Fats and Oils Market Report 2026

The fats and oils market size has grown strongly in recent years. It will grow from $178.98 billion in 2025 to $188.63 billion in 2026 at a compound annual growth rate (CAGR) of 5.4%. The growth in the historic period can be attributed to expansion of packaged food consumption, rising household cooking oil usage, growth of industrial food processing, availability of diverse oilseed crops, increasing animal feed demand.

The fats and oils market size is expected to see strong growth in the next few years. It will grow to $240 billion in 2030 at a compound annual growth rate (CAGR) of 6.2%. The growth in the forecast period can be attributed to increasing consumer focus on heart-healthy diets, rising demand for plant-based oils, expansion of bio-based personal care applications, growing adoption of sustainable sourcing certifications, increasing innovation in specialty oils. Major trends in the forecast period include growing demand for healthier cooking oils, expansion of sustainable palm oil alternatives, increasing use of functional and fortified oils, rising adoption of cold-pressed oil processing, premiumization of edible oil products.

The rising consumer demand for convenience foods is expected to drive growth in the fats and oils market. Convenience foods are pre-packaged or pre-prepared products designed for quick and easy consumption, requiring minimal cooking or preparation. This demand is fueled by busy lifestyles, increasing urbanization, and the need for fast, easy-to-prepare meals without compromising taste or nutrition. Fats and oils are used in convenience foods to enhance flavor, improve texture, and provide essential cooking stability for rapid preparation. For example, in April 2024, the National Association of Convenience Stores, a US-based trade association, reported that in 2023, foodservice sales - including prepared foods, commissary items, and dispensed beverages - accounted for 26.9% of in-store sales, up from 25.6% in 2022. Additionally, sales of prepared foods per store per month rose by 12.2% in 2023 compared to 2022. Therefore, the growing demand for convenience foods is boosting the fats and oils market.

Population growth is also expected to propel the fats and oils market forward. Population refers to the total number of individuals in a specific geographic area, region, or community at a given time. An increasing population drives higher demand for fats and oils, as they are essential ingredients in food production, and more consumers necessitate greater food output. For instance, in January 2025, the Congressional Budget Office, a US-based federal agency, reported that the U.S. population is projected to grow from 350 million in 2025 to 372 million by 2055, along with an increase in the average age. Therefore, population growth is supporting the expansion of the fats and oils market.

Leading companies in the fats and oils market are focusing on innovative product launches, such as plant-based fats, to offer sustainable and healthier alternatives to traditional fats. Plant-based fats are derived from plant sources rather than animals. For example, in March 2023, Shiru, a US-based alternative protein company, launched its first commercial ingredient, OleoPro. This plant-based fat blends plant proteins with unsaturated oils to create a functional alternative to animal fats. OleoPro is designed to maintain its structure at room temperature, achieve desirable browning during cooking, and deliver a juicy, satisfying mouthfeel in plant-based meat products. The ingredient enhances flavor, texture, and overall eating quality in meat alternatives, providing food manufacturers with tools to develop next-generation, sustainable, high-quality plant-based meat options.

Major companies operating in the fats and oils market are Bunge Limited, Wilmar International Limited, Archer Daniels Midland Company, Cargill Incorporated, AAK AB, Mewah International Inc, IOI Group, Musim Mas Group, The Nisshin Oillio Group, Fuji Oil Co Ltd, Associated British Foods PLC, Miyoshi Oil & Fat Co Ltd, Jayant Oils And Derivatives Ltd, Oleon NV, Emery Oleochemicals GmbH, Kao Oleochemical, Sonneborn LLC, Arab Sudanese Vegetable Oil Company, Abu Dhabi Vegetable Oil Company, Olam Group, United Foods Company.

Asia-Pacific was the largest region in the fats and oils market in 2025. Western Europe was the second-largest region in the fats and oils market. The regions covered in the fats and oils market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the fats and oils market report are China, India, Japan, Australia, Indonesia, South Korea, Bangladesh, Thailand, Vietnam, Malaysia, Singapore, Philippines, Hong Kong, Taiwan, New Zealand, UK, Germany, France, Italy, Spain, Austria, Belgium, Denmark, Finland, Ireland, Netherlands, Norway, Portugal, Sweden, Switzerland, Russia, Czech Republic, Poland, Romania, Ukraine, USA, Canada, Mexico, Brazil, Chile, Argentina, Colombia, Peru, Saudi Arabia, Israel, Iran, Turkey, UAE, Egypt, Nigeria, South Africa.

The fats and oils market consists of sales of tallow, butter, lard, soybean oil, palm oil, sunflower oil, rapeseed oil, and other fats and oils. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods. The fats and oils market is segmented into fats and oils.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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