Fats and Oils Market

Fats and Oils Market Size:

The global fats and oils market size reached USD 241.1 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 336.3 Billion by 2033, exhibiting a growth rate (CAGR) of 3.38% during 2025-2033. The market demand is expanding rapidly, driven by the increasing health awareness, rising demand for processed and convenience foods, the growth of the cosmetic and personal care industry, heightened product applications in industrial and biofuel sectors, and the escalating population growth and urbanization.

Fats and Oils Market Analysis:

• Major Market Drivers: The increased consumption of processed and convenience foods, as well as the growing health consciousness among consumers, is boosting the fats and oils market growth. Furthermore, the rise of the cosmetics and personal care sectors, which extensively utilize oils in various products, is driving the expansion of this market.
• Key Market Trends: The growing popularity of natural and organic beauty products is driving the demand for plant-based oils such as argan and coconut oil. Furthermore, advances in biofuel production technology, which improve the utilization of vegetable oils in sustainable energy solutions, are encouraging the market expansion.
• Geographical Trends: The Asia Pacific region is dominating the fats and oils industry due to their high consumption in traditional diets, significant palm oil production, and a growing food processing industry. Other regions are also witnessing a surge in demand for healthier fats and oils as a result of the increasing health consciousness and dietary changes among consumers.
• Competitive Landscape: Some of the major market players in the fats and oils industry include Ajinomoto Co. Inc., Archer-Daniels-Midland Company, Associated British Foods plc, Bunge Limited, Cargill Incorporated, Conagra Brands Inc., Fuji Oil Holding Inc., Unilever, United Plantations Berhad, Wilmar International Limited., among many others.
• Challenges and Opportunities: The fats and oils market analysis indicate that the fluctuating raw material prices and environmental concerns related to large-scale oilseed cultivation are impeding the market growth. However, the development of innovative and health-focused oil products, as well as increasing market reach through digital platforms and strategic collaborations, are creating opportunities for expansion.

Fats and Oils Market Trends:

Growing Awareness of Health Benefits

The fats and oils market outlook highlights that the increasing consumer awareness of the health benefits associated with the consumption of specific types of fats and oils is boosting the expansion of the market. This awareness is fueled by extensive research and dissemination of information through various media channels, including health magazines, television programs, and online platforms. For instance, walnut oil is a healthy choice and a good source of omega-3 fatty acids, primarily alpha-linolenic acid. Research even shows that a diet that includes walnut oil may have heart-protective effects and help the body better deal with stress. Moreover, consumers are becoming more knowledgeable about the differences between saturated, unsaturated, and trans fats and their impacts on heart health, cholesterol levels, and overall well-being, leading to a preference for healthier alternatives, such as olive oil, avocado oil, and fish oil.

Rising Demand for Processed and Convenience Foods

The growing demand for processed and convenience foods is positively impacting the fats and oils market dynamics. In line with this, consumers are seeking quick and easy meal alternatives that fit into their busy schedules, resulting in an increase in the consumption of ready-to-eat (RTE) and packaged goods. As a result, the convenience foods market is expanding at a rate of 5.47% per year and is predicted to reach USD 782.7 Billion by 2032. Fats and oils are critical components in the formulation of these products, offering vital characteristics such as texture, flavor, and shelf stability. Furthermore, the expanding middle-class population with rising disposable income is a major contributor to this demand. For example, the per capita disposable income in India grew 8% in FY24 and 13.3% in the year 2023, thus increasing the consumption of processed foods.

Expansion of the Cosmetic and Personal Care Industry

The expansion of the cosmetic and personal care industry is another pivotal factor in increasing the fats and oils market value. The market for cosmetics is expected to reach USD 618.7 Billion by 2032, with an annual growth rate of 4.8%. Oils and fats are key ingredients in a wide range of cosmetic products, including skincare, haircare, and makeup formulations. Their emollient properties help moisturize, soften, and protect the skin, which is highly valuable in the formulation of lotions, creams, and ointments. Additionally, oils such as argan oil, coconut oil, and shea butter are renowned for their nourishing and hydrating benefits, which are essential for maintaining healthy skin and hair.

Fats and Oils Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2025-2033. Our report has categorized the market based on type, application, source, and sales channel.

Breakup by Type:

• Oil Type
  • Palm Oil
  • Soybean Oil
  • Rapeseed Oil
  • Sunflower Oil
  • Olive Oil
  • Others
• Fat Type
  • Butter
  • Shortenings and Margarine
  • Lard
  • Tallow
  • Others
     

Oil type accounts for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the type. This includes oil type (palm, soybean, rapeseed, sunflower, olive, and other oils) and fat type (butter, shortenings and margarine, lard, tallow, and others). According to the report, oil type represented the largest segment.

According to the fats and oils market trends and outlook, the oil type represented the largest segment, driven by its extensive use in food and non-food applications. Edible oils such as palm, soybean, sunflower, and olive oil dominate this segment due to their widespread use in cooking, baking, and food processing. Additionally, the growing awareness of health benefits associated with specific oils, such as olive and avocado oils, is propelling the market growth. Furthermore, the widespread demand for non-edible oils in industries like cosmetics, personal care, and biofuels is expanding the fats and oils market size.

Breakup by Application:

• Food Applications
• Industrial Applications
   

Food applications hold the largest share of the industry

A detailed breakup and analysis of the market based on the application have also been provided in the report. This includes food applications and industrial applications. According to the report, food applications accounted for the largest market share.

The fats and oil market forecast and overview suggest that food applications represented the largest market share. This dominance is attributed to the essential role that they play in food preparation, cooking, and processing. Fats and oils are integral in culinary use for frying, baking, sautéing, and as salad dressings for enhancing the flavor, texture, and nutritional value of foods. Additionally, the growing reliance of the processed food industry on oils such as palm, soybean, sunflower, and canola oil for the production of snacks, baked goods, confectionery, and ready-to-eat (RTE) meals is fueling the market growth.

Breakup by Source:

• Vegetable
• Animal
   

Vegetable represents the leading market segment 

The report has provided a detailed breakup and analysis of the market based on the source. This includes vegetable and animal. According to the report, vegetable represented the largest segment.

Vegetable oil accounted for the largest fats and oils market share, driven by its widespread availability and diverse applications. These oils are derived from various plant sources, such as soybeans, palm fruit, sunflowers, and canola, and are highly valued for their versatility in culinary, industrial, and cosmetic applications. Along with this this, the extensive use of vegetable oils in biofuels, as they serve as sustainable and biodegradable alternatives to petroleum-based products, is boosting the fats and oil demand in this sector.

Breakup by Sales Channel:

• Direct Sales
• Supermarkets and Hypermarkets
• Retail Stores
• Online Stores
• Others
   

A detailed breakup and analysis of the market based on the sales channel have also been provided in the report. This includes direct sales, supermarkets and hypermarkets, retail stores, online stores, and others.

Direct sales channel involves selling products directly from manufacturers to consumers or businesses without intermediaries. It is prevalent in bulk and wholesale transactions, where large quantities of fats and oils are supplied to food manufacturers, restaurants, and industrial users. Moreover, direct sales offer manufacturers greater control over pricing, distribution, and customer relationships, allowing them to tailor their offerings to specific client needs and negotiate favorable terms.

Supermarkets and hypermarkets cater to a broad consumer base with diverse product offerings. These large retail establishments provide consumers with the convenience of one-stop shopping, where they can access a wide variety of edible oils, including popular options like olive oil, sunflower oil, and canola oil, as well as specialty and health-focused oils. Moreover, the visibility and accessibility of these products in supermarkets and hypermarkets, combined with promotional activities and discounts, is driving the fats and oil market growth.

Retail stores, including grocery stores, health food stores, and specialty food shops, play a crucial role in the distribution of fats and oils. These outlets offer a more personalized shopping experience as they provide a curated selection of high-quality and specialty oils that cater to health-conscious and gourmet consumers. Moreover, retail stores are essential for reaching local markets and providing access to niche products, such as organic and artisanal oils.

As per the fats and oils market segmentation and research report, the online sales channel is driven by the increasing popularity of e-commerce and the convenience it offers. Online stores provide consumers with the ability to browse a vast array of products, compare prices, and read reviews from the comfort of their homes. Moreover, this channel is particularly attractive to tech-enthusiast consumers and those seeking specialty oils that may not be readily available in physical stores.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

Asia Pacific leads the market, accounting for the largest fats and oils market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Asia Pacific represents the largest regional market for fats and oils.

The Asia Pacific region is anticipated to see a surge in fats and oils market revenue, driven by its vast population, rapid urbanization, and significant economic growth. Moreover, the growing demand for a wide variety of oils such as palm, soybean, and coconut oil due to the region’s varied culinary practices which rely on cooking oils, is favoring the market growth. Additionally, the increasing disposable income, changing dietary habits, and growing health awareness among consumers promoting consumers to adopt healthier oil options like olive and avocado oils are boosting the market growth.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the major market players in the fats and oils industry include:

• Ajinomoto Co. Inc.
• Archer-Daniels-Midland Company
• Associated British Foods plc
• Bunge Limited
• Cargill Incorporated
• Conagra Brands Inc.
• Fuji Oil Holding Inc.
• Unilever
• United Plantations Berhad
• Wilmar International Limited

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

The major fats and oils companies are engaged in strategies to strengthen their market presence and meet evolving consumer demands. They are investing in research and development (R&D) to innovate healthier and more sustainable oil products. These initiatives include developing trans-fat-free and non-genetically modified organism (GMO) options, as well as enhancing the nutritional profiles of their offerings. Besides this, leading players are forming strategic mergers, acquisitions, and partnerships to expand their global footprint and diversify their product portfolios. Additionally, they are leveraging digital technologies and e-commerce platforms to reach a broader consumer base and streamline their supply chains.

Fats and Oils Market News:

• In March 2024, Archer-Daniels-Midland Company (ADM) announced that it is offering fully verified, segregated, traceable soybean meal and oil to meet the needs of European customers as EU deforestation regulations come into effect on December 30. In line with this, the company launched a fully traceable North American soybean program, which enrolled almost 5,300 farmers encompassing more than 4.6 million acres across 15 states for the 2024 season. The program utilises cutting-edge technology, such as the FBN Gradable digital platform and ADM's origination and transportation capabilities to verify, trace and segregate participating beans from farms to their final destination.
• In October 2023, Bunge Limited entered into a definitive asset purchase agreement with Fuji Oil New Orleans, LLC (Fuji Oil) to acquire its newly constructed, port-based refinery located in International-Matex Tank Terminals’ (IMTT) Avondale Terminal, Louisiana. The state-of-the-art facility has multi-oil refining capabilities and will enable Bunge to expand its existing customer base.
   

Fats and Oils Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, fats and oils market forecast, and dynamics of the market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global fats and oils market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the fats and oils industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.