Soybean Oil Market Size

Global Soybean Oil Market size was valued at USD 51.23 billion in 2023 and is poised to grow from USD 52.86 billion in 2024 to USD 68.42 billion by 2032, growing at a CAGR of 3.28% in the forecast period (2025-2032).

The global soybean oil market is undergoing a period of steady growth, shaped by evolving consumer preferences, expanding industrial applications, and advancements in agricultural biotechnology. As one of the most widely consumed vegetable oils, soybean oil enjoys strong demand across both the food and non-food sectors.

Consumers are increasingly drawn to its health benefits, including its low saturated fat content and high levels of polyunsaturated fats, which align well with modern wellness trends. Additionally, soybean oil is gaining traction in the biofuel sector as a sustainable feedstock for biodiesel production, supported by global efforts to reduce carbon emissions.

Regionally, North America remains a dominant region in the market due to advanced processing capabilities and a growing inclination toward plant-based and heart-healthy oils. Meanwhile, Asia-Pacific is emerging as the fastest-growing region, fueled by rapid urbanization, population growth, and changing dietary habits. Latin America, particularly countries like Brazil and Argentina, is capitalizing on its favorable climate and strong agricultural base to boost exports and strengthen its global presence.

Despite these positive trends, the market faces several challenges. Geopolitical tensions and trade disputes, especially involving major soybean producers and importers continue to disrupt supply chains and cause market instability. Moreover, price volatility tied to fluctuating soybean yields and input costs poses a risk for manufacturers and stakeholders across the value chain.

How is AI Optimizing Production and Supply Chain Efficiency in the Soybean Oil Market?

Artificial Intelligence (AI) is playing a transformative role in the soybean oil market, enhancing operational efficiency, sustainability, and market responsiveness. One of the primary impacts of AI is on production and supply chain optimization. AI-driven analytics enable producers to analyze vast datasets for forecasting demand, managing inventory, and streamlining logistics. This leads to reduced costs and improved product availability. For example, AI helps monitor crop health, predict yields, and automate quality checks, particularly valuable in the growing organic soybean oil sector where consumer demand for trans-fat-free, health-conscious products is on the rise.

In 2024, real-world examples of AI's influence were evident. India significantly increased its soybean oil imports reaching around 3.8 million metric tons by December—through strategic import planning, where AI-based demand forecasting and procurement optimization likely played a role in navigating global price shifts and ensuring consistent supply. Similarly, the USDA projected that the U.S. would become a net exporter of soybean oil in the 2024/25 marketing year. This shift is partly attributed to AI-enabled production forecasting and data analysis, allowing producers to align their output with global demand patterns.

How is Fermentation Technology being Used to Produce Healthier and More Sustainable Edible Oils?

As the soybean oil market evolves, a wave of innovative startups is leveraging biotechnology and green chemistry to reshape how this essential oil is produced and used. These next-gen companies, founded in the last decade, are focusing on sustainability, health, and performance creating a ripple effect across both food and industrial sectors.

• Zero Acre Farms: Zero Acre Farms is a forward-thinking food tech startup founded in 2020 and based in California. The company is tackling the environmental and health issues associated with conventional vegetable oils, particularly soybean oil—by producing fermented oils that are rich in healthy fats and low in omega-6 fatty acids. Using precision fermentation and microbial engineering, Zero Acre Farms creates oils with a smaller carbon footprint, reduced land use, and no need for deforestation or monoculture farming. In 2024, the company achieved a major milestone by scaling its operations and expanding retail distribution across the U.S. Its flagship product, Zero Acre Oil, is now available in several natural food stores, online platforms, and commercial kitchens. Additionally, the company’s 2024 life cycle assessment demonstrated a substantial reduction in greenhouse gas emissions compared to soybean and palm oils. With growing consumer awareness about the environmental toll of traditional oils, Zero Acre Farms is becoming a prominent voice in advocating for healthier and more sustainable culinary fats.

• Checkerspot: Founded in 2016 and based in Salt Lake City, Utah, Checkerspot is a materials innovation company utilizing biotechnology to create high-performance, sustainable products derived from plant oils, including epoxidized soybean oil (ESBO). The startup leverages precision fermentation to engineer triglycerides tailored for specific end-use applications, such as textiles, coatings, and outdoor gear. In 2024, Checkerspot made headlines by launching a plant-based polyurethane foam derived in part from ESBO. This foam is used in performance products like skis, surfboards, and protective equipment, offering a greener alternative to petroleum-based polyurethane. The innovation has been particularly well-received in the outdoor and action sports markets, which are increasingly prioritizing sustainable materials. By integrating soybean oil derivatives into industrial solutions, Checkerspot not only reduces reliance on fossil fuels but also unlocks new value streams for soybean producers.