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The North America vegetable oil market size is projected to increase by USD 12.45 billion, at a CAGR of 3.93% between 2023 and 2028
The growth rate of the market heavily relies on diverse offline distribution channels. Supermarkets and hypermarkets dominate, offering convenience and catering to various consumer markets. Convenience stores serve urban areas efficiently, while traditional grocery stores maintain local prominence. Wholesale clubs benefit both household and business consumers, while specialty and health food stores tap into global health-conscious trends. Independent retailers and wholesalers facilitate efficient supply chain management, driving consumption and supporting market forecasts. Further, CHS Inc. company offers vegetable oil products such as sweet almond, neem, olive extra virgin, sunflower, and others.
The market shows an Accelerated CAGR during the forecast period.
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Increasing use in non-food applications is the key factor driving the market. Vegetable fats, derived from various plant sources, possess unique properties that make them versatile ingredients in a wide range of non-food applications. One key sector driving this trend is the biodiesel industry, where which serves as feedstocks for producing renewable and environmentally friendly fuels. The push for cleaner energy sources and reducing greenhouse gas emissions has led to a growing demand for biodiesel, thus driving consumption in this sector.
Additionally, vegetable oils find applications in the production of biodegradable lubricants, hydraulic fluids, and greases, offering eco-friendly alternatives to petroleum-based products. In the cosmetics and personal care industry, cosmetic oils are valued for their moisturizing properties and are used extensively in skincare products and formulations. Furthermore, these oils are utilized in the manufacturing of soaps, detergents, and surfactants, where they act as effective cleansing agents. This trend reflects a growing consumer preference for natural and sustainable ingredients in various industries, promoting the adoption of vegetable oils for their versatile applications beyond traditional food uses.
Demand for clean labels is the primary trend in the market. Clean-label products are those that contain minimal ingredients and are perceived as natural, wholesome, and free from artificial additives, preservatives, and processing aids. This trend is driven by consumer preferences for transparent and healthier food options, as well as a desire for more environmentally sustainable products. Manufacturers are reformulating their products to meet clean-label criteria, removing additives and refining processes that are perceived as undesirable.
Furthermore, companies are investing in transparent labeling and marketing strategies to communicate the clean-label attributes of their products to consumers effectively. This includes highlighting factors such as non-genetically modified organisms (non-GMO), organic, sustainably sourced, and minimally processed ingredients. Therefore, a rise in demand by consumers in North America for clean-label products boosts the growth of the market trends during the forecast period.
Increasing threats from other cooking oils and fats is a major challenge that affects market expansion. One of the primary competitors is animal fats such as lard and butter, which have seen a resurgence in popularity due to trends, including the keto diet and the promotion of traditional cooking methods. Animal fats offer unique flavor profiles and culinary properties that appeal to consumers seeking indulgent and savory dishes, thereby posing a challenge in certain cooking applications.
Moreover, alternative plant-based such as coconut, avocado, and almond have gained traction as healthier alternatives to traditional vegetable oils. Additionally, coconut oils' unique composition, which includes medium-chain triglycerides (MCTs), has garnered attention for its potential metabolic benefits. Therefore, these factors may impede the market expansion during the forecast period.
In the vegetable oil market in North America, palm oil holds a significant presence, imported to fulfill various consumer and industrial demands. Palm oil exists in several types, each serving distinct purposes and applications. Crude Palm Oil (CPO) stands as the fundamental form directly extracted from the fruit of the oil palm tree, requiring further refining processes for commercial use. Further, palm Kernel, extracted from the kernel, is rich in saturated fats, solid at room temperature, and utilized in margarine. Diverse types of palm oil cater to a range of culinary and industrial requirements, contributing to its widespread usage and importance in the North American market, which further increases the demand and growth of the segment during the forecast period.
The market share by the offline segment will be significant during the forecast period. The offline distribution channels are diverse and vital for reaching consumers across the region. Supermarkets and hypermarkets stand as primary distribution channels, offering a wide array of vegetable oil brands and packaging sizes. Convenience stores also play a significant role, particularly in urban and suburban areas, where consumers seek quick access to essential cooking ingredients like canola oil. Specialty food stores and health food stores target niche markets, providing premium and organic canola oil selections for health-conscious consumers. Canola oil, known for its neutral flavor and high smoke point, is preferred for various cooking methods, including frying, baking, and salad dressings. Its popularity in both traditional and health-focused cuisines contributes to its widespread availability in retail outlets catering to diverse consumer preferences.
The offline segment was valued at USD 40.58 billion in 2018.
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Additionally, independent retailers, including neighborhood markets and ethnic grocery stores, contribute to the market by catering to specific cultural preferences and serving localized demographics. Distributors and wholesalers facilitate efficient supply chain management, ensuring seamless distribution of vegetable oils from manufacturers to retailers across the region. Therefore, an increase in sales through offline distribution channels propels the expansion of the market during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market forecasting growth and analysis.
The market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 10 market companies, including:
Bulk Apothecary, Bunge Ltd., Cargill Inc., ELIXENS GROUP, Fuji Oil Co. Ltd., Jedwards International Inc., Louis Dreyfus Co. BV, Olam Group Ltd., Ravago Chemicals, The Clorox Co., Unilever PLC, Wilmar International Ltd., Cheryls Herbs, Hybco USA, The Procter and Gamble Co., and Welch Holme and Clark Co. Inc.
The market analysis and report of 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 market 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.
The market research and growth report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
The vegetable oil market in North America is experiencing significant growth, driven by the increasing demand for organic edible oil in the processed food and foodservice industries. Consumers are showing a preference for high-quality, clean-labeled oils, leading to innovative packaging strategies and product launches in the region. The market is witnessing a shift towards healthier options, with a focus on organic health-based products catering to vegan diets and food supplements.
Soybean oil and canola oil are prominent players in the market, known for their omega-3, omega-6, and vitamin E content, offering various health benefits, including antioxidant effects. These oils find application in the food industry, nutraceuticals, and pharmaceuticals, where they are used to combat chronic diseases.
Mexico and Canada are major players in the North American vegetable oil market, both in terms of consumption and production. Additionally, these countries are among the leading olive oil-importing nations globally, contributing significantly to the global import and export of oils. The industry is also exploring non-food uses of oils, particularly in biofuels, further emphasizing its importance in the region's economy and environmental sustainability
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Market Scope |
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Report Coverage |
Details |
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Page number |
145 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 3.93% |
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Market Growth 2024-2028 |
USD 12.45 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
3.67 |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Archer Daniels Midland Co., Azelis SA, Bulk Apothecary, Bunge Ltd., Cargill Inc., CHS Inc., ELIXENS GROUP, Fuji Oil Co. Ltd., Jedwards International Inc., Louis Dreyfus Co. BV, Olam Group Ltd., Ravago Chemicals, The Clorox Co., Unilever PLC, Wilmar International Ltd., Cheryls Herbs, Hybco USA, The Procter and Gamble Co., and Welch Holme and Clark Co. Inc. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Distribution Channel
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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