Fats & Oils Market by Type (Vegetable Oils and Fats), Source (Vegetables and Animals), Form (Liquid and Solid), Application (Food and Industrial), and Region (North America, Europe, Asia Pacific, South America, Rest of the World) - Global Forecast to 2029

Fats & Oils Market by Type (Vegetable Oils and Fats), Source (Vegetables and Animals), Form (Liquid and Solid), Application (Food and Industrial), and Region (North America, Europe, Asia Pacific, South America, Rest of the World) - Global Forecast to 2029

The global fats & oils market is estimated to be valued at USD 271.8 billion in 2024 and is projected to reach USD 323.7 billion by 2029, at a CAGR of 3.6%.

The fats and oils market is today hedged by new scientific discoveries and health benefits being unlocked for particular oils. Trends in diets have been remade, and consumer preferences have been altered. For example, a large study published by JAMA Network Open in February 2024 reported that the intake of seven or more grams of olive oil per day was associated with a 28% reduction in death rates from dementia in American adults. This underlines the increased sensitivity to dietary practices as an important factor in containing age-related cognitive decline.

It's not only the taste/culinary aspect; some consumers prefer their oil for its potential health effects. Manufacturers are thus catching up to the demands, changing consumer preferences with regard to the kinds of oils used in food production to match and align with health-orientated choices. Accordingly, with scientific validation of its benefits, the marketplace for healthier oils grows in demand, restructuring the landscape of the fats and oils industry.

“Soybean oil among vegetable oil types emerges as the fastest-growing segment during the forecast period.”

Soybean oil has emerged as the fastest-growing segment among vegetable oils in the global fats and oils market, particularly driven by its diverse applications across various industries. Soybean oil consumption in the United States indeed mirrors its pivotal role in some of the important sectors. For example, in the food industry, soybean oil has large uses in margarine and salad or cooking oils, where MY2022/23 consumption figures stand at 114.27 thousand metric tons and 3.60 million metric tons respectively, according to the United Soybean Board. This makes it an important all-around ingredient for cooking and general food preparation.

Apart from the food sector, soybean oil has significant applications in various other industrial sectors. For example, in the case of biofuel production, it is very commonly used and has a large contribution to environmental sustainability efforts; the consumption figures reach 5.67 million MT for MY 2022/23. Also finding a place in soybean oil are lubricants, working fluids, paints, coatings, inks polyols, plastics, and a wide array of solvents and specialty chemicals, all running into good quantities of consumption. That it has had the ability to grow at these rates underlines soybean oil's versatility and increasing adaptability in these multiple industries, driven by its propitious properties and fast-growing recognition worldwide as a viable and sustainable alternative to food and industrial applications. That growth in soybean oil consumption underlines more than any other statistic its key role in determining the future character of the global fats and oils market.

“Food application is the dominant market in the fats & oils market.”

Apart from flavor and texture, fats and oils in cookery, baking, and preservation of foods generally play dual roles with added functions in the line of nutrition and shelf-life extension. Their domain of applicability within the food industry is very wide, covering frying, sautéing, emulsification, and improvement in the texture of bakery and confectionary products. For example, soybean oil, sunflower oil, and palm oil have very high smoke points and are found in continuous use at high temperatures in frying. This makes them perfect for the production of crispy textures with fried foods while maintaining quality over successive cycles of frying, which is important in commercial food service operations.

They are core ingredients in food processing and used as carriers of fat-soluble vitamins, antioxidants, and flavors. Further, they provide a base for spreads, sauces, dressings, and processed meat applications through their effects on mouthfeel, stability, and general sensory appeal in the formulation of such products. Success in mayonnaise, for example, relies on oils that provide both the creamy texture and emulsification function to ensure consistent quality and taste. This is associated with a very broad span of uses for culinary techniques, food processing, and product formulation in underpinning their place in the regard of consumer expectations for taste, texture, and nutritional value across a broad span of foodstuffs. Changing consumer preferences in terms of health and sustainability mean that innovation in the fats and oils market is not at an end, as it introduces new formulations and sources that can help meet consumer demand while delivering the core functionality in food applications.

The break-up of the profile of primary participants in the fats & oils market:

By Company Type: Tier 1 – 20%, Tier 2 – 50%, and Tier 3 – 30%

By Designation: C Level – 31%, Director Level – 24%, Others - 45%

By Region: North America – 24%, Europe – 29%, Asia Pacific – 32%, South America – 12% and Rest of the World – 3%

Prominent companies include ADM (US), Wilmar International Ltd (Singapore), Cargill, Incorporated (US), Bunge (US), Kaula Lumpur Kepong Berhad (Malaysia), Olam Agri Holdings Pte Ltd (India), Unilever (UK), Mewah Group (Singapore), Associated British Foods plc (UK), United Plantations Berhad (Malaysia), Ajinomoto Co., Inc. (Japan), Fuji Oil Co., Ltd. (Japan), Oleo-Fats (Philippines), Borges Agricultural and Industrial Edible Oils, S.A.U. (Spain), K S Oils Limited (India), CSM Ingredients (US), SD Guthrie International Zwijndrecht Refinery B.V. (Netherlands), Musim Mas Group (Singapore), Richardson International Limited (Canada), and AAK AB (UK) among others.

Research Coverage:

This research report categorizes the fats & oils market by type (Vegetable Oils, and Fats), Source (Vegetables, and Animals), Form (Liquid, and Solid), Application (Food and Industrial), and Region (North America, Europe, Asia Pacific, South America, and Rest of the World).

The report covers information about the key factors, such as drivers, restraints, opportunities, and challenges impacting the growth of the fats & oils market. It also provides a detailed analysis of the major players in the market including their business overview, products offered; key strategies; partnerships, new product launches, expansions, and acquisitions. Competitive benchmarking of upcoming startups in the fats & oils market is covered in this report.

Reasons to buy this report:

The report will help the market leaders/new entrants in this market with information on the closest approximations of the revenue numbers for the overall fats & oils market and the subsegments. This report will help stakeholders understand the competitive landscape and gain more insights to position their businesses better and plan suitable go-to-market strategies. The report also helps stakeholders understand the pulse of the market and provides them with information on key market drivers, restraints, challenges, and opportunities.

The report provides insights on the following pointers:

Analysis of key drivers (Increasing demand for food boosting global consumption of vegetable oils, Increased consumption of bakery & confectionery and processed food products, and Growing demand for biodiesel), restraints (Labeling of fat & oil products and the safety issues), opportunities (Emerging application of fats and oils as substitutes of trans-fats, and Growth in microencapsulation of fats and oils), and challenges (High capital investments in extraction, and High dependence on imports, leading to high costs of end-products) influencing the growth of the fats & oils market.

Product Development/Innovation: Detailed insights on upcoming technologies, research & development activities, and new product launches in the fats & oils market.

Market Development: Comprehensive information about lucrative markets – the report analyses the fats & oils market across varied regions.

Market Diversification: Exhaustive information about new products, untapped geographies, recent developments, and investments in the fats & oils market.

Competitive Assessment: In-depth assessment of market shares, growth strategies, and service offerings of leading players such as ADM (US), Wilmar International Ltd (Singapore), Cargill, Incorporated (US), Bunge (US), Kaula Lumpur Kepong Berhad (Malaysia), Olam Agri Holdings Pte Ltd (India), Manildra Group (Australia), Mewah Group (Singapore), Associated British Foods plc (UK), United Plantations Berhad (Malaysia), Ajinomoto Co., Inc. (Japan), Fuji Oil Co., Ltd. (Japan), Oleo-Fats (Philippines), Borges Agricultural and Industrial Edible Oils, S.A.U. (Spain), K S Oils Limited (India), CSM Ingredients (US), SD Guthrie International Zwijndrecht Refinery B.V. (Netherlands), Musim Mas Group (Singapore), Richardson International Limited (Canada), and AAK AB (Sweden), among others in the fats & oils market strategies. The report also helps stakeholders understand the fats & oils market and provides them with information on key market drivers, restraints, challenges, and opportunities.