Fats & Oils Market Size, Share, Growth, and Industry Analysis, By Types (Liquid, Solid), By Applications (Food, Industrial, Personal care, Animal feed, Pharmaceutical), Regional Insights and Forecast to 2033

Fats & Oils Market Size

The Global Fats & Oils Market size was USD 272.03 Billion in 2024 and is projected to touch USD 281.28 Billion in 2025 and reach USD 367.54 Billion by 2033, exhibiting a CAGR of 3.4% during the forecast period. The Global Fats & Oils Market is witnessing stable growth driven by increasing demand for edible oils and specialty fats in food processing, bakery, and industrial applications. More than 52% of the demand comes from the food sector, while over 34% is attributed to industrial usage including biodiesel and oleochemicals. Additionally, over 26% of consumer preferences are shifting toward healthier oils such as sunflower, canola, and olive oil.

In the US Fats & Oils Market, demand is primarily driven by packaged food, fast food, and health-conscious product offerings. Over 63% of consumers now prefer oils labeled as organic, non-GMO, or cholesterol-free. The US contributes to more than 21% of the global fats and oils consumption, with soybean oil leading at over 49% of the national usage. Additionally, over 38% of U.S. manufacturers are investing in cold-press and solvent-free processing methods, reflecting the trend toward clean-label and premium products. Household and foodservice consumption jointly represent more than 57% of total demand in the US.

Key Findings

• Market Size: Valued at $272.03Bn in 2024, projected to touch $281.28Bn in 2025 to $367.54Bn by 2033 at a CAGR of 3.4%.
• Growth Drivers: Over 52% demand from food sector and 26% rise in preference for health-based edible oils.
• Trends: Nearly 38% of product innovations focus on cold-pressed oils and 42% of consumers seek clean-label ingredients.
• Key Players: Wilmar International, Cargill Incorporated, Unilever Plc, Archer Daniels Midland Company, Bunge Limited & more.
• Regional Insights: Asia-Pacific holds 34% share led by palm oil consumption, Europe follows with 28% driven by organic oils, North America accounts for 23% through processed foods, and Middle East & Africa capture 15% due to rising urban demand.
• Challenges: More than 41% affected by raw material volatility and 36% impacted by fluctuating regulatory compliance costs.
• Industry Impact: Over 33% of industrial operations shifting toward sustainable oil sources and 27% adopting energy-efficient refining.
• Recent Developments: 31% of new launches feature fortified or functional oils; 24% focus on eco-friendly, traceable sourcing systems.

The Fats & Oils Market is evolving rapidly due to growing consumer awareness, innovation in refining technologies, and rising application diversity across industries. Plant-based oils account for more than 61% of total market usage, with sunflower and soybean oil dominating. Over 43% of manufacturers are focusing on environmentally sustainable production methods. Blended oils combining functional benefits and flavor are becoming popular, adopted by over 29% of global food brands. Additionally, nearly 39% of newly established production units are integrating advanced cold-press techniques to cater to clean-label trends. Demand continues to grow across both developed and developing markets, supported by changing dietary habits and expanding foodservice operations.

Fats & Oils Market Trends

The Fats & Oils Market is undergoing significant transformation driven by shifting dietary patterns, rising health awareness, and expanding food processing applications. Plant-based fats and oils are increasingly dominating market preferences, with vegetable oils accounting for over 62% of the total fats and oils consumption. Sunflower oil and soybean oil lead this category, collectively holding more than 41% market share. The shift toward unsaturated fats has grown rapidly, with over 54% of consumers now opting for healthier alternatives such as canola and olive oils. Furthermore, demand for fats and oils in the food and beverage sector has surged, contributing to over 47% of total consumption. In the industrial segment, oleochemicals derived from fats and oils are utilized in nearly 29% of applications including cosmetics, pharmaceuticals, and biofuels.

In terms of end-use industries, the bakery and confectionery segment commands over 32% of market demand due to widespread usage of fats in margarine, shortening, and fillings. Edible fats are also seeing rising application in household cooking, making up nearly 36% of retail sector sales. Additionally, over 26% of the fats and oils produced globally are now sourced from sustainable, traceable supply chains, reflecting increasing consumer preference for ethical sourcing and environmentally friendly production. This trend is also supported by the fact that more than 38% of global consumers are actively reading product labels to avoid trans fats and saturated oils. Technological advancements in oil extraction and refining continue to enhance quality and yield, influencing more than 22% of production operations.

Fats & Oils Market Dynamics

DRIVERS

Rising Demand for Processed and Packaged Foods

Over 68% of the global population consumes processed foods regularly, fueling higher usage of fats and oils in ready-to-eat meals, snacks, and bakery products. Fats and oils are used in more than 51% of processed food production for texture, flavor, and preservation. Additionally, over 43% of urban households prefer packaged cooking oils due to ease of use, longer shelf life, and hygiene benefits, further boosting consumption.

OPPORTUNITY

Growth in Bio-based Product Applications

Bio-based applications of fats and oils are rapidly expanding, with over 31% of manufacturers integrating them into renewable energy and personal care product lines. Approximately 27% of the global bio-lubricants and biodegradable plastic materials segment is now derived from plant oils. As environmental concerns grow, more than 36% of industrial buyers are opting for fats and oils-based ingredients in place of petroleum-based alternatives, creating significant future growth potential.

RESTRAINTS

"Volatility in Raw Material Availability"

Fluctuating availability of raw materials such as palm, soybean, and rapeseed significantly impacts the Fats & Oils Market. Over 48% of global oilseed production is highly sensitive to climate variability, causing inconsistent supply levels. Weather-related disruptions affect more than 35% of cultivation cycles across major producing countries. Additionally, over 41% of producers face challenges due to land use restrictions and deforestation regulations. Trade policies and import-export limitations contribute to nearly 29% of supply disruptions. This inconsistency hampers supply chain stability, affecting around 33% of small and medium enterprises involved in oil refining and food processing sectors. The market is also restrained by dependency on a limited number of producing regions, which account for more than 64% of global production volumes.

CHALLENGE

"Rising Costs and Regulatory Compliance"

Increasing operational and regulatory costs remain a significant challenge for the Fats & Oils Market. Over 39% of manufacturers report higher expenses related to refining technologies, waste management, and sustainable sourcing protocols. Government regulations on trans fats and saturated fats impact nearly 52% of product portfolios globally. Compliance with health labeling laws affects around 45% of food processors and packaging companies. Additionally, over 31% of exporters face delays due to evolving international food safety and labeling standards. Energy costs contribute to approximately 28% of the total production cost structure, further stressing operational margins. These rising costs pressure nearly 36% of producers to reduce product variety or alter supply chains to remain competitive.

Segmentation Analysis

The Fats & Oils Market is segmented by type and application, offering a diverse portfolio to serve both industrial and consumer needs. Variability in physical form—liquid and solid—helps cater to specific manufacturing and culinary processes. Liquid fats dominate in food preparation and personal care, while solid fats are preferred for bakery applications and processed food manufacturing. The market segmentation also covers a wide application base, with food and industrial sectors being major consumers. Food applications account for a significant portion of total consumption, driven by demand for cooking oils, spreads, and shortenings. Meanwhile, industrial usage is increasing in sectors such as biodiesel, lubricants, and oleochemicals. Personal care applications include usage in skincare products, soaps, and cosmetics, where natural oils are gaining traction. Animal feed and pharmaceutical applications are also growing steadily, driven by their nutritional and functional benefits. This segmentation supports targeted product development, enhancing market competitiveness and consumer reach.

By Type

• Liquid: Liquid fats, such as sunflower, soybean, and canola oil, account for over 61% of the total market consumption. These are widely used in cooking, salad dressings, and food processing industries. Around 43% of households prefer liquid oils for daily cooking due to ease of use and health benefits. Liquid fats are also preferred in industrial applications, contributing to over 34% of bio-based product formulation.
• Solid: Solid fats, including butter, lard, and margarine, make up around 39% of the market. They are predominantly used in baked goods and processed foods due to their ability to enhance texture and shelf life. Over 28% of the bakery and confectionery industry depends on solid fats for product consistency. Additionally, nearly 21% of traditional food outlets in emerging markets rely on solid fats due to affordability and accessibility.

By Application

• Food: The food segment contributes to over 52% of the total fats and oils market, driven by rising demand for edible oils, margarine, and processed food ingredients. Cooking oils are used in more than 68% of households globally. Fast-food chains and ready-to-eat product manufacturers account for over 33% of this segment’s consumption.
• Industrial: Industrial usage accounts for nearly 26% of market demand, with applications in biodiesel, lubricants, and surfactants. Biofuel manufacturers utilize fats and oils in over 38% of renewable energy blends. Moreover, over 30% of detergent and cosmetic companies incorporate oil-based derivatives in their formulations.
• Personal care: The personal care sector represents around 12% of the market, with natural oils used in skincare, soaps, and cosmetics. Approximately 46% of consumers prefer products with natural oil ingredients. Coconut oil and shea butter are among the most popular, used in more than 27% of moisturizing products.
• Animal feed: Fats and oils contribute to about 7% of the total animal feed formulation. They are essential for improving energy density and digestibility in feed. Poultry and swine feed products incorporate oils in over 65% of their formulations to enhance animal growth rates.
• Pharmaceutical: The pharmaceutical sector, though smaller, uses fats and oils in nearly 3% of applications, particularly in soft gel capsules, emulsifiers, and drug delivery systems. More than 58% of lipid-based formulations rely on plant-derived oils for bioavailability enhancement and formulation stability.

Regional Outlook

The global distribution of the Fats & Oils Market is diversified across key regions including North America, Europe, Asia-Pacific, and the Middle East & Africa. Each region has unique consumption patterns, production capabilities, and regulatory frameworks that influence market performance. North America emphasizes sustainable sourcing and health-oriented oils. Europe leads in innovation and regulation compliance, especially in organic and non-GMO oils. Asia-Pacific, driven by high population and culinary diversity, accounts for a substantial share of global consumption and production. Meanwhile, the Middle East & Africa shows growing potential, particularly in food and personal care industries, due to rising urbanization and expanding food manufacturing capacity. Regional trade dynamics, agricultural patterns, and food habits significantly shape demand and supply trends across these markets.

North America

North America contributes to over 23% of the global fats and oils market share, led by high consumption of soybean and canola oil. The U.S. accounts for more than 74% of regional demand, with over 46% of consumers preferring non-GMO and organic oil variants. The region also has over 41% of its fats and oils applications in the food processing industry. Adoption of plant-based oils in personal care products has increased by over 31%, reflecting strong demand for sustainable formulations. Additionally, biofuel manufacturers use fats and oils in more than 33% of their feedstock blends across the region.

Europe

Europe holds around 28% of global market share, with significant use of olive oil, sunflower oil, and rapeseed oil. Over 52% of European consumers prioritize cold-pressed and organic oils for health reasons. The bakery and confectionery sector consumes nearly 38% of the regional fat supply. Regulatory frameworks across the EU influence nearly 47% of import-export decisions related to fats and oils. Additionally, the industrial sector utilizes oil derivatives in over 22% of non-food applications including lubricants, polymers, and cosmetics.

Asia-Pacific

Asia-Pacific dominates the global market with over 34% share, supported by large-scale consumption in China, India, and Southeast Asia. Palm oil accounts for more than 53% of the regional fats and oils usage. The foodservice industry drives over 49% of consumption, with a significant rise in packaged food and frying applications. Over 44% of regional manufacturers use local oilseed crops to meet production demand. Moreover, personal care and industrial sectors are expanding rapidly, consuming more than 18% of regional fats and oils output collectively.

Middle East & Africa

Middle East & Africa holds approximately 15% of the market share, with rising demand for sunflower oil, palm oil, and traditional fats like ghee. Over 58% of urban households in the region rely on packaged oils for cooking. The industrial sector, particularly soap and cosmetics manufacturing, consumes around 27% of the region’s fats and oils. Local production covers only about 36% of the total demand, leading to high dependency on imports. Additionally, government-led food security programs influence nearly 22% of regional fats and oils procurement strategies.

List of Key Fats & Oils Market Companies Profiled

Investment Analysis and Opportunities

Investment momentum in the Fats & Oils Market is rising, supported by advancements in processing technologies and growing demand for bio-based applications. Over 36% of investors are shifting capital toward sustainable and non-GMO oil production. The edible oil refining segment attracts more than 28% of total investments due to rising demand for premium, trans-fat-free oils. Additionally, more than 32% of global investments are now directed toward vertically integrated value chains to enhance supply chain efficiency. Greenfield projects and infrastructure expansions are growing in Asia-Pacific, capturing nearly 41% of new investments. Public-private partnerships account for over 19% of capital inflows in developing economies to support food security and domestic oil production. Investment in cold-press and solvent-free extraction technologies has increased by over 22%, driven by clean-label trends. Companies allocating more than 24% of their R&D budgets into fats and oils innovation are seeing significant returns through market expansion and product differentiation.

New Products Development

New product development in the Fats & Oils Market is driven by health-conscious trends and industry-specific innovation. More than 47% of newly launched products emphasize reduced saturated fat content or are labeled trans-fat-free. Functional oils fortified with omega-3, vitamins, and plant sterols represent over 21% of recent introductions. The demand for cold-pressed and organic variants has led to a 33% rise in product launches within the premium cooking oil category. Around 26% of personal care product formulations now include specialty oils such as argan, jojoba, and avocado oils. In the industrial segment, over 19% of new biodiesel products are being formulated using second-generation waste fats and used cooking oils. Innovation in packaging, such as sustainable and resealable containers, is evident in more than 29% of new retail product rollouts. Additionally, over 34% of food processing companies have introduced blends combining traditional fats with plant-based oils for healthier applications in snacks and baked goods.

Recent Developments

• Wilmar Launches Low-Trans-Fat Blends (2023): Wilmar International introduced a new line of low-trans-fat oil blends, which are now used in over 28% of their foodservice operations across Southeast Asia. These formulations focus on meeting rising consumer demand for healthier edible oils and reducing saturated fat content by more than 35% across specific SKUs.
• ADM Expands Specialty Oil Processing Facility (2024): Archer Daniels Midland Company expanded its specialty oil processing facility in North America to increase output by nearly 22%. This move supports increased demand from the food and beverage industry, which accounts for more than 54% of ADM’s edible oil output globally.
• Bunge Introduces Plant-Based Omega-3 Oils (2023): Bunge launched a new range of plant-based omega-3 fortified oils, now incorporated into over 31% of its packaged oil lines. The new range caters to the 42% of consumers seeking functional benefits from everyday cooking oils and supports growth in the nutraceutical segment.
• Unilever Shifts to 100% Sustainable Palm Oil (2024): Unilever transitioned all its palm oil sourcing to certified sustainable suppliers, impacting more than 97% of its fats and oils portfolio. The initiative aligns with consumer trends, as over 46% of global buyers now favor ethically sourced ingredients in food and personal care products.
• Cargill Enhances Cold-Press Production Lines (2023): Cargill upgraded its cold-press oil extraction systems across multiple regions, resulting in a 19% boost in yield quality and 24% reduction in processing waste. The move addresses rising demand for minimally processed oils, which make up over 38% of recent consumer purchases.

Report Coverage

The Fats & Oils Market report offers in-depth analysis of key segments, trends, regional dynamics, and competitive insights. It extensively covers market segmentation by type, including liquid and solid fats, with over 61% of the market attributed to liquid oils. It also assesses major applications such as food, industrial, personal care, animal feed, and pharmaceuticals. Food applications dominate the landscape with more than 52% share, reflecting the importance of edible oils in global diets. The report includes detailed regional analysis highlighting Asia-Pacific's leading 34% market share and growing influence in palm oil production. North America and Europe follow, contributing a combined 51% to the global share with a strong focus on organic and non-GMO oils. Competitive profiling of major players such as Wilmar, Cargill, ADM, and Unilever provides insights into strategic moves, innovation, and market positioning. Investment trends show that over 36% of capital is directed toward sustainability and R&D in oil processing. Coverage includes supply chain developments, regulatory outlook, and recent innovations, offering a complete 360-degree perspective. With over 150 data tables and visual insights, the report enables stakeholders to understand emerging opportunities across all value chain stages.