Soy Oil & Palm Oil Market Size, Trends

Soy Oil & Palm Oil Market Overview

Global Soy Oil & Palm Oil market size is estimated at USD 83298.08 million in 2024 and expected to rise to USD 115519.51 million by 2033, experiencing a CAGR of 3.7%.

The soy oil and palm oil market holds a critical position in the global edible oils sector, supplying over 60% of the world’s vegetable oil consumption. In 2023, global soy oil production reached approximately 60 million metric tons, while palm oil output surpassed 77 million metric tons. Palm oil continues to dominate due to its higher yield per hectare—3.8 tons per hectare compared to soy oil’s 0.4 tons per hectare—making it the most efficient vegetable oil in terms of land use. Indonesia and Malaysia collectively contribute over 85% of global palm oil supply, producing 47 million and 19 million metric tons respectively in 2023. Meanwhile, the United States, Brazil, and Argentina remain key soy oil producers, with Brazil processing over 9.2 million metric tons of soybeans into oil in 2023. Consumption trends indicate that India and China are the largest importers of palm oil, importing 8.5 million and 6.7 million metric tons respectively. Additionally, soy oil sees increasing demand in biodiesel manufacturing in the U.S., accounting for over 28% of domestic soy oil use. With applications across food, personal care, and industrial sectors, the soy oil and palm oil market is central to global agri-business and trade policies.

Key Findings

Top Driver reason: Increased global food demand and population growth continue to drive edible oil consumption, especially in developing economies.

Top Country/Region: Indonesia leads the market with the highest palm oil production volume, accounting for over 60% of global supply.

Top Segment: The food segment dominates application usage, with over 70% of palm oil and 65% of soy oil used in processed foods and cooking applications.

Soy Oil & Palm Oil Market Trends

In 2023, a notable trend in the soy oil and palm oil market is the increasing use of vegetable oils in biofuel production. The U.S. diverted over 4.6 million metric tons of soy oil for biodiesel manufacturing, marking a 12% year-over-year increase. Similarly, the European Union utilized more than 3 million metric tons of palm oil for biofuels, though efforts are underway to phase it out in favor of sustainable alternatives. Consumer preference is also shifting toward non-GMO and sustainably sourced oils, driving demand for RSPO-certified palm oil, which now represents over 19% of global trade volumes.

Sustainability trends are shaping production and sourcing. Over 3 million hectares of palm oil plantations are now RSPO-certified, an increase of 300,000 hectares from 2022. Companies like Wilmar International and IOI Corporation Berhad are investing heavily in traceability and zero-deforestation commitments. In soy oil, Brazilian exporters are under increasing pressure to reduce deforestation in the Cerrado biome, with over 110 major food manufacturers signing up for deforestation-free supply chain commitments.

In addition, technological advancements in oil extraction have improved yields. New mechanical expellers introduced in Argentina increased soy oil recovery rates by 3.2%, reducing waste and increasing efficiency. The integration of AI-driven monitoring systems in palm oil mills across Malaysia has also cut production downtime by 17%. These innovations are reshaping competitiveness and sustainability in the market.

Soy Oil & Palm Oil Market Dynamics

DRIVER

Rising consumption of edible oils in developing economies.

The surge in urban population and evolving dietary patterns in Asia-Pacific and Africa has led to increased consumption of edible oils, especially soy and palm oil. India’s annual per capita consumption of edible oil reached 19.5 kilograms in 2023, up from 17.8 kilograms in 2021, with palm oil accounting for nearly 40% of this usage. In Sub-Saharan Africa, countries like Nigeria and Ghana recorded over 1.2 million metric tons and 320,000 metric tons of palm oil consumption respectively in 2023.

RESTRAINT

Environmental concerns and deforestation associated with palm oil cultivation.

Palm oil production has faced significant backlash due to environmental degradation. Over 50% of deforestation in Borneo between 2000 and 2020 has been linked to oil palm plantation expansion. In 2023, satellite imagery revealed that 3,100 square kilometers of rainforest were cleared for palm cultivation across Indonesia and Malaysia. These figures triggered policy reactions such as the EU’s Renewable Energy Directive II, which restricts imports of palm-based biofuels.

OPPORTUNITY

Growing demand for sustainable and organic edible oils.

The market is witnessing increasing demand for organic and non-GMO vegetable oils. As of 2023, over 1.9 million metric tons of RSPO-certified palm oil were exported globally, marking a 21% increase from the previous year. In North America, organic soy oil production grew by 16% between 2022 and 2023, with over 310,000 metric tons produced. This trend is driven by health-conscious consumers and regulatory support in developed economies.

CHALLENGE

Price volatility in the global oilseed and commodity markets.

Volatile pricing has continued to challenge stakeholders across the soy and palm oil value chains. Between January and December 2023, average global palm oil prices fluctuated between $930 and $1,230 per metric ton due to inconsistent rainfall patterns, geopolitical tensions, and export bans. For soy oil, price spikes followed extreme drought conditions in Argentina, which reduced the country's soy crush by 34% compared to 2022, leading to a global supply shortfall. These fluctuations have a cascading effect on downstream industries such as food manufacturing, biodiesel, and personal care.

Soy Oil & Palm Oil Market Segmentation

The soy oil and palm oil market is broadly segmented by type and application, with each category exhibiting unique demand dynamics and production trends. By type, the market is segmented into palm oil and soy oil, while applications include food, feedstuff, personal care and cosmetics, biofuel, pharmaceutical, and others. Each segment contributes distinct volumes and influences global trade patterns differently based on regional dietary habits and industrial needs.

By Type

Palm Oil: global palm oil production exceeded 77 million metric tons, led by Indonesia and Malaysia, which accounted for 85% of the total output. Palm oil is preferred for its high yield and multipurpose functionality. Refined, Bleached and Deodorized (RBD) palm olein makes up 60% of palm oil exports, particularly used in deep frying and cooking oil applications. The cosmetic industry consumed over 1.4 million metric tons of palm derivatives in 2023, including palm kernel oil used in soaps and lotions. The food industry remains the largest consumer, with over 55 million metric tons consumed in processed foods, confectionery, and bakery applications globally.
Soy Oil: Soy oil production crossed 60 million metric tons globally in 2023, with key producers being the U.S., Brazil, and Argentina. Soy oil is commonly used in salad dressings, margarine, and as a frying medium due to its neutral flavor and lower saturated fat content compared to palm oil. Nearly 12.5 million metric tons of soy oil were used in industrial applications, especially in biodiesel production, with the U.S. alone accounting for 4.6 million metric tons. Food processing industries in China and India consumed over 16 million metric tons in total, primarily in snack foods, baked goods, and sauces.

By Application

Food: Over 70% of palm oil and 65% of soy oil are consumed in food applications. In 2023, processed food manufacturers utilized more than 60 million metric tons of palm and soy oil combined. Countries like India, Indonesia, and China lead consumption, with India alone using over 9.5 million metric tons in packaged snacks and traditional cooking.
Feedstuff: Approximately 6 million metric tons of soy oilcake and byproducts are used in livestock feed annually. Palm kernel meal is also widely used in dairy and poultry sectors, especially in Southeast Asia and Sub-Saharan Africa.
Personal Care and Cosmetics: around 2 million metric tons of palm oil derivatives and 500,000 metric tons of soy oil were utilized in the cosmetics and personal care industry. Key products include soaps, creams, and moisturizers. Palm stearin and soy lecithin are valued for their emulsifying properties.
Biofuel: The biofuel segment consumed over 9 million metric tons of vegetable oils in 2023. Soy oil accounts for a significant share, especially in the U.S., where government mandates promote biodiesel blending. Palm oil-based methyl esters are heavily used in Indonesia and Malaysia’s domestic biodiesel programs.
Pharmaceutical: Roughly 1.2 million metric tons of soy and palm oil were used in pharmaceuticals in 2023. Applications include excipients, capsules, and ointments, with soy oil valued for its hypoallergenic and non-irritating profile.
Others: Industrial lubricants, printing inks, and biodegradable plastics accounted for approximately 1 million metric tons in combined usage. Soy-based inks are now used in over 90% of newspapers printed in the U.S.

Soy Oil & Palm Oil Market Regional Outlook

The soy oil and palm oil market exhibits diverse growth patterns and consumption behaviors across different geographies, influenced by climate, industrial development, food habits, and policy frameworks.

North America

In 2023, the U.S. produced over 11 million metric tons of soy oil, contributing nearly 18% of global output. Around 4.6 million metric tons were used in biodiesel, while 3.9 million metric tons were consumed in food applications. Canada imported over 200,000 metric tons of palm oil, mainly from Malaysia, for use in bakery and foodservice industries. Increasing demand for organic soy oil and sustainable palm oil is driving shifts in procurement and manufacturing strategies.

Europe

European countries collectively consumed over 7.5 million metric tons of palm oil and 3.8 million metric tons of soy oil in 2023. The EU has stringent sustainability regulations, with more than 2.1 million metric tons of palm oil sourced from certified supply chains. France, Germany, and the Netherlands lead in sustainable palm oil consumption. In food processing, palm oil is being replaced with rapeseed and sunflower oils, but it still plays a significant role in confectionery and snack manufacturing.

Asia-Pacific

Asia-Pacific is the dominant consumer and producer region. Indonesia and Malaysia produced over 66 million metric tons of palm oil in 2023, while China and India imported over 14 million metric tons combined. India consumed over 9.5 million metric tons of edible oils, with palm oil forming over 55% of that demand. China also processed 16.5 million metric tons of soy oil, driven by domestic demand for edible oil and soy-based products. Government policies favoring biodiesel blending are boosting local utilization.

Middle East & Africa

Africa consumed over 7.1 million metric tons of palm oil in 2023, led by Nigeria, which used 1.2 million metric tons. Imports from Indonesia and Malaysia continue to dominate supply. In the Middle East, the UAE and Saudi Arabia are key markets, collectively importing over 800,000 metric tons of palm and soy oils. The region’s increasing reliance on packaged foods and fast-food chains is boosting demand.

List of Top Soy Oil & Palm Oil Market Companies

Cargill
T Astra Agro Lestari Tbk
Wilmar International
Malaysian Palm Oil Council (MPOC)
Carotino
Yee Lee Corporation
IOI Corporation Berhad
Archer Daniels Midland
Bunge

Top Two Companies with the Highest Share

Wilmar International: Wilmar processed over 25 million metric tons of oilseeds and palm fruit globally in 2023. It operates more than 450 manufacturing plants and accounts for nearly 10% of global palm oil trade, making it one of the largest integrated agribusinesses worldwide.

Cargill: In 2023, Cargill handled more than 9.6 million metric tons of soybeans and processed over 4.2 million metric tons of soy oil. The company’s palm oil division supplies over 1.5 million metric tons annually, with distribution across more than 70 countries.

Investment Analysis and Opportunities

Investments in the soy oil and palm oil market are being driven by evolving consumer preferences, sustainability mandates, and technological advancements. In 2023, global investment in sustainable palm oil production exceeded $2.8 billion, focused primarily on traceability systems, no-deforestation policies, and reforestation projects in Indonesia and Malaysia. Over 3.2 million hectares of land are now certified under RSPO, marking a 12% year-on-year growth.

In soy oil, Brazil witnessed investments exceeding $1.5 billion in new crushing plants and storage infrastructure, with over 7 new facilities under development to enhance capacity and reduce post-harvest losses. The U.S. government’s Renewable Fuel Standard (RFS) program has catalyzed investments in biodiesel facilities, with 6 new biodiesel plants operational in 2023 alone, each with processing capacities of 120,000–200,000 metric tons annually.

Africa has emerged as a promising region for investment, with Nigeria, Ghana, and Uganda witnessing capital inflows for local palm oil processing plants. In 2023, over $210 million was invested in refining and packaging facilities to reduce reliance on imports. Moreover, fintech-enabled supply chain platforms are now linking smallholders to international buyers, promoting fair trade and boosting farmer incomes.

India and China, the world’s two largest consumers of edible oils, continue to draw investor interest. India approved over $320 million in FDI projects related to palm oil refining in 2023. Meanwhile, Chinese state-owned enterprises invested in Indonesian plantations to secure long-term palm oil supply.

New Product Development

New product development (NPD) in the soy oil and palm oil industry is centered around functional health benefits, sustainable sourcing, and specialty ingredient innovation. In 2023, over 450 new food and personal care products were launched globally containing sustainably sourced palm or soy oil as a key ingredient.

In the U.S., soy oil was reformulated into low-linolenic versions for high-stability cooking oils. These variants, used in commercial frying, increased shelf life by 35% and reduced trans-fat content to nearly zero. These oils are now widely adopted by food chains and snack manufacturers, with more than 110 brands incorporating them in 2023.

In Malaysia and Singapore, palm oil was processed into red palm oil with natural carotenoids, vitamin A, and tocotrienols. More than 70 nutritional supplement brands launched palm-derived tocotrienol capsules, leveraging their antioxidant properties. Red palm oil usage grew by 26% in health-focused cooking oil brands.

The cosmetic industry saw new palm and soy oil derivatives, including emulsifiers, emollients, and biodegradable surfactants. In 2023, over 180 new cosmetic SKUs were launched using palm kernel oil derivatives for their moisturizing and texture-enhancing effects. Soy oil-based formulations for anti-aging creams grew by 21%, with new patent filings around soy isoflavones.

Five Recent Developments

Wilmar International: Invested $340 million to expand its palm oil refinery in Riau, Indonesia, increasing capacity by 1.2 million metric tons annually.
Bunge: Opened a new soy oil processing plant in Paraná, Brazil, with an annual capacity of 1.1 million metric tons, enhancing its local supply chain efficiency.
Archer Daniels Midland: Launched a blockchain traceability platform across 100% of its soy oil exports, ensuring zero-deforestation compliance.
IOI Corporation Berhad: Initiated a regenerative agriculture project covering 25,000 hectares in Sabah, Malaysia, to improve soil health and carbon sequestration.
Cargill: Developed a soy-based biodegradable lubricant approved for industrial machinery in automotive plants, targeting 200,000 liters in annual production by 2024.

Report Coverage of Soy Oil & Palm Oil Market

The comprehensive report on the soy oil and palm oil market spans a global analysis across production, consumption, application, type, and regional segmentation, providing an in-depth look at the full value chain. With detailed data across more than 20 countries, the report evaluates over 120 quantitative indicators including production volumes, consumption by application, investment inflows, and certified acreage.

The market scope includes upstream (cultivation and extraction), midstream (refining and packaging), and downstream (application in food, biofuel, and industrial use) operations. It offers a breakdown of trends across edible oil use in the food and beverage sector, including bakery, ready meals, snacks, and condiments. The report also covers industrial applications such as biofuel and lubricant manufacturing, which accounted for a combined 9 million metric tons in 2023.

Key analytical models include SWOT analysis, Porter’s Five Forces, and supply chain assessments. The report maps over 30 leading manufacturers, detailing their regional presence, processing capacities, and sustainability certifications. In 2023, over 3.2 million hectares of palm oil plantations were RSPO-certified, while soy sustainability programs covered over 8.5 million hectares globally.

Trade dynamics are examined through import-export flows, tariff structures, and geopolitical impacts, with particular focus on the EU’s deforestation-free regulations, Indonesia’s export levies, and U.S. biodiesel mandates. The report identifies price volatility factors, examining commodity trends and forecasting fluctuations based on crop yield patterns and weather anomalies.