Cooking Oil Market Share & Trends [2033]

Cooking Oil Market Overview

The Cooking Oil Market size was valued at USD 1159.25 million in 2024 and is expected to reach USD 1676.86 million by 2033, growing at a CAGR of 4.2% from 2025 to 2033.

The global cooking oil market has witnessed considerable expansion due to increasing consumption across households and foodservice industries. In 2023, the total global vegetable oil production reached 219.6 million metric tons, with palm oil alone contributing 79.2 million metric tons. Rapeseed oil and sunflower oil followed with 28.3 million metric tons and 21.5 million metric tons respectively. Rising demand in emerging economies like India and China has accelerated domestic production and import volumes. India, the world's second-largest consumer of cooking oil, imported over 14 million metric tons of edible oils in 2023. Additionally, health-conscious trends have influenced a shift towards oils with high unsaturated fat content, such as sunflower and canola oils. The U.S. produced 11.3 million metric tons of soybean oil, making it one of the top global producers. Technological advances in oil refining and extraction are also enabling manufacturers to meet food safety standards and reduce trans-fat levels. Furthermore, government initiatives promoting bio-based cooking oil alternatives are expected to support sustainable production. These developments highlight the critical economic and nutritional role of cooking oil across global food systems, with strong linkage to agricultural commodity trends and dietary transitions.

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Key Findings

Driver: Increasing health awareness among consumers is leading to a surge in demand for oils rich in omega-3 and low in trans fats.

Country/Region: India remains the top market, with over 34 million metric tons of annual edible oil consumption as of 2023.

Segment: The household segment dominates, accounting for over 60% of global cooking oil consumption in volume.

Cooking Oil Market Trends

Current trends in the cooking oil market reflect both evolving dietary patterns and supply-side changes. In 2023, sunflower oil imports in India rose to 2.8 million metric tons, an increase of 37% from the previous year, indicating a strong shift towards healthier alternatives. Consumer preference for cold-pressed and organic oils is on the rise, with organic olive oil demand growing by 15% in Europe year-on-year. In the United States, avocado oil consumption increased by 10 million liters between 2022 and 2023, driven by its high smoke point and antioxidant content. Technological innovation in oilseed processing, such as supercritical CO2 extraction, has resulted in higher yields and nutrient retention, which is critical as global demand for premium oils surges. For instance, cold-pressed oil sales in Asia-Pacific reached 7.6 million metric tons in 2023, up from 6.3 million in 2021. Sustainability is another major trend; over 19.4 million metric tons of palm oil certified by the Roundtable on Sustainable Palm Oil (RSPO) were produced in 2023. Manufacturers are increasingly investing in traceability and blockchain-enabled supply chains to meet regulatory and consumer transparency demands. Private-label brands are expanding in developed regions, with supermarket chains in North America increasing shelf space for in-house brands. In 2023, private-label cooking oils accounted for 24% of market share in the U.S., reflecting price sensitivity and brand trust. The functional food segment is also bolstering growth. Omega-3 fortified cooking oils witnessed a 12.2% increase in global shipments in 2023, largely driven by urban millennial demographics. The rapid expansion of online grocery delivery, particularly in Southeast Asia, also facilitates diversified availability of specialty oils. Indonesia’s digital grocery sales of cooking oil rose by 21% in 2023, reflecting growing e-commerce penetration in the edible oil sector.

Cooking Oil Market Dynamics

DRIVER

Rising demand for health-conscious edible oils

Growing health awareness among global populations is driving demand for oils low in saturated fats and high in omega-3 and monounsaturated fats. In 2023, the demand for canola oil, known for its low saturated fat content, increased by 8% globally. Consumers in North America and Europe have shown a marked preference for olive, sunflower, and flaxseed oils. Japan's consumption of sesame oil grew to 102,000 metric tons in 2023, supported by rising demand in traditional cuisines and perceived health benefits.

RESTRAINT

Volatility in raw material prices

Cooking oil prices are heavily influenced by the volatility in agricultural commodity markets. In 2022–2023, palm oil prices experienced a fluctuation of over 40% due to climate disturbances and supply chain constraints. Drought conditions in Argentina reduced soybean yields by 22%, directly impacting global soybean oil availability. This price unpredictability challenges manufacturers in maintaining stable supply and consistent retail pricing, affecting consumer confidence and brand loyalty.

OPPORTUNITY

Expansion of bio-based and organic oil segments

The organic cooking oil segment has gained traction, especially in Europe and North America. In 2023, organic oil production in the EU expanded by 18%, reaching over 2.3 million metric tons. Manufacturers are exploring bio-based oils such as rice bran and hempseed oil due to their health and sustainability profiles. The integration of cooking oil with nutritional supplements, especially in the omega-3 segment, presents new branding and packaging opportunities for FMCG companies targeting premium product lines.

CHALLENGE

Regulatory and import/export restrictions

Government-imposed tariffs, subsidies, and export restrictions frequently disrupt the cooking oil market. For instance, Indonesia’s export ban on palm oil in mid-2022, though temporary, caused global market turmoil and increased reliance on substitute oils. In 2023, India imposed higher import duties on refined oils, affecting sourcing dynamics. These policy interventions complicate long-term planning for manufacturers and necessitate diversified sourcing strategies.

Cooking Oil Market Segmentation

The cooking oil market is segmented based on type and application. By type, the primary segments include rapeseed (canola) oil, sunflower oil, palm kernel oil, soybean oil, minor vegetable oils, and palm oil. Application segmentation includes commercial use and household consumption.

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By Type

Rapeseed (Canola) Oil: Global production exceeded 28 million metric tons in 2023. Its low saturated fat content makes it popular in North America and Europe. Canada remains the largest producer, contributing over 19 million metric tons.
Sunflower Oil: Usage grew significantly in Eastern Europe and Asia, with Ukraine exporting over 5.8 million metric tons in 2023. India imported 2.8 million metric tons during the same year.
Palm Kernel Oil: Mostly produced in Indonesia and Malaysia, palm kernel oil accounted for 8.6 million metric tons in 2023. It is preferred in commercial frying due to its high oxidative stability.
Soybean Oil: The U.S., Brazil, and Argentina collectively produced 51 million metric tons of soybean oil in 2023. It remains the most widely used cooking oil in North America and parts of South America.
Minor Vegetable Oils: Including oils such as corn, coconut, and rice bran, this segment contributed over 10 million metric tons globally in 2023. Japan and South Korea have high per capita consumption of sesame oil.
Palm Oil: The largest segment, palm oil accounted for 79.2 million metric tons in 2023. Indonesia alone contributed over 46 million metric tons. It dominates the Asian and African markets.

By Application

Commercial Use: Restaurants and the food processing sector consumed over 90 million metric tons of cooking oil in 2023. Quick service restaurants alone used more than 15 million metric tons.
Household: Representing over 60% of market volume, household usage exceeded 125 million metric tons globally in 2023. India’s household sector consumed 22 million metric tons, the highest globally.

Cooking Oil Market Regional Outlook

The cooking oil market demonstrates varied regional performance. Asia-Pacific leads in volume consumption and production, particularly in India, China, and Indonesia. North America and Europe show a shift towards premium, health-oriented oils, while Africa continues to depend heavily on palm oil imports. Regulatory frameworks and dietary habits significantly shape regional preferences and product innovation.

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North America

North America's cooking oil market is dominated by soybean and canola oils. In 2023, the United States produced 11.3 million metric tons of soybean oil and 1.5 million metric tons of canola oil. Consumer trends show a shift towards cold-pressed, organic, and non-GMO oils, with avocado oil consumption increasing by 22% year-over-year. Health-driven choices have spurred the sales of olive oil, which reached 384,000 metric tons in imports. Canada contributes significantly to global canola oil exports, producing over 19 million metric tons of rapeseed annually. Market growth is further supported by high demand from the fast-food and snack industries, which consume over 6 million metric tons annually across the region.

Europe

Europe emphasizes quality and health in its cooking oil consumption. In 2023, total vegetable oil consumption exceeded 16.5 million metric tons, with sunflower and olive oil being dominant. Spain remained the top olive oil producer in Europe with 1.3 million metric tons, while Ukraine continued to supply 5.8 million metric tons of sunflower oil pre-conflict disruptions. Germany and France are leading consumers of organic and cold-pressed oils, with organic variants capturing over 18% of total household sales. Strict regulations on trans fats have influenced a 30% decline in partially hydrogenated oils across major EU markets. Demand is rising for high-antioxidant oils, including flaxseed and pumpkin seed oils.

Asia-Pacific

Asia-Pacific represents the largest regional market for cooking oils, accounting for over 45% of global consumption. India alone consumed more than 22 million metric tons of cooking oil in 2023, making it the largest importer globally. China followed with 19.6 million metric tons in domestic consumption. Indonesia, the world’s top palm oil producer, generated 46.5 million metric tons in 2023. Rapid urbanization and growing middle-class populations in countries like Vietnam, Thailand, and the Philippines have driven demand for soybean and sunflower oils. The proliferation of quick-service restaurants in Southeast Asia has increased commercial demand, while health trends are influencing consumer adoption of rice bran and mustard oil.

Middle East & Africa

The Middle East & Africa region consumed over 17.2 million metric tons of cooking oils in 2023, with palm oil accounting for the majority due to its affordability and availability. Nigeria leads African consumption with 1.6 million metric tons, while Egypt and South Africa are major users of sunflower and soybean oil. The UAE and Saudi Arabia are seeing increased demand for high-end oils like olive and avocado oil, growing by 11% annually. Limited local oilseed production drives dependence on imports, particularly from Malaysia and Indonesia. Regional government programs promoting local cultivation of oilseeds such as sesame and groundnut aim to reduce import reliance over the next decade.

List Of Cooking Oil Companies

Cargill Agricola S.A
ACH Foods Company Inc
Bunge North America Inc
Archer Daniels Midland Company
ConAgra Foods Inc
CHS Inc
Chinatex Corporation
Richardson Oilseed Ltd
J-Oil Mills Inc
Carapelli Firenze S.P.A

Cargill Agricola S.A: Processes over 9 million metric tons of oilseeds annually across global facilities.

Archer Daniels Midland Company: Produces over 8.2 million metric tons of edible oils per year through its integrated supply chains.

Investment Analysis and Opportunities

Investments in the cooking oil market have intensified, especially in sustainability, advanced processing, and localization strategies. In 2023, more than $3.1 billion was allocated globally to upgrade processing plants to cold-press and solvent-free extraction technologies. These upgrades aim to enhance oil yield by up to 18% and reduce energy usage by 11%. Investment in vertical integration is on the rise. Cargill and ADM increased oilseed farming acreage in Latin America by 21% collectively in 2023, ensuring secure upstream raw material supply. Similarly, CHS Inc. invested $120 million in expanding refining capacity at its Minnesota facility. Asia-Pacific saw significant inflows. In 2023, Indian companies announced investments of over $800 million to improve refinery throughput and reduce dependence on imports. Indonesia and Malaysia, controlling over 85% of global palm oil output, invested a combined $900 million in sustainable palm oil practices to meet global traceability standards. Digital infrastructure is another focal point. Richardson Oilseed Ltd. deployed AI-based quality control systems in 2023, reducing waste by 14% and improving oil purity. These systems allow real-time monitoring and yield optimization, appealing to investors looking for tech-driven operational efficiencies. Market entry for specialty and fortified oils presents vast opportunities. The global demand for fortified edible oils grew by 14.6% in 2023. Investors are targeting functional oils with vitamin D, omega-3, and herbal extracts to meet consumer health priorities. Private equity interest in niche oil brands is also increasing. In 2023, 17 cooking oil startups globally received funding exceeding $600 million, focused on plant-based, allergen-free, and single-origin products. This reflects a shifting investor focus from volume-based returns to value-based and premium segments.

New Product Development

New product innovation in the cooking oil market is being driven by consumer demand for health, sustainability, and convenience. In 2023, over 480 new cooking oil SKUs were introduced globally, with more than 60% emphasizing health benefits such as low cholesterol, high omega-3 content, and immunity-boosting ingredients. Archer Daniels Midland Company launched a fortified sunflower oil infused with vitamin D3, which gained traction across European markets, with distribution reaching over 22 countries by the end of Q4 2023. Similarly, J-Oil Mills Inc. introduced a functional canola oil product enhanced with plant sterols, reducing LDL cholesterol by up to 12% in consumer trials. Sustainability has become a central innovation theme. ConAgra Foods Inc. introduced biodegradable packaging for its coconut oil line, reducing plastic usage by 42% per unit. In addition, CHS Inc. launched a non-GMO soybean oil that recorded a 25% increase in sales within the first six months of release. Cold-pressed and extra virgin variants are experiencing a renaissance. Carapelli Firenze S.P.A released a premium extra virgin olive oil that was certified organic in both EU and USDA markets. Sales exceeded 1.8 million bottles within its first year. Blended oils are emerging as a major innovation category. Bunge North America Inc. introduced a blend of avocado and canola oil that offers high heat tolerance along with a smooth flavor profile, targeting the high-growth segment of gourmet home chefs. This blend secured shelf space in over 9,000 retail outlets in North America within six months. Consumer convenience innovations include spray-format oils, which are gaining popularity due to portion control and easy usage. In 2023, more than 38 million aerosol units of sunflower and olive oil sprays were sold in Europe and North America. Brands like Richardson Oilseed Ltd. are testing pump-spray versions aimed at health-conscious millennials. Flavor-infused oils are expanding into new territories. Infusions like garlic, truffle, chili, and rosemary-flavored oils grew 18% in unit sales during 2023, particularly in European gourmet segments. This has opened doors for artisanal producers and high-margin niche markets. Product innovation is also driven by regulatory needs. For example, low-trans fat oils designed to meet India’s FSSAI limits (less than 2%) gained wide adoption, with 38% of commercial kitchens in metro cities switching to compliant alternatives by late 2023.

Five Recent Developments

Cargill launched a proprietary cold-pressed rapeseed oil facility in Canada with an annual capacity of 1.5 million metric tons in 2024.
ADM partnered with Nestlé to co-develop vitamin-fortified soybean oil targeting Southeast Asian markets in Q1 2024.
India’s Solvent Extractors’ Association reported a 9.5% increase in domestic sunflower oil refining capacity in 2023.
Bunge acquired a 40% stake in an organic avocado oil producer in Mexico to meet North American demand in 2024.
Malaysia introduced blockchain certification for sustainable palm oil, covering 68% of its total output by late 2023.

Report Coverage of Cooking Oil Market

This report offers comprehensive coverage of the global cooking oil market, spanning supply chains, production volumes, innovation trends, and regional dynamics. It captures developments from seed production to end-user consumption, addressing upstream and downstream market components. In 2023, the global output of cooking oils exceeded 219.6 million metric tons, underscoring the sector's scale and importance to global food security. The study covers major oil types including palm, soybean, sunflower, canola, and emerging minor oils like rice bran and flaxseed. It outlines application-specific usage across household and commercial sectors, which together consumed more than 215 million metric tons in 2023. Country-level analysis highlights India's leadership in consumption, followed by China, Indonesia, and the U.S., while production remains concentrated in Indonesia, Malaysia, Brazil, and Argentina. Regulatory frameworks and trade dynamics form a critical part of the report. It analyzes over 30 trade agreements and policy changes that impacted the market between 2022 and 2024. For example, India’s revised import duty on palm oil and Europe’s phasing out of trans fats have significantly influenced sourcing strategies and formulation preferences. In terms of innovation, the report explores over 70 new product launches, with a focus on health, environmental sustainability, and functional attributes. It details packaging trends, with an increasing shift toward recyclable materials, accounting for over 43% of cooking oil packaging formats globally in 2023. Investment trends are comprehensively analyzed, with capital expenditures by major players exceeding $2.4 billion in 2023. These investments cover refinery modernization, sustainability initiatives, and AI-driven quality controls. The report also includes M&A trends, including more than 12 strategic acquisitions in the past 18 months focused on vertical integration and diversification. Regional outlook sections include granular data on market shares, consumption volumes, and import/export patterns across North America, Europe, Asia-Pacific, and Middle East & Africa. For example, the Asia-Pacific region accounted for 62% of global palm oil consumption in 2023, while North America led demand for non-GMO and cold-pressed variants. Lastly, the competitive landscape identifies top companies, detailing market share by output volume and product range. Market leaders like Cargill and ADM are examined in terms of production scale, innovation capability, and geographic presence. The report equips stakeholders with actionable insights to capitalize on emerging trends and mitigate risks, positioning them for strategic decision-making in one of the world’s most critical agricultural markets.