Global Edible Oil Market Outlook 2025–2035: Insights by Region, End-Use (Domestic, Industrial, Food Service), Packaging Type (Pouches, Jars, Bottles, Cans, Others), and Product Category (Palm, Soybean, Sunflower, Rapeseed, Others) – Trends, Market Size, Competitive Landscape & Forecast
Published Date: May - 2025 | Publisher: Market Insights Research | No of Pages: 240 | Industry: food and beverages | Format: Report available in PDF / Excel Format
View Details Buy Now 2999 Download Sample Ask for Discount Request CustomizationGlobal Edible Oil Market Outlook 2025–2035Insights by Region, End-Use (Domestic, Industrial, Food Service), Packaging Type (Pouches, Jars, Bottles, Cans, Others), and Product Category (Palm, Soybean, Sunflower, Rapeseed, Others) – Trends, Market Size, Competitive Landscape & Forecast
Reports Description
According to the latest analysis by the CMI Research Team, the global edible oil market is projected to grow at a CAGR of 4.06% between 2025 and 2035. The market is forecasted to reach approximately USD 253.67 billion in 2025 and is expected to climb to USD 376.45 billion by 2035, driven by evolving dietary habits, urban expansion, and rising demand for healthy, plant-based food alternatives.
Edible Oil Market Overview
The edible oil sector plays a vital role within the broader food industry, offering essential oils used in everyday cooking and food preparation. Popular product types include palm, soybean, sunflower, rapeseed (canola), and olive oils. As population growth accelerates, especially in urban and developing regions, the global need for diverse and nutritious food products—including cooking oils—continues to expand.
Consumer preferences are shifting toward healthier options. This has prompted leading producers to innovate with low-trans-fat, non-GMO, and nutrient-rich oil formulations. Major players such as ADM, Bunge, Wilmar International, and Associated British Foods plc are focusing heavily on sustainable practices, transparency in sourcing, and meeting stringent health regulations while ensuring consistent product quality.
However, the industry also grapples with challenges including volatile raw material prices, climate variability affecting crop yields, and complex global trade policies. Many governments are introducing regulatory frameworks centered on sustainability and public health, which are shaping both production standards and international trading dynamics.
Emerging technologies in oil extraction, refining, and blending are redefining market performance. Techniques such as cold pressing, enzymatic extraction, and smart refining methods are boosting yield efficiency, reducing environmental impact, and preserving nutritional integrity. As a result, the edible oil industry is on track for a more resilient, health-oriented, and eco-friendly future.
Edible Oil Market Key Growth Drivers
Population Expansion and Rising Food Demand
Rapid urbanization and population growth, particularly in Asia and Africa, are directly driving the demand for edible oils. Urban dwellers increasingly rely on processed and ready-to-cook meals that utilize significant quantities of cooking oil. For example, in 2023, Cargill expanded its operations in South India by acquiring a facility in Nellore, Andhra Pradesh, modernizing its infrastructure, and launching Gemini Pureit, a premium sunflower oil. This move was strategic in targeting the underpenetrated yet high-potential southern Indian market that consumes two-thirds of the country’s sunflower oil.
Growing Health Awareness and Shift Toward Nutritional Oils
As global health awareness intensifies, consumers are favoring oils that promote heart health and provide beneficial fats—such as olive, canola, and sunflower oils. In early 2024, Cargill became the first global supplier to fully meet the World Health Organization’s (WHO) criteria for eliminating industrially produced trans fats (iTFAs) across its entire edible oil product line. This milestone highlights the industry's pivot toward safer, healthier ingredients and has set a new benchmark for regulatory compliance and public health advancement.
Technological Innovation in Oil Processing and Sustainability
Breakthroughs in oil production methods are revolutionizing the industry. Innovations like solvent-free extraction, enhanced filtration systems, and digitized supply chains are improving product quality and sustainability. A landmark project by ADM involved a $350 million investment to build North Dakota’s first soybean crushing and refining facility, targeting both food and renewable energy sectors. The plant, capable of processing 150,000 bushels per day, strengthens regional agriculture and meets growing global demand for low-carbon, plant-based solutions. Additionally, ADM invested another $250 million to enhance refining and storage capacity in Illinois, supporting long-term scalability and innovation in plant-based oil solutions.
Key Threats Impacting the Edible Oil Market
1. Raw Material Price Volatility
The edible oil industry is highly susceptible to fluctuations in the prices of raw materials such as palm, soybean, and sunflower seeds. Factors like adverse weather conditions, geopolitical tensions, and export restrictions can lead to significant price hikes, affecting manufacturers and distributors. For instance, in early 2025, India's palm oil imports declined to a five-year low of 7.5 million metric tons due to elevated prices and supply disruptions. Consumers shifted towards more affordable alternatives like soybean and sunflower oils, leading to a decrease in palm oil's market share from 56% to 43% .
2. Climate Change Affecting Oilseed Production
Climate change poses a significant threat to oilseed cultivation by causing weather anomalies, pest infestations, and diseases, thereby reducing yields and disrupting global supply chains. In the 2024/25 crop year, Indian farmers reduced rapeseed sowing by approximately 10% due to unusually high temperatures hindering germination. This shift has led to increased dependence on imported edible oils, tightening the market and elevating prices .
3. Biodiesel Policies Limiting Palm Oil Exports
Indonesia's aggressive biodiesel program, which mandates a 40% palm oil blend in biodiesel, is expected to reduce its palm oil exports from 29.5 million metric tons in 2024 to 20 million by 2030. This policy shift, coupled with stagnant production due to environmental concerns and aging plantations, is anticipated to keep palm oil prices elevated, impacting global markets .
Emerging Opportunities in the Edible Oil Market
1. Rising Demand for Premium and Specialty Oils
There is a growing consumer preference for premium and specialty edible oils like walnut, flaxseed, and avocado oils, attributed to their health benefits and unique flavors. Companies are capitalizing on this trend to achieve better margins and cater to health-conscious consumers. For example, Bunge India launched Fiona Refined Sunflower Oil with VitoProtect in Hyderabad, enhancing vitamin absorption and appealing to health-focused families.
2. Expansion into Underpenetrated Markets
Countries in Africa, South Asia, and Latin America present significant growth opportunities due to their developing economies and changing dietary habits. These regions have large populations with increasing disposable incomes, urbanization, and a shift towards processed foods, leading to higher consumption of vegetable oils. Companies can tap into these markets through channel expansion and value-added products.
Category-Wise Insights
By Product Type
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Palm OilWidely used in cooking and food processing due to its stability and affordability. In 2025, Indian demand for palm oil is expected to rise as prices become more competitive compared to substitutes like soybean oil .
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Soybean OilCommonly used for frying and as a food ingredient. Market volatility remains high due to trade uncertainties, but overall sentiment is bullish with potential import increases from countries like Japan.
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Sunflower OilKnown for its light flavor and high smoking point, making it ideal for frying and salads. Companies like Cargill have expanded their sunflower oil offerings in South India to meet growing demand.
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Rapeseed OilValued for its light flavor and healthy fat composition. Despite a government increase in the minimum support price, rapeseed production in India is expected to decline due to climate challenges and competition from other crops.
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OthersIncludes olive oil, coconut oil, and palm kernel oil, each offering unique benefits and applications in cooking and industry.
By Packaging Type
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PouchesFlexible and cost-effective, suitable for small quantities. Companies like Nichrome India Ltd provide advanced filling machines catering to this packaging trend.
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JarsRigid containers used in premium segments. For instance, Gemini Edibles & Fats India Limited introduced a reusable 10-liter jar for its Freedom Refined Sunflower Oil, combining convenience with eco-friendliness.
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CansDurable metal containers that protect contents from contaminants, ideal for bulk packaging and extending shelf life.
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BottlesCommonly made of plastic or glass, used for various sizes. Regulatory bodies like the Bureau of Indian Standards have set guidelines to ensure safety and recyclability.
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OthersIncludes drums, bag-in-box, and liquid cartons, catering to specific consumer and industry needs for bulk or eco-friendly packaging options.
By End Use Analysis
Domestic Consumption
Domestic consumption of edible oils remains the largest demand driver in countries like India, where dietary preferences and population growth fuel usage. As of 2025, India’s per capita edible oil consumption has reached approximately 24 kg per person per year, a significant jump from 8.2 kg in 2001, and double the recommended level of 12 kg. This demand has intensified dependence on imported oils, especially palm, sunflower, and soybean, as domestic production still accounts for only around 50% of the 26 million tonnes annual requirement. Palm oil continues to dominate with a 37% market share. Looking ahead to 2035, per capita consumption is expected to approach 28–30 kg unless mitigated by aggressive awareness and dietary reform. The government is scaling up initiatives like the National Mission on Edible Oils to boost local production, reduce reliance on imports, and encourage healthier consumption patterns to tackle associated health issues such as heart disease and obesity.
Industrial Applications
The industrial use of edible oils is expanding across diverse sectors, including processed food manufacturing, cosmetics, nutraceuticals, and pharmaceuticals. In food manufacturing, oils are essential for baking, frying, and as base ingredients in packaged products like sauces and spreads. In 2025, the cosmetic industry is increasingly adopting oils such as coconut, almond, and jojoba for their emollient and nourishing properties. Similarly, the pharmaceutical sector uses edible oils as excipients in formulations—particularly softgel capsules—due to their solubility and bioavailability benefits. By 2035, industrial demand for edible oils is projected to grow by over 25%, driven by health-conscious product innovations and clean-label trends. This cross-industry usage underscores oils’ versatility and strategic importance in product development and sensory optimization.
Food Service Sector
The food service industry, comprising hotels, restaurants, and institutional kitchens, heavily depends on edible oils for daily operations. Oils such as soybean, palm, sunflower, and canola are preferred due to their stability at high temperatures, cost-efficiency, and neutral taste profiles. In 2025, as dining out and food delivery services surge post-pandemic, the demand from this segment continues to climb. Health-conscious diners are also influencing the switch to oils with favorable fat profiles and sustainability credentials. By 2035, with increasing urbanization and a booming global middle class, the food service sector is anticipated to be a major growth area, especially in Asia-Pacific and Sub-Saharan Africa. Operators are also adapting to regulatory changes and consumer preferences by selecting oils that support low-trans-fat, allergen-free, and organic menu offerings.
Report Scope
|
Parameter |
Details |
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Report Title |
Global Edible Oil Market Report |
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Forecast Period |
2023–2030 |
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Base Year |
2022 |
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Market Size in 2022 |
USD XX Billion (to be filled) |
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CAGR |
XX% (to be filled) |
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Covered Segments |
Type, Source, Packaging, Distribution, Region |
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Regions Covered |
North America, Europe, Asia-Pacific, LAMEA |
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Key Players Covered |
ADM, Bunge, Cargill, Wilmar, etc. |
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Customization Scope |
Yes |
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Impact of Latest Tariff Policies on the Edible Oil Market
New global tariff regulations are reshaping trade dynamics in the edible oil sector. In India, the government extended concessional import tariffs on key oils—including sunflower and soybean—through March 2025 to mitigate inflation and ensure supply continuity. This has led to shifts in global pricing strategies, forcing exporters to adjust to India’s changing import behaviors, often increasing dependency on short-term contracts and alternate markets.
Meanwhile, the United States has introduced fresh import tariffs across multiple commodities, indirectly affecting edible oil pricing through increased logistic and raw material costs. Though edible oils are not directly targeted, the cumulative impact on manufacturing inputs, packaging, and shipping has driven up production costs. By 2035, if trade protectionism persists, we can expect more regionalization of edible oil supply chains, with countries investing in local refining and cultivation to buffer against global uncertainties.
As a result, volatility remains a defining feature of the edible oil market. Producers are proactively diversifying sourcing strategies—such as pivoting to African and Latin American suppliers—and exploring value-added product offerings. For consumers, the price at the shelf may continue to fluctuate based on local policy decisions, currency dynamics, and supply chain resilience. Policymakers face the dual challenge of safeguarding domestic industries while keeping food inflation under control.
Despite these challenges, the edible oil market is expected to retain robust growth in 2025 and beyond, driven by rising consumption, industrial innovation, and dietary diversification across emerging economies.
Edible Oil MarketRegional Outlook and Strategic Developments
North America
North America's edible oil sector is characterized by a diverse array of oils, including soybean, canola, and corn oils. The region places a strong emphasis on sustainability, health-conscious products, and technological advancements in oil production. In December 2022, Bunge announced a significant investment of approximately $550 million to construct a new soy protein concentrate (SPC) and textured soy protein concentrate (TSPC) facility in Morristown, Indiana. This facility, expected to be operational by mid-2025, aims to meet the rising demand for plant-based ingredients in food, pet food, and feed. The project will increase processing capacity by 4.5 million bushels of soybeans and create around 70 new jobs. Additionally, Bunge invested $10 million to enhance its plant protein R&D capabilities at its St. Louis innovation center, focusing on alternative meat and dairy products.
Europe
Europe's edible oil market is diverse, with significant consumption of olive, sunflower, and rapeseed oils. The region prioritizes sustainability, organic production, and strict quality standards. In September 2024, ADM announced the acquisition of Vandamme Hungaria Kft, a Hungary-based company operating a 700 metric ton per day non-GMO multi-seed and corn germ processing facility. This strategic move enhances ADM’s capacity to meet the growing demand for non-GMO edible oils across Europe and supports the company's broader sustainability goals. The facility, built in 2010, transforms soybeans and corn germ into meal and oils for customers in Europe and the Middle East. It employs 38 people and reported revenues of approximately €114 million in 2023.
Asia-Pacific
The Asia-Pacific region is a significant player in the global edible oils market, with countries like China, India, and Indonesia dominating both production and consumption. Consumption patterns, increasing health awareness, and population growth drive the market. In April 2025, India's vegetable oil industry urged the government to adjust import tariffs by expanding the difference between duties on crude and refined oils. This move aims to protect local refineries and limit imports of foreign-refined oils. Despite substantial investments in domestic refining facilities, rising imports of refined oils, mainly from Indonesia and Malaysia, have left Indian refineries underutilized. The industry advocates for increased tariffs on processed oils or reduced rates on palm oil to stimulate local processing and employment, considering that India imports nearly two-thirds of its vegetable oil needs.
LAMEA (Latin America, Middle East, and Africa)
The LAMEA region presents a varied edible oils market with evolving production and consumption trends. Latin America, particularly Brazil and Argentina, is a major producer of sunflower and soybean oils, contributing significantly to the global supply. In contrast, the Middle East and Africa heavily rely on imports to meet their domestic edible oil consumption due to limited local production. This dynamic creates a market where Latin America plays a crucial role through exports, while the Middle East and Africa are key demand centers. Changing dietary habits and ongoing population growth make the edible oil industry central to regional food security and economic activity in the LAMEA region.
Key Developments in the Edible Oil Market
The edible oil market has witnessed several significant developments as companies aim to expand their global presence and enhance product offerings.
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In September 2024, ADM acquired Vandamme Hungaria Kft, a Hungary-based company operating a 700 metric ton per day non-GMO multi-seed and corn germ processing facility. This acquisition significantly enhances ADM’s capacity to serve the growing demand for non-GMO edible oils across Europe and supports the company's broader sustainability goals.
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In December 2022, Bunge announced a significant investment of approximately $550 million to construct a new soy protein concentrate (SPC) and textured soy protein concentrate (TSPC) facility in Morristown, Indiana. This facility, expected to be operational by mid-2025, aims to meet the rising demand for plant-based ingredients in food, pet food, and feed. The project will increase processing capacity by 4.5 million bushels of soybeans and create around 70 new jobs.
Key Players in the Edible Oil Market
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Louis Dreyfus Company
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Associated British Foods plc
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Unilever PLC
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Conagra Brands, Inc.
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Marico Limited
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Ruchi Soya Industries Limited
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Global Edible Oil Market Report Segmentation
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By Type
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Soybean Oil
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Sunflower Oil
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Palm Oil
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Canola Oil
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Olive Oil
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Coconut Oil
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Others
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By Source
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Organic
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Conventional
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By Packaging Type
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Bottles
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Cans
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Pouches
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Others
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By Distribution Channel
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Supermarkets/Hypermarkets
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Convenience Stores
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Online Retail
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Others
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By Region
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North America
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Europe
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Asia-Pacific
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LAMEA
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