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

The global oils and fats market is highly fragmented and diverse, with different segments based on product type, distribution channels, and application. By type, oils and fats are classified into several categories, including canola/rapeseed oil, palm/palm kernel oil, soybean oil, sunflower oil, cottonseed oil, coconut oil, safflower oil, shea oil, peanut oil, and milk fat. Each of these oils has unique characteristics, benefits, and uses, making them suitable for various applications. For instance, palm oil is widely used in food products due to its low cost and stability, while olive oil is prized for its health benefits and flavor, especially in Mediterranean cuisine.

The distribution channel segment is another key aspect of the oils and fats market. Hypermarkets and supermarkets remain the dominant outlets for the sale of oils and fats, with consumers preferring large, organized retail formats that offer a wide range of products. Convenience stores and food specialists also contribute to the distribution, especially in urban areas where consumers seek quick access to food-related items.

The application of oils and fats is vast, spanning across foodservice, bakery, personal care, plant-based foods, chocolate & confectionery, infant formula, dairy, and other industries. The foodservice and bakery segments are among the largest consumers of oils and fats, driven by increasing demand from restaurants, fast food chains, and snack manufacturers. In the personal care industry, oils such as coconut oil and shea butter are used in skincare and haircare products, owing to their moisturizing and nourishing properties. The plant-based food segment has seen exponential growth in recent years due to the increasing popularity of vegan and vegetarian diets. Oils are also essential in the chocolate and confectionery industry, where they are used in the production of smooth textures and flavors in various products. Similarly, infant formula and dairy sectors require high-quality oils for the production of nutritious, digestible products for babies and young children.

As the market continues to evolve, key trends influencing segmentation include the rising awareness of health and wellness, sustainability concerns, and the growing demand for natural and organic products. Furthermore, technological advancements in the extraction and processing of oils are leading to the development of higher quality, more specialized oils that cater to diverse consumer needs. Companies operating in the oils and fats market are also focusing on innovation in product development and marketing strategies to capture the attention of health-conscious consumers. This focus on consumer preferences, alongside the increasing demand for oils in various industrial applications, will continue to shape the market’s segmentation and growth trajectory in the coming years.

Global Oils and Fats Segment Analysis

In this report, the Global Oils and Fats Market has been segmented by Type, Distribution Channel, Application, and Geography.

Global Oils and Fats Market, Segmentation by Type

The Global Oils and Fats Market has been segmented by Type into Canola/Rapeseed Oil, Palm/Palm Kernel Oil, Soybean Oil, Sunflower Oil, Cottonseed Oil, Coconut Oil, Safflower Oil Shea Oil,Peanut Oil, and Milk Fat.

The global oils and fats market is segmented by type into several key categories. These include canola/rapeseed oil, palm/palm kernel oil, soybean oil, sunflower oil, cottonseed oil, coconut oil, safflower oil, shea oil, peanut oil, and milk fat. Canola/rapeseed oil and soybean oil are two of the most commonly used oils, known for their versatility in both cooking and industrial applications. Palm oil, derived from the fruit of the oil palm tree, remains one of the most widely produced and consumed oils worldwide due to its affordability and high yield per hectare.

Other oils, such as sunflower oil and cottonseed oil, are also significant players in the market due to their light flavor and favorable cooking properties. Coconut oil and peanut oil are valued for their unique flavors and nutritional benefits, often preferred in specific regional cuisines. Additionally, specialty oils like safflower oil and shea oil are growing in demand, particularly in the cosmetics and personal care industry, due to their high fatty acid content and skin-nourishing properties.

Milk fat, often utilized in dairy products and food applications, is another important component of this market segment. The diversity of oils and fats available allows consumers and manufacturers to choose based on factors like flavor, nutrition, and price point, driving continuous innovation in the oils and fats industry to meet consumer demands across various sectors.

Global Oils and Fats Market, Segmentation by Distribution Channel

The Global Oils and Fats Market has been segmented by Distribution Channel into Hypermarkets and supermarkets, Convenience stores and Food specialists.

The global oils and fats market is segmented by distribution channel into three primary categories: hypermarkets and supermarkets, convenience stores, and food specialists. Hypermarkets and supermarkets are the dominant distribution channels, accounting for a large share of the market due to their wide reach and convenience. These retail outlets typically offer a wide variety of oils and fats, catering to both consumer preferences and regional tastes, making them a go-to destination for bulk purchases.

Convenience stores also play a significant role, particularly in urban areas where customers prioritize quick, easy access to everyday products. Although the range of oils and fats in convenience stores may be more limited compared to hypermarkets, they provide an essential service for on-the-go consumers looking for smaller quantities or specific products. The demand in these stores is often driven by consumer trends, including preferences for healthy, natural oils or products with specialized dietary attributes, such as organic or non-GMO oils.

Food specialists, including wholesale suppliers and online platforms, offer a niche segment for oils and fats distribution. These channels are typically used by foodservice providers, restaurants, and food manufacturers who require specific types of oils and fats in larger quantities. The growing trend of e-commerce also supports the rise of online food ingredient suppliers, making it easier for businesses to access oils and fats that may not be readily available in traditional retail outlets.

Global Oils and Fats Market, Segmentation by Application

The Global Oils and Fats Market has been segmented by Application into Foodservice, Bakery, Personal Care, Plant Based Food, Chocolate & Confectionary, Infant Formula, Dairy, and Others.

The global oils and fats market is segmented by application into various categories, such as foodservice, bakery, personal care, plant-based food, chocolate & confectionery, infant formula, dairy, and others. In the foodservice industry, oils and fats are essential for cooking, frying, and food preparation, and their demand is driven by restaurants, catering services, and food chains that rely on bulk oil purchases for day-to-day operations. Oils like palm oil, soybean oil, and canola oil are particularly popular in foodservice due to their versatility and cost-effectiveness.

In the bakery segment, oils and fats play a critical role in the production of pastries, cakes, and other baked goods. These ingredients contribute to texture, flavor, and shelf life, making them indispensable in commercial bakeries. Similarly, the chocolate and confectionery industry relies on specialized oils like cocoa butter, palm oil, and others to ensure the right consistency, smoothness, and appearance of products like chocolates and candies.

The personal care and plant-based food industries are also significant drivers of growth in the oils and fats market. Oils like coconut oil, shea oil, and olive oil are commonly used in personal care products for their moisturizing properties, while plant-based oils are increasingly favored in vegan and vegetarian food applications. Oils and fats are also vital in the production of infant formula and dairy products, where they provide essential nutrients and contribute to the texture and mouthfeel of the final products. The diverse range of applications demonstrates the versatility and importance of oils and fats in modern industries.

Global Oils and Fats Market, Segmentation by Geography

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

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

The Global Oils and Fats Market is segmented by geography into five major regions: North America, Europe, Asia Pacific, Middle East and Africa, and Latin America. North America is one of the key markets for oils and fats, driven by high demand for both cooking oils and fats used in processed foods. The growing preference for healthy oils, such as olive oil and avocado oil, is also a significant factor in the region’s market growth. The presence of major food manufacturers and a well-established retail distribution network further supports the market in this region.

In Europe, the oils and fats market is influenced by strong consumer demand for high-quality oils, with olive oil being particularly popular due to its health benefits and culinary uses. The Asia Pacific region holds a dominant position in the global oils and fats market, driven by countries like China and India, where oils such as palm oil, soybean oil, and sunflower oil are widely consumed. The Middle East and Africa also represent growing markets due to increasing urbanization and demand for oils in cooking and food manufacturing. Lastly, Latin America is witnessing steady growth in the consumption of oils and fats, with palm oil and soybean oil being commonly used in both household cooking and food processing industries.

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

Drivers, Restraints and Opportunity Analysis

Drivers:

• Rising demand for processed and convenience foods
• Growth in the bakery and confectionery sector
• Increasing awareness of healthy oils

• Demand for plant-based oils: The demand for plant-based oils has seen a dramatic increase in recent years, driven by the growing awareness of their health benefits and environmental sustainability. Consumers are increasingly aware of the health risks associated with the consumption of animal-based fats, such as saturated fats and cholesterol, which are linked to various cardiovascular diseases. As a result, many individuals are turning to plant-based oils as healthier alternatives. Oils such as canola, olive, sunflower, and avocado are regarded as heart-healthy due to their low saturated fat content and high levels of beneficial monounsaturated and polyunsaturated fats. These oils are also rich in omega-3 fatty acids and antioxidants, which have been linked to reduced inflammation, improved brain function, and better overall health.

  The shift towards plant-based oils is not only driven by health considerations but also by environmental and ethical concerns. Plant-based oils generally have a lower carbon footprint compared to animal-based fats. The production of plant-based oils like canola and soybean typically requires less land, water, and energy than raising livestock for animal fats. This makes them more sustainable options, particularly as consumers become more conscious of the environmental impact of their food choices. The demand for plant-based oils is further amplified by the rise of plant-based food products and the growing popularity of vegan and vegetarian diets. As more consumers adopt plant-based lifestyles, the demand for oils derived from seeds, nuts, and fruits continues to grow, and this trend is expected to drive the oils and fats market in the coming years. Manufacturers are responding to this trend by diversifying their portfolios to include more plant-based options, such as avocado oil, walnut oil, and coconut oil, meeting the needs of health-conscious and environmentally aware consumers.

Restraints:

• Volatile raw material prices
• Environmental concerns, particularly palm oil production
• Regulatory and policy challenges

• Fluctuating consumer preferences: Fluctuating consumer preferences pose a significant challenge to the oils and fats market, as tastes and dietary trends evolve over time. While plant-based oils are currently in high demand, consumer preferences for specific types of oils can be highly volatile, influenced by changing health trends, cultural factors, and marketing campaigns. For instance, while olive oil has long been popular in Mediterranean diets, its appeal may diminish in other markets where new trends or oils are introduced. The growing concern over the use of oils high in omega-6 fatty acids, such as soybean and sunflower oils, may lead consumers to seek alternatives, such as oils that are higher in omega-3 fatty acids or those perceived as healthier, like avocado or flaxseed oil.

  The preference for oils can fluctuate based on regional and cultural factors, which can lead to significant variations in demand across different geographies. For example, coconut oil, which is highly valued in Southeast Asia and tropical regions, might face declining demand in regions where consumers are increasingly focused on low-fat or low-calorie diets. Moreover, the popularity of "clean label" and organic products has also led to increased demand for oils that are certified organic or free from artificial additives. This shift is driven by a larger societal focus on transparency in food sourcing and production, which influences consumer decision-making. As such, the oils and fats market faces ongoing pressure to adapt to these shifts in consumer tastes and preferences, which can complicate production and marketing strategies.

Opportunities:

• Expansion of the plant-based food market
• Increasing demand for healthy, organic oils
• Growth in the cosmetic and personal care industry

• Technological advancements in oil extraction and processing: Technological advancements in oil extraction and processing are one of the most significant opportunities in the oils and fats market. Traditional oil extraction methods, such as cold pressing and solvent extraction, have evolved significantly with the advent of new technologies that improve the efficiency and quality of oil production. For example, cold-pressed oils, which preserve the natural flavors, colors, and nutrients of the raw materials, have become highly sought after by consumers looking for natural and minimally processed products. At the same time, advancements in refining techniques are enabling producers to create oils with enhanced health benefits, such as oils that are lower in saturated fats or higher in monounsaturated fats.

  In addition to improving the quality of oils, these technological advancements also help reduce the environmental impact of oil production. New extraction methods, such as supercritical fluid extraction, can minimize the use of chemicals, reduce waste, and improve the yield of high-quality oils. These innovations are essential in meeting growing consumer demand for healthier, more sustainable products, while also enabling companies to remain competitive in an increasingly crowded market. As consumer preferences shift towards cleaner, more sustainable food options, the oils and fats industry must continue to invest in cutting-edge technologies that enhance product quality, reduce environmental harm, and improve production efficiency. In the long term, these technological advancements not only help to meet consumer demand but also allow manufacturers to maintain profitability and ensure that their operations remain viable in a rapidly changing global market.

Key players in Global Oils and Fats Market include,

• Namchow
• Fuji
• Adeka
• Wilmar
• Cargill
• Bunge
• COFCO
• Lamsoon
• Puratos
• Dongli
• Nisshin OilliO Group, Ltd.

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