Fats & Oils Market Share & Trends [2033]

Fats & Oils Market Overview

The Fats & Oils Market size was valued at USD 261984.34 million in 2024 and is expected to reach USD 353041.28 million by 2033, growing at a CAGR of 3.3% from 2025 to 2033.

The global fats & oils market is a vital sector within the food and industrial segments, supplying over 240 million metric tons of products annually as of 2024. Palm oil leads the market, contributing approximately 77.3 million metric tons, followed by soybean oil at 57.4 million metric tons. Other key products include rapeseed oil with 27 million metric tons, sunflower oil at 19 million metric tons, and butter exceeding 10 million metric tons. These commodities are extensively used across food processing, animal feed, pharmaceuticals, and industrial sectors.

The growing shift toward plant-based diets and vegan alternatives has increased demand for vegetable oils, including olive oil, which reached a production volume of 2.7 million metric tons in 2024. Lard and tallow, traditional animal fats, maintain relevance in regions where cultural culinary preferences drive consumption. Shortenings and margarine, with production exceeding 12 million metric tons globally, remain key in baked goods. Increasing population—now at 8.1 billion globally—urbanization, and rising disposable income in Asia-Pacific and Africa have expanded fats and oils consumption significantly. The market continues to evolve with sustainability initiatives, health-conscious product reformulation, and biofuel expansion, particularly biodiesel derived from used cooking oil, which surpassed 3 billion liters globally in 2024.

Key Findings

Driver: Growing population and urbanization have increased demand for processed food and edible oils, with over 240 million metric tons consumed globally in 2024.

Country/Region: Asia-Pacific leads in both production and consumption, with Indonesia and Malaysia supplying over 85% of global palm oil and China and India consuming over 20% of global edible oils combined.

Segment: Palm oil is the top segment with 77.3 million metric tons in production, due to its multipurpose applications and cost efficiency.

Fats & Oils Market Trends

The fats & oils market is undergoing dynamic transformation fueled by shifting dietary preferences, sustainability efforts, and industrial innovations. In 2024, plant-based oils dominated the global supply, with palm, soybean, and rapeseed oils accounting for over 160 million metric tons combined. Consumer demand for clean-label and non-GMO oils has driven sunflower oil growth, now reaching 19 million metric tons globally. A strong trend is the increased adoption of high-oleic oils, especially high-oleic soybean oil, which features approximately 70% oleic acid and longer shelf life, ideal for processed foods and commercial frying. Demand for specialty oils such as avocado oil and coconut oil has also risen, each exceeding 700,000 metric tons in global production in 2024, appealing to premium health and wellness markets. Sustainability is another major trend. Over 19 million hectares are certified under RSPO (Roundtable on Sustainable Palm Oil), and 15% of global palm oil trade was verified as sustainable in 2024. Waste oil collection for biodiesel production has surged, with Europe alone recycling over 1.2 billion liters of used cooking oil.

Industrial applications have expanded, particularly in bio-lubricants and soap manufacturing. With over 30% of fats & oils diverted to non-food sectors, including over 3.2 billion liters for biodiesel, producers are broadening their value chains. Consumers are also demanding traceability. Blockchain adoption in supply chains grew, with 18% of global edible oil producers implementing traceability technologies in 2024. Moreover, reformulation of food products to eliminate trans fats continues, driven by regulatory enforcement and consumer health awareness. The market is also witnessing digitization in B2B operations, with over 70% of major producers adopting AI and data analytics for demand forecasting, logistics, and inventory planning. These advancements increase efficiency, reduce wastage, and align supply with dynamic global demand. The market is positioned for innovation-driven growth, shaped by evolving dietary needs and environmental responsibility.

Fats & Oils Market Dynamics

DRIVER

Rising Demand for Processed and Convenience Foods

In 2024, global demand for processed and convenience foods surged, consuming more than 144 million metric tons of fats and oils. Urbanization continues to drive dietary shifts. Over 56% of the global population now resides in urban areas, increasing reliance on pre-packaged and fast foods. Palm oil, in particular, is widely used in ready-to-eat snacks and processed bakery items, with usage exceeding 40 million metric tons in food applications alone.

This shift is visible in emerging economies. In India, per capita edible oil consumption reached 19.5 kilograms in 2024, while Brazil and Nigeria registered increases of 8% and 11% year-over-year, respectively. These trends reflect a global alignment towards convenient eating habits, propelling fats and oils demand.

RESTRAINT

Health Concerns Associated with Trans Fats

Trans fats, linked to cardiovascular disease, have become a major regulatory target. Over 45 countries have implemented trans fat bans or restrictions as of 2024. Reformulation pressures have led producers to shift from partially hydrogenated oils to healthier alternatives. The cost of reformulating margarine and bakery shortenings increased by 12% on average.

Despite public health benefits, these adjustments result in rising input costs and complexity in maintaining taste and shelf stability. For example, removing trans fats from industrial margarine formulations impacted the product’s spreadability, forcing R&D teams to invest in emulsion technology, which costs an estimated $4.5 million annually for medium-scale producers.

OPPORTUNITY

Expansion into Emerging Markets

Africa and Southeast Asia offer immense untapped potential. Nigeria’s edible oil consumption exceeded 2.4 million metric tons in 2024, growing at double-digit rates. Infrastructure improvements and increased agricultural investment in countries like Ethiopia and Bangladesh are facilitating local oil production and refining capacity.

Furthermore, localization strategies have accelerated. A leading multinational opened four refining facilities across Kenya and Indonesia in 2024, each with annual capacity exceeding 120,000 metric tons. These projects create economic and employment opportunities while aligning with national food security policies.

CHALLENGE

Volatility in Raw Material Prices

Fluctuations in palm oil, soybean, and rapeseed prices present a constant challenge. In 2024, palm oil prices surged by over 25% due to El Niño-related droughts in Indonesia and Malaysia, reducing yield by 15%. Similarly, Ukraine’s sunflower oil exports dropped by 28% in 2023–2024, triggering price spikes in European markets.

Price instability not only squeezes producer margins but also disrupts procurement planning. Companies are increasingly investing in hedging and futures contracts. However, these instruments add complexity and require financial expertise, creating barriers for smaller producers.

Fats & Oils Market Segmentation

The fats & oils market is segmented by type and application, reflecting its diverse use in both food and industrial sectors.

By Type

Palm Oil: Palm oil accounted for 77.3 million metric tons in 2024, remaining the most widely produced and consumed vegetable oil globally. Its oxidative stability, cost-effectiveness, and suitability for frying, baking, and confectionery make it dominant across all continents. Indonesia and Malaysia contribute 58.5 million metric tons combined.
Soybean Oil: Soybean oil reached 57.4 million metric tons in 2024. The U.S., Brazil, and Argentina remain leading producers. It is widely used in salad dressings, mayonnaise, and margarine. About 42% of soybean oil is used in food processing industries globally.
Rapeseed Oil: With 27 million metric tons in 2024, rapeseed oil—especially canola—is used in both culinary and biodiesel applications. Canada is the largest exporter, with over 11 million metric tons produced.
Sunflower Oil: Sunflower oil accounted for 19 million metric tons globally in 2024. Ukraine and Russia were major suppliers. Its high linoleic acid content and light taste made it the preferred oil for frying in Eastern Europe.
Olive Oil: Global olive oil production was 2.7 million metric tons in 2024. Spain alone produced 0.65 million metric tons despite drought. It dominates premium and health-conscious cooking markets.
Butter: Butter production exceeded 10 million metric tons in 2024. The EU accounted for nearly 3.6 million metric tons. Its popularity remains strong in baked goods and culinary applications.
Shortenings & Margarine: With production volumes of 12 million metric tons, this segment is a mainstay in bakery and packaged snacks. Reformulated to remove trans fats, it's gaining acceptance as a healthier option.
Lard: Lard production stood at 8 million metric tons globally in 2024, with high usage in Mexico, the Philippines, and China due to traditional culinary practices.
Tallow: Tallow reached 6 million metric tons in global production. It is used in soap, candles, and sometimes in animal feed and biodiesel.

By Application

Food Uses: Over 70% of total global fats and oils—around 170 million metric tons—were consumed in food uses in 2024. Cooking oils, spreads, baking fats, and snack production dominate this category.
Industrial Uses: Around 30%—approximately 72 million metric tons—of fats and oils were used industrially in biodiesel, lubricants, surfactants, and personal care products. Biofuel use alone consumed over 3.2 billion liters in 2024.

Fats & Oils Market Regional Outlook

North America

In 2024, North America consumed 36 million metric tons of fats and oils. The U.S. alone consumed 18 million metric tons of soybean oil. The rise in plant-based diets also increased demand for olive and avocado oils. Canada's rapeseed oil exports exceeded 11 million metric tons, mostly for EU and Asian markets. Specialty oil demand rose 9% from the previous year.

Europe

Europe consumed over 30 million metric tons of fats and oils in 2024, with Germany, France, and Italy among top consumers. Olive oil usage remained high at 0.75 million metric tons, particularly in Southern Europe. Regulations on trans fats and sustainability certifications for palm oil influenced buyer preferences across the EU bloc.

Asia-Pacific

The Asia-Pacific region remained the global leader with over 105 million metric tons of fats and oils consumed in 2024. India imported 16.5 million metric tons of edible oils, while China used over 25 million metric tons domestically. Indonesia and Malaysia together produced over 85% of the world’s palm oil, supplying 58.5 million metric tons.

Middle East & Africa

This region consumed around 18 million metric tons in 2024. Egypt, Nigeria, and South Africa accounted for over 50% of the region’s consumption. Import reliance remained high, especially for sunflower and soybean oil. Local production initiatives grew by 6% in East Africa to reduce dependency.

List Of Fats & Oils Companies

Associated British Foods
Archer Daniels Midland
Bunge
Wilmar
Cargill
Conagra
IFFCO
Unilever
United Plantations Berhad
Ajinomoto

Archer Daniels Midland (ADM): ADM remains a global leader, with production exceeding 10 million metric tons of oils and fats in 2024. ADM dominates soybean oil exports from the U.S. and has facilities across 20+ countries.

Wilmar International: Wilmar processed over 23 million metric tons of palm oil in 2024, accounting for one-third of Asia-Pacific’s edible oil refining capacity. The company expanded operations in Africa and India, cementing its leadership.

New Product Development

Innovation in the fats and oils market accelerated significantly in 2023–2024, driven by evolving consumer demands, health awareness, and sustainability targets. Over 120 new products were introduced globally in 2024, with emphasis on functionality, nutritional enhancement, and eco-conscious sourcing. High-oleic oils gained traction due to their superior frying stability and longer shelf life. High-oleic sunflower and soybean oils now account for 18% of the specialty oil segment. These oils contain up to 85% monounsaturated fats, reducing the need for hydrogenation and eliminating trans fats. Major manufacturers reported a 22% increase in sales of high-oleic variants in 2024 compared to the previous year.

Plant-based alternatives surged in popularity, with over 60 new vegan spreads and dairy-free margarine products launched globally in 2024. These use blends of coconut oil, sunflower oil, and shea butter. A leading European food brand recorded a 35% increase in its plant-based butter line, with distribution expanding to 32 countries. Advancements in oil extraction methods also fueled product development. Cold-press techniques were refined to preserve antioxidants and bioactive compounds, particularly in olive, flaxseed, and avocado oils. One major Indian company reported a 12% increase in yield efficiency using solvent-free extraction, contributing to a 9% cost reduction. Microbial and algae-based oils emerged as future-ready solutions. One startup scaled microbial fermentation oil production to 20,000 metric tons annually, targeting cosmetic and industrial applications. Algae-derived omega-3 oils were incorporated into functional food products, with the market expanding by 14% in 2024. In personal care, over 40 new cosmetic products using tallow alternatives from sunflower and jojoba oil were launched. These oils offer emollient properties without animal-based ingredients, meeting growing vegan skincare demands. Blended oils also became more sophisticated. Manufacturers released customized blends of olive-sunflower or soybean-canola tailored for specific uses like deep frying or sautéing. These blends improved stability while reducing saturated fat content by up to 30%. From food-grade products to biodiesel and cosmetics, new product development in 2024 has positioned the fats and oils market for greater health, versatility, and environmental alignment. As production and processing technologies evolve, more efficient, cleaner-label, and nutritionally optimized oils are expected to enter global markets at scale.

New Product Development

New product development in the fats and oils market has accelerated significantly in 2023 and 2024, driven by rising consumer health awareness, demand for plant-based alternatives, sustainability initiatives, and functional ingredient innovation. More than 120 new fat and oil-based products were launched globally in 2024 alone, with manufacturers aiming to cater to evolving food, personal care, and industrial markets. One of the most significant trends has been the rise of high-oleic oils. High-oleic soybean and sunflower oils, containing up to 85% monounsaturated fat, are now used in over 40% of processed snack and bakery applications in North America. These oils offer enhanced shelf stability, eliminate the need for hydrogenation, and provide superior frying performance. In 2024, demand for high-oleic variants increased by 21% year-over-year in food manufacturing sectors. The vegan and plant-based food movement has fueled a surge in new spreads, shortenings, and margarine products using blends of shea, coconut, sunflower, and avocado oils. More than 50 new plant-based butter alternatives were launched in 2024, especially in Europe and North America. One prominent food manufacturer reported a 35% increase in its dairy-free margarine sales across 22 countries. Innovation in extraction methods also reshaped product offerings. Solvent-free and cold-press techniques are gaining traction, particularly for niche oils such as flaxseed, black seed, and almond oil. These methods retain more nutrients and natural flavors, appealing to clean-label demands. Cold-pressed oils now account for over 10% of premium edible oil sales in urban markets globally. Biotechnology has entered the fats and oils segment with force. In 2024, microbial oils produced from yeast and algae reached commercial scale. A biotech startup reported an annual production capacity of 20,000 metric tons of microbial oil, offering a sustainable, palm-free solution for food and cosmetics industries. These oils match the functional properties of conventional fats, including melting point and stability, and can be grown in bioreactors with minimal land use. Cosmetic and personal care product lines have expanded with fats and oils derived from non-traditional sources. More than 30 new cosmetic formulations using tallow alternatives from jojoba, sunflower, and macadamia oil were launched globally in 2024. These products meet rising demand for vegan, cruelty-free, and allergen-free ingredients.

Five Recent Developments

Bunge and Olleco partnered to manage edible oil supply and recycling in Europe, excluding the KLK Acquires Two Palm Oil Firms in Indonesia (December 2023):
KLK acquired 90% stakes in PT SSD and PT TI for $1.32 billion. The companies collectively manage over 28,000 hectares of plantations with annual output over 350,000 metric tons.
Cargill upgraded its refinery to increase capacity by 20%. The facility now processes over 220,000 metric tons of oils annually, targeting Southern India’s edible oil demand.
ADM invested $100 million to expand its specialty oil refining capacity by 50,000 metric tons per year, focusing on baking and confectionery sectors in North America.
Wilmar built two processing plants in Nigeria and Ghana, each with a 100,000 metric ton annual capacity. The expansion supports the regional supply of cooking oils and industrial fats.

Report Coverage of Fats & Oils Market

The fats and oils market report provides an exhaustive overview of the global landscape, encompassing key product types, usage applications, production hubs, and consumption patterns across developed and emerging economies. In 2024, global consumption of fats and oils surpassed 240 million metric tons, underscoring the segment’s strategic importance in the food, industrial, and energy sectors. The report analyzes a wide array of oils, including palm oil, soybean oil, rapeseed oil, sunflower oil, olive oil, butter, shortenings, lard, and tallow. These oils, together, represent more than 95% of the total fats and oils volume traded and consumed across the globe. The market’s segmentation is evaluated both by type and application, with a sharp focus on food and industrial usage. In 2024, over 70% of global fats and oils—equating to around 170 million metric tons—were directed toward food-related uses, while industrial applications, including biodiesel, cosmetics, and pharmaceuticals, utilized approximately 72 million metric tons. The report highlights how food-grade oils such as soybean, palm, and sunflower dominate the edible segment, while tallow and used cooking oil are increasingly diverted to energy sectors for biodiesel production, especially in Europe and Southeast Asia. Geographically, the report provides deep regional insights into Asia-Pacific, North America, Europe, and the Middle East & Africa. Asia-Pacific remained the largest consumer and producer in 2024, with over 105 million metric tons consumed and more than 85% of the world’s palm oil produced in Indonesia and Malaysia. North America followed with 36 million metric tons in consumption, driven by high soybean oil usage. Europe consumed around 30 million metric tons, with strong demand for olive oil and certified sustainable palm oil, while the Middle East and Africa collectively consumed around 18 million metric tons, much of it imported. The report dives into the most significant market drivers, including increasing demand for processed food, growing interest in plant-based nutrition, and government policies promoting biodiesel. It also addresses restraining factors such as regulatory crackdowns on trans fats and price volatility caused by weather-related crop failures. The study identifies growth opportunities in emerging economies and new technological developments like high-oleic oil varieties and solvent-free extraction, which are reshaping supply chain dynamics and consumer choices. A comprehensive competitive landscape analysis is also included, covering leading companies by production volume and product range. Archer Daniels Midland and Wilmar are positioned as the top market players, with Wilmar processing over 23 million metric tons of fats and oils globally in 2024. The report closes with a forecast model grounded in recent data, production output, trade flows, and investment trends, offering a holistic understanding of the fats and oils market’s strategic direction and future potential.