Cooking Oils Fats Market

Growing awareness of health benefits and risks is Driving Market Growth

Growing awareness of health benefits and risks associated with different types of cooking oils and fats is one of the key drivers of demand for cooking oils and fats. Consumers are becoming more health-conscious and are paying attention to the type of oil or fat they use in their cooking. Consumers are aware that different types of oils and fats have different nutritional properties, and this awareness is driving demand for healthier options.

For example, olive oil is perceived to be a healthier option compared to other oils like vegetable oil or palm oil, due to its high levels of monounsaturated and polyunsaturated fatty acids, and its potential ability to reduce the risk of heart disease. Thus driving the market CAGR.

On the other hand, consumers are also aware of the risks associated with certain types of oils and fats. For example, trans fats, which are commonly found in partially hydrogenated oils, have been linked to an increased risk of heart disease, and have been banned in many countries. Consumers are now actively seeking out products that do not contain trans fats and other harmful oils.

In response to this growing demand for healthier options, many cooking oil and fat manufacturers are introducing new products that are perceived to be healthier, such as oils with lower saturated fat content or with added omega-3 fatty acids. Moreover, according to a survey conducted by the International Food Information Council Foundation, 49% of respondents said that they had changed their cooking oil consumption habits to be more healthful, driven by growing awareness of the health benefits and risks associated with different types of oils.

Such aspect is projected to be a major market driver for Cooking Oils and Fats market revenue.

The Global Cooking Oils and Fats Market Industry is projected to experience substantial growth over the next decade. With a current valuation of 81.4 USD Billion in 2024, the market is anticipated to expand to 129.1 USD Billion by 2035, reflecting a compound annual growth rate (CAGR) of 4.28% from 2025 to 2035. This growth trajectory is influenced by various factors, including rising health consciousness, the expansion of the food service sector, and technological advancements in oil extraction. As consumer preferences evolve and new trends emerge, the market is poised for dynamic changes that will shape its future landscape.

The increasing awareness of health and wellness among consumers is driving the Global Cooking Oils and Fats Market Industry. As individuals become more informed about the nutritional value of cooking oils, there is a noticeable shift towards healthier options such as olive oil, avocado oil, and coconut oil. This trend is supported by a growing preference for oils that contain beneficial fatty acids and antioxidants. The demand for organic and non-GMO oils is also on the rise, reflecting a broader movement towards clean eating. Consequently, the market is projected to reach 81.4 USD Billion in 2024, indicating a robust growth trajectory.

The diverse culinary applications of cooking oils and fats are a key factor propelling the Global Cooking Oils and Fats Market Industry. Oils are not only essential for frying and baking but also play a crucial role in flavor enhancement and food preservation. Different cuisines utilize various oils, leading to a broad spectrum of consumer preferences. For instance, Asian cuisines often favor sesame and peanut oils, while Mediterranean diets emphasize olive oil. This diversity in usage encourages innovation in product offerings, catering to specific culinary needs and preferences. As a result, the market is likely to witness sustained growth driven by these varied applications.

The expansion of the food service sector globally is significantly impacting the Global Cooking Oils and Fats Market Industry. With the proliferation of restaurants, cafes, and fast-food chains, there is an increasing demand for various cooking oils to meet diverse culinary needs. This sector's growth is particularly pronounced in emerging economies, where urbanization and changing lifestyles contribute to higher consumption rates. Additionally, the trend towards convenience foods has led to a surge in the use of frying oils and ready-to-use cooking fats. This dynamic is expected to contribute to the market's growth, with projections indicating a rise to 129.1 USD Billion by 2035.

Sustainability and eco-friendly practices are becoming pivotal drivers in the Global Cooking Oils and Fats Market Industry. Consumers are increasingly demanding products that are produced with minimal environmental impact, leading to a rise in the popularity of sustainably sourced oils. This includes oils derived from crops grown without harmful pesticides and those that support biodiversity. Companies are responding by adopting sustainable sourcing practices and transparent supply chains, which not only appeal to environmentally conscious consumers but also enhance brand loyalty. This shift towards sustainability is expected to influence market dynamics significantly in the coming years.

Technological advancements in oil extraction processes are reshaping the Global Cooking Oils and Fats Market Industry. Innovations such as cold-press extraction and supercritical fluid extraction are enhancing oil quality and yield, thereby attracting consumers seeking premium products. These technologies not only improve the extraction efficiency but also preserve the nutritional properties of oils. As a result, manufacturers are increasingly investing in modern extraction techniques to differentiate their products in a competitive market. This trend is likely to sustain the market's growth, as consumers continue to favor high-quality oils that align with their health-conscious choices.

By Region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World.

Asia-Pacific is home to some of the world's largest consumers of cooking oils and fats, including China, India, and Indonesia. These countries have a rich culinary tradition that relies heavily on oils and fats in cooking, making them major consumers of these products. Additionally, the rising disposable incomes in these countries have led to an increase in demand for higher-quality oils and fats, which are often imported from other regions.  In addition to the large and growing consumer base, the Asia-Pacific region is also home to several major manufacturers of cooking oils and fats.

These companies benefit from the region's large population, which provides a ready market for their products, as well as the lower labor and production costs in the region, which is driving Asia-Pacific Cooking Oils and Fats market.

Further, the major countries studied in the market report are The U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: COOKING OILS AND FATS MARKET SHARE BY REGION 2022 (%)

Source: Secondary Research, Primary Research, Market Research Future Database, and Analyst Review

Europe's Cooking Oils and Fats market accounts for the second-largest market share. Europe has a large and growing population, which provides a ready market for cooking oils and fats. Additionally, the region's changing demographics, such as aging populations and increasing urbanization, are driving changes in consumer habits and preferences, leading to an increased demand for convenience foods and healthier options. Further, the UK Cooking Oils and Fats market held the largest market share, and the Germany Cooking Oils and Fats market was the fastest growing market in the European region.  

The North America Cooking Oils and Fats Market is still a significant market for cooking oils and fats. The region's market size and growth rate are moderate compared to the Asia-Pacific region, which has a larger population and faster economic growth. Nonetheless, there are several factors that contribute to the demand for cooking oils and fats in North America. Moreover, USw Cooking Oils and Fats market held the largest market share, and the Canada Cooking Oils and Fats market was the fastest growing market in the Asia-Pacific region.

The major market players pursuing a variety of market developments that are focusing on developing new products, expanding their geographic reach, and enhancing their production capabilities to meet the growing demand for Cooking Oils and Fats industry. Additionally, they are also investing in research and development to develop healthier and more sustainable products that meet changing consumer preferences. Overall, the Cooking Oils and Fats market is highly competitive, with players competing on factors such as price, quality, and innovation.

The Cooking Oils and Fats market major player such as Bunge Limited (US), Associated British Foods PLC (UK), Conagra Brands Inc. (the US), Archer Daniels Midland Company (US), United Plantations Berhad (Malaysia), IFFCO (UAE), AAK AB (Sweden), Cargill Incorporated (US), James Richardson & Sons Limited (Canada), Wilmar International Ltd (Singapore), and Others.

Bunge Limited is a leading agribusiness and food company based in the United States. Bunge's operations span across five continents and include activities such as sourcing, processing, and distributing grains, oilseeds, and other agricultural products. In addition to its core commodities business, Bunge is also a major player in the Cooking Oils and Fats market. The company offers a wide range of cooking oils and fats, including vegetable oils, specialty oils, and animal fats. Some of its key brands include Delicia, Sanharo, and Salada.

Bunge's cooking oils and fats are used in a variety of applications, including baking, frying, and salad dressings.

Associated British Foods PLC (ABF) is a diversified food, ingredients, and retail company based in the United Kingdom. Within the Ingredients segment, ABF is a major player in the Cooking Oils and Fats market. The company offers a range of cooking oils and fats under its various brands, including Mazola, Flora, and Crisp 'n Dry. Its products include vegetable oils, margarines, and shortenings that are used in a variety of applications, including baking, frying, and food processing.