Global Fats & Oils Market Growth, Share, Size, Trends and Forecast (2025 - 2031)

• In June 2021, Cargill announced a USD 200 million investment in Indonesia for the construction of a new palm oil refinery. This initiative aims to enhance their sustainable palm supply chain and offer customers verified deforestation-free products.

• In May 2021, ADM unveiled plans to establish its inaugural soybean crushing and refining facility in the United States. This facility is intended to cater to the rising demand from various sectors including food, feed, industrial applications, and biofuels, including renewable diesel producers.

The Global Fats & Oils Market exhibits diverse regional dynamics, driven by varying consumer preferences, economic conditions, and regulatory frameworks. North America and Europe are significant markets, primarily due to high consumption rates of processed foods and a well-established foodservice industry. In North America, the focus is on healthier alternatives and sustainable sourcing, leading to a rise in demand for plant-based oils and organic fats. Europe follows suit with an increasing preference for non-GMO and eco-friendly products. Conversely, the Asia-Pacific region is experiencing robust growth, fueled by rising disposable incomes, urbanization, and an expanding food and beverage sector. Emerging economies like India and China are becoming key players, driven by a growing middle class and increasing consumption of both traditional and innovative fat and oil products.

The fats and oils market is segmented into several product types, including vegetable oils, animal fats, and specialty fats. Vegetable oils, such as palm, soybean, and canola oil, dominate the market due to their versatility and affordability. Palm oil, in particular, is widely used in food processing and as a cooking oil. Animal fats, including lard and tallow, are less common but still relevant, especially in traditional cuisines and certain industrial applications. Specialty fats, such as margarine and shortening, cater to specific culinary needs and dietary preferences, offering functionalities like improved texture and extended shelf life for baked goods and confectionery products. The growing demand for healthier and functional fats is steering innovation in this segment, with a rising interest in oils rich in omega-3 fatty acids and reduced trans fat content.

In terms of application, the fats and oils market is categorized into food and beverages, animal feed, and industrial applications. The food and beverage industry is the largest segment, where fats and oils are essential for cooking, baking, and as ingredients in processed foods. Within this segment, there is a noticeable shift towards healthier options such as olive oil and coconut oil, driven by increasing consumer health awareness. The animal feed sector uses fats and oils to enhance the nutritional value of feed, which is critical for livestock and poultry production. Industrial applications include the use of fats and oils in manufacturing personal care products, biodiesel, and lubricants. The industrial segment is expanding due to growing interest in sustainable and eco-friendly alternatives, such as bio-based lubricants and renewable energy sources.

Consumer trends are shaping the future of the fats and oils market, with a growing emphasis on health and sustainability. There is an increasing demand for products that offer health benefits, such as those low in saturated fats and high in unsaturated fats. Additionally, consumers are becoming more conscious of the environmental impact of their food choices, leading to a rise in demand for sustainably sourced and eco-friendly fats and oils. Innovations in product development, such as the introduction of plant-based and non-GMO oils, are expected to drive market growth. The market outlook suggests continued expansion driven by these trends, with a focus on meeting evolving consumer preferences and addressing global challenges related to health and sustainability.

Global Fats & Oils Segment Analysis

In this report, the Global Fats & Oils Market has been segmented by Application, Form, Type, Source and Geography.

Global Fats & Oils Market, Segmentation by Application

The Global Fats & Oils Market has been segmented by Application into Food uses and Industrial uses.

In the Global Fats & Oils Market, the food uses segment represents the largest share, driven by the widespread incorporation of fats and oils into a variety of culinary applications. This segment includes the use of fats and oils in cooking, baking, frying, and as ingredients in processed food products. Common types of fats and oils used in food applications include vegetable oils (such as soybean, canola, and palm oil), animal fats, and specialty oils (like olive and coconut oil). The growing trend towards health-conscious eating has led to increased demand for oils with favorable nutritional profiles, such as those high in unsaturated fats and low in trans fats. Additionally, innovations in food processing and the development of new oil blends aimed at enhancing flavor and texture contribute to the growth of this segment.

The industrial uses segment of the Global Fats & Oils Market covers a diverse range of applications beyond the food sector. Fats and oils in this category are utilized in the production of biofuels, lubricants, surfactants, and personal care products. Biofuels, particularly biodiesel, represent a significant portion of this segment as industries and governments seek sustainable energy alternatives. Industrial oils and fats are also crucial in the manufacturing of soaps, detergents, and other cleaning products due to their emulsifying and conditioning properties. The expanding focus on green and eco-friendly industrial solutions, along with advancements in chemical engineering, are driving innovation and growth within this segment.

Global Fats & Oils Market, Segmentation by Form

The Global Fats & Oils Market has been segmented by Form into Solid and Liquid.

Solid fats and oils are characterized by their firm consistency at room temperature. They include products like margarine, butter, lard, and shortening. These fats are commonly used in baking, cooking, and as a base for various processed foods. The demand for solid fats is driven by their functional properties in food preparation, such as enhancing texture and extending shelf life. Additionally, solid fats are essential in the production of confectionery, snacks, and pastries, where their physical attributes contribute to desirable food qualities.

Liquid fats and oils are fluid at room temperature and include vegetable oils, olive oil, and fish oil. These oils are versatile ingredients used in cooking, frying, and salad dressings. They are also key components in industrial applications such as biodiesel production, lubricants, and personal care products. The popularity of liquid fats and oils stems from their health benefits, such as being rich in unsaturated fats and essential fatty acids. The increasing consumer preference for healthier cooking options has driven the demand for liquid fats and oils.

Global Fats & Oils Market, Segmentation by Type

The Global Fats & Oils Market has been segmented by Type into Oil type and Fat type.

This segment includes a wide range of edible and non-edible oils used in various applications. Edible oils, such as vegetable oils, olive oils, and canola oils, are commonly used in food preparation and cooking due to their nutritional benefits and flavor-enhancing properties. Non-edible oils, including industrial oils like lubricants and biofuels, are used in manufacturing processes and as energy sources. The demand for different oil types is influenced by factors such as health trends, technological advancements in oil extraction, and regulatory changes related to food safety and environmental sustainability.

The fat type segment encompasses various fats used primarily in food products, cosmetics, and pharmaceuticals. This category includes saturated fats, unsaturated fats, and trans fats. Saturated fats, found in animal products and some plant sources, are used in food items like baked goods and processed snacks. Unsaturated fats, including monounsaturated and polyunsaturated fats, are considered healthier options and are prevalent in products like margarine and salad dressings. The fat type market is driven by health-conscious consumer trends, innovations in fat alternatives, and evolving regulations regarding fat content in food products.

Global Fats & Oils Market, Segmentation by Source

The Global Fats & Oils Market has been segmented by Source into Vegetable and Animal.

Vegetable fats and oils dominate the global market due to their wide availability and versatile applications. This category includes oils extracted from plants, such as soybean oil, palm oil, canola oil, sunflower oil, and olive oil. Vegetable oils are preferred for their health benefits compared to animal-based products. They are rich in unsaturated fatty acids, which contribute to cardiovascular health and are often used as alternatives to saturated fats. The demand for vegetable oils is driven by increasing health awareness and a rising trend towards plant-based diets. Moreover, the expansion of the food and beverage sector and cosmetics industry also propels the growth of vegetable-based fats and oils.

Animal fats and oils represent another significant segment of the fats and oils market. These fats are derived from animal sources such as poultry, beef, and pork. Common examples include lard, tallow, and fish oil. Animal fats are valued for their flavor-enhancing properties and are traditionally used in cooking and baking. Despite a growing preference for vegetable oils, animal fats continue to be important in various applications, including food production, pharmaceuticals, and animal feed. The market for animal fats is supported by specific culinary traditions and the use of animal fats in industrial applications where specific textures and flavors are desired.

Global Fats & Oils Market, Segmentation by Geography

In this report, the Global Fats & Oils Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa and Latin America.

Global Fats & Oils Market Share (%), by Geographical Region, 2024

In North America, the Fats & Oils Market is characterized by a significant demand for both edible and industrial fats and oils. The United States and Canada are the major contributors to the market in this region, driven by a high consumption of processed foods and a growing awareness of healthy eating habits. The market in North America is also influenced by trends towards non-GMO and organic products, as consumers increasingly seek healthier and sustainable food options. The presence of well-established food processing industries and a strong retail sector further bolster market growth. However, regulatory frameworks and increasing health consciousness among consumers are shaping the demand for healthier fats and oils alternatives.

Europe represents a diverse market for fats and oils, with variations in demand across different countries. The European market is notable for its emphasis on high-quality and specialty oils, including organic and premium products. Key markets in this region include Germany, France, the United Kingdom, and Italy, where there is a significant focus on healthy eating trends and innovative food products. The European Union's stringent regulations on food safety and labeling also play a crucial role in shaping market dynamics. Additionally, there is a growing trend towards plant-based oils and fats, driven by increasing consumer preference for vegetarian and vegan diets.

The Asia Pacific region is one of the fastest-growing markets for fats and oils, characterized by a large and diverse consumer base. Countries such as China, India, Japan, and South Korea are the primary contributors to the market's growth in this region. Rapid urbanization, increasing disposable incomes, and a growing population are driving the demand for processed foods and convenience products. Additionally, the rising trend of health and wellness is influencing consumer preferences towards healthier oil options. The region's market is also supported by a robust food manufacturing sector and expanding retail channels, which contribute to the widespread availability of various fats and oils products.

In the Middle East and Africa, the Fats & Oils Market is shaped by regional dietary preferences and economic factors. The market is driven by both traditional cooking oils, such as olive and palm oil, and a growing demand for new and innovative products. In the Middle East, there is a strong preference for premium oils, while in Africa, there is a significant demand for staple oils like palm and sunflower oil. The market in this region is also influenced by factors such as economic development, increasing urbanization, and a rising middle class that is driving changes in dietary habits and food consumption patterns.

Latin America is a key market for fats and oils, with Brazil and Argentina being major contributors to the region's growth. The market is driven by high consumption of cooking oils and fats in both household and foodservice sectors. The region's market is characterized by a mix of traditional and modern food processing practices, with a notable trend towards healthier and more sustainable product options. Increasing consumer awareness of health issues and environmental concerns is shaping the market dynamics. Additionally, the expansion of the food and beverage industry and rising economic conditions contribute to the growth of the fats and oils market in Latin America.

This report provides an in depth analysis of various factors that impact the dynamics of Global Fats & Oils Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.

Drivers

• Increasing Health Awareness
• Growing Food Industry Demand
• Rising Disposable Income

• Expansion of Food Services: The global fats and oils market is experiencing significant growth due to the expansion of the food services industry. This sector includes a wide range of establishments such as restaurants, fast food chains, cafes, and catering services, which are major consumers of fats and oils. As the demand for convenient, ready-to-eat meals increases, food service providers are seeking high-quality fats and oils to meet consumer preferences for taste, texture, and nutritional value. The rise of food delivery services and the growing popularity of diverse cuisines have further fueled the demand for various types of fats and oils in food preparation and cooking processes.

  The expansion of the food services industry is driven by changing consumer lifestyles and preferences. As more people seek out dining experiences outside the home and embrace diverse food options, the food services sector is expanding its reach and offering a wider variety of products. This growth is evident in the increasing number of food service outlets, the rise of food trucks and pop-up restaurants, and the development of innovative food concepts. To cater to these evolving trends, food service providers are investing in high-quality fats and oils that not only enhance the flavor and texture of their offerings but also align with health-conscious consumer demands, such as the use of plant-based oils and low-fat options.

  The expansion of food services has led to increased collaborations between food service operators and fats and oils manufacturers. This partnership aims to develop and supply customized solutions that meet the specific needs of different food service applications. Manufacturers are focusing on product innovation to offer specialized fats and oils that cater to various cooking techniques and dietary requirements. As the food services industry continues to grow, the demand for fats and oils will remain strong, driven by the need for quality ingredients that support the creation of appealing, diverse, and healthy food options for a global audience.

Restraints

• Fluctuating Raw Material Prices
• Health Concerns Over Saturated Fats
• Stringent Regulations and Standards

• Volatile Market Trends: The global fats and oils market has been experiencing notable volatility driven by a variety of factors. One significant trend is the fluctuation in raw material prices, influenced by changes in agricultural production and climatic conditions. For instance, adverse weather conditions in major oilseed-producing regions, such as droughts or floods, can lead to reduced crop yields, subsequently driving up the prices of oils and fats. Additionally, geopolitical tensions and trade policies also play a crucial role in this volatility. For example, tariffs on palm oil exports from Indonesia or Malaysia can disrupt global supply chains, affecting prices and availability in international markets.

  Another trend contributing to market volatility is the shift in consumer preferences towards healthier and more sustainable options. There has been a growing demand for plant-based oils, such as olive and avocado oils, driven by increasing health consciousness and dietary trends. This shift has led to significant fluctuations in demand patterns, as consumers move away from traditional fats like palm oil and animal fats. Additionally, the rise of alternative fat sources, such as algae-based oils, reflects the ongoing innovation and adaptation within the market, which can cause instability as new products enter and disrupt established market dynamics.

  Regulatory changes and environmental concerns have also introduced volatility into the fats and oils market. Governments and international bodies are increasingly implementing regulations aimed at reducing deforestation and promoting sustainable agricultural practices. These regulations can impact production processes and costs, further contributing to market fluctuations. For instance, stringent environmental regulations in the palm oil industry have led to changes in sourcing practices and certification requirements, which can influence prices and availability on a global scale. Overall, the interplay of these factors creates a complex and often unpredictable market environment for fats and oils.

Opportunities

• Innovation in Product Development
• Emerging Market Potential
• Growth in Plant-Based Alternatives

• Rising Popularity of Organic Products: The global fats and oils market has witnessed a significant shift towards organic products as consumers increasingly seek healthier and more sustainable options. Organic fats and oils, produced without synthetic pesticides, herbicides, or genetically modified organisms, have gained popularity due to growing health awareness and the desire for natural food ingredients. This trend is driven by consumers' preference for products perceived as safer and more environmentally friendly compared to conventional alternatives. Organic fats and oils, including organic olive oil, coconut oil, and avocado oil, are becoming staples in households as people become more conscious of the impact of their food choices on both their health and the planet.

  The rise in organic products is supported by an expanding range of offerings and improved availability in the market. Retailers and manufacturers are responding to consumer demand by increasing the variety of organic fats and oils, including options for cooking, baking, and dressings. The growth of e-commerce platforms and specialized health food stores has also made it easier for consumers to access these products. Organic certification programs and labels help build consumer trust by ensuring that products meet stringent organic standards, further fueling the popularity of organic fats and oils.

  The rising popularity of organic fats and oils is aligned with broader trends in the food industry towards transparency and sustainability. Companies are investing in organic farming practices and developing innovative products to meet the demands of health-conscious consumers. This shift is not only reshaping product portfolios but also influencing marketing strategies and brand positioning. As more consumers seek out organic options, the fats and oils market is expected to continue evolving, with a growing emphasis on quality, authenticity, and environmental responsibility.

Key players in Global Fats & Oils Market include:

• Cargill, Incorporated
• Archer Daniels Midland Company
• Bunge Limited
• Olein Palm Group
• Wilmar International Limited
• Omega Protein Corporation
• IOI Corporation Berhad
• Marico Limited
• Associated British Foods plc
• Ruchi Soya Industries Limited

In this report, the profile of each market player provides following information:

• Company Overview and Product Portfolio
• Key Developments
• Financial Overview
• Strategies
• Company SWOT Analysis