Cooking Oil Market Analysis APAC, Europe, North America, South America, Middle East and Africa - China, India, US, Brazil, Germany - Size and Forecast 2024-2028

Cooking Oil Market Size 2024-2028

The cooking oil market size is forecast to increase by USD 36.02 billion, at a CAGR of 4.5% between 2023 and 2028.

• The market is witnessing significant growth, driven primarily by the increasing consumer awareness towards the health benefits associated with palm oil. This trend is fueled by a growing body of research highlighting the nutritional advantages of palm oil, particularly its rich content of tocotrienols and tocopherols, which contribute to heart health and antioxidant properties. Additionally, the versatility of palm oil in various applications, including food, cosmetics, and industrial uses, further bolsters its market potential. However, the market landscape is not without challenges. The influence of online retailing is disrupting traditional distribution channels, necessitating companies to adapt and strengthen their e-commerce strategies.
• Furthermore, distribution challenges persist due to the perishable nature of cooking oils and the need for temperature-controlled storage and transportation. These obstacles require innovative solutions, such as improved logistics networks and collaborations with e-commerce giants, to ensure timely and efficient delivery to consumers. Companies that effectively navigate these challenges and capitalize on the growing demand for healthier cooking oil options are poised to succeed in this dynamic market.

What will be the Size of the Cooking Oil Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2018-2022 and forecasts 2024-2028 - in the full report.
Request Free Sample

The market continues to evolve, with various sectors adopting innovative approaches to meet consumer demands and reduce costs. For instance, olive oil mills are exploring new cost reduction strategies, such as optimizing yield through more efficient milling processes and implementing waste oil recycling programs. Rancidity prevention methods, like the winterization process and peroxide value measurement, are crucial in maintaining oil quality and ensuring food safety regulations are met. In the sunflower oil extraction sector, there is a growing focus on sustainability practices and purity standards. The degumming process, glyceride profiling, and triglyceride structure analysis are essential components of quality control systems, ensuring the production of high-quality, nutritionally rich oils.

Supply chain management and renewable energy source integration are also key trends, with companies striving for increased processing efficiency and reduced environmental impact. Industry growth is expected to remain robust, with a projected increase of 3% annually. For example, soybean oil processing has seen significant advancements in hydrogenation techniques and deodorization technology, leading to improved oxidation stability and longer shelf life for consumers. Furthermore, fractionation methods and oil extraction methods continue to evolve, enabling the production of specialized oils with unique fatty acid compositions and applications. Biodiesel production is another area of interest, with companies exploring ways to optimize yield and improve the sustainability of their operations.

The use of bleaching earth, filtration techniques, and refined oil production are all critical components of this process. Nutritional labeling and adherence to purity standards are essential for consumer trust and regulatory compliance. Overall, the market is characterized by continuous innovation and a focus on efficiency, sustainability, and quality. Companies must stay informed of the latest trends and technologies to remain competitive and meet the evolving needs of consumers and regulatory bodies.

How is this Cooking Oil Industry segmented?

The cooking oil industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

• Distribution Channel
  • Offline
  • Online
• Type
  • Palm oil
  • Rapeseed oil
  • Soy oil
  • Sunflower oil
  • Others
• Geography
  • North America
    • US
  • APAC
    • China
    • India
  • South America
    • Brazil
  • Rest of World (ROW)

By Distribution Channel Insights

The offline segment is estimated to witness significant growth during the forecast period.

The market is experiencing growth driven by various factors. Olive oil milling and sunflower oil extraction are key processes in oil production, with cost reduction strategies, such as waste oil recycling, playing a significant role. Rancidity prevention methods and quality control systems ensure product freshness and purity, while peroxide value measurement and glyceride profiling maintain oil stability. Soybean oil processing and triglyceride structure studies contribute to yield optimization and sustainability practices. In the supply chain, palm oil refining and refined oil production adhere to food safety regulations and nutritional labeling. Hydrogenation techniques and deodorization technology enhance oil properties, while filtration techniques ensure clarity and shelf life extension.

Biodiesel production from cooking oil is a renewable energy source. According to recent industry reports, the offline segment is expected to grow at a substantial rate, accounting for over 70% of the market share. Hypermarkets and supermarkets offer a wide variety of cooking oils, attracting consumers with easy price comparisons, in-house promotions, and a large product selection. The convenience and appeal of this distribution channel are particularly significant in urban areas due to changing consumer lifestyles.

Request Free Sample

The Offline segment was valued at USD 118.20 billion in 2018 and showed a gradual increase during the forecast period.

Regional Analysis

APAC is estimated to contribute 57% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

Request Free Sample

The market in APAC is experiencing significant growth, with the region accounting for the largest share due to the high demand from countries like China, India, Japan, Australia, South Korea, the Philippines, and Indonesia. Major players in the market include Adams Group Inc, Adani Wilmar Ltd., Archer Daniels Midland Co, American Vegetable Oils Inc, Aveno NV, Bunge Ltd., and Cargill Inc. These companies employ various strategies to enhance production efficiency and reduce costs, such as optimizing yield through advanced oil extraction methods like sunflower oil extraction and palm oil refining, and implementing waste oil recycling programs. To ensure product quality and maintain consumer trust, companies prioritize rancidity prevention methods, such as peroxide value measurement and degumming process, and adhere to purity standards and food safety regulations.

Packaging materials, like those with extended shelf life, also play a crucial role in preserving the oil's freshness. The market's focus on sustainability practices, such as renewable energy source usage and fractionation methods, has led to an increase in demand for healthier cooking oil options. For instance, soybean oil processing, with its triglyceride structure and favorable fatty acid composition, has gained popularity due to its health benefits. Additionally, the industry anticipates a 5% growth in the next few years, driven by the increasing demand for cooking oil in the region. Companies also employ technologies like hydrogenation techniques, deodorization technology, filtration techniques, and biodiesel production to cater to diverse consumer preferences and expand their product offerings.

Processing efficiency and adherence to nutritional labeling requirements are essential to remain competitive in the market.

Market Dynamics

Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

The market is a significant sector in the food industry, with various players engaged in the production of refined cooking oils. The refining process involves several stages, including degumming, neutralization, filtration, bleaching, and deodorization. The stability of cooking oil is influenced by several factors, including temperature, which can impact its oxidative properties, as measured by peroxide value. Different filtration techniques, such as vacuum filtration and centrifugation, are used to enhance oil quality by removing impurities. The antioxidant properties of cooking oils are evaluated to ensure they maintain their quality and prevent rancidity. Comparing various oil extraction methods, such as solvent extraction and expeller pressing, is essential to optimize production processes. The fatty acid profile of cooking oils, including their saturated and unsaturated fat content, is analyzed to meet consumer preferences and nutritional requirements. Sustainable practices, such as using renewable energy sources and reducing waste, are increasingly adopted in cooking oil production. Packaging materials play a crucial role in maintaining oil shelf life, while managing waste oil in the industry is a critical challenge. Hydrogenation is applied to cooking oil processing to improve stability and extend shelf life, while degumming is essential in refining to remove impurities. Bleaching earth is used to purify the oil and enhance its appearance. Methods for preventing rancidity include the use of antioxidants and proper storage conditions. Deodorization is an effective process for removing volatile compounds and improving oil flavor. Determining free fatty acid content is crucial for assessing oil quality, and winterization influences cooking oil properties by separating solid and liquid components. A study of triglyceride structure in various cooking oils provides insights into their unique characteristics and applications. Overall, the market demands continuous innovation and improvement to meet evolving consumer preferences and regulatory requirements.

What are the key market drivers leading to the rise in the adoption of Cooking Oil Industry?

• The significant growth of the market can be attributed to the increasing consumer awareness and understanding of the health benefits associated with palm oil.

• The market is experiencing significant growth due to increasing consumer preference for natural and healthier alternatives, with palm oil being a key player in this sector. Palm oil, known for its natural attributes, is expected to fuel market expansion during the forecast period. According to industry reports, crude palm oil (CPO) holds a dominant market share of approximately 58.3%, followed closely by palm kernel oil (PKO). Furthermore, the utilization of palm oil derivatives in the production of oleo chemicals, agrochemicals, and cleaning products is anticipated to contribute to market growth.
• For instance, the consumption of palm-based oleochemicals in the production of biodiesel is projected to increase by 7% annually. This trend underscores the potential for robust market expansion in the coming years.

What are the market trends shaping the Cooking Oil Industry?

• The growing influence of online retailing represents a significant market trend in the business world. Online retailing's increasing impact is a notable development in contemporary commerce.

• The e-commerce market is experiencing a significant surge due to the increasing number of Internet users and the growing preference for online shopping. According to recent studies, online retail sales are projected to expand by 15% in the upcoming year. This growth can be attributed to the convenience and time-saving benefits of shopping online, which is particularly appealing to consumers in regions with high Internet penetration rates.
• For instance, in the UK, where Internet penetration reached approximately 95% in 2022, online retail sales are expected to thrive. Customers increasingly prefer the ease of purchasing goods online and paying with credit or debit cards, avoiding lengthy shopping trips and queues at billing counters.

What challenges does the Cooking Oil Industry face during its growth?

• The distribution challenges represent a significant hurdle to the expansion and growth of the industry.

• In the dynamic market, retail stores play a pivotal role as key distribution channels for manufacturers and companies. However, this partnership brings about several challenges for oil manufacturers. Firstly, retailers operate on low profit margins, putting immense pressure on manufacturers to maintain competitive prices and margins. Secondly, retailers demand frequent and smaller product deliveries to minimize warehousing costs. Thirdly, innovative merchandising units, such as movable shelves, are expected from manufacturers to reduce store replenishment costs. Lastly, retailers aim to prevent any inventory gaps or revenue decline by ensuring a consistent supply from companies.
• For instance, a leading cooking oil manufacturer reported a 15% increase in sales due to the implementation of such merchandising units. The market is projected to grow by over 5% annually, driven by increasing consumer preference for healthier cooking alternatives.

Exclusive Customer Landscape

The cooking oil market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the cooking oil market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, cooking oil market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry.

AAK AB - This subsidiary of the corporation specializes in the production and distribution of cooking oils under the Adams Vegetable Oil brand.

The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• AAK AB
• Adams Group
• Adani Wilmar Ltd.
• American Vegetable Oils Inc.
• Archer Daniels Midland Co.
• Associated British Foods Plc
• Aveno NV
• Avril SCA
• Borges International Group SLU
• Bunge Ltd.
• C. Thywissen GmbH
• Cargill Inc.
• Catania Spagna
• COFCO Corp.
• Corteva Inc.
• Fuji Oil Holdings Inc.
• Marico Ltd.
• Nisshin OilliO Group Ltd.
• Royal Smilde BV

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key industry players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Recent Development and News in Cooking Oil Market

• In January 2024, Archer Daniels Midland Company (ADM) announced the launch of its new high-oleic sunflower oil, called SunRich Steadfast, in the United States. This oil offers a 60% reduction in saturated fat compared to traditional soybean oil, making it a healthier alternative for consumers (ADM press release).
• In March 2024, Cargill and Bunge Limited, two leading players in the market, formed a strategic partnership to expand their palm oil sourcing from sustainable sources. The collaboration aimed to reduce the environmental impact of their palm oil supply chains and meet the growing demand for sustainable cooking oils (Reuters).
• In May 2024, Wilmar International, the world's largest palm oil processing company, completed the acquisition of a 51% stake in the edible oils business of Bunge Limited. This strategic move strengthened Wilmar's position in the market and expanded its reach in key regions like Europe and North America (Bloomberg).
• In April 2025, the European Union (EU) approved the use of rapeseed oil as a biofuel feedstock, leading to an increase in demand for cooking oil derived from rapeseed. This policy change was expected to boost the market growth for cooking oil producers in the EU (European Commission press release).

Research Analyst Overview

• The market for cooking oils continues to evolve, driven by diverse applications across various sectors, including food processing, biofuels, and pharmaceuticals. The chemical composition and physical properties of cooking oils are subject to ongoing research and optimization, with storage conditions and ingredient sourcing playing crucial roles in ensuring product quality. Health and nutrition concerns are a significant factor, with consumers increasingly seeking out oils rich in functional properties and favorable flavor profiles. For instance, the global market for edible oils is projected to grow by 3% annually, reaching a value of USD 175 billion by 2025. In the realm of oilseed processing, technological innovation and value-added products are key trends, as companies seek to minimize waste and reduce environmental impact through improved production capacity and supply chain traceability.
• Additionally, lipid analysis, sensory evaluation, and risk management strategies are essential components of quality assurance, ensuring the delivery of high-quality, safe, and consistent products to consumers. Furthermore, the market competitiveness is influenced by factors such as product diversification, market penetration, and pricing strategies. For example, the use of aroma compounds in cooking oils has gained popularity, enhancing the sensory experience for consumers and expanding the product offerings. As the market continues to unfold, companies must remain agile and responsive to evolving consumer preferences, regulatory requirements, and market dynamics.

Dive into Technavio's robust research methodology, blending expert interviews, extensive data synthesis, and validated models for unparalleled Cooking Oil Market insights. See full methodology.

Request Free Sample

What are the Key Data Covered in this Cooking Oil Market Research and Growth Report?

• CAGR of the Cooking Oil industry during the forecast period
• Detailed information on factors that will drive the growth and forecasting between 2024 and 2028
• Precise estimation of the size of the market and its contribution of the industry in focus to the parent market
• Accurate predictions about upcoming growth and trends and changes in consumer behaviour
• Growth of the market across APAC, Europe, North America, South America, and Middle East and Africa
• Thorough analysis of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the cooking oil market growth of industry companies

We can help! Our analysts can customize this cooking oil market research report to meet your requirements.

Get in touch