Global Fats and Oils Market By Source (Plant-Based, Animal—Based), By Types (Saturated Fats, Unsaturated Fats, Trans Fats), By Application (Food Industry, Industrial Use, Feed Industry), By Geographic Scope and Forecast

Fats and Oils Market Size And Forecast

Fats and Oils Market size was valued at USD 271.5 Billion in 2024 and is projected to reach USD 367.64 Billion by 2031, growing at a CAGR of 4.26% from 2024 to 2031.

• Fats and oils are types of lipids, which are essential macronutrients found in both plant and animal sources. They are chemically formed of triglycerides, made up of three fatty acid chains joined by glycerol. Fats are normally solid at room temperature and are mostly sourced from animal sources, such as butter and lard, whereas oils are liquid at room temperature and are commonly obtained from plants, such as olive oil and sunflower oil.
• They have important roles in the body, such as supplying a concentrated source of energy, assisting with the absorption of fat-soluble vitamins (A, D, E, and K), and contributing to the formation and function of cell membranes. Furthermore, fats and oils are useful in cooking and food preparation because they improve flavor, texture, and satiety.
• The future of fats and oils is expected to expand and diversify significantly, owing to rising global demand for both traditional and new applications. As dietary habits shift toward healthier and more sustainable options, the food sector is projected to witness an increase in the usage of plant-based oils such as olive, avocado, and coconut oil, as well as a greater emphasis on omega-3-rich sources for their health advantages. Furthermore, the non-food sectors, such as biofuels, cosmetics, and medicines, are expected to increase their usage of fats and oils due to their renewable and biodegradable features.

Global Fats and Oils Market Dynamics

The key market dynamics that are shaping the global fats and oils market include

Key Market Drivers

• Increasing Population and Urbanization As the world’s population grows, so does the demand for food goods such as fats and oils. Dietary patterns shift as a result of urbanization, with an increasing predilection for processed and convenient meals high in fat and oils.
• Rising Disposable Income Higher disposable income, especially in emerging nations, leads to increased consumption of a wide range of food goods, including those high in fats and oils. Customers with higher incomes are more inclined to buy premium and specialized oils.
• Changing Dietary Preferences There is an increasing trend towards healthy eating habits and the intake of healthier fats and oils, such as olive oil, avocado oil, and other plant-based oils. This trend is motivated by improved health knowledge and a desire to avoid lifestyle-related disorders.
• Expansion of Food and Beverage Industry The food and beverage business are a large consumer of fats and oils. This sector’s development, which includes fast food chains, bakeries, confectioneries, and ready-to-eat meals, stimulates demand for various types of fats and oils.

Key Challenges

• Health ConcernsConsumers are becoming more aware of the health risks associated with consuming certain fats and oils, particularly those heavy in saturated or trans fats. Health-conscious consumers may choose alternatives or limit their use of items containing certain fats and oils, causing alterations in demand and market dynamics.
• Regulatory Changes Regulations governing the production, labeling, and marketing of fats and oils may have an impact on the market. Changes in rules governing health claims, labeling requirements, and food safety standards may force corporations to reformulate products or modify their marketing strategy, resulting in additional expenses and compliance issues.
• Supply Chain Disruptions Disruptions in the fats and oils supply chain, such as crop failures, transportation challenges, and trade conflicts, can affect raw material availability and cost. Supply chain disruptions can cause shortages, stockpiling, or reliance on alternate sources, compromising market stability and profitability.
• Sustainability and Environmental Concerns The fats and oils business are under investigation for its environmental impact, which includes deforestation, habitat damage, and greenhouse gas emissions from palm oil extraction, for example. Companies in the fats and oils sector face increasing customer and regulatory pressure to embrace sustainable sourcing techniques and decrease their environmental footprint.

 Key Trends

• Health and Wellness Consumers are increasingly prioritizing their health and wellness, which is driving up demand for healthier fats and oils. This includes oils with greater unsaturated fat content, such as olive oil, avocado oil, and omega-3-rich oils like fish oil. There is also growing interest in plant-based oils as alternatives to animal fats.
• Sustainable Sourcing Environmental and ethical concerns are increasing demand for fats and oils that are obtained responsibly. Consumers seek products with certifications such as RSPO (Roundtable on Sustainable Palm Oil) for palm oil and Fair Trade for coconut oil, which ensure that production techniques are environmentally and socially responsible.
• Functional and specialized Oils There is a growing need for specialized oils that provide functional benefits beyond basic nutrition. These include oils fortified with vitamins, antioxidants, or other bioactive components, as well as oils with specific culinary or health-promoting qualities, such MCT oil or hempseed oil.
• Plant-Based Alternatives The popularity of plant-based diets and veganism is driving demand for plant-based alternatives to animal fats like butter and lard. Plant-based spreads, margarines, and shortenings derived from oils such as soybean, sunflower, and coconut are becoming more popular.

Global Fats and Oils Market, Regional Analysis

Here is a more detailed regional analysis of the global fats and oils market

North America

• North America, notably the United States and Canada, has vast agricultural resources and is a major producer of vital oilseed crops such soybeans, corn, and canola. These crops are required for the manufacture of vegetable oils such as soybean and canola oil. Advanced agricultural technologies and practices increase crop yields and oil extraction efficiency in the region. Innovations in biotechnology, precision farming, and sustainable agriculture lead to increased productivity.
• North America’s fat and oil production, processing, and distribution are supported by well-developed infrastructures. This comprises cutting-edge crushing and refining facilities, reliable transportation networks, and ample storage capacity. The broad and expansive food business in North America creates high demand for various fats and oils. These goods are widely used in food processing, restaurant, and home cooking. The popularity of processed and convenience foods drives up demand even further.
• Growing consumer understanding of health and nutrition drives demand for healthier oils like olive oil, avocado oil, and other unsaturated fat-rich oils. The North American market responds fast to these trends, fueling innovation and product diversity. High disposable incomes and consumer buying power in North America allow for increased consumption of both basic and luxury fats and oils. Consumers in the region are willing to pay more for high-quality and specialist oil products.
• Furthermore, the regulatory climate in North America encourages the production and sale of fats and oils. Regulations ensure food safety and quality, sustaining customer confidence and market stability. North America is a major exporter of fats and oils. Surplus production capacity enables the region to supply worldwide markets, so establishing global domination. This covers exports of soybean oil, corn oil, and other vegetable oils.
• Additionally, investment in R&D leads to ongoing innovation in product compositions, processing technology, and sustainable practices. These efforts enable North American enterprises to remain competitive and meet changing consumer demands both domestically and abroad. Sustainable production practices are becoming increasingly important in North America. This involves adopting ecologically friendly agriculture practices, obtaining sustainable sourcing certifications, and developing renewable and bio-based oils.

Asia Pacific

• The Asia-Pacific region is distinguished by a sizable and quickly expanding population, particularly in China and India. With rising earnings and rapid urbanization, dietary habits are shifting, resulting in increased use of fats and oils, both for cooking at home and in processed goods. Economic expansion and urbanization in Asia-Pacific are causing dietary trends, such as increased consumption of processed, fried, and convenience meals. These changes are driving up demand for oils and fats used in food processing, including palm oil, soybean oil, and vegetable oil blends.
• As earnings rise in Asia-Pacific, consumers embrace more affluent lifestyles and nutritional habits, such as increased intake of meat, dairy, and processed foods. This has increased demand for animal fats like butter and ghee, as well as specialty oils such as olive oil and avocado oil, often associated with Western cuisines.
• The food processing sector in Asia-Pacific countries is quickly developing, propelled by urbanization, changing lifestyles, and rising consumer demand for convenient foods. This development will increase demand for fats and oils as ingredients in a wide range of processed goods, including snacks, bakery items, and ready-to-eat meals. Consumers in the Asia-Pacific area is seeking healthier alternatives to traditional fats and oils as their health and wellness knowledge grows. This includes unsaturated fat-rich oils like olive and canola oil, as well as specialty oils like coconut and avocado oil, which are thought to be more nutritious.
• Concerns about health and aging populations are fueling an increase in interest in functional foods and ingredients in Asia and the Pacific. Functional oils and fats loaded with omega-3 fatty acids, vitamins, antioxidants, and other bioactive components are becoming increasingly popular as customers seek out goods with additional health benefits. Government policies and regulations have a substantial impact on the Asia-Pacific fats and oils market.
• Environmental and ethical concerns are increasing demand for sustainably derived fats and oils in Asia-Pacific. Consumers are increasingly looking for items with certifications like RSPO (Roundtable on Sustainable Palm Oil) and Fair Trade, which guarantee that production processes are ecologically benign and socially ethical. This tendency is especially noteworthy in nations such as Indonesia and Malaysia, which are large producers of palm oil.

Global Fats and Oils MarketSegmentation Analysis

The global fats and oils market is segmented on the basis of Source, Type, Application, and Geography.

Fats and Oils Market, By Source

• Plant-based
• Animal-based

Based on Source, the Global Fats and Oils Market is segmented into plant-based, and animal-based. The plant-based component is dominating and quickly expanding. Plant-based fats and oils are experiencing an increase in demand as consumers become more aware of the health and environmental risks connected with animal-based products. Growing trends including veganism, vegetarianism, and flexitarians are boosting demand for plant-based alternatives in a variety of food and non-food uses.

Fats and Oils Market, By Type

• Saturated Fats
• Unsaturated Fats
• Trans Fats

Based on type, the Global Fats and Oils Market is segmented into saturated fats, unsaturated fats, trans fats. Unsaturated fats dominate the market because of their purported health benefits and adaptability in a variety of dietary applications. Olive oil, soybean oil, and avocado are all sources of unsaturated fats, which include monounsaturated and polyunsaturated fats. Furthermore, the rapid growth of the unsaturated fats segment is being fueled by changing consumer preferences for healthier eating habits, which are being driven by concerns about heart health, weight management, and disease prevention.

Fats and Oils Market, By Application

• Food Industry
• Industrial Use
• Feed Industry

Based on the application, the Global Fats and Oils Market is segmented into the food industry, industrial use, feed industry. The food sector segment dominates, owing to the widespread use of fats and oils in food manufacturing, such as cooking oils, margarine, confectionery, and processed foods. Population expansion, changing dietary preferences, and an increase in demand for convenience meals all contribute to the food industry’s dominant position. On the other hand, the industrial use segment is quickly developing, owing to the increasing use of fats and oils in non-food sectors such as pharmaceuticals, personal care products, and biofuels.

Fats and Oils Market, By Geography

• North America
• Europe
• Asia Pacific
• Rest of the World

Based on Geography, North America dominates the fats and oils industry due to its established economies, large healthcare spending, and broad adoption of health and wellness trends. Asia Pacific is the largest and fastest expanding segment. Several factors contribute to the region’s dominance, including an increasing population, rising disposable incomes, and shifting nutritional habits, particularly in emerging economies such as China and India. These countries have seen a considerable increase in demand for fats and oils as they are used in a variety of culinary goods and cooking applications.

Key Players

The “Global Fats and Oils Market” study report will provide valuable insight with an emphasis on the global market including some of the major players such as Archer Daniels Midland Company (ADM), Bunge Limited, Cargill Incorporated, Wilmar International Limited, Olam International Limited, AAK AB, Fuji Oil Holding Inc., Musim Mas Group, Associated British Foods PLC, Unilever Plc.

Our market analysis also entails a section solely dedicated to such major players wherein our analysts provide an insight into the financial statements of all the major players, along with its product benchmarking and SWOT analysis. The competitive landscape section also includes key development strategies, market share, and market ranking analysis of the above-mentioned players globally.

Fats and Oils MarketRecent Developments

• In October 2023, The J.M. Smucker Co. is to acquire fellow American snack company Hostess Brands for approximately $5.6 billion, following several other high-profile mergers in food and snacks so far. Smuckers said that both companies have “complementary capabilities” that will help drive growth and innovation, and that the acquisition positions Smuckers to “deliver on consumer needs across occasions with greater convenience and selection.” “With this acquisition, we are adding an iconic sweet snacking platform; enhancing our ability to deliver brands consumers love and convenient solutions they desire; and leveraging the attributes Hostess Brands offers.
• In July 2023, Greencore to sell edible oils business Trilby to KTC. Greencore Group has entered into an agreement to sell its vegetable oil business Trilby to KTC Edibles for approximately €9.8 million. Trilby is an Irish importer and distributor of vegetable oils and fats for the food processing industry and sells approximately 60,000 Tonnes of product each year in the UK, Ireland and the Netherlands. Paresh Mehta, CEO of KTC, added“We are very excited by the acquisition of Trilby, following a strong period of trading under Greencore’s ownership.

Report Scope

Research Methodology of Market Research