Vegetable Oils Market size is estimated to be valued at USD 4,29,524.2 Mn in 2025 and is expected to reach USD 8,67,309.0 Mn in 2032, exhibiting a compound annual growth rate (CAGR) of 10.6% from 2025 to 2032.
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.
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Event |
Description and Impact |
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Russia-Ukraine Conflict and Black Sea Disruptions |
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Indonesian Palm Oil Export Policy Changes |
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Climate Change and Weather Disruptions |
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Oil Type |
Region |
Time Period |
Average Price (US$/MT) |
Key Influences |
|
Crude Palm Oil |
Malaysia |
Q1 2025 |
$920 |
Export policies, weather impacts |
|
Crude Palm Oil |
Indonesia |
Q1 2025 |
$940 |
Export policies, weather impacts |
|
Crude Palm Oil |
India |
Q1 2025 |
$1,020 |
Import demand, regional supply |
|
Crude Palm Oil |
Indonesia |
Q2 2025 |
$1,050 |
Export restrictions |
|
Crude Palm Oil |
Malaysia |
Q2 2025 |
$980 |
Steady production |
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Soybean Oil |
USA |
Mid-2025 |
$1,200 |
Drought-induced supply constraints |
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Soybean Oil |
Brazil |
Mid-2025 |
$1,180 |
Drought-induced supply constraints |
|
Extra Virgin Olive Oil |
Europe/N. America |
2025 |
$3,000–$5,500 |
Specialty markets, premium quality |
|
Organic Coconut Oil |
Europe/N. America |
2025 |
$3,000–$5,500 |
Specialty markets, premium quality |
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Demand for natural and organic vegetable oils is rapidly increasing as consumers prioritize health, sustainability, and clean-label products. Oils like cold-pressed coconut, extra virgin olive, and organic avocado are favored for their perceived nutritional benefits and environmentally friendly production methods. This trend is driving market growth in premium segments, especially in North America and Europe.
Based on type, the Palm Oil segment is expected to dominate with 27.8% share in the global market in 2025, 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.
Based on application, the Food segment 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.
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North America is expected to dominate the global vegetable oil market over the forecast period owing to the high consumption of mayonnaise along with the growing popularity of fast food. Vegetable oil is widely used in the preparation of mayonnaise. The US mayonnaise market was valued at USD 2,165 million in 2025, and it is projected to reach USD 2,546 million by 2032, registering a CAGR of 2.05% during the forecast period.
Europe is also expected to witness fastest growth in the global market owing to the high production of vegetable oil in the region. According to the Coherent Market Insights analysis, the volume of the Spanish oil market stood at 3,257 thousand metric ton in 2022, and it is projected to reach 3,810 thousand metric ton by 2032, registering a CAGR of 1.98% during the forecast period.
Favorable government policies are playing a critical role in accelerating the vegetable oils market demand across multiple regions. Many countries are promoting the use of vegetable oils through incentives for sustainable agriculture, subsidies for oilseed cultivation, and mandates supporting their use in food processing, biodiesel blending, and industrial applications. Regulatory encouragement for healthier edible oil options and sustainable biofuel production is further boosting consumption. Additionally, trade liberalization measures and reduced import duties in key markets are improving availability and affordability. These supportive policy frameworks collectively enhance production, stimulate investment, and significantly strengthen the growth trajectory of the global vegetable oils market.
Vegetable oils are being increasingly used as lubrication in transportation and industrial sector. For example, they are used in chain saws, two-stroke engines, hydraulics, open gears, mining, mold releases, farming, and forestry equipment. Moreover, oleochemicals is a common ingredient used to manufacture industrial, household, and institutional cleaning products, such as fabric cleaners and softeners, automotive cleaners, surface cleaners, dishwashing, and care products, and industrial cleaners.
A major amount of palm oil production goes into production of oleochemical, making it one of the major applications. Hence, growing industrial application of vegetable oil is expected to foster market growth.
Advent of new sources and production method owing to the ongoing research and development activities is expected to offer significant growth opportunities.
Growing popularity of plant-based oil is expected to serve significant growth opportunities in the near future. Plant based oils are often used in baking, and they can be flavored with dried or fresh herbs to create a variety of dishes. They can also be mixed with other oils to form a blended vegetable oil, like olive oil and avocado 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.
The vegetable oils industry is witnessing a strong push toward expanding production capacity as manufacturers strive to meet rising demand from food processing, biodiesel, cosmetics, and nutraceutical sectors. Companies are investing in advanced extraction technologies, high-yield oilseed varieties, and new refining units to enhance output efficiency. This capacity expansion is crucial for strengthening supply security, stabilizing prices, and capturing a larger vegetable oils market share amid intensifying global competition. Additionally, government-backed incentives for oilseed cultivation and sustainable processing are accelerating production upgrades, enabling producers to scale operations and support both domestic consumption and export-oriented growth.
| Report Coverage | Details | ||
|---|---|---|---|
| Base Year: | 2024 | Market Size in 2025: | USD 4,29,524.2 Mn |
| Historical Data for: | 2020 To 2024 | Forecast Period: | 2025 To 2032 |
| Forecast Period 2025 to 2032 CAGR: | 10.6% | 2032 Value Projection: | USD 8,67,309.0 Mn |
| Geographies covered: |
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| Segments covered: |
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| Companies covered: |
Archer Daniels Midland Company, Sime Darby Plantation Berhad, Bunge Limited, Olam International Limited, Cargill Incorporated, Golden Agri-Resources, Kuala Lumpur Kepong Berhad, Fuji Oil Holding Inc., Wilmar International Limited, PT Astra Agro Lestari Tbk, and Avril Group |
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| Growth Drivers: |
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| Restraints & Challenges: |
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Definition: Vegetable oils are a group of fats that are extracted from plants, seeds and nuts. They are used to help in texture, carry flavor within a dish and assist in cooking food. Common vegetable oils include Canola, Palm, Corn, Olive, Sunflower, Soybean and Rice Bran oil.
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About Author
Sakshi Suryawanshi is a Research Consultant with 6 years of extensive experience in market research and consulting. She is proficient in market estimation, competitive analysis, and patent analysis. Sakshi excels in identifying market trends and evaluating competitive landscapes to provide actionable insights that drive strategic decision-making. Her expertise helps businesses navigate complex market dynamics and achieve their objectives effectively.
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