USA Edible Oil Market Outlook to 2028

USA Edible Oil Market Overview

The USA edible oil market was valued at USD 7.90 billion in 2023, driven by increasing consumer awareness of health benefits associated with oils like olive, avocado, and canola. The market has grown significantly due to the rise of plant-based diets and a greater emphasis on heart health. This trend is supported by the increasing popularity of oils with unsaturated fats, and the growth of the biofuel industry where oils such as soybean and canola are utilized.

Major players in the USA edible oil market include Cargill, Archer Daniels Midland (ADM), Bunge Limited, Conagra Brands, and Riceland Foods. These companies have extensive supply chains, invest in innovative technologies like cold-press extraction, and dominate both the foodservice and retail markets with a variety of edible oil offerings, including non- GMO and organic products.

New York, Los Angeles, and Chicago are the dominant cities in the USA edible oil market, primarily due to their large urban populations and a thriving foodservice industry. These cities host major food manufacturing hubs and restaurants, driving the demand for edible oils. New York, in particular, has a high concentration of health-conscious consumers, propelling the demand for premium and organic oils. Los Angeles also benefits from a vibrant vegan and plant-based food scene, making it a key market for niche edible oils.

In November 2022, Cargill Incorporated (US) and Owensboro Grain Company, a fifth-generation family-owned soybean processing facility and refinery, signed a formal agreement in which Cargill incorporated Owensboro Grain Company (OGC) into its North American agricultural supply chain business. This move helped Cargill scale its soybean oil business in the U.S. market

USA Edible Oil Market Segmentation

By Oil Type: The USA edible oil market is segmented by oil type into vegetable oil, olive oil, sunflower oil, and specialty oils such as avocado and coconut oil. In 2023, vegetable oil dominated the market due to its affordability and widespread use in both households and the foodservice industry. Olive oil and specialty oils are seeing significant growth in urban areas, driven by increasing consumer preference for premium and health-focused products.

By End- User: The USA edible oil market is segmented by end-users into retail (households), foodservice (restaurants, cafes, and quick-service outlets), and industrial (food processing companies). In 2023, the retail sector dominated, driven by increased cooking at home and a focus on healthier cooking oils. The foodservice sector, particularly in fast-casual dining, also saw growth as more consumers sought out health-conscious meal options.

By Region: The USA edible oil market is geographically segmented into North, South, East, and West. In 2023, the West region led the market, particularly driven by health-conscious consumers in California and other western states. The demand for organic and non- GMO oils is high in this region, where plant-based diets and sustainability initiatives are particularly popular. The North region follows closely due to strong demand in metropolitan areas such as New York.

USA Edible Oil Market Competitive Landscape

Company Name

Established Year

Headquarters

Cargill

1865

Minnesota, USA

Archer Daniels Midland

1902

Illinois, USA

Bunge Limited

1818

Missouri, USA

Conagra Brands

1919

Illinois, USA

Riceland Foods

1921

Arkansas, USA

Bunge Limited: Bunge Limited is actively investing in sustainable practices and products in 2023 in response to the growing consumer demand for environmentally friendly options. This includes the development of plant-based specialty oils and fats that cater to evolving dietary needs and trends.

Riceland Foods: In December 2021, Riceland Foods announced a planned $13.2 million expansion to their edible oil refinery located in Stuttgart, Arkansas. This expansion project aims to enhance Riceland's capabilities in producing a wide range of edible oils, including soybean oil, rice bran oil, peanut oil, cottonseed oil, and canola oil

USA Edible Oil Industry Analysis

USA Edible Oil Market Growth Drivers

Rising Preference for Organic and Non- GMO Oils: Consumers are increasingly opting for organic and non- GMO oils due to their health benefits and food safety concerns. This shift towards healthier and sustainably produced oils is significantly contributing to market growth, as consumers seek products that align with their health-conscious lifestyles

Culinary Experimentation: The introduction of various foreign meals in the U.S. is enhancing the market with rising demand for certain oils offering distinct flavors, such as pumpkin seed oil and canola oil.

Sustainability and Eco- Friendly Packaging: There is a growing consumer preference for sustainable and eco-friendly packaging solutions for edible oils. As concerns about climate change and pollution rise, consumers are increasingly choosing products that use recyclable, biodegradable, or compostable materials

USA Edible Oil Market Challenges

Volatile Raw Material Prices: The prices of raw materials like soybeans and sunflower seeds have fluctuated significantly due to global trade disruptions and climate-related challenges. In 2023, the USDA reported a 10% increase in the cost of soybean oil due to supply chain issues. This volatility poses a challenge for oil manufacturers trying to maintain consistent pricing.

Environmental Impact of Palm Oil: While palm oil makes up a smaller portion of the USA market, concerns over its environmental impact have led to declining demand. The WWFs 2023 report highlighted that deforestation caused by palm oil plantations has triggered boycotts and decreased its use in consumer products, forcing some manufacturers to reformulate their products with alternatives like sunflower or canola oil.

USA Edible Oil Market Future Outlook

The USA edible oil market is projected to witness continued growth over the next five years, driven by health-conscious consumers, increasing biofuel production, and product innovations. By 2028, the market is expected to see significant advances in production technologies, including cold-press extraction methods.

Future Marker Trends

Rise in Demand for Non- GMO and Organic Oils: Over the next five years, the demand for non- GMO and organic oils is expected to rise sharply as consumers become more aware of the health and environmental benefits of these products. Producers will increasingly focus on certification and labeling to meet this growing consumer demand, particularly in urban areas.

Increased Focus on Sustainable Packaging: As sustainability becomes a priority for both consumers and manufacturers, the edible oil industry will adopt eco-friendly packaging solutions. By 2028, more companies are expected to switch to biodegradable or recyclable packaging, driven by both regulatory pressures and consumer preferences.
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