Fats and Oil Market
Report ID: SQMIG30H2336
Report ID: SQMIG30H2336
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Report ID:
SQMIG30H2336 |
Region:
Global |
Published Date: January, 2026
Pages:
193
|Tables:
141
|Figures:
70
Global Fats and Oil Market size was valued at USD 34.9 billion in 2024 and is poised to grow from USD 36.65 billion in 2025 to USD 54.14 billion by 2033, growing at a CAGR of 5.0% during the forecast period (2026-2033).
Growth is primarily funded by the increasing global demand for processed foods, health awareness leading to the demand for functional plant-based oils, and the growing application of oils in the biofuel sector. These materials are not only important in providing the necessary nutrients but also as the main feedstocks for the renewable energy industries. Vegetable oils are the major consumers globally due to their multifunctionality and perceived healthiness compared to animal-based ones.
In 2024, the Asia-Pacific region kept its top position through huge consumption volumes in China and India as well as the growing food processing infrastructures. Europe was second with its strict regulations encouraging the sustainable sourcing, while North America was the third, being mainly driven by a trend toward high-oleic varieties. The essential role of fats and oils is keeping the global demand at a steady level despite raw material prices being quite volatile until 2032.
How is Artificial Intelligence Optimization Enhancing Yields and Sustainability in Fats and Oils?
Artificial Intelligence (AI) is changing the global fats and oil market strategies in a major way by making extraction processes more efficient and ensuring transparency in the supply chain. AI-based predictive analytics are now implemented in refineries for monitoring variable parameters such as temperature, pressure, and solvent ratios in real-time, thus, considerably, they are maximizing oil yield and at the same time, they are minimizing energy consumption. In addition to processing, AI algorithms are also used to analyze the satellite images of the areas from which the products are sourced to ensure that no deforestation has been taking place, which is an essential requirement for the new regulations.
Wilmar International introduced the PROSPEK program in October 2024, a digitally-enabled initiative aimed at providing data-driven insights to palm oil smallholders and thereby enabling them to improve their yields and meet the sustainability standards. These AI-infused instruments provide a very high level of accuracy when it comes to companies forecasting their crop outputs, they help in optimizing logistics and in reducing operational wastes, thus, a company becomes resistant to market fluctuations.
Market snapshot - 2026-2033
Global Market Size
USD 34.40 Billion
Largest Segment
Food & Beverages
Fastest Growth
Industrial
Growth Rate
4.30% CAGR
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Global Fats and Oil Market is segmented by Source, Type, Form, Application, Distribution Channel and region. Based on Source, the market is segmented into Vegetable and Animal. Based on Type, the market is segmented into Palm, Soybean, Rapeseed, Sunflower, Olive and Others. Based on Form, the market is segmented into Liquid and Solid. Based on Application, the market is segmented into Food & Beverages, Industrial, Biofuel, Personal Care and Pharmaceuticals. Based on Distribution Channel, the market is segmented into B2B and B2C. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
Which Application Segment Dominates the Market and Which is Expanding Most Rapidly?
The Food & Beverages segment governs the largest share of market demand. As a major caloric component and a cooking medium of universal appeal, fats and oils are what is necessary for frying, baking, and flavoring, etc. in the kitchens of both households and the commercial food service industry. The very volume that is used for daily nutrition as well as food processing makes sure that this segment retains its overwhelming lead in terms of revenue.
The Industrial sector is mainly responsible for the fast expansion of biofuel production. This is largely the effect of the implementation of strict global environmental regulations and consequent government directives aimed at shifting from fossil fuel to renewable energy sources. The increasing utilization of vegetable oils and animal fats as primary feedstocks for biodiesel and renewable diesel is creating a significant new vertical of demand.
Which Type Segment Dominates the Market and Which is Gaining the Most Traction?
The Vegetable Oils segment, particularly Palm Oil, is the leading one in the market. The main factors that guarantee the dominance of the product are its outstanding versatility, high yield per hectare, and cheap price, thus, it becomes the most opted-for ingredient for a wide variety of food products and industrial applications globally. The deep integration of palm oil into the supply chains of multinational food corporations secures its leading position.
The Olive Oil segment is gaining the most traction and is the fastest-growing. This expansion is fueled by the rising global adoption of the Mediterranean diet and increasing consumer awareness regarding the cardiovascular benefits of monounsaturated fats. As health consciousness rises, consumers in non-traditional markets are increasingly switching to olive oil for its perceived premium quality and nutritional value.
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Why is Asia-Pacific Emerging as the Dominant Hub for Fats and Oils?
According to the global fats and oil regional forecast, Asia-Pacific dominates the market in 2024, accounting for the largest share of both production and consumption. The dominance stems from the combination of huge production capacities of Indonesia and Malaysia that supply the main part of the world's palm oil with the enormous dietary needs of rapidly growing populations in the region. Rising disposable incomes and urbanization are shifting consumption patterns toward processed foods and higher-quality edible oils, cementing the region's status as the volume leader.
Fats and Oil Market in Japan
According to the global fats and oil regional outlook, in Japan, the market is defined by a sophisticated demand for premium and functional health oils. An aging population is driving a structural shift away from conventional oils toward high-value products like olive oil, sesame oil, and oils fortified with omega-3 fatty acids. Moreover, the imposition of strict food safety standards and the cultural inclination towards quality are the two main factors that guarantee a stable market for high-grade imports.
Fats and Oil Market in South Korea
As per the global fats and oil regional analysis, in South Korea, growth is fueled by a thriving food processing sector and the westernization of dietary habits. The rising popularity of bakery products, convenience meals, and fried foods has increased the industrial demand for specialized frying fats and shortenings. Besides that, the country is witnessing increasing investments in green refining capabilities to be able to satisfy the standards of both the domestic and the export markets.
How is Europe Leading the Transition to Sustainable Fats and Oils?
According to the global fats and oil market forecast, Europe is the second-largest market by volume, and it is characterized by an aggressive regulatory framework that supports sustainability and the use of biofuels. Being the global leader in implementing deforestation-free supply chains is the region, which is the main driving factor behind the use of certified palm and soy oils. Also, the high consumer awareness in terms of health and environmental impact provides strong support for the market of non-GMO, organic and locally sourced oils such as rapeseed and sunflower.
Fats and Oil Market in Germany
According to the global fats and oil market outlook, in Germany, market volume is supported by a massive biodiesel industry and strong demand for organic food ingredients. The nation is a leading processing center for rapeseed oil which is mainly used for domestic biodiesel blending to fulfill the EU renewable energy directives. Meanwhile, the food sector is experiencing an increasing inclination towards clean-label and cold-pressed oils.
Fats and Oil Market in the United Kingdom
As per the global fats and oil market analysis, in the UK, the market is evolving with post-Brexit trade adjustments and a strong consumer focus on heart health. Retail patterns reveal that the usage of olive oil and rapeseed oil as healthy substitutes for traditional fats has notably increased. The food service industry is also conforming to more rigorous regulations on saturated fats, thereby, contributing to the increased demand for high-oleic solutions.
Fats and Oil Market in France
According to the global fats and oil industry, in France, demand is sustained by a rich culinary heritage that prioritizes high-quality fats like butter and premium vegetable oils. The market is also seeing growth in the biofuel sector, supported by government mandates. Moreover, French consumers are very willing to pay for oils that have "Protected Designation of Origin" (PDO) status, thereby supporting value-driven growth.
Why is North America a Key Driver for High-Oleic and Industrial Oil Innovation?
According to the global fats and oil industry analysis, North America can be considered as a mature market that is still undergoing changes with are industrial shift to renewable diesel production being the most prominent feature. The region is a global front-runner in the creation and usage of high-oleic soybean and canola oils, the main reason for this is the removal of trans fats from the food supply chain. Strong agricultural infrastructure and government incentives for green energy continue to propel the industrial oil sector.
Fats and Oil Market in the United States
As per the global fats and oil market trends, in the United States, the market is experiencing a "green boom" as soybean oil is increasingly diverted to renewable diesel refineries. This energy-driven demand is reshaping pricing structures and encouraging capacity expansions. On the food side, health-conscious consumers are driving the steady growth of avocado and olive oil consumption.
Fats and Oil Market in Canada
As per the global fats and oil industry trends, in Canada, the market is anchored by its position as a top global producer of canola oil. The emphasis is still primarily on production aimed at exports and the crushing of seeds for the dual purpose of obtaining edible oil and biodiesel feedstocks. Consumption within the country is at a steady level, with a distinct preference for locally produced, heart-healthy canola products.
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Fats and Oil Market Drivers
Surging Global Demand for Biofuels and Renewable Diesel
Expansion of Processed Food and Specialty Fat Applications
Fats and Oil Market Restraints
Volatility in Raw Material Prices Driven by Climate and Geopolitics
Stringent Environmental Regulations and Deforestation Bans
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The competitive landscape of the global fats and oils market in 2024 is highly concentrated around a small number of top-tier agribusiness conglomerates that dominate most of the global supply chain. The big industry players such as Cargill, Wilmar International, Bunge, and ADM that have a wide range of vertically integrated networks from plantation ownership and grain origination to processing, refining, and global distribution logistics are the ones who lead the market and benefit from it the most. These main actors are very much engaged in enlarging their production capacities and securing long-term supply contracts with multinational food and beverage corporations. The issue of sustainability has become a critical strategic battleground where, among other things, major companies are heavily investing in satellite monitoring and blockchain traceability to comply with the European Union Deforestation Regulation (EUDR). While these giants determine global pricing and volume trends, there are smaller local players and specialized refineries who are vying for the market by producing niche, value-added products like organic, non-GMO, and specialty fats that are customized for certain local culinary preferences and health trends.
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, the global fats and oil market is navigating a pivotal transformation driven by the dual engines of nutritional shifts and the green energy transition. The rapidly increasing demand for biofuels, in particular renewable diesel, is the main cause of a radical change in global trade routes and thus vegetable oils are becoming energy commodities of great strategic value while at the same time food supplies are getting tighter. At the same time, sustainability is the defining issue for the market as the European Union's Deforestation Regulation (EUDR) requires an unprecedented level of transparency and traceability of supply chains. Although the industry is still suffering from material price volatility caused by climate risks, the present situation is quite promising. The primary factors why the demand for these necessary commodities is not only strong but is also gradually increasing are the fast transformation into high-oleic, healthy plant-based oils in the food industry and the global commitment to decarbonization that cannot be negotiable.
| Report Metric | Details |
|---|---|
| Market size value in 2024 | USD 34.9 billion |
| Market size value in 2033 | USD 54.14 billion |
| Growth Rate | 5.0% |
| Base year | 2024 |
| Forecast period | 2026-2033 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
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| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
Methodology
For the Fats and Oil Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Fats and Oil Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
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With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Fats and Oil Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Fats and Oil Market for additional countries.
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Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
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Global Fats and Oil Market size was valued at USD 34.40 Billion in 2025 and is poised to grow from USD 36.39 Billion in 2026 to USD 53.75 Billion by 2033, growing at a CAGR of 4.30% during the forecast period (2026–2033).
The competitive landscape of the global fats and oils market in 2024 is highly concentrated around a small number of top-tier agribusiness conglomerates that dominate most of the global supply chain. The big industry players such as Cargill, Wilmar International, Bunge, and ADM that have a wide range of vertically integrated networks from plantation ownership and grain origination to processing, refining, and global distribution logistics are the ones who lead the market and benefit from it the most. These main actors are very much engaged in enlarging their production capacities and securing long-term supply contracts with multinational food and beverage corporations. The issue of sustainability has become a critical strategic battleground where, among other things, major companies are heavily investing in satellite monitoring and blockchain traceability to comply with the European Union Deforestation Regulation (EUDR). While these giants determine global pricing and volume trends, there are smaller local players and specialized refineries who are vying for the market by producing niche, value-added products like organic, non-GMO, and specialty fats that are customized for certain local culinary preferences and health trends. 'Wilmar International Ltd', 'Cargill, Incorporated', 'Bunge Global SA', 'Archer Daniels Midland Company (ADM)', 'IOI Corporation Berhad', 'Kuala Lumpur Kepong Berhad (KLK)', 'Sime Darby Plantation Berhad', 'Golden Agri-Resources Ltd', 'AAK AB', 'Olam Agri', 'Mewah Group', 'United Plantations Berhad'
Governments all over the world are increasingly imposing higher biofuel blends as a way to meet decarbonization targets, which is substantially diverting vegetable oils from food to the energy sectors. In 2024, Indonesia was moving towards putting its B40 biodiesel mandate into effect, whereas the United States was witnessing a renewable diesel production continued boom that was mainly using soybean and used cooking oils as the primary feedstocks. This fuel-driven consumption is causing supplies to become tighter globally and thus, it is creating a new, high-volume revenue stream for producers. This regulatory push directly boosts the global fats and oil market growth.
Rapid Implementation of Certified Sustainable and Traceable Oils: One of the characteristic trends in this sector is the total commitment to the traceability of supply chains that are "deforestation-free" which is motivated by regulatory demands and by the will of consumers. In 2024, the major palm oil producers made a big step ahead in their application of satellite monitoring and blockchain technology as they attempted to verify their compliance with RSPO requirements and EU laws. The concentration on sustainability is no longer a matter of a small group but a prerequisite to be admitted to Western markets, and this is forcing a structural change in global sourcing strategies. This is one of the key trends driving the global fats and oil market.
Why is Asia-Pacific Emerging as the Dominant Hub for Fats and Oils?
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