Vegetable Oils MarketSize and Trends

The global vegetable oils market size was valued at USD 317,829 million in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 10.56% from 2023 to 2030. Growing awareness regarding the health benefits of vegetable oil is expected to drive growth of the market. Vegetable oils contain antioxidants that fight against free radicals, which can cause cell damage and cancer. They are also rich in phytosterols, which can reduce the risk of heart disease. Compared with animal fats, vegetable oils are considered healthier because they contain more monounsaturated and polyunsaturated fatty acids than saturated fatty acids, which are harmful to the body. They are also a good source of vitamin E and omega-3 fatty acids, which help the body to function properly. Moreover, increasing application of vegetable oil for producing biofuel is again propelling market growth. Soybean oil is used to make biodiesel, a fuel that can be used in diesel vehicles. The oil can be made using a process that is similar to the one used for making petrol and diesel, except that the synthesis of the fatty acids is done in a more environmentally friendly way.

Figure 1. Global Vegetable Oils Market Share (%), By Region

Global Vegetable Oils Market Segmentation:

The global vegetable oils market report is segmented into type, application, and geography

Based on type, the market is segmented into Palm Oil, Soybean Oil, Rapeseed Oil, Sunflower Oil, Coconut Oil, Peanut Oil, Olive Oil, and Other Types. Out of which, Palm Oil is expected to dominate the global market over the forecast period and this is owing to the fact that they are the most effective crop worldwide in terms of oil production. Nearly one hectare of oil palm crop yields ten times higher oil than any other oilseeds. The palm oil segment of the market studied was valued at USD 59,671 million in 2020. It is expected to reach USD 144,192 million by 2030, registering a CAGR of 11.66% during the forecast period, 2023-2030.

Soybean Oil segment is also expected to witness significant growth in the near future. Soybean oil is a popular choice for most consumers due to its numerous health benefits.

Based on application, the market is segmented into Food, Feed, and Industrial. Out of which, Food is expected to dominate the global market over the forecast period. The most commonly used vegetable oils for cooking are canola oil, sunflower oil, and soybean oil. They are good for frying, sautéing and roasting, as well as adding flavor to soups, sauces and salad dressings.

Industrial segment is also expected to witness significant growth in the near future and this is owing to the growing demand from paints, lubricants, biofuel, and paper application

Global Vegetable Oils Market Trends:

Growing trend of cold press oil

Cold press oil, also known as virgin oil, is the most natural and pure form of extracting oil from seeds like groundnut, sesame, and sunflower without using any heat treatments. The process involves crushing the oil seeds and nuts with steady and moderate pressure at room temperature. The extraction process for cold pressed oil does not involve any high temperature or roasting and thus the oils obtained are rich in valuable unsaturated fatty acids, tocopherols, and phenolic compounds that help stabilize the oil against auto-oxidation and ensure that oil nutrients have not been destroyed during the process.

Increasing focus on production capacity

For instance, in April 2021, Cargill has expanded its US soy processing operations with a $475 million investment to modernize and develop crush facilities in seven states. Currently, the company is present in 22 sites on 12 entities of Mexico with the primary objective to satisfy the country’s food industry requirements.

Figure 2. Global Vegetable Oils Market Share (%), By Segment