Cooking Oils and Fats Market Size, Share, Growth, and Industry Analysis, By Types (Vegetable, Animal), By Applications Covered (Restaurant, Hotels, Food Processing, Family, Others), Regional Insights and Forecast to 2033

Cooking Oils and Fats Market Size

The Cooking Oils and Fats Market size was USD 51.2 million in 2024 and is expected to grow to USD 52.4 million in 2025, reaching USD 62.8 million by 2033, with a CAGR of 2.3% during the forecast period (2025-2033).

The U.S. Cooking Oils and Fats Market is projected to grow steadily, driven by increasing consumer demand for healthy cooking alternatives. The market is expected to expand at a rate of 2-4% in the coming years.

The global cooking oils and fats market is driven by the rising demand for healthier and plant-based oil alternatives. Vegetable oils, including olive and sunflower oil, dominate the market, making up over 60% of global consumption. The growing awareness of the health benefits of vegetable oils over animal fats has shifted consumer preferences. Additionally, the increasing use of oils and fats in food processing and restaurant sectors, which together represent nearly 50% of the market share, supports continued growth. In terms of regions, North America and Europe hold significant market shares, while Asia-Pacific is showing the fastest growth due to increased urbanization and food consumption.

Cooking Oils and Fats Market Trends

The cooking oils and fats market is experiencing substantial shifts, driven by changing consumer preferences and increased health awareness. In 2023, vegetable oils accounted for more than 60% of global market share, with olive oil, sunflower oil, and palm oil leading the charge due to their perceived health benefits. This shift toward plant-based oils is being further supported by increasing consumer interest in low-fat and heart-healthy diets. The animal fats segment, including products like lard and tallow, has seen a decline in popularity, representing less than 30% of total market consumption in 2023. A key trend is the growing use of oils in food processing, particularly in the production of packaged snacks, ready-to-eat meals, and convenience foods, which together accounted for around 40% of the market in 2023. The hospitality sector, including restaurants and hotels, remains a significant user of cooking oils, representing approximately 20% of the market. Additionally, with increased urbanization and changing lifestyles, family and household consumption of oils has been rising, contributing to market growth. Regional trends reveal that North America continues to lead the market, driven by a strong preference for vegetable oils, while the Asia-Pacific region is experiencing the fastest growth, primarily due to increasing demand in countries like India and China.

Cooking Oils and Fats Market Dynamics

Drivers of Market Growth

"Rising Health Consciousness"

Health-conscious consumers are increasingly shifting towards vegetable oils due to their perceived benefits, such as lower cholesterol levels and reduced risk of cardiovascular diseases. In 2023, vegetable oils accounted for over 60% of total market consumption, with olive oil and sunflower oil leading due to their heart-healthy fats. The demand for oils with higher omega-3 content and lower saturated fat levels has also surged, as consumers become more educated about the health benefits of plant-based fats. In addition to dietary shifts, increased awareness of the harmful effects of trans fats found in certain animal fats has further fueled the demand for healthier alternatives. This growing health awareness is expected to continue driving the market toward plant-based oils, positioning vegetable oils as the primary growth driver in the industry.

Market Restraints

"Volatile Raw Material Prices"

One of the primary restraints affecting the cooking oils and fats market is the volatility of raw material prices, especially for vegetable oils like palm oil and sunflower oil. In 2023, palm oil prices surged by approximately 15%, primarily due to weather disruptions in key producing regions like Southeast Asia. Similarly, sunflower oil prices increased by 10% as a result of supply shortages in Eastern Europe. Such fluctuations in raw material costs put pressure on manufacturers to adjust their pricing strategies, potentially reducing profitability. Additionally, the reliance on global supply chains, which are vulnerable to geopolitical events and climate change, further exacerbates price instability, limiting the ability of producers to maintain consistent product pricing.

Market Opportunities

"Rising Demand for Plant-Based Products"

The growing trend toward plant-based diets offers substantial opportunities for the cooking oils and fats market, particularly in the vegetable oils segment. With increasing numbers of consumers adopting vegan, vegetarian, and flexitarian diets, the demand for plant-based oils is expected to rise. Vegetable oils, such as olive oil, avocado oil, and canola oil, are becoming popular alternatives in cooking and food processing due to their healthier fat content compared to animal-based fats. In 2023, plant-based oils accounted for more than 60% of global consumption, with olive oil and sunflower oil leading the market. This trend is expected to continue as consumers seek healthier and more sustainable alternatives to animal-derived products, creating growth opportunities for oil producers.

Market Challenges

"Environmental Concerns and Sustainability Issues"

The cooking oils and fats market faces growing challenges related to sustainability, particularly in the production of palm oil. In 2023, approximately 40% of the global palm oil supply was sourced from regions with significant deforestation concerns, leading to environmental and ethical concerns. As sustainability becomes a key focus for both consumers and regulators, oil producers are under increasing pressure to ensure responsible sourcing practices and reduce their environmental impact. While many companies are working to achieve sustainability certifications such as RSPO (Roundtable on Sustainable Palm Oil), the growing demand for sustainable practices in production continues to pose a challenge for the industry. Additionally, the use of palm oil in processed foods and cooking oils is facing scrutiny, with consumer demand shifting toward oils with lower environmental footprints. This presents a challenge for palm oil producers and the broader cooking oil market as a whole.

Segmentation Analysis

The cooking oils and fats market is segmented into two primary types—vegetable and animal oils—and further categorized by application, including restaurants, hotels, food processing, family households, and others. Vegetable oils, such as olive oil, sunflower oil, and canola oil, dominate the market due to their health benefits and wide acceptance in cooking. Animal fats, including lard and tallow, have a smaller market share but continue to serve niche segments. In terms of applications, the food processing industry holds the largest market share, followed by the restaurant and hotel sectors, with increasing demand from both commercial and household use driving overall market growth.

By Type

• Vegetable Oils: Vegetable oils are the most widely consumed type in the cooking oils and fats market, accounting for over 60% of global market share in 2023. The primary drivers for this dominance are their perceived health benefits, particularly for heart health. Olive oil, sunflower oil, and canola oil are the most popular vegetable oils, widely used in households, restaurants, and food processing. Olive oil, in particular, has grown in popularity due to the increasing demand for Mediterranean diets and its health-promoting properties, including antioxidants and monounsaturated fats. As consumers shift toward plant-based diets, vegetable oils are expected to continue dominating the market, with demand further bolstered by growing concerns about animal fat consumption.

• Animal Oils: Animal oils, including lard, tallow, and butter, account for around 30% of the cooking oils and fats market in 2023. These oils are primarily used in traditional cooking methods and certain food processing applications. While the market share of animal oils has declined due to rising health concerns, they remain in demand for specific culinary purposes, such as deep frying, baking, and in processed meats. The use of animal fats in the food industry is especially common in certain regional cuisines, such as those in North America and Europe. Despite facing stiff competition from vegetable oils, animal oils continue to play a significant role in niche applications and in products targeting specific tastes and textures.

By Application

• Restaurant and Hotels: The restaurant and hotel sectors account for approximately 20% of the global cooking oils and fats market in 2023. This segment relies heavily on vegetable oils for cooking, particularly for frying, sautéing, and preparing sauces. Olive oil is particularly favored for Mediterranean cuisines, while sunflower oil and canola oil are commonly used in fast food chains and casual dining establishments. Hotels and restaurants prioritize cost-effectiveness, high smoke points, and oil stability, which vegetable oils provide. As the global foodservice industry continues to grow, this segment's demand for high-quality cooking oils is expected to increase. Moreover, the increasing popularity of plant-based and healthy cooking options is further driving the use of vegetable oils in restaurant kitchens.

• Food Processing: The food processing industry is the largest segment for cooking oils and fats, contributing to over 40% of global consumption in 2023. Vegetable oils, particularly palm oil, are widely used in the production of packaged foods, snacks, margarine, and ready-to-eat meals. The demand for processed food and convenience products continues to rise, especially in emerging economies, driving further growth in this sector. The increasing preference for healthier, low-fat cooking oils in processed foods has led to a growing demand for olive oil and other plant-based oils. The food processing sector's reliance on cooking oils for their versatility and long shelf life ensures its dominant position in the market.

• Family and Household: Family and household consumption represents a significant portion of the cooking oils market, accounting for around 30% in 2023. The rising popularity of home cooking, particularly in regions like North America and Europe, has increased the demand for various cooking oils, with vegetable oils being the most preferred. Health-conscious consumers are shifting towards healthier options like olive oil and avocado oil due to their heart-healthy fats. As consumer awareness about the harmful effects of trans fats rises, families are opting for oils with lower saturated fat content. Additionally, the growth in home delivery services for cooking oils and fats is expanding the market reach for household use.

Regional Outlook

The regional outlook for the cooking oils and fats market reflects varying trends, with different growth drivers influencing demand across regions. North America and Europe remain dominant markets for vegetable oils, especially in food processing and households. Asia-Pacific, on the other hand, is experiencing the fastest growth, driven by increasing urbanization and evolving dietary habits. The Middle East & Africa are also seeing growth, particularly in emerging economies where the consumption of cooking oils is rising due to urbanization and higher disposable incomes. Regional preferences for vegetable oils and animal fats differ, with vegetable oils largely preferred in developed regions, while animal fats still have a strong presence in certain emerging markets.

North America

North America holds a significant share of the global cooking oils and fats market, with the U.S. accounting for the largest portion. In 2023, vegetable oils like canola oil and sunflower oil dominated household and foodservice sectors, comprising about 60% of the market share. Olive oil also remains popular due to health-conscious trends. The restaurant and hotel sectors contribute to approximately 20% of the market, with rising consumer demand for healthier cooking options. The increasing use of oils in processed foods continues to drive market growth, making North America a critical region for vegetable oil consumption.

Europe

Europe is one of the largest markets for cooking oils and fats, accounting for approximately 30% of the global market share in 2023. Olive oil leads the market, particularly in Mediterranean countries like Italy and Spain, where it is a staple in cooking. Sunflower oil is also popular due to its light flavor and high smoke point, making it ideal for frying. The food processing industry in Europe relies heavily on vegetable oils, contributing to about 40% of the total demand. Additionally, the region is seeing growth in sustainable and organic oils, aligning with consumer demand for healthier, more environmentally friendly food products.

Asia-Pacific

Asia-Pacific is the fastest-growing region in the cooking oils and fats market, driven by increasing urbanization, growing populations, and changing dietary habits. In 2023, this region accounted for about 20% of the global market share. China and India are the largest consumers of vegetable oils, particularly soybean and palm oil, driven by their extensive use in food processing and household cooking. The demand for vegetable oils is rising due to health trends, particularly among middle-class consumers who are shifting towards healthier cooking options. As the demand for processed and convenience foods rises, Asia-Pacific's market share is expected to continue growing rapidly.

Middle East & Africa

The Middle East & Africa region represents a smaller portion of the global cooking oils and fats market, with approximately 5% market share in 2023. However, the region is experiencing steady growth, particularly in emerging markets like South Africa and Egypt. Vegetable oils are increasingly favored in the region due to their affordability and health benefits. Palm oil remains a dominant choice for cooking, particularly in commercial food production. The growing demand for packaged foods, along with rising disposable incomes and urbanization, is driving market expansion in the region. As consumers adopt more diverse diets, the demand for both vegetable and animal fats is expected to rise.

Key Companies Profiled in the Cooking Oils and Fats Market

• Wilmar International

• Unilever

• ConAgra Foods

• Bunge

• ABF

• ADM

• Ajinomoto

• United Plantations

• Cargill

• CHS

Top Two Companies With the Highest Market Share

• Wilmar International: Wilmar International holds the largest market share in the cooking oils and fats industry, accounting for approximately 18% of the global market in 2023. The company is a key player in both vegetable oils and food processing sectors.

• Unilever: Unilever is another top player, with a market share of around 14%. The company is a leading supplier of vegetable oils, including popular brands used in household cooking and food manufacturing.

Investment Analysis and Opportunities

The cooking oils and fats market presents significant investment opportunities across various segments, driven by increasing demand for healthier oils, innovations in food processing, and the growing trend toward plant-based diets. Vegetable oils, particularly olive oil, sunflower oil, and canola oil, represent a substantial portion of the market, accounting for over 60% of global consumption in 2023. Investors are increasingly focusing on the vegetable oil sector, which is projected to experience consistent growth due to consumer preference for heart-healthy and plant-based alternatives. Additionally, the rising demand for organic and sustainably sourced oils is prompting companies to expand their product portfolios.

Investment opportunities are also emerging in the bio-based and sustainable oil market. Palm oil, for example, faces criticism due to its environmental impact, creating room for investment in sustainable palm oil production and certification systems like RSPO (Roundtable on Sustainable Palm Oil). As sustainability becomes a priority, companies involved in responsible oil sourcing are poised to see long-term growth. The food processing industry, which accounts for approximately 40% of the market, continues to grow, offering opportunities for investors to target oils used in packaged snacks, ready-to-eat meals, and other convenience products. The restaurant and hospitality sectors also offer potential, driven by the increasing demand for healthier oils in cooking and food preparation.

New Product Development

The cooking oils and fats market has witnessed substantial product innovations, with companies focusing on developing healthier, more sustainable, and specialized oils to cater to evolving consumer preferences. In 2023, several new products were introduced, including high-oleic sunflower oil, which boasts improved nutritional benefits such as a higher percentage of monounsaturated fats, making it an attractive alternative for health-conscious consumers. Companies like Cargill and ADM have expanded their portfolios to include oils with enhanced stability and extended shelf life, catering to the food processing and restaurant industries. These oils are particularly appealing for frying and high-temperature cooking applications.

Additionally, the demand for organic and non-GMO oils is rising, prompting brands like Unilever to introduce organic olive oil and sunflower oil variants. In response to concerns about sustainability, companies are also developing oils derived from more sustainable sources, such as algae and camelina, which offer a lower environmental footprint compared to traditional vegetable oils. The rise of plant-based diets has fueled demand for oils like avocado oil and coconut oil, leading to new product lines designed for health-conscious consumers. Furthermore, innovations in packaging, including eco-friendly and recyclable materials, are being incorporated into product development strategies to appeal to environmentally conscious consumers. These advancements in product offerings position the cooking oils and fats market for continued growth and diversification.

Recent Developments by Manufacturers in the Cooking Oils and Fats Market

• Expansion of Sustainable Sourcing: In 2023, Wilmar International made significant strides toward sustainability by committing to 100% certified sustainable palm oil sourcing. This initiative addresses consumer concerns about environmental impact and boosts market appeal in eco-conscious regions.

• Introduction of Health-Focused Products: Unilever launched a new range of heart-healthy oils in 2024, including high-oleic sunflower oil, which is marketed as a healthier alternative due to its high monounsaturated fat content.

• Innovations in Bio-Based Oils: ADM introduced algae-based cooking oil in 2023, responding to rising demand for sustainable alternatives. This innovation provides a high-quality, eco-friendly oil option for both foodservice and household applications.

• Product Line Expansion for Plant-Based Diets: Bunge expanded its product portfolio with avocado oil in 2024, tapping into the growing plant-based and health-conscious market. The product is designed for consumers seeking oils with high nutritional benefits.

• Technological Advances in Oil Refining: Cargill invested in advanced oil refining technology in 2023, improving efficiency and reducing waste during oil production. This development is expected to enhance the quality and affordability of oils used in food processing.

Report Coverage

The report on the cooking oils and fats market offers a detailed analysis of the market's structure, key trends, and growth drivers across various segments. It covers both vegetable and animal oils, with vegetable oils, including sunflower, olive, and canola oils, dominating the market due to their health benefits and versatility. In 2023, vegetable oils accounted for approximately 60% of the total market, while animal fats, including lard and tallow, represented 30%. The food processing industry remains the largest consumer, accounting for over 40% of global cooking oil consumption. This is followed by household use, which is rising due to increased health awareness, and the restaurant and hospitality sector, which contributes approximately 20% of the market share. The market is also segmented by region, with North America and Europe being the largest consumers, driven by the widespread use of vegetable oils in households and food manufacturing. Asia-Pacific is experiencing rapid growth, driven by urbanization, rising incomes, and increased consumption of healthier oils. Additionally, the market is witnessing innovations in sustainable and organic oil products, as consumer preferences shift toward cleaner, more environmentally friendly options. The report provides comprehensive insights into these regional and sectoral trends, highlighting opportunities for growth and investment in the coming years.