils better. They have kept their nutrients and used fewer of the harmful chemicals that have been used in the past. New ways like the use of hot gases to get rid of the oils, and of cold pressing, have made it possible to get oils that can last longer in use. Oils from sources that are not used very often, like algae and avocados, are now used in many places. We are working to be better to the earth in the way we make these oils.

Restrains

Stringent Regulations and Import/Export Restrictions

The edible oils and fats market faces hurdles due to varying global regulations on GM oilseeds, labelling, and packaging. India, just last week, cut the taxes on all oils that are not made in India. That made it cheaper for India to buy palm oil from places like Indonesia and Malaysia. The EU has made a new rule. It says they might not buy oils if they come from places that cut down trees. That rule might be a problem for places that grow oil plants. The new rule will make it hard for these places to sell their oils to the EU. Indonesia and Malaysia said they do not agree with the new rule. They both said it might make it hard for them to sell their oils. And they both said it might make it hard to trade between their places and the EU.

Innovations and Developments

Technological innovation is a key factor propelling the Edible Oils and Fats Market forward. Notable advancements include:

Cold-Pressed and Solvent-Free Extraction: Cold-pressed and solvent-free extraction methods keep the oil's nutrients and taste without heat or use of chemicals, which many buyers like. Many new ways have been found in the last years, using enzymes and green ways, with more being used in India and other parts of the world to make cleaner, better oils.

Enzymatic and Supercritical CO₂ Extraction: Enzymatic and supercritical CO₂ extraction increase oil yield and keep nutrients from harmful solvents. These green ways cut down on pollution. New ways are now found to make oils better, keep live good stuff inside, and help fight bad ones that can make people sick. These new ways also match with plans to keep the world safe and help make good food for the people who want it.

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Edible Oils and Fats Market Segmentation

By Source

By Source, the Edible Oils and Fats Market is further segmented into Plant-Based Oils and Animal-based fats. Among which, Plant-based oils make up the biggest part of the edible oils and fats market. This is because people accept them more, they are considered better for health, and they can be found in many places. Every year, the world makes more than 200 million metric tons of plant oils. The main ones are palm (made from the fruit of the palm tree, 77M MT) and soybean oil (60M MT). They are liked so much because they have a lot of the good kind of fat called unsaturated fat.

Edible Oils and Fats Market Regional Analysis

Asia-Pacific:

The Asia-Pacific region accounts for the largest edible oil and fat market share by volume, with a growing population where edible oil and fat consumption is high. Some of the primary producers of fats and oils, such as Indonesia and Malaysia, are countries in this region. India is a major user of edible oils, so when domestic palm oil prices were raised, imports increased substantially, with palm oil imports more than doubling to 84% over the previous year in May 2025. Government initiatives such as the National Mission on Edible Oils – Oil Palm (NMEO-OP), an initiative to increase domestic production of oils, will further influence edible oil and fat market dynamics in the region.

Europe:

Europe occupies the second position in the global edible oils and fats market due to the growing demand for healthier oils such as rapeseed and olive oil. Spain produces the majority of olive oil around the world, whereas rapeseed oil consumption has exponentially increased following the Russia–Ukraine conflict. Regulations implemented by the European Union are changing the edible fat and oil landscape beginning in December 2024, when legislation takes effect, all palm oil imported to the EU must have a documented, traceable supply chain and be sustainably sourced.

North America:

North America is the third-largest market for edible oils and fats globally. North America possesses vast canola and soybean fields. Retailers continued to respond to consumer interest in healthier oils. In 2024, Cargill increased production of high-oleic soybean oil. Canada increased its production of canola oil in order to build reserves to strengthen its global exports of canola oil.

Edible Oils and Fats Market Competitive Landscape

The global and regional players in the Edible Oils and Fats Market concentrate on developing and enhancing their capabilities, resulting in fierce competition. Notable players include:

Cargill, Incorporated – Minnetonka, Minnesota, U.S.
Archer Daniels Midland Company (ADM) – Chicago, Illinois, U.S.
Bunge Limited – St. Louis, Missouri, U.S.
Conagra Brands, Inc. – Chicago, Illinois, U.S.
The J.M. Smucker Company – Orrville, Ohio, U.S.
Ventura Foods, LLC – Brea, California, U.S.
Richardson International Limited – Winnipeg, Manitoba, Canada
Oleo-Fats (Olenex) – Rotterdam, Netherlands
Sovena Group – Lisbon, Portugal
Deoleo, S.A. – Madrid, Spain
Avena Nordic Grain Oy – Helsinki, Finland
Viterra - Rotterdam, Netherlands
AAK AB – Malmö, Sweden
Summary

The global Edible Oils and Fats Market was USD 273.7 billion in 2024, and it is expected to reach USD 404.38 billion by 2032 with a solid CAGR of 5.0% during the forecast period. Growth in the market will be driven by several factors. As consumers become increasingly health-conscious, they are looking for plant-based diets and foods that enhance their health. The increasing use of edible oils and fats for food and in industrial production amazed the market. Global organization regulatory initiatives promoting sustainability and nutritional enhancement in food also support the development of the Edible Oils and Fats Market. In general, plant-based oils dominate global consumption due to their versatility and much more common application in day-to-day life. Palm oil and soybean oil remain the two most produced and consumed oils.

The Asia-Pacific region is the dominant regional market, driven by high consumption and strong domestic production in Indonesia and Malaysia, predominantly become the leader for redistribution in countries like India and others to bolster consumption. Europe maintains the second position, backed by demand for premium oils such as olive and rapeseed, and also now in-force environmental regulations such as the EU deforestation law. North America has taken third position, primarily driven by a well-established soybean/canola production, plus healthy innovations in oil processing. The same oils above have been extracted using extraction technologies that use cold press, enzymatic, and supercritical CO₂ extraction, which has helped companies improve oil product quality while using less energy in processing. Other countries, such as India and several countries in Africa, are promoting nutritional oil fortification campaigns to overcome nutritional deficiencies. Leading industry players Cargill, ADM, Wilmar, Bunge, and Deoleo are investing substantially in innovation and sustainability relating to oil and health in tandem with addressing evolving consumer expectations.

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