List of Contents
What is the Fats and Oils Market Size?
The global fats and oils market size is calculated at USD 281.18 billion in 2025 and is predicted to increase from USD 294.11 billion in 2026 to approximately USD 423.85 billion by 2035, expanding at a CAGR of 4.50% from 2026 to 2035.
Fats and Oils Market Key Takeaways
- Europe led the global market with the highest market share of 47.14% in 2025.
- By type, the palm oil segment has held the largest market share in 2025.
- By source, the food segment captured the biggest revenue share in 2025.
- By form, the liquid segment registered the maximum market share in 2025.
AI in the Market
AI is changing the game in the fats and oils industry by making the whole process more efficient, thereby leading to better quality and innovative products. One of the major areas of AI influence is extraction and refining, as AI has taken control of these processes. Moreover, the technology enhances predictive maintenance and conducts quality control through advanced sensors at the same time. This is done perfectly, and even the issue of shelf-life estimation, food safety, and transparency in the supply chain is all taken care of by AI. More so, AI market analytics predict consumer trends, thus making it possible to have an agile inventory strategy while helping in the development of healthier oil alternatives. In short, AI is the main factor that is making production easier and bringing in new ideas in the fats and oils industry.
Fats and Oils Market Growth Factors
Fats and oils are basic or blended glyceryl esters of different natural acids, which have a place with the unsaturated fat series; they are gotten from plant or creature sources. Essential wellsprings of fats and oils incorporate plant sources, like soybean, palm, rapeseed, olive oil, and sunflower oil; creature sources incorporate spread and margarine, fat. The fats and oils market has been filling consistently in created nations and arising nations, like the US, Brazil, China, India, and Indonesia. Among vegetable oils, palm oil stayed the most well-known with around 30% of the piece of the pie. Fats track down significant applications in pet food, creature feed, and other modern purposes, for example, biodiesel and oleochemicals. Oils of plant beginning have been transcendently utilized for food-based applications. The fats and oils market, by structure, is assessed to be overwhelmed by the fluid portion in 2024.
The development of this market is credited to the expanded mindfulness about better substitutes to trans-fat, interest for a more nutritious and adjusted diet among customers, and supportable food and energy frameworks. The huge utilization base in Asia Pacific, i.e., powerful handled food sources and modern applications for fats and oils, makes it the quickest developing district during the conjecture time frame. Asia pacific fats and oils market is significantly determined by China and India, attributable to the change in utilization designs and the high imports of vegetable oils and fats.
Significant purchasers of fats and oils, which including families, inns, eateries, bistro, were incredibly impacted by COVID-19. During the lockdowns, the utilization design moved from requesting to self-cooking. The lockdowns likewise affected the families as the corporate store was disturbed and the general stores were shut. From the stockpile side, oilseed ranches, oilseed smashers, and different partners were impacted because of the exchange obstructions across the globe. Significant oil-delivering nations, like Malaysia, Indonesia, the US, and Brazil, confronted disturbance in the store network as the products declined radically and homegrown dispersion was antagonistically impacted.
The organic market for fats and oils in the worldwide market has moved due to the Covid emergency, with a rising vulnerability connected with costs. Palm oil, which is the biggest kind of oil created universally, confronted the effect as request dropped across the world, exchange was upset, and creation got hampered in Indonesia and Malaysia, as per the top vegetable oils makers, for example, Wilmar International and Mehwah Group, which work in the area. Endeavors were being made in numerous nations to keep up with strength on the lookout. As per the Indonesian Palm Oil Producers Association (GAPKI), products to China plunged by 57% in January 2019-2020. State run administrations from nations like India, China, and the US made exceptions for the area to proceed with their organizations with insignificant limit in the midst of the lockdowns. As the creation proceeded, these organizations could relieve the impressive effect by the progression of tasks.
Fats and oils track down applications in spread, cooking oil, salad, creature feed, unsaturated fats, biodiesel, paints, individual consideration items, lubes, and ointments. The rising populace, combined with changes in ways of life, prompting an expansion in utilization of eatable oils and handled food varieties, is driving the expansion in the utilization of fats and oils. Organizations fabricating eatable oil or cooking oil are situating their items as sound oils to acquire portion of the overall industry as the clients are zeroing in on devouring good food. The rising interest for greases is supposed to help the worldwide development of the oils and fats market. The interest for great oils is developing as customers are selecting better choices to keep up with the taste while improving the healthy benefit. To fulfill this need, makers are making do on handling advancements and furthermore improving their item portfolios. ADM (U.S.), alongside Novozymes (Denmark), fostered an innovation that changed the fats and oils industry. This innovation helped the organization in assembling top notch consumable oils by using compounds in the creating system.
Biodiesel is an option in contrast to diesel fuel from petroleum derivative energy sources. It enjoys an upper hand over diesel fuel as it doesn't run out and keeps on filling in the fields. Rapeseeds, soybeans, the product of oil palms, and, surprisingly, old palatable fats are great for biodiesel creation. It is a non-poisonous, biodegradable, and inexhaustible fuel created from a scope of sustainable unrefined components, like new or squander vegetable oils, creature fats, and oilseed plants. Natural similarity of land use, an unquestionable saving of nursery discharges, and concurrence with food creation are the principal guidelines of supportability kept up with in biodiesel creation. Thus, biodiesel and palatable vegetable oils are created with less hurtful effect on the climate. Additionally, the increasing expenses of diesel fuel and constant climatic changes because of the outflow of ozone depleting substances drive the market for the creation and use of biodiesel.
Inferable from the expanded wellbeing cognizance among shoppers, trans-fats are step by step supplanted by a lot better substitute, specifically unsaturated fluid vegetable oils, like olive, canola, corn, or soy oils. The worldwide market has been seeing the pattern of embodiment. A few key producers are presently planning on embodying milk fat and vegetable oils in a grid containing whey proteins and combinations of caseins and whey proteins. These fat-rich powders track down applications in different food plans as well as in dietary enhancements and drug items. In the worldwide fats and oils market, premium oil types, for example, olive and sunflower, witness more exorbitant costs attributable to their unrefined components costing, predominant name cases, and worth added healthful profiles. Western business sectors of Europe and North America stay the objective for such premium classes of oils and fats, subsequently seeing similarly more exorbitant costs than the worldwide normal. Subsequently, the element is driving the market an incentive for fats and oils in the worldwide business sectors.
- The consumers' growing health consciousness has led to an increase in the demand for healthier substitutes for trans fats and oils rich in nutrients.
- The higher usage of processed and ready-to-eat foods is pushing up the consumption of fats and oils in the production of food.
- The development of the biodiesel industry is creating a demand for vegetable oils and animal fats as eco-friendly sources of energy.
- The gains in processing and refining technologies are making the product quality, shelf life, and nutritional content improvements that are in favor of market growth.
- The cosmetics, pharmaceuticals, and animal feeds industries, among others, are increasing applications of fats and oils worldwide, thus enlarging the market space.
Market Scope
| Report Coverage | Details |
| Market Size in 2025 | USD 281.18 Billion |
| Market Size in 2026 | USD 294.11 Billion |
| Market Size by 2035 | USD 419.51 Billion |
| Growth Rate from 2026 to 2035 | CAGR of 4.55% |
| Base Year | 2025 |
| Forecast Period | 2026 to 2035 |
| Segments Covered | Type, Application, Form, and Source |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
Fats and Oils Market Segment Insights
Type Insights
The medical advantages, simple accessibility, and cost-adequacy are a portion of the variables that have driven the market for fats and oils. Inside vegetable oils, the palm oil portion has ruled the market, as it is effectively accessible and is moderately more steady than different oils.
Source Insights
Vegetable oils from sunflower, rapeseed, soybean, palm, cottonseed, and coconut are profoundly utilized in food applications which have driven the market for vegetable-obtained oils. The characteristics related with vegetable oils like low-fat, low-cholesterol, and low-calories content are enrolling development in the fragment. Likewise, the assortment of purpose of vegetable oils in food as well as different ventures, for example, pleo-compound businesses, creature feed, and energy and biomass industry has additionally determined the market for vegetable oils.
Form Insights
The liquid segment of fats and oils is guage to rule the market. In any case, the actual qualities of fats and oils relies on a ton of elements, for example, level of unsaturation, the length of the parent carbon chain, the isomeric types of the unsaturated fats, sub-atomic design, and handling factors, yet it is accepted that the fluid oils are more unsaturated and are consequently more liked by the shoppers.
Fats and Oils Market Regional Insights
The Europe fats and oils market size is exhibited at USD 134.97 billion in 2025 and is projected to be worth around USD 212.48 billion by 2035, growing at a CAGR of 4.64% from 2026 to 2035.
Europe dominated the fats and oils market by holding the largest share in 2025, driven by its well-established food processing industry, strong demand for high-quality edible oils, and widespread use of fats in bakery, confectionery, and processed foods. The region's focus on health-conscious and sustainable products, including the growing preference for plant-based and organic oils, has further strengthened market growth. Additionally, advanced refining technologies, strict quality regulations, and the presence of major players such as Unilever, Cargill, and Bunge have supported consistent innovation and supply reliability across the continent.
Germany is a major contributor to the European fats and oils market, driven by its strong food processing industry and high consumption of edible oils in bakery, confectionery, and packaged foods. The country's focus on sustainable sourcing, renewable bio-based products, and advanced refining technologies has further boosted its market influence. Additionally, Germany's strategic trade position within the EU and presence of leading global and regional manufacturers make it a key hub for fats and oils production and distribution across Europe.
North America is expected to grow at the fastest rate due to rising consumer demand for processed and convenience foods, as well as the increasing use of specialty oils in the foodservice and bakery sectors. The growing awareness of health and nutrition has driven a shift toward plant-based, non-GMO, and trans-fat-free oils, fueling innovation among manufacturers. Additionally, technological advancements in oil extraction and refining, coupled with the expansion of biofuel production, are strengthening market growth. The presence of major industry players and strong supply chain networks in the U.S. and Canada further enhances North America's rapid market expansion.
The U.S. is the major leader in the North American fats and oils market, driven by its large-scale food processing industry and high consumption of edible oils across bakery, snacks, and packaged food segments. The country's focus on innovation, including specialty oils, plant-based alternatives, and healthier formulations, has further strengthened its market position. Additionally, the U.S. benefits from advanced refining technologies, robust supply chains, and the presence of leading global manufacturers, making it the dominant player in the region.
Asia-Pacific is seeing remarkable success in the fats and oils market, driven by rising consumption of processed foods and bakery products, as well as biodiesel production. Expanding urbanization, robust agricultural output, and supportive government policies for edible oil refining further strengthen the region's market position, while innovation in healthier oil formulations accelerates long-term market growth.
China leads the market in Asia-Pacific, driven by its massive food processing and restaurant industries. The country's growing population, coupled with increasing demand for convenience and packaged foods, fuels the consumption of edible oils. Moreover, government initiatives promoting soybean and palm oil processing, along with a shift toward healthier oil alternatives, further expand China's market presence and strengthen its production capabilities.
Japan's fats and oils market is expanding as consumers increasingly prefer high-quality, functional, and low-trans-fat products. The country's advanced food technology sector encourages innovation in plant-based and omega-enriched oils. Growing health awareness and government nutrition guidelines are guiding consumers toward premium edible oils, while the strong bakery and confectionery industries support steady domestic demand and innovation.
India's fats and oils market flourishes due to its large population, diverse culinary tastes, and increasing consumption of processed and ready-to-eat foods. Rising disposable incomes, quick urbanization, and reliance on palm and soybean oil imports strengthen the market. Moreover, government backing for domestic oilseed farming and expanding refining infrastructure boosts India's position as a key regional player.
Latin America offers significant opportunities for market growth due to rising demand for processed and convenience foods, as well as expanding food service and bakery sectors. The region's robust agricultural industry supports the production of palm, soybean, and sunflower oil. Additionally, rising health consciousness and investments in sustainable oil-processing technologies further drive market expansion. Brazil leads the Latin America fats and oils market due to its vast soybean and palm oil production, strong export capacity, advanced processing facilities, and growing demand from the food and biofuel industries.
The market in the Middle East and Africa is driven by increasing urbanization, rising disposable incomes, expanding food processing industries, and a growing consumer preference for healthier oils. Investments in refining infrastructure and import substitution strategies are also boosting regional market growth. The UAE holds a leading position in the Middle East and Africa fats and oils market, supported by its expanding foodservice and hospitality sectors. The rising demand for high-quality edible oils, especially for bakery, confectionery, and ready-to-eat foods, sustains market growth. Additionally, increasing health awareness and government initiatives promoting food innovation further strengthen the country's dominance.
Fats and Oils Market Value Chain Analysis
This step is all about getting the oilseeds, crops, or fats from animals while ensuring that the quality and the way of farming are both good and eco-friendly.
Key Players: Cargill, Wilmar International, Archer Daniels Midland (ADM)
This step transforms the raw materials into oils that are refined through extraction, refining, and stabilization, thus gaining flavor and prolonging shelf life.
Key players: Cargill, Wilmar International, Bunge
It performs chemical and sensory tests to ensure that the product is safe, nutritious, and up-to-date with the market standards before it goes on sale.
Key Players: SGS SA, Bureau Veritas, Intertek Group, Eurofins Scientific
It comes up with packaging that is strong, informative, and friendly to the environment, thus keeping the product fresh and at the same time strengthening the brand's recognition.
Key Players: Fuji Oil, Bunge, AAK AB, Berry Global
This stage operates systems that control the temperature and thus maintain the quality of the product during its transportation and storage.
Key Players: Americold Logistics, Lineage Logistics, Nichirei Corporation
This step plans and organizes the delivery of the product to retail outlets, wholesalers, and the food industry so that the product will always be available when needed.
Key Players: Cargill, Wilmar International, Bunge, and Unilever
This phase carries out advertising activities and sets price levels that will both attract consumers and reinforce the companys position on the market.
Key Players: Ajinomoto, Conagra Brands, Unilever, Cargill
It transforms the by-products of fats and oils into something environmentally friendly, such as biodiesel or animal feed, by using and processing them.
Key Players: Darling Ingredients, Neste Oyj, Argent Energy
Fats and Oils Market Companies
Produces and supplies a wide range of edible oils, fats, and bakery ingredients, serving both consumer and industrial food sectors.
Operates large-scale processing and trading of vegetable oils and oilseeds, supplying global food and industrial markets.
Manufactures, processes, and distributes oils and fats, focusing on both edible and specialty oils for food and bio-based industries.
A leading integrated agribusiness group, producing, refining, and distributing oils and fats worldwide.
Engages in palm oil cultivation, refining, and supply, contributing significantly to edible and industrial oil production.
Utilizes oils and fats as key ingredients in its consumer food and personal care products, influencing global demand patterns.
Produces specialty oils and fats for food applications, including culinary oils and processed food ingredients.
Supplies refined oils and fats to food manufacturers and distributors globally, with a strong focus on sustainable sourcing.
Recent Developments
- In June 2021, Cargill spread out plans to fabricate another USD 200 million palm petroleum treatment facility in Indonesia to speed up its endeavors to foster a reasonable palm store network and give checked sans deforestation items to clients.
- In May 2021, ADM wanted to fabricate its very first committed soybean squashing and processing plant in the US to fulfill the quickly developing need from food, feed, modern and biofuel clients, including makers of sustainable diesel.
- In December 2018, Richardson International procured Wesson Oil brand of Conagra Food Inc. which is a notorious eatable oil brand in the US. The item offering incorporates vegetable oils, canola oils, corn, and mixed oils which would assist Richardson with laying out serious areas of strength for an in the North American market.
- In July 2025, IO, an Estonian biotechnology firm, received 1 million in funding from the government-supported RUP program to advance sustainable, non-animal fats and oils for cosmetics and industrial uses.
https://en.ain.ua - In May 2025, the US Seed Oil Free Alliance created a product finder webpage for locating Seed Oil Free Certified products, restaurants, and wholesalers.
https://www.ofimagazine.com
Fats and Oils Market Segments Covered in the Report
By Type
- Vegetable Oils
- Palm Oil
- Soybean Oil
- Sunflower Oil
- Rapeseed Oil
- Olive Oil
- Other Oils
- Fats
- Butter & Margarine
- Lard
- Tallow & Grease
- Other Fats
By Application
- Food
- Bakery & Confectionary
- Bakery
- Confectionery
- Processed Food
- Snacks & Savory
- R.T.E foods/Convenience foods
- Sauces, spreads, and dressings
- Other foods (incl. meat products)
- Industrial
- Biodiesel
- Other Industrial
- Oleochemicals
- Animal feed
By Form
- Liquid
- Solid
By Source
- Vegetables
- Animals
By Geography
- North America
- Latin America
- Europe
- Asia-pacific
- Middle and East Africa
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