Edible Oils & Fats Market Size - By Type (Vegetable Oils, Animal Fats, Specialty Oils), Application (Cooking and Frying Oils, Salad Oils and Dressings, Baking Fats and Shortenings, Industrial Uses), Source, Distribution Channels & Global Forecast, 2024 – 2032

Edible Oils & Fats Market Size

Edible Oils & Fats Market size was valued at USD 506.1 billion in 2022 and is estimated to observe around 6.5% CAGR from 2024 to 2032, due to the growing awareness and emphasis on health-conscious consumer choices. Olive oil and oils with fewer saturated fats are becoming more popular among customers who are becoming more health conscious.
 

In order to meet the changing demands of health-conscious consumers, the industry has been forced to innovate and develop healthier oil and fat products, including those with reduced trans fats and better omega-3 fatty acid profiles. This shift in consumer preferences is being driven by concerns about heart health and general well-being.
 

Edible oils & fats come from a variety of sources, including plants, animals, fruits, seeds, and nuts. They are used extensively in both modern and traditional cuisines across the world. They are essential elements of the global food business since they are also used in baking, food processing, frying, and as ingredients in a range of food items.
 

The edible oils & fats market's revenue growth is hampered by the fluctuation in raw material prices. Changes in the cost of raw commodities like palm fruits, soybeans, and coconuts can affect businesses' production costs and profit margins. Inability to predict costs often makes it difficult to set competitive prices for finished goods, which might slow market expansion as companies try to manage price changes while preserving product quality and consumer affordability.
 

COVID-19 Impact

The pandemic of COVID-19 had a huge influence on the edible oils & fats market. While demand for edible oils increased owing to increased home cooking during lockdowns, supply chain interruptions, labor constraints, and reduced restaurant operations all had an impact on production and delivery. Price changes, logistical challenges and alterations in customer preferences all have an impact on market dynamics.
 

Edible Oils & Fats Market Trends

The growing demand from consumers for healthier and more sustainable solutions is a prominent trend in the edible oils & fats industry. This has resulted in an increase in the production and use of plant-based oils such as avocado oil, olive oil, and coconut oil, as well as an increased interest in specialty oils with alleged health advantages. Furthermore, there is a growing focus on sustainable sourcing and manufacturing processes, with a move toward ecologically friendly and ethically obtained oils being pushed by consumer awareness and legislative actions aimed at decreasing the industry's environmental effect.
 

Edible Oils & Fats Market Analysis

Based on source, The natural source segment reached USD 391.8 billion revenue in 2022. Increased consumer awareness of health and wellness, as well as a desire for minimally processed foods, are boosting demand for edible oils and fats sourced from natural sources. Consumers are increasingly preferring natural oils and fats produced from plants and animals over synthetic or highly processed alternatives.

Based on type, the vegetable oils segment accounted for 83.67% of the edible oils & fats market in 2022. Population growth, changing dietary preferences, health concern, and the rising food processing sector are all driving demand for edible oils and fats, particularly vegetable oils. Vegetable oils, expressed for their flexibility and reduced saturated fat content compared to animal fats, have witnessed a continuous growth in demand, both for household cooking and as components in various food items, as worldwide populations grow, and consumers turn toward healthier cooking choices.

Based on application, the edible oils & fats market from cooking and frying oils segment is anticipated to grow at 7% CAGR through 2032. The need for convenience foods among consumers, as well as the rise of the foodservice industry, contribute to the consistent demand for these oils. Furthermore, the proliferation of fast-food chains and restaurants, as well as the diverse usage of cooking and frying oils in numerous cuisines, fuels the market's expansion

Based on distribution channel, the edible oils & fats market is segmented as modern trade, traditional trade, and online retail. Modern supermarkets and hypermarkets' convenience of one-stop shopping, the availability of a wide variety of cooking oils and fats from different brands and changing consumer preferences for healthier and more varied cooking options are just a few of the factors that are fuelling the demand for edible oils and fats through modern trade channels.

Asia Pacific edible oils & fats market size dominated around USD 139.9 billion in 2022, driven by many key reasons, including urbanization, population expansion, changing dietary choices, and an expanding food sector. Convenience foods and cooking oils are becoming more necessary, especially in emerging economies, as global population growth and urbanization increase. The need for a variety of edible oils is also being driven by changes in dietary choices, such as a growing preference for healthier oils and fats as well as a rise in the consumption of fried and processed meals.
 

Edible Oils & Fats Market Share

Some of the major companies operating in the edible oils & fats market are:

• Cargill Inc.
• Archer Daniels Midland Company (ADM)
• Wilmar International Limited
• Bunge Limited
• IOI Corporation Berhad
• ACH Food Companies, Inc
• Louis Dreyfus Company B.V
• Conagra Brands, Inc
• GrainCorp
• Fuji Oil Co., Ltd
• The Nisshin Oillio Group, Ltd
• Apetit Kasviöljy Oy
• Kaneka Corporation
• Avena Foods Limited
• Agropur Cooperative

These companies focus on strategic partnerships, new product launch & commercialization for market expansion. Furthermore, these companies are heavily investing in research that allows them to introduce innovative products and garner maximum revenue in the market.
 

Cargill is a major player in the global edible oils & fats industry. Cargill supplies edible oils and fats to a wide range of customers, including retailers, foodservice operators, food processors, and industrial users. The company sources its raw materials from over 60 different countries and has a global network of more than 100 edible oil refineries and processing facilities.
 

Edible Oils & Fats Industry News:

• In October 2022, Bunge and Olleco, the ABP Food Group's renewables subsidiary, decided to establish a joint venture that would manage the entire life cycle of edible oils.
   

This edible oils & fats market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in USD Billion & Kilo tons from 2018 to 2032, for the following segments:

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Market, By Source

• Natural
• Synthetic

Market, By Type

• Vegetable Oils
• Animal Fats
• Specialty Oils
• Others

Market, By Application

• Cooking and Frying Oils
• Salad Oils and Dressings
• Baking Fats and Shortenings
• Industrial Uses

Market, By Distribution Channel

• Modern trade
• Traditional trade
• Online Retail

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Spain
  • Italy
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
  • Indonesia
  • Malaysia 
• Latin America
  • Brazil
  • Mexico
  • Argentina 
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE