by The global cooking oil market was valued at USD 180.85 billion in 2024 and is projected to grow to USD 191.52 billion in 2025, eventually reaching approximately USD 320.83 billion by 2034, reflecting a compound annual growth rate (CAGR) of 5.90% from 2025 to 2034. Cooking oils are an essential component in food preparation worldwide, used extensively in households, restaurants, food processing industries, and fast-food chains.
One of the major catalysts behind this robust market growth is the rising global consumption of processed and packaged foods. As lifestyles become more fast-paced, consumer preference is shifting toward convenience food, pushing demand for various cooking oils. Additionally, small food chains and restaurant operators are increasingly relying on versatile, affordable, and long-lasting cooking oils to meet growing consumer demand.
Market Overview
The global cooking oil market has undergone substantial transformation in recent years, driven by changing dietary patterns, rising health consciousness, and increasing urbanization. Cooking oils are an integral part of daily food consumption, with a wide variety of options such as vegetable oil, palm oil, olive oil, canola oil, sunflower oil, and more catering to different culinary traditions and health preferences. the market is projected to grow steadily through 2030, supported by innovation in oil extraction and refining, an expanding middle class in emerging economies, and the rise of fortified and organic oils. Growing awareness about the health impact of trans fats and saturated fats is also driving demand for healthier oil variants.
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Market Dynamics
Key Drivers
- Health and Wellness Trends: The global push toward healthier lifestyles is fueling demand for low-cholesterol, non-GMO, and fortified cooking oils (e.g., olive oil, avocado oil, rice bran oil).
- Urbanization and Changing Diets: Rising urban populations and busier lifestyles have led to greater consumption of processed and convenience foods, thereby increasing oil usage.
- Foodservice Industry Growth: Expansion of quick service restaurants (QSRs), cafes, and cloud kitchens is accelerating the use of commercial-grade cooking oils.
Challenges
- Volatility in Raw Material Prices: Prices of oilseeds (soybean, sunflower, palm, etc.) are subject to climate changes, trade policies, and geopolitical tensions.
- Environmental Concerns: Production of certain oils, especially palm oil, has raised sustainability and deforestation concerns, affecting consumer perception.
Trends
- Rise of Cold-Pressed and Organic Oils: Consumers are gravitating toward minimally processed oils due to their superior nutrient profile.
- Innovation and Fortification: Manufacturers are focusing on value-added oils fortified with vitamins A, D, and E to cater to health-conscious demographics.
Market Growth Factors
- Rising Disposable Income: Particularly in developing economies, increasing income levels are enhancing consumers’ ability to afford premium and specialty oils.
- Government Initiatives: Many governments are encouraging the use of fortified edible oils to combat malnutrition, especially in countries like India, Nigeria, and Bangladesh.
- Retail Expansion: Organized retail and online grocery platforms have improved accessibility to a variety of oils, including international and niche brands.
- Awareness Campaigns: Health advocacy groups and media campaigns promoting the benefits of specific oils, like olive and canola, are influencing consumer choices.
Restraining Factors
Rising Counterfeiting of Cooking Oil to Hinder Market Expansion
Concerns over the nutritional purity of edible oils have persisted for years, with the adulteration of premium oils using cheaper substitutes posing serious health risks. Counterfeiting remains a significant challenge in the cooking oil market. For example, in March 2021, Indian authorities confiscated eight 15-liter tins of counterfeit Fortune soybean oil, a brand under Wilmar International Ltd., along with 119 labels and 481 stickers—together valued at approximately USD 4,910. Similarly, in Nigeria, palm oil counterfeiting surged in major open markets in 2020, with studies revealing that over 90% of the oil sold was contaminated or poorly stored, despite its widespread consumption. Although codex standards are evolving to better address oil authenticity, the increasing prevalence of counterfeit products is expected to restrain market growth.
Opportunities in the Cooking Oil Market
- Expansion in Emerging Markets: Untapped rural markets in Asia and Africa present growth opportunities for branded and fortified oil products.
- Sustainable & Ethical Sourcing: Companies investing in sustainable palm oil certification (RSPO) and eco-friendly packaging can capture environmentally conscious consumers.
- Plant-Based and Vegan Diets: Growth in vegan and vegetarian lifestyles globally supports increased demand for plant-derived oils.
- Private Label Growth: Supermarket chains and online platforms launching their own cooking oil brands at competitive pricing.
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Recent Developments
- July 2024 – Louis Dreyfus Company relaunched its edible oil brand Vibhor, targeting the North Indian market. This strategic initiative aims to meet the rising demand for high-quality edible oils in the region. Vibhor will be available in multiple packaging sizes—1-liter, 5-liter, and 15-liter—to improve accessibility. The brand’s marketing efforts will emphasize its health benefits and nutritional quality, aligning with the growing consumer focus on wellness and balanced diets.
- February 2023 – Cargill India introduced its first edible oil brand, Gemini Pureit, in South India. Backed by a USD 35 million investment in its Nellore facility in Andhra Pradesh, the company began producing sunflower oil for distribution across four South Indian states. Cargill also announced plans to increase regional investments and diversify its edible oil product portfolio in the coming years.
List of Top Companies:
- Cargill Inc. (Minnesota, U.S.)
- Archer Daniels Midland Company (Minnesota, U.S.)
- Bunge Limited (U.S.)
- Wilmar International Ltd. (Singapore)
- Fuji Oil Company, Ltd. (Japan)
- ConAgra Brands, Inc. (U.S.)
- IFFCO Group (UAE)
- Ottogi Co. Ltd. (South Korea)
- Associated British Foods Plc (U.K.)
- CJ Cheiljedang Corporation (South Korea)
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Segmentation Analysis
By Type
- Palm Oil: Dominates global consumption due to affordability and wide availability, especially in Asia.
- Soybean Oil: Popular in North and South America for its neutral taste and frying properties.
- Sunflower Oil: Preferred in Europe and parts of Asia for its high smoke point and health profile.
- Olive Oil: Premium segment, growing rapidly among health-conscious consumers in developed regions.
- Others: Includes canola, coconut, avocado, rice bran, and groundnut oils.
By Application
- Household
- Foodservice/Restaurants
- Industrial/Food Processing
By Packaging
- Bottles
- Pouches
- Tins/Drums
- Bulk Packaging (B2B)
By Distribution Channel
- Supermarkets/Hypermarkets
- Convenience Stores
- Online Retail
- Direct B2B Sales
Regional Insights
Asia-Pacific
- Largest Market Share (Over 45%)
- Countries like India, China, and Indonesia are major consumers and producers.
- India is the world’s largest importer of edible oil, with palm and soybean oil dominating.
- Rising awareness about fortified oils and government subsidies are shaping growth.
North America
- Strong growth in health-focused oils like olive, avocado, and canola.
- U.S. leads innovation with organic and non-GMO certifications gaining momentum.
- Private labels are gaining popularity via large retail chains like Walmart and Kroger.
Europe
- Demand for sustainable and high-quality oils such as extra virgin olive oil.
- Regulatory pressure on unhealthy fats is encouraging the use of cold-pressed oils.
- Mediterranean countries such as Spain, Italy, and Greece are key exporters.
Latin America
- Brazil and Argentina are key producers and exporters of soybean oil.
- Rising urbanization and regional trade agreements support market expansion.
Middle East & Africa
- Growth driven by population increase and cooking oil fortification programs.
- Palm oil dominates, but there’s growing interest in healthier alternatives.
Outlook and Future Opportunities
The global cooking oil market is poised for sustained growth driven by health trends, innovation, and expanding consumption across foodservice and household segments. While challenges such as environmental concerns and price volatility persist, opportunities in emerging markets, sustainable sourcing, and premium oils are significant. Companies that align their strategies with consumer demand for quality, health, and sustainability will gain a competitive edge in the evolving cooking oil landscape.
